Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
9. (1) Paragraph (a) of the description of B in subsection 118(1) of the Act is replaced by the following:
Marginal note:Married or common-law partnership status
(a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of
(i) $7,131, and
(ii) the amount determined by the formula
$6,055 - C
where
- C
- is the income of the individual’s spouse or common-law partner for the year or, where the individual and the individ-ual’s spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse’s income for the year while married to, or in a common-law partnership with, the individual and not so separated,
(2) The portion of paragraph 118(1)(b) of the French version of the Act before subparagraph (i) is replaced by the following:
Marginal note:Crédit équivalent pour personne entièrement à charge
b) le total de 7 131 $ et de la somme obtenue par la formule suivante :
6 055 $ - D
où :
- D
- représente le revenu d’une personne à charge pour l’année,
si le particulier ne demande pas de déduction pour l’année par l’effet de l’alinéa a) et si, à un moment de l’année :
(3) Subparagraph (b)(iv) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following:
(iv) the amount determined by the formula
$6,055 - D
where
- D
- is the dependent person’s income for the year,
(4) The description of B in subsection 118(1) of the Act is amended by adding the following after paragraph (b):
Marginal note:Child amount
(b.1) where
(i) a child of the individual ordinarily resides throughout the taxation year with the individual together with another parent of the child, $2,000 for each such child who is under the age of 18 years at the end of the taxation year, or
(ii) except where subparagraph (i) applies, the individual may deduct an amount under paragraph (b) in respect of the individual’s child who is under the age of 18 years at the end of the taxation year, or could deduct such an amount in respect of that child if paragraph 118(4)(a) did not apply to the individual for the taxation year, $2,000 for each such child,
(5) The formula in subsection 118(2) of the Act is replaced by the following:
A × ($5,066 - B)
(6) The description of B in subsection 118(3) of the Act is replaced by the following:
- B
- is the lesser of $2,000 and the eligible pension income of the individual for the taxation year.
(7) Paragraphs 118(3.2)(c) to (e) of the Act are replaced by the following:
(c) for the 2007 taxation year, to be replaced by $8,929;
(d) for the 2008 taxation year, to be replaced by the amount that is the total of $200 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);
(e) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the total of $600 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and
(ii) $10,000; and
(8) Subsection 118(3.3) of the Act is repealed.
(9) Paragraph 118(4)(b) of the Act is replaced by the following:
(b) not more than one individual is entitled to a deduction under subsection (1) because of paragraph (b) or (b.1) of the description of B in that subsection for a taxation year in respect of the same person or the same domestic establishment and where two or more individuals otherwise entitled to such a deduction fail to agree as to the individual by whom the deduction may be made, no such deduction for the year shall be allowed to either or any of them;
(10) The portion of subsection 118(7) of the Act before the definition “pension income” is replaced by the following:
Marginal note:Definitions
(7) Subject to subsections (8) and (8.1), for the purposes of this subsection and subsection (3),
(11) Subsection 118(7) of the Act is amended by adding the following in alphabetical order:
“eligible pension income”
« revenu de pension déterminé »
“eligible pension income” of an individual for a taxation year means
(a) if the individual has attained the age of 65 years before the end of the taxation year, the pension income received by the individ-ual in the taxation year, and
(b) if the individual has not attained the age of 65 years before the end of the taxation year, the qualified pension income received by the individual in the taxation year;
(12) The portion of subsection 118(8) of the Act before paragraph (a) is replaced by the following:
Marginal note:Interpretation
(8) For the purposes of subsection (7), “pension income” and “qualified pension income” received by an individual in a taxation year do not include any amount that is
(13) Paragraph 118(8)(d) of the Act is replaced by the following:
(d) the amount, if any, by which
(i) an amount required to be included in computing the individual’s income for the year
exceeds
(ii) the amount, if any, by which the amount referred to in subparagraph (i) exceeds the total of all amounts deducted (other than under paragraph 60(c)) by the individual for the year in respect of that amount;
(14) Subsection 118(8) of the Act is amended by adding the word “or” at the end of paragraph (e) and by adding the following after that paragraph:
(f) a payment (other than a payment under the Judges Act or the Lieutenant Governors Superannuation Act) received out of or under an unfunded supplemental plan or arrangement, being a plan or arrangement where
(i) the payment was in respect of services rendered to an employer by the individual or the individual’s spouse or common-law partner or former spouse or common-law partner as an employee, and
(ii) the plan or arrangement would have been a retirement compensation arrangement or an employee benefit plan had the employer made a contribution in respect of the payment to a trust governed by the plan or arrangement.
(15) Subsection 118(9) of the Act is replaced by the following:
Marginal note:Bridging benefits
(8.1) For the purposes of subsection (7), a payment in respect of a life annuity under a superannuation or pension plan is deemed to include a payment in respect of bridging benefits, being benefits payable under a registered pension plan on a periodic basis and not less frequently than annually to an individual where
(a) the individual or the individual’s spouse or common-law partner or former spouse or common-law partner was a member (as defined in subsection 147.1(1)) of the registered pension plan;
(b) the benefits are payable for a period ending no later than the end of the month following the month in which the member attains 65 years of age or would have attained that age if the member had survived to that day; and
(c) the amount (expressed on an annualized basis) of the benefits payable to the individual for a calendar year does not exceed the total of the maximum amount of benefits payable for that year under Part I of the Old Age Security Act and the maximum amount of benefits (other than disability, death or survivor benefits) payable for that year under either the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act.
Marginal note:Rounding
(9) If an amount determined under any of paragraphs (3.1)(a) to (f) and (3.2)(a) to (f) is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the greater multiple.
Marginal note:Child tax credit
(9.1) For greater certainty, in the case of a child who in a taxation year is born, adopted or dies, the reference to “throughout the taxation year” in subparagraph 118(1)(b.1)(i) is to be read as a reference to “throughout the portion of the taxation year that is after the child’s birth or adoption or before the child’s death”.
(16) Subsections (1) to (4) and (6) to (15) apply to the 2007 and subsequent taxation years.
(17) Subsection (5) applies to the 2006 and subsequent taxation years.
10. (1) The description of B in section 118.8 of the Act is replaced by the following:
- B
- is the total of all amounts each of which is deductible under subsection 118(1), because of paragraph (b.1) of the description of B in that subsection, or subsection 118(2) or (3) or 118.3(1) in computing the spouse’s or common-law partner’s tax payable under this Part for the year; and
(2) Subsection (1) applies to the 2007 and subsequent taxation years.
- Date modified: