Marginal note:Annual adjustment

• 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amounts of $500 and $1,000 referred to in the description of A, and the amounts of $9,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $250 referred to in the description of C, and the amounts of $12,833 and $21,167 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

• (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 and if the child had no income for the year, $2,000 for each such child.

• Marginal note:Where subsection (5) does not apply

  (5.1) Where, if this Act were read without reference to this subsection, solely because of the application of subsection (5), no individual is entitled to a deduction under paragraph (b) or (b.1) of the description of B in subsection (1) for a taxation year in respect of a child, subsection (5) shall not apply in respect of that child for that taxation year.

• (b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization

  • (i) on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days, or

  • (ii) on an unlimited number of occasions during an uninterrupted period of at least five consecutive days, if the combination of that document and one or more other such documents gives the right to the individual to use those public commuter transit services on at least 20 days in a 28-day period.

“eligible electronic payment card”

« carte de paiement électronique admissible »

“eligible electronic payment card” means an electronic payment card that is

• (a) used by an individual for at least 32 one-way trips, between the place of origin of the trip and its termination, during an uninterrupted period not exceeding 31 days, and

• (b) issued by or on behalf of a qualified Canadian transit organization, which organization records and receipts the cost and usage of the electronic payment card and identifies the right, of the individual who is the holder or owner of such a card, to use public commuter transit services of that qualified Canadian transit organization.

C

is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year by the individual or by a person who is in the taxation year a qualifying relation of the individual, and

• Marginal note:Apportionment of credit

  (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass or of an eligible electronic payment card, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible public transit pass or eligible electronic payment card if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

“qualifying child”

« enfant admissible »

“qualifying child” of an individual for a taxation year means a child of the individual who is, at the beginning of the taxation year,

• (a) under 16 years of age; or

• (b) in the case where an amount is deductible under section 118.3 in computing any person’s tax payable under this Part for the taxation year in respect of that child, under 18 years of age.

“qualifying entity”

« entité admissible »

“qualifying entity” means a person or partnership that offers one or more prescribed programs of physical activity.

“eligible fitness expense”

« dépense admissible pour activités physiques »

“eligible fitness expense” in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a prescribed program of physical activity and, for the purposes of this section, that cost

• Marginal note:Child fitness tax credit — child with disability

  (2.1) For the purpose of computing the tax payable under this Part by an individual for a taxation year there may be deducted in respect of a qualifying child of the individual an amount equal to $500 multiplied by the appropriate percentage for the taxation year if

  • (a) the amount referred to in the description of B in subsection (2) is $100 or more; and

  • (b) an amount is deductible in respect of the qualifying child under section 118.3 in computing any person’s tax payable under this Part for the taxation year.

• Marginal note:Exchange of beneficial interest in trust

  (14.1) Where a donee disposes of a beneficial interest in a trust that is a non-qualifying security of an individual in circumstances where paragraph (13)(c) would, but for this subsection, apply in respect of the disposition, and in respect of which the donee receives no consideration other than other non-qualifying securities of the individual, for the purpose of subsection (13) the gift referred to in that subsection is to be read as a reference to a gift of those other non-qualifying securities.

• (ii) the individual or any person or partnership with which the individual does not deal at arm’s length uses property of the donee under an agreement that was made or modified after the time that is 60 months before the particular time, and the property was not used in the carrying on of the donee’s charitable activities,

• (b) a share (other than a share listed on a designated stock exchange) of the capital stock of a corporation with which the individual or the estate or, where the individual is a trust, a person affiliated with the trust, does not deal at arm’s length immediately after that time;

• (b.1) a beneficial interest of the individual or the estate in a trust that

  • (i) immediately after that time is affiliated with the individual or the estate, or

  • (ii) holds, immediately after that time, a non-qualifying security of the individual or estate, or held, at or before that time, a share described in paragraph (b) that is, after that time, held by the donee; or

• (c) any other security (other than a security listed on a designated stock exchange) issued by the individual or the estate or by any person or partnership with which the individ-ual or the estate does not deal at arm’s length (or, in the case where the person is a trust, with which the individual or estate is affiliated) immediately after that time.

• (A) subsection 117(2.1), section 119, subsection 120.4(2) and sections 126, 127, 127.4 and 127.41, and

• (d) at no time in the taxation year is the total fair market value of all properties held by the trust, each of which is a real or immovable property situated in Canada, cash, or a property described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3), less than 75% of the equity value of the trust at that time.

Subdivision a.2Working Income Tax Benefit

Marginal note:Definitions

• 122.7 (1) The following definitions apply in this section.

  “adjusted net income”

  « revenu net rajusté »

  “adjusted net income” of an individual for a taxation year means the amount that would be the individual’s income for the taxation year if

  • (a) this Act were read without reference to paragraph 81(1)(a) and subsection 81(4);

  • (b) in computing that income, no amount were included under paragraph 56(1)(q.1) or subsection 56(6), or in respect of any gain from a disposition of property to which section 79 applies; and

  • (c) in computing that income, no amount were deductible under paragraph 60(y) or (z).

  “cohabiting spouse or common-law partner”

  « conjoint visé »

  “cohabiting spouse or common-law partner” of an individual at any time has the meaning assigned by section 122.6.

  “designated educational institution”

  « établissement d’enseignement agréé »

  “designated educational institution” has the meaning assigned by subsection 118.6(1).

  “eligible dependant”

  « personne à charge admissible »

  “eligible dependant” of an individual for a taxation year means a child of the individual who, at the end of the year,

  • (a) resided with the individual;

  • (b) was under the age of 19 years; and

  • (c) was not an eligible individual.

  “eligible individual”

  « particulier admissible »

  “eligible individual” for a taxation year means an individual (other than an ineligible individ-ual) who was resident in Canada throughout the taxation year and who was, at the end of the taxation year,

  • (a) 19 years of age or older;

  • (b) the cohabiting spouse or common-law partner of another individual; or

  • (c) the parent of a child with whom the individual resides.

  “eligible spouse”

  « conjoint admissible »

  “eligible spouse” of an eligible individual for a taxation year means an individual (other than an ineligible individual) who was resident in Canada throughout the taxation year and who was, at the end of the taxation year, the cohabiting spouse or common-law partner of the eligible individual.

  “ineligible individual”

  « particulier non admissible »

  “ineligible individual” for a taxation year means an individual

  • (a) who is described in paragraph 149(1)(a) or (b) at any time in the taxation year;

  • (b) who, except where the individual has an eligible dependant for the taxation year, was enrolled as a full-time student at a designated educational institution for a total of more than 13 weeks in the taxation year; or

  • (c) who was confined to a prison or similar institution for a period of at least 90 days during the taxation year.

  “return of income”

  « déclaration de revenu »

  “return of income” filed by an individual for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the individual had tax payable under this Part for the taxation year.

  “working income”

  « revenu de travail »

  “working income” of an individual for a taxation year means the total of

  • (a) the total of all amounts each of which would, if this Act were read without reference to section 8, paragraph 81(1)(a) and subsection 81(4), be the individual’s income for the taxation year from an office or employment;

  • (b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of paragraph 56(1)(n) or (o) in computing the individual’s income for the taxation years; and

  • (c) the total of all amounts each of which would, if this Act were read without reference to paragraph 81(1)(a), be the individual’s income for the taxation year from a business carried on by the individual otherwise than as a specified member of a partnership.

• Marginal note:Deemed payment on account of tax

  (2) Subject to subsections (4) and (5), an eligible individual for a taxation year who files a return of income for the taxation year and who makes a claim under this subsection, is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

  A - B

  where

  A

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $500 and 20% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $1,000 and 20% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse of the individual, for the taxation year, exceeds $3,000; and

  B

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $9,500, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if appli-cable, of the eligible spouse of the individual, for the taxation year, exceeds $14,500.

• Marginal note:Deemed payment on account of tax — disability supplement

  (3) An eligible individual for a taxation year who files a return of income for the taxation year and who may deduct an amount under subsection 118.3(1) in computing tax payable under this Part for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

  C - D

  where

  C

  is the lesser of $250 and 20% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,750, and

  D

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $12,833,

  • (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if appli-cable, of the eligible spouse, for the taxation year, exceeds $21,167, or

  • (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $21,167.

• Marginal note:Eligible spouse deemed not to be an eligible individual

  (4) An eligible spouse of an eligible individ-ual for a taxation year is deemed, for the purpose of subsection (2), not to be an eligible individual for the taxation year if the eligible spouse made a joint application described in subsection (6) with the eligible individual and the eligible individual received an amount under subsection (7) in respect of the taxation year.

• Marginal note:Amount deemed to be nil

  (5) If an eligible individual had an eligible spouse for a taxation year and both the eligible individual and the eligible spouse make a claim for the taxation year under subsection (2), the amount deemed to have been paid under that subsection by each of them on account of tax payable under this Part for the taxation year, is nil.

• Marginal note:Application for advance payment

  (6) Subsection (7) applies to an individual for a taxation year if,

  • (a) at any time after January 1 and before September 1 of the taxation year, the individual makes an application (or in the case of an individual who has, at that time, a cohabiting spouse or common-law partner, the two of them make a joint application designating the individual for the purpose of subsection (7)), to the Minister in prescribed form, containing prescribed information; and

  • (b) where the individual and a cohabiting spouse or common-law partner have made a joint application referred to in paragraph (a)

    • (i) the individual’s working income for the taxation year can reasonably be expected to be greater than the working income of the individual’s cohabiting spouse or common-law partner for the taxation year, or

    • (ii) the individual can reasonably be expected to be deemed by subsection (3) to have paid an amount on account of tax payable under this Part for the taxation year.

• Marginal note:Advance payment

  (7) Subject to subsection (8), the Minister may pay to an individual before the end of January of the year following a taxation year, one or more amounts that, in total, do not exceed one-half of the total of the amounts that the Minister estimates will be deemed to be paid by the individual under subsection (2) or (3) at the end of the taxation year, and any amount paid by the Minister under this subsection is deemed to have been received by the individual in respect of the taxation year.

• Marginal note:Limitation — advance payment

  (8) No payment shall be made under subsection (7) to an individual in respect of a taxation year

  • (a) if the total amount that the Minister may pay under that subsection is less than $100; or

  • (b) before the day on which the individual has filed a return of income for a preceding taxation year in respect of which the individual received a payment under that subsection.

• Marginal note:Notification to Minister

  (9) If, in a taxation year, an individual makes an application described in subsection (6), the individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs

  • (a) the individual ceases to be resident in Canada in the taxation year;

  • (b) the individual ceases, before the end of the taxation year, to be a cohabiting spouse or common-law partner of another person with whom the individual made the application;

  • (c) the individual enrols as a full-time student at a designated educational institution in the taxation year; or

  • (d) the individual is confined to a prison or similar institution in the taxation year.

• Marginal note:Special rule re eligible dependant

  (10) For the purpose of applying subsections (2) and (3), an individual (referred to in this subsection as the “child”) is deemed not to be an eligible dependant of an eligible individual for a taxation year if the child is an eligible dependant of another eligible individual for the taxation year and both eligible individuals identified the child as an eligible dependant for the purpose of claiming or computing an amount under this section for the taxation year.

• Marginal note:Effect of bankruptcy

  (11) For the purpose of this subdivision, if an individual becomes bankrupt in a particular calendar year

  • (a) notwithstanding subsection 128(2), any reference to the taxation year of the individ-ual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

  • (b) the individual’s working income and adjusted net income for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and adjusted net income for the taxation year that begins on January 1 of the particular calendar year.

• Marginal note:Special rules in the event of death

  (12) For the purpose of this subdivision, if an individual dies after June 30 of a calendar year

  • (a) the individual is deemed to be resident in Canada from the time of death until the end of the year and to reside at the same place in Canada as the place where the individual resided immediately before death;

  • (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year;

  • (c) the individual is deemed to be the cohabiting spouse or common-law partner of another individual (referred to in this paragraph as the “surviving spouse”) at the end of the year if,

    • (i) immediately before death, the individ-ual was the cohabiting spouse or common-law partner of the surviving spouse, and

    • (ii) the surviving spouse is not the cohab-iting spouse or common-law partner of another individual at the end of the year; and

  • (d) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.

Marginal note:Modification for purposes of provincial program

122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.