Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
Home | Franηais

An Act to Amend the New Brunswick Income Tax Act

Legislature :
55
Session :
1
Bill No. :
68
Member :
Hon. Mr. Volpι
First Reading :
2004-6-23
Second Reading :
2004-6-24
Committee of the Whole :
2004-6-25
Amended :
Third Reading :
2004-6-29
Royal Assent :
2004-6-30
Download PDF :
Bill 68

Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                           Section 14 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is repealed and the following is substituted:



14                        For the 2004 taxation year and subsequent taxation years, the tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the "amount taxable", is



(a)               9.68% of the amount taxable if the amount taxable does not exceed $32,183;



(b)               $3,115 plus 14.82% of the amount by which the amount taxable exceeds $32,183 and does not exceed $64,368;



(c)                $7,885 plus 16.52% of the amount by which the amount taxable exceeds $64,368 and does not exceed $104,648; and



(d)               $14,539 plus 17.84% of the amount by which the amount taxable exceeds $104,648.



2                           Section 16.1 of the Act is amended by adding after subsection (1) the following:



16.1(1.1)      This section does not apply to the 2004 taxation year.



3                           Subsection 17(2) of the Act is amended



(a)               by striking out "$7,412" and substituting "$7,756";



(b)               by striking out



$6,293 - (C – $630)



and substituting



$6,586 – (C – $659)



(c)               by striking out "the greater of $630" and substituting "the greater of $659".



4                           Subsection 18(2) of the Act is amended



(a)               by striking out "$7,412" and substituting "$7,756";



(b)               by striking out



$6,293 – (C – $630)



and substituting



$6,586 – (C – $659)



(c)               by striking out "the greater of $630" and substituting "the greater of $659".



5                           Section 19 of the Act is amended by striking out "$7,412" and substituting "$7,756".



6                           Section 20 of the Act is amended



(a)               by repealing subparagraph (1)(b)(ii) and substituting the following:



(ii)       resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual's spouse or common-law partner, and



(b)               in subsection (2)



(i)         by striking out "$15,453" and substituting "$16,172";



(ii)       by striking out "$11,953" and substituting "$12,509".



7                           Subsection 21(2) of the Act is amended



(a)               by striking out "$8,466" and substituting "$8,860";



(b)               by striking out "$4,966" and substituting "$5,197".



8                           Section 23 of the Act is amended



(a)               by striking out "$3,619" and substituting "$3,787";



(b)               by striking out "$26,941" and substituting "$28,193".



9                           Subsection 24(1) of the Act is amended by striking out "For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula" and substituting "For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in New Brunswick on the last day of the taxation year, there may be deducted an amount determined by the formula".



10                        Subsection 26(1) of the Act is amended by striking out "$1,678" and substituting "$1,755".



11                        Subsection 27(1) of the Act is amended



(a)               by striking out "$6,000" and substituting "$6,279";



(b)               by striking out



$3,500 – (D – $2,050)



and substituting



$3,663 – (D – $2,145)



(c)               by striking out "the greater of $2,050" and substituting "the greater of $2,145".



12                        Section 30 of the Act is repealed and the following is substituted:



30(1)               For the purpose of computing an individual's tax payable under this Part for a taxation year, there may be deducted the lesser of



(a)               the individual's unused tuition and education credits at the end of the preceding taxation year, and



(b)               the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32.



30(2)               Subject to subsections (3) and (4), the amount of an individual's unused tuition and education credits at the end of a taxation year is the amount determined by the formula



A + (B – C) – (D + E)



where:



A                         is the amount of the individual's unused tuition and education credits at the end of the preceding taxation year;



B                         is the total of all amounts each of which may be deducted under section 28 or 29 in computing the individual's tax payable under this Part for the year;



C                         is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32;



D                         is the amount that the individual may deduct under subsection (1) for the year; and



E                           is the amount of the tuition and education credits transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.



30(3)               Where an individual was not resident in New Brunswick on the last day of the preceding taxation year, the amount of the individual's unused tuition and education credits at the end of the preceding taxation year is equal to the amount that would be the individual's unused tuition and education credits at the end of the preceding taxation year as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act.



30(4)               For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003, the amount of an individual's unused tuition and education credits at the end of the individual's 2003 taxation year is equal to the amount that would be the individual's unused tuition and education credits at the end of the 2003 taxation year as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act.



30(5)               For the purposes of subsections (3) and (4), the amounts that are determined under the Federal Act shall be used only to the extent that they have not been used in claiming a credit under section 118.5, 118.6 or 118.61 of the Federal Act, or in determining credits transferred under section 118.81 of the Federal Act, for any taxation year.



13                        Section 33 of the Act is repealed and the following is substituted:



33(1)               For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual's spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula



A + B – C



where



A                         is the amount of the tuition and education credits transferred for the year by the spouse or common-law partner to the individual;



B                         is the total of all amounts each of which is deductible under section 23, 24 or 27 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year; and



C                         is the amount, if any, by which



(a)               the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under section 19, 30 or 32,



exceeds



(b)               the lesser of



(i)         the total of all amounts that may be deducted under section 28 or 29 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year, and



(ii)       the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 30 and 32.



33(2)               In subsection (1), the amount of the tuition and education credits transferred for a taxation year by the spouse or common-law partner of an individual to the individual is the lesser of



(a)               the amount determined by the formula



A – B



where



A                  is the lesser of



(i)         the total of all amounts that may be deducted under section 28 or 29 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year, and



(ii)       the amount obtained by multiplying $5,000 by the appropriate percentage for the year, and



B                  is the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 30 and 32, and



(b)               the amount for the year that the spouse or common-law partner designates in writing for the purpose of subsection (1).



33(3)               Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individual's spouse or common-law partner deducts an amount for the year under subsection (1) or section 17 of this Act, section 118 or 118.8 of the Federal Act or similar provisions of an income tax statute of another province, is the only person designated in writing by the individual for the year for the purpose of this subsection, and no other person is designated in writing by the individual for the year for the purpose of section 118.9 of the Federal Act or similar provision of an income tax statute of another province, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent so designated the tuition and education credits transferred for the year by the individual to that parent or grandparent.



33(4)               In subsection (3), the amount of the tuition and education credits transferred for a taxation year by an individual to a parent or grandparent of the individual is the lesser of



(a)               the amount determined by the formula



A – B



where



A                  is the lesser of



(i)         the total of all amounts that may be deducted under section 28 or 29 in computing the individual's tax payable under this Part for the year, or that would be so deductible if the individual were liable under section 11 to pay tax for the year, and



(ii)       the amount obtained by multiplying $5,000 by the appropriate percentage for the year, and



B                  is the amount that would be the individual's tax payable under this Part for the year, or that would be so payable if the individual were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 30 and 32, and



(b)               the amount for the year that the individual designates in writing for the purpose of subsection (3).



14                        Section 36 of the Act is repealed and the following is substituted:



36                        For the purposes of computing tax payable under this Part for a taxation year by an individual who was resident in New Brunswick on the last day of the taxation year, there may be deducted an amount equal to the specific percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year.



15                        Section 49 of the Act is repealed and the following is substituted:



49(1)               Where an individual resided in New Brunswick on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of



(a)               the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of such other country exceeds



(i)         if section 127.5 of the Federal Act does not apply to the individual for the taxation year, the amount deductible from the individual's tax payable under Part I of the Federal Act for that year pursuant to subsection 126(1) of the Federal Act in respect of any non-business-income tax paid to the government of such other country, or



(ii)       if section 127.5 of the Federal Act applies to the individual for the taxation year, the amount of the individual's special foreign tax credit for the year determined under section 127.54 of the Federal Act in respect of any non-business-income tax paid to the government of such other country; and



(b)               that proportion of the tax otherwise payable under this Act for that taxation year that



(i)         the amount, if any, by which the total of the individual's qualifying incomes exceeds the total of the individual's qualifying losses



(A)             for the year, if the individual is resident in Canada throughout the year, and



(B)             for the part of the year throughout which the individual is resident in Canada, if the individual is non-resident at any time in the year,



from sources in that country, on the assumption that



(C)             no businesses were carried on by the individual in that country,



(D)             no amount was deducted under subsection 91(5) of the Federal Act in computing the individual's income for the year, and



(E)               the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the Federal Act for the year,



is of



(ii)       the amount, if any, by which,



(A)             if the individual was resident in Canada throughout the year, the individual's income earned in the taxation year in New Brunswick computed without reference to paragraph 20(1)(ww) of the Federal Act, and



(B)             if the individual was non-resident at any time in the year, the individual's income earned in the taxation year in New Brunswick that is included in the amount determined under paragraph 114(a) of the Federal Act in respect of the individual for the year,



exceeds



(C)             the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) of the Federal Act for the year, in computing the individual's taxable income for the year.



49(2)               For the purposes of subsection (1), the non-business-income tax paid by an individual to the government of a country other than Canada in respect of the individual's income for a taxation year is the non-business-income tax paid by the individual to the government of that country in respect of that year as determined under the definition "non-business-income tax" in subsection 126(7) of the Federal Act.



49(3)               Where an individual's income for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.



49(4)               For the purposes of this section,



(a)               the government of a country other than Canada includes the government of a state, province or other political subdivision of that country;



(b)               if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country; and



(c)                the definitions of "qualifying incomes", "qualifying losses" and "tax-exempt income" in subsection 126(7) of the Federal Act apply.



16                        Subsection 55.1(1) of the Act is amended in the definition "tax calculation change" in subparagraph (a)(ii)



(a)               by striking out "subsection 57(1.1)" and substituting "subsection 57(1.1) or (2)";



(b)               by striking out "subsection 57(1.1) or (2)" and substituting "subsection 57(1.1), (2) or (2.1)".



17                        Section 57 of the Act is amended



(a)               in subsection (1)



(i)         in paragraph (a) in the portion preceding subparagraph (i) by striking out "3.5%" and substituting "2.5%";



(ii)       in paragraph (b) by striking out "14.5%" and "3.5%" and substituting "13%" and "2.5%", respectively;



(b)               in subsection (1.1)



(i)         by repealing paragraph (a);



(ii)       by repealing paragraph (b);



(iii)    in paragraph (c) by striking out the period at the end of the paragraph and substituting ", and ending on June 30, 2004, and";



(iv)      by adding after paragraph (c) the following:



(d)               for the first amount, "$425,000" and, for the second amount, "$1,165" for the period commencing on July 1, 2004.



(c)               by repealing subsection (2) and substituting the following:



57(2)               The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $400,000 for the period commencing on January 1, 2003.



(d)               by adding after subsection (2) the following:



57(2.1)          Notwithstanding subsection (2), the business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $425,000 for the period commencing on July 1, 2004.



(e)               by repealing subsection (3);



(f)                by repealing subsection (4).



18                        Section 59 of the Act is amended by adding after subsection (1) the following:



59(1.1)          For the purposes of the definition "eligible expenditure" in subsection (1), the reference to "government assistance" in subsections 127(18), (19) and (20) of the Federal Act does not include the research and development tax credit under this section.



19                        The heading "Reciprocal enforcement of judgments" preceding section 96 of the Act is repealed and the following is substituted:



Enforcement of judgments



20                        Section 96 of the Act is amended



(a)               in subsection (1) by striking out "Reciprocal Enforcement of Judgments Act" and substituting "Canadian Judgments Act";



(b)               by repealing subsection (2).



21(1)               Sections 1 to 5, paragraph 6(b) and sections 7 to 14 of this Act shall be deemed to have come into force on January 1, 2004.



21(2)               Paragraph 6(a) of this Act shall be deemed to have come into force on January 1, 2001.



21(3)               Section 15, paragraphs 16(a) and 17(c) and (f) and section 18 of this Act shall be deemed to have come into force on January 1, 2003.



21(4)               Paragraph 16(b) and paragraphs 17(a), (b), (d) and (e) of this Act come into force on July 1, 2004.



21(5)               Sections 19 and 20 of this Act shall be deemed to have come into force on September 1, 2003.

EXPLANATORY NOTES



Section 1



The existing provision is as follows:



14(1)               The tax payable under this Part for the 2000 taxation year by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the "amount taxable", is



(a)               9.94% of the amount taxable if the amount taxable does not exceed $29,590;



(b)               $2,941 plus 15.21% of the amount by which the amount taxable exceeds $29,590 and does not exceed $59,180; and



(c)                $7,442 plus 16.96% of the amount by which the amount taxable exceeds $59,180.



14(2)               The tax payable under this Part for the 2001 taxation year and subsequent taxation years by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the "amount taxable", is



(a)               9.68% of the amount taxable if the amount taxable does not exceed $30,754;



(b)               $2,977 plus 14.82% of the amount by which the amount taxable exceeds $30,754 and does not exceed $61,509;



(c)                $7,535 plus 16.52% of the amount by which the amount taxable exceeds $61,509 and does not exceed $100,000; and



(d)               $13,894 plus 17.84% of the amount by which the amount taxable exceeds $100,000.



Section 2



New provision.



Section 3



(a) to (c) The existing provision is as follows:



17(2)               For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula



A ΄ B



where



A                         is the appropriate percentage for the year; and



B                         is the total of



(a)               $7,412, and



(b)               the amount determined by the formula



$6,293 – (C – $630)



where



C                  is the greater of $630 and the income of the individual's spouse or common-law partner for the year or, where the individual and his or her 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 income of the spouse or common-law partner for the year while married or in the common-law partnership and not so separated.



Section 4



(a) to (c) The existing provision is as follows:



18(2)               For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula



A ΄ B



where



A                         is the appropriate percentage for the year; and



B                         is the total of



(a)               $7,412, and



(b)               the amount determined by the formula



$6,293 – (C – $630)



where



C                  is the greater of $630 and the dependent person's income for the year.



Section 5



The existing provision is as follows:



19                        Except in the case of an individual entitled to a deduction under section 17 or 18, for the purpose of computing the tax payable under this Part for a taxation year by an individual, there may be deducted an amount determined by the formula



A ΄ B



where



A                         is the appropriate percentage for the year; and



B                         is $7,412.



Section 6



(a)               The existing provision is as follows:



20(1)               This section applies to an individual who, at any time in the taxation year alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of a particular person....



(b)               who is....



(ii)       resident in Canada and is the individual's parent, grandparent, brother, sister, aunt, uncle, nephew or niece, and



(b)(i) and (ii)    The existing provision is as follows:



20(2)               For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula



A ΄ B



where



A                         is the appropriate percentage for the year; and



B                         is the amount determined by the formula



$15,453 – C



where



C                  is the greater of $11,953 and the particular person's income for the year.



Section 7



(a) and (b)            The existing provision is as follows:



21(2)               For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula



A ΄ B



where



A                         is the appropriate percentage for the year; and



B                         is the amount determined by the formula



$8,466 – C



where



C                  is the greater of $4,966 and the dependant's income for the year.



Section 8



(a) and (b)            The existing provision is as follows:



23                        For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula



A ΄ ($3,619 – B)



where



A                         is the appropriate percentage for the year; and



B                         is 15% of the amount, if any, by which the individual's income for the year would exceed $26,941 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income.



Section 9



The existing provision is as follows:



24(1)               For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula....



Section 10



The existing provision is as follows:



26(1)               For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.2(1) of the Federal Act for the year, there may be deducted an amount determined by the formula



A ΄ (B–C) – D



where



A                         is the appropriate percentage for the year;



B                         is the amount determined for B in the formula in subsection 118.2(1) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year;



C                         is the lesser of $1,678 and 3% of the individual's income for the year; and



D                         is 41.14% of the total of all amounts each of which is the amount, if any, by which



(a)               the income for the year of a person, other than the individual and the individual's spouse or common-law partner, in respect of whom an amount is included in computing the individual's deduction under this section for the year,



exceeds



(b)               the amount used for B in section 19 for the year.



Section 11



(a) to (c) The existing provision is as follows:



27(1)               Where an individual is entitled to deduct an amount under subsection 118.3(1) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula



A ΄ (B+C)



where



A                         is the appropriate percentage for the year;



B                         is $6,000; and



C                         is



(a)               where the individual has not attained 18 years of age before the end of the year, the amount determined by the formula



$3,500 – (D – $2,050)



where



D                  is the greater of $2,050 and the total amount paid in the year for the care and supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 of the Federal Act for a taxation year, and



(b)               where the individual has attained 18 years of age before the end of the year, nil.



Section 12



The existing provision is as follows:



30                        Where an individual is entitled to deduct an amount under subsection 118.61(2) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purpose of computing the tax payable for a taxation year under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula



A
   
B


   
C






where



A                         is the appropriate percentage for the taxation year as defined in section 13;



B                         is the amount deducted by the individual for the taxation year under subsection 118.61(2) of the Federal Act; and



C                         is the appropriate percentage for the taxation year as defined in the Federal Act.



Section 13



The existing provision is as follows:



33(1)               Sections 118.8 and 118.81 of the Federal Act apply for the purposes of this Act, except that the reference to $850, or to the amount that it is amended to read, in subparagraph (ii) of the description of A in paragraph 118.81(a) of the Federal Act shall be read as a reference to,



(a)               for the 2000 taxation year, $497 for the purposes of this Act, and



(b)               for the 2001 and subsequent taxation years, $484 for the purposes of this Act.



33(2)               Section 118.9 of the Federal Act applies for the purposes of this Act.



33(3)               Notwithstanding subsections (1) and (2), for the purpose of section 118.81 of the Federal Act, as that section applies for the purposes of this Act, where a person did not reside in New Brunswick on the last day of the taxation year, the tuition and education tax credits transferred for the taxation year by the person to an individual shall be deemed to equal the amount determined by the formula



A
   
B


   
C






where



A                         is the appropriate percentage for the taxation year as defined in section 13;



B                         is the amount determined by the individual for the taxation year under section 118.81 of the Federal Act; and



C                         is the appropriate percentage for the taxation year as defined in the Federal Act.



33(4)               Notwithstanding subsections (1) and (2), for the purpose of section 118.8 of the Federal Act, as that section applies for the purposes of this Act, where in a taxation year an individual's spouse or common-law partner did not reside in New Brunswick on the last day of the taxation year,



(a)               the amount for B in the formula in section 118.8 of the Federal Act, as that section applies for the purposes of this Act, for the individual for the taxation year shall be equal to the amount determined by the formula



A
   
B


   
C






where



A                  is the appropriate percentage for the taxation year as defined in section 13;



B                  is the amount determined by the individual for the taxation year for B in the formula in section 118.8 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year; and



C                  is the appropriate percentage for the taxation year as defined under the Federal Act; and



(b)               the amount for C in the formula in section 118.8 of the Federal Act, as that section applies for the purposes of this Act, for the individual for the taxation year shall be equal to the amount, if any, by which



(i)         the amount that would be the spouse's or common-law partner's tax payable under this Part for the taxation year if no amount were deductible under this Division, other than an amount deductible under section 19, 30 or 32,



exceeds



(ii)       the lesser of



(A)             the total of all amounts that may be deducted under section 28 or 29 in computing the spouse's or common-law partner's tax payable under this Part for the taxation year, and



(B)             the amount that would be the spouse's or common-law partner's tax payable under this Part for the taxation year if no amount were deductible under this Division, other than an amount deductible under sections 17 to 24, 27, 30 or 32.



33(5)               In applying this section to the 2000 taxation year, subsection (4) shall be read without reference to "or common-law partner" wherever it appears, unless the individual and his or her common-law partner have made an election under section 144 of the Modernization of Benefits and Obligations Act (Canada).



Section 14



The existing provision is as follows:



36                        For the purposes of computing tax payable under this Part by an individual for a taxation year, there may be deducted an amount equal to the specific percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year.



Section 15



The existing provision is as follows:



49(1)               Where an individual resided in New Brunswick on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of



(a)               the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of such other country exceeds the aggregate of all amounts, each of which is an amount claimed by the individual as a deduction for that year under subsection 126(1) or 180.1(1.1) of the Federal Act; and



(b)               that proportion of the tax otherwise payable under this Act for that taxation year that



(i)         the aggregate of the individual's incomes from sources in that country, excluding any portion thereof that was deductible by the individual for the year under subparagraph 110(1)(f)(i) of the Federal Act or in respect of which an amount was deductible by the individual under section 110.6 of the Federal Act



(A)             if section 114 of the Federal Act is not applicable, for that year, or



(B)             if section 114 of the Federal Act is applicable, for the period or periods in the year referred to in paragraph 114(a) of the Federal Act,



on the assumption that



(C)             no businesses were carried on by the individual in that country,



(D)             no amount was deducted under subsection 91(5) of the Federal Act in computing the individual's income for the year, and



(E)               the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the Federal Act for the year,



is of



(ii)       the individual's income earned in New Brunswick



(A)             if section 114 of the Federal Act is not applicable, in the year, or



(B)             if section 114 of the Federal Act is applicable, in the period or periods of the year referred to in paragraph 114(a) of the Federal Act,



minus any amounts deducted by the individual under section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible by the individual under paragraph 110(1)(d), (d.1), (d.3), (f) or (j) or section 112 of the Federal Act for the year or in respect of such period or periods, as the case may be.



49(2)               For the purposes of subsection (1), the non-business-income tax paid by an individual to the government of a country other than Canada in respect of the individual's income for a taxation year is the non-business-income tax paid by the individual to the government of that country in respect of that year as determined under the definition "non-business-income tax" in subsection 126(7) of the Federal Act.



49(3)               For the purposes of subsection (1), "tax payable" and "tax otherwise payable" by an individual for a taxation year mean the amount that would, but for section 127.4 of the Federal Act, be the tax otherwise payable under this Act by the individual for the taxation year.



Section 16



(a)               The amendment is consequential on the amendment made in paragraph 17(c) of this amending Act. The existing definition is as follows:



"tax calculation change" means



(a)               in relation to a corporation to which section 57 applies,



(i)         the enactment of subsection 57(1.1),



(ii)       any amendment to this Act that effects a change to any amount expressed in dollars that is referred to in subsection 57(1.1), or



(iii)    any amendment to this Act that effects a change to any rate referred to in section 57, or



(b)               in relation to any other corporation, any amendment to this Act that effects a change to any rate referred to in section 55.



(b)               The amendment is consequential on the amendment made in paragraph 17(d) of this amending Act.



Section 17



(a)(i) and (ii)    The existing provision is as follows:



57(1)               Notwithstanding section 55, for a year when a corporation has been allowed a deduction from the tax payable under the provisions of subsection 125(1) of the Federal Act, the corporation shall pay tax equal to the aggregate of



(a)               3.5% of the amount that is the proportion of the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year that



(i)         the amount of its taxable income earned in the year in New Brunswick,



bears to



(ii)       the total amount of the portions of its taxable income earned in the year in all provinces, determined in accordance with the Federal Regulations made for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act, and



(b)               14.5% of an amount calculated by deducting from the total taxable income earned in the year in New Brunswick the amount on which the 3.5% rate is applied in paragraph (a).



(b)(i) to (iv)       The existing provision is as follows:



57(1.1)          For the purposes of subsection (1), where a corporation is a member of a partnership, the amount determined pursuant to paragraph 125(1)(a) of the Federal Act, in relation to a corporation for each taxation year, shall be the amount that would be the corporation's specified partnership income within the meaning of subsection 125(7) of the Federal Act if the amounts expressed in dollars in the description of "M" in the definition of "specified partnership income" in that subsection were read as



(a)               for the first amount, "$300,000" and, for the second amount, "$822" for the period commencing on January 1, 2001, and ending on June 30, 2002,



(b)               for the first amount, "$350,000" and, for the second amount, "$959" for the period commencing on July 1, 2002, and ending on December 31, 2002, and



(c)                for the first amount, "$400,000" and, for the second amount, "$1,096" for the period commencing on January 1, 2003.



(c)                The existing provision is as follows:



57(2)               The business limit for the purposes of subsection (1) shall be deemed to be 175% of the amount of the business limit otherwise determined under section 125 of the Federal Act.



(d)               New provision.



(e)                The existing provision is as follows:



57(3)               Effective January 1, 2003, the references to "3.5%" and "14.5%" in subsection (1) shall be read as references to "3%" and "13%", respectively.



(f)                The existing provision is as follows:



57(4)               Effective January 1, 2003, the reference to "175%" in subsection (2) shall be read as a reference to "200%".



Section 18



New provision.



Section 19



A heading is changed. The amendment is consequential on the amendments made in section 20 of this amending Act.



Section 20



(a)               The existing provision is as follows:



96(1)               A judgment of a superior court of another agreeing province under that province's income tax statute, including any certificate registered in such superior court in a manner similar to that provided in subsection 223(3) of the Federal Act, as it applies for the purposes of this Act, may be enforced in the manner provided in the Reciprocal Enforcement of Judgments Act.



(b)               The existing provision is as follows:



96(2)               For the purposes of subsection (1), where a judgment of a superior court of another agreeing province is sought to be registered under the Reciprocal Enforcement of Judgments Act, the judgment shall be registered, notwithstanding that it is established that one or more of the provisions of section 3 of that Act apply.



Section 21



Commencement provision.

 

Legislative Assembly of New Brunswick
Email | Contacts |
Disclaimer