BILL 54



An Act to Amend the Income Tax Act

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

1Paragraph 27.3(2)(b) of the Income Tax Act, chapter I-2 of the Revised Statutes, 1973, is amended by striking out "employed in Canada".

2The Act is amended by adding after section 27.7 the following:

27.8Notwithstanding any other provision of this Act, the amount of tax payable under this Part shall not be reduced by any tax credit provided under this Act.

3This Act shall be deemed to have come into force on February 28, 1997.

EXPLANATORY NOTES

Section 1

The existing provision is as follows:

27.3(2)The taxable capital employed in New Brunswick by a corporation for a taxation year is equal to ....

(b)where the corporation has a permanent establishment situated outside New Brunswick, that proportion determined under subsection (3) of the difference between its taxable capital employed in Canada for the year under subsection (4) and its capital deduction for the year under section 27.4.

Section 2

The amount of the tax under Part I.1 of the Income Tax Act will not be reduced by any tax credit provided under that Act.

Section 3

Commencement provision.

Chapter Outline Update

Section 1

No change required.

Section 2

Add after s.27.7 the following:

Tax credits 27.8

Section 3

No change required.

Endorse: Hon. Edmond P. Blanchard, Q.C.


Last Modified: 10:28am , February 12, 1998