BILL 14

New Brunswick Income Tax Act

Chapter Outline

Definitions 1

agreeing province - province participante

collection agreement - arrangement relatif à la perception

Commissioner of Customs and Revenue - commissaire des douanes et du revenu

Court - Cour

deputy head - administrateur général

Federal Act - loi fédérale

Federal ITAR - RAIR fédérales

Federal Regulations - règlements fédéraux

income tax statute - loi de l'impôt sur le revenu

individual - particulier

Minister - Ministre

Minister of Finance - ministre des Finances

permanent establishment - établissement stable

prescribed - prescrit

province - province

Receiver General - receveur général

regulation - règlement

taxation year - année d'imposition

Last day of taxation year 2

Tax payable 3

Federal definitions and interpretations 4

Consistency with Federal Act 5

Application of Federal Act 6

Modifications for application of Federal Act 7

Application of federal provisions and amendments 8

Application of Act 9

Exemption 10

PART I

INCOME TAX

Division A

Liability for Tax

Liability of individual 11

Liability of corporation 12

Division B

Individual Income Tax

Subdivision a

Computation of Tax

Definitions 13

appropriate percentage - taux de base pour l'année

highest percentage - taux le plus élevé

income earned in the taxation year in New Brunswick - revenu gagné au Nouveau-Brunswick dans l'année d'imposition

income earned in the taxation year outside New Brunswick - revenu gagné hors du Nouveau-Brunswick dans l'année d'imposition

income for the year - revenu pour l'année

specific percentage - taux spécifique

tax payable under the Federal Act - impôt payable en vertu de la loi fédérale

Amount of tax payable 14

Specific percentage 15

Subdivision b

Adjustments to Tax

CPP/QPP disability benefits and other lump sum payments for previous years 16

Subdivision c

Tax Credits and Deductions

Married status credit 17

Equivalent to spouse credit (wholly dependent person) 18

Single status credit 19

In-home care of relative credit 20

Dependants credit 21

Additional amount for dependants 22

Age credit 23

Pension credit 24

Charitable gifts credit 25

Medical expense credit 26

Credit for mental or physical impairment 27

Tuition credit 28

Education credit 29

Unused tuition and education credits 30

Credit for interest on student loan 31

Credit for EI premium and CPP contribution 32

Transfer of tax credits 33

Minimum tax carry-over 34

Deduction for taxable dividends 35

Overseas employment tax credit 36

Subdivision d

Restrictions on Credits and Other Rules

Part-year residents 37

Ordering of non-refundable credits 38

Credits in separate returns 39

Tax payable by non-resident 40

Credits in year of bankruptcy 41

Tax payable by inter vivos trust 42

Deductions not permitted for trusts 43

Bankrupt individuals 44

Subdivision e

Other Taxes Payable

Tax on split income 45

Minimum tax 46

Subdivision f

Multi-jurisdictional and Non-resident Individuals

Multi-jurisdictional and non-resident individuals 47

Subdivision g

Surtax

Surtax 48

Subdivision h

Foreign Tax Deduction

Foreign tax deduction 49

Subdivision i

Labour-sponsored Venture Capital Corporation Deduction

Deduction respecting labour-sponsored venture capital corporation 50

Subdivision j

Child Tax Benefit and Working Income Supplement

Child tax benefit and working income supplement 51

Subdivision k

Seniors' Tax Benefit

Seniors' tax benefit 52

Subdivision l

Capital Gains Refund to Mutual Fund Trust

Capital gains refund to mutual fund trust 53

Division C

Corporation Income Tax

Subdivision a

Computation of Tax

Definitions 54

taxable income earned in the year in New Brunswick - revenu imposable gagné dans l'année au Nouveau-Brunswick

Amount of tax payable 55

Subdivision b

Foreign Tax Deduction

Foreign tax deduction 56

Subdivision c

Small Business Deduction

Small business deduction 57

Subdivision d

Capital Gains Refund to Mutual Fund Corporation

Capital gains refund to mutual fund corporation 58

Subdivision e

Research and Development Tax Credit

Research and development tax credit 59

Subdivision f

New Brunswick Film Tax Credit

New Brunswick film tax credit 60

Division D

Deductions Available to All Taxpayers

Political contributions 61

PART II

TAX ON LARGE CORPORATIONS

Tax payable 62

Capital deduction 63

Exemption 64

Return 65

Application of Federal Act 66

Tax credits 67

PART III

RETURNS, ASSESSMENTS, PAYMENT AND OBJECTIONS TO ASSESSMENT

Returns 68

Estimate of tax 69

Assessment 70

Reassessment or additional assessments 71

Reassessment respecting child tax benefit and working income supplement 72

Withholding 73

Instalments for tax by farmers and fishermen 74

Instalments for tax by other individuals 75

Payment of remainder where paying by instalment 76

Payment of tax by corporations 77

Payments, interest and special rules for trusts and estates 78

Penalties 79

Repeated failures to report income and gross negligence 80

Penalty for late or deficient instalments 81

Refunds 82

Objections to assessment 83

PART IV

APPEALS

Appeals to The Court of Queen's Bench of New Brunswick 84

Notice of appeal 85

Reply 86

Power of Court or judge 87

Appeal deemed action in Court 88

Application of Federal Act 89

Appeal procedure 90

PART V

COLLECTION OF TAX

Collection agreement 91

Application of tax payments 92

Remittances not recoverable 93

Tax paid to other agreeing province 94

Non-agreeing provinces 95

Reciprocal enforcement of judgments 96

PART VI

ADMINISTRATION AND ENFORCEMENT

Administration 97

Application of interest 98

Enforcement 99

Certificates 100

Warrants 101

Garnishment 102

Acquisition of debtor's property 103

Payment of money seized from tax debtor 104

Direction to seize chattels 105

Restrictions on collection 106

Demand for payment 107

Money withheld 108

Liability of directors 109

Books and records 110

Inspections 111

Privilege 112

Information return 113

Execution of documents by corporations 114

Offence respecting regulations 115

Offence respecting returns and records 116

Other offences and penalties 117

Action under section 116 or 117 118

Offence respecting disclosure of tax information 119

Officers, directors and agents of corporations 120

Power to decrease punishment 121

Procedure and evidence 122

General anti-avoidance rule and benefit conferred on a person 123

PART VII

REGULATIONS

Regulations 124

PART VIII

TRANSITIONAL PROVISIONS

Tax Agreement Act, 1957 125

Collection agreement 126

Common-law partners 127

PART IX

CONSEQUENTIAL AMENDMENTS

Income Tax Act 128

Stock Savings Plan Act 129

PART X

COMMENCEMENT

Commencement 130

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

Definitions

1 In this Act

"agreeing province" means a province that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected; («province participante»)

"collection agreement" means an agreement entered into under subsection 91(1) and includes any amendments made under subsection 91(2); («arrangement relatif à la perception»)

"Commissioner of Customs and Revenue" means the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada); («commissaire des douanes et du revenu»)

"Court" means The Court of Queen's Bench of New Brunswick; («Cour»)

"deputy head" means

(a) where no collection agreement is in effect, the Deputy Minister of Finance of New Brunswick or permanent head of that portion of the public service of New Brunswick administered by the Minister of Finance of New Brunswick, or

(b) where a collection agreement is in effect, the Commissioner of Customs and Revenue; («administrateur général»)

"Federal Act" means the Income Tax Act (Canada); («loi fédérale»)

"Federal ITAR" means the Income Tax Application Rules (Canada); («RAIR fédérales»)

"Federal Regulations" means the regulations made under the Federal Act; («règlements fédéraux»)

"income tax statute" means, with reference to another agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; («loi de l'impôt sur le revenu»)

"individual" means a person other than a corporation and includes a trust or estate; («particulier»)

"Minister" means the Minister of National Revenue for Canada, but in any provision of the Federal Act that is incorporated by reference in this Act, a reference to the Minister shall be read and construed for the purposes of this Act as a reference to the Minister of Finance; («Ministre»)

"Minister of Finance" means

(a) where no collection agreement is in effect, the Minister of Finance of New Brunswick, or

(b) where a collection agreement is in effect,

(i) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General, and

(ii) in relation to any other matter, the Minister of National Revenue for Canada; («ministre des Finances»)

"permanent establishment", where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Regulations; («établissement stable»)

"prescribed" means

(a) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister or the Minister of Finance of New Brunswick,

(b) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance of New Brunswick,

(c) in the case where the word "prescribed" is mentioned in a provision of the Federal Act that applies for the purposes of this Act otherwise than in respect of a case to which paragraph (a) or (b) applies, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act, in the Federal Regulations under that provision, and

(d) in any other case where the word is mentioned in this Act, prescribed by regulation; («prescrit»)

"province" means a province of Canada and includes the Yukon Territory, the Northwest Territories and Nunavut; («province»)

"Receiver General" means the Receiver General of Canada, but in any provision of the Federal Act that is incorporated by reference in this Act, a reference to the Receiver General shall be read and construed for the purposes of this Act as a reference to the Minister of Finance; («receveur général»)

"regulation" means a regulation made by the Lieutenant-Governor in Council under this Act; («règlement»)

"taxation year" of a person means the period determined under the Federal Act as the person's taxation year. («année d'imposition»)

Last day of taxation year

2 The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.

Tax payable

3 The tax payable by a taxpayer under Part I of this Act or under Part I of the Federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with Parts III and IV of this Act, or Part I of the Federal Act, as the case may be.

Federal definitions and interpretations

4 For the purposes of this Act, except where they are at variance with the definitions contained in this Act, the definitions and interpretations contained in the Federal Act and the Federal Regulations apply.

Consistency with Federal Act

5 In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the Federal Act.

Application of Federal Act

6 Subsection 248(11) of the Federal Act applies for the purposes of this Act to the extent that that subsection applies to a provision of the Federal Act that applies for the purposes of this Act.

Modifications for application of Federal Act

7 Where a provision, in this section referred to as "that section", of the Federal Act or the Federal Regulations is made applicable for the purposes of this Act, that section, as amended from time to time heretofore or hereafter, applies with such modifications as the circumstances require for the purposes of this Act as though it had been enacted as a provision of this Act and in applying that section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in that section to tax under Part I of the Federal Act shall be read as a reference to tax under Part I of this Act;

(b) except for the purposes of Part II of this Act, where that section contains a reference to tax under any of Parts I.1 to XIV of the Federal Act, that section shall be read without reference therein to tax under any of those Parts and without reference to any portion of that section which applies only to or in respect of tax under any of those Parts;

(c) a reference in that section to a particular provision of the Federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;

(d) any reference in that section to a particular provision of the Federal Act that applies for the purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes of this Act;

(e) except for the purposes of Part II of this Act, where that section contains a reference to any of Parts I.1 to XIV of the Federal Act or to a provision in any of those Parts, that section shall be read without reference therein to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;

(f) where that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section shall be read without reference therein to the Bankruptcy and Insolvency Act (Canada);

(g) a reference in that section to a Federal Regulation that applies for the purposes of this Act shall be read as a reference to the Regulation as it applies for the purposes of this Act;

(h) any reference in that section to "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to "under this Act"; and

(i) any reference in that section to a word or expression set out in the left-hand column of the following table shall be read as a reference to the word or expression set out opposite thereto in the right-hand column of the following table:

Table

Her Majesty

 

Her Majesty in right of the Province of New Brunswick

     

Canada

 

New Brunswick

     

Criminal Code

 

Provincial Offences Procedure Act

     

Minister

 

Minister of Finance

     

Receiver General

 

Minister of Finance

     

Canada Customs and Revenue Agency

 

Department under the Minister of Finance

     

Commissioner of Customs and Revenue

 

deputy head

     

Deputy Attorney General of Canada

 

Deputy Attorney General of New Brunswick

     

the Tax Court of Canada

 

The Court of Queen's Bench of New Brunswick

     

Tax Court of Canada Act

 

Judicature Act

 

     

the Federal Court of Canada

 

The Court of Queen's Bench of New Brunswick

     

Federal Court Act

 

Judicature Act

     

Registrar of the Tax Court of Canada

 

Registrar of The Court of Queen's Bench of New Brunswick

     

Registry of the Federal Court

 

The Court of Queen's Bench of New Brunswick

 

Application of federal provisions and amendments

8(1) In this section

"federal amendment" means an amendment to a federal provision; («modification fédérale»)

"federal application rule" means a provision, in this definition referred to as "the provision", of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply

(a) in respect of specified taxation years,

(b) in respect of specified fiscal periods,

(c) before or after a specified time,

(d) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or

(e) in respect of such other criteria as may be set out in the provision; («règle d'application fédérale»)

"federal provision" means a provision of the Federal Act that applies for the purposes of this Act. («disposition fédérale»)

8(2) Where a federal application rule governs the application of a federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purposes of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purposes of this Act.

8(3) Where a federal provision or a federal amendment comes into force, or is deemed to come into force, on a particular day, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purposes of this Act, to come into force on that particular day.

8(4) Where a federal provision is repealed and another provision is not substituted therefor, the federal provision ceases to apply for the purposes of this Act

(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; and

(b) if the repeal is not governed by a federal application rule, on the day the repeal comes into force or is deemed to come into force.

8(5) For the purposes of this Act, where a particular federal provision is replaced by another federal provision, or is repealed and another federal provision is substituted therefor, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision.

Application of Act

9 This Act applies to

(a) the 2000 taxation year and any subsequent taxation year of an individual, and

(b) the taxation years of a corporation that end after December 3l, 1999.

Exemption

10(1) No tax is payable under this Act by a person for a period when

(a) no tax is payable under Part I of the Federal Act on the person's taxable income because of section 149 of the Federal Act, or

(b) that person was a non-resident-owned investment corporation.

10(2) Any definitions or descriptions in the Federal Act applying to a person referred to in subsection (1) apply with the necessary modifications for the purposes of this Act unless otherwise provided.

PART I

INCOME TAX

Division A

Liability for Tax

Liability of individual

11 An income tax shall be paid, as required by this Act, for each taxation year by every individual

(a) who was resident in New Brunswick on the last day of the taxation year, or

(b) who, not being resident in New Brunswick on the last day of the taxation year, had income earned in the taxation year in New Brunswick as defined in section 13.

Liability of corporation

12 An income tax shall be paid, as required by this Act, for each taxation year by every corporation that has maintained a permanent establishment in New Brunswick at any time in the taxation year.

Division B

Individual Income Tax

Subdivision a

Computation of Tax

Definitions

13 In this Division

"appropriate percentage", for a taxation year, means the lowest percentage referred to in section 14 that is applicable in determining tax payable under this Part for the year; («taux de base pour l'année»)

"highest percentage", for a taxation year, means the highest percentage referred to in section 14 that is applicable in determining tax payable under this Part for the year; («taux le plus élevé»)

"income earned in the taxation year in New Brunswick" means income earned in the year in New Brunswick as determined in accordance with the Federal Regulations made for the purposes of the definition "income earned in the year in a province" in subsection 120(4) of the Federal Act; («revenu gagné au Nouveau-Brunswick dans l'année d'imposition»)

"income earned in the taxation year outside New Brunswick" means income for the year minus income earned in the taxation year in New Brunswick; («revenu gagné hors du Nouveau-Brunswick dans l'année d'imposition»)

"income for the year" means

(a) in the case of an individual resident in Canada during only part of the taxation year in respect of whom section 114 of the Federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual's income for the year as computed under subsection 120(3) of the Federal Act, and

(b) in the case of any other individual, the individual's income for the year as determined in accordance with and for the purposes of the Federal Act; («revenu pour l'année»)

"specific percentage", for a taxation year, means the specific percentage set out in section 15 for the year; («taux spécifique»)

"tax payable under the Federal Act", by an individual in respect of a taxation year, means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the Federal Act in respect of the individual for the year. («impôt payable en vertu de la loi fédérale»)

Amount of tax payable

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 $29,590;

(b) $2,864 plus 14.82% of the amount by which the amount taxable exceeds $29,590 and does not exceed $59,180; and

(c) $7,250 plus 16.52% of the amount by which the amount taxable exceeds $59,180.

Specific percentage

15 The specific percentage is:

(a) for the 2000 taxation year, 58.5%; and

(b) for any subsequent taxation year, 57%.

Subdivision b

Adjustments to Tax

CPP/QPP disability benefits and other lump sum payments for previous years

16 There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A ´ B

where

A is the specific percentage for the year; and

B is the total of

(a) the amount added under section 120.3 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;

(b) the amount added under section 120.31 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) the amount added under section 40 of the Federal ITAR for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year.

Subdivision c

Tax Credits and Deductions

Married status credit

17(1) This section applies to an individual who at any time in the taxation year is

(a) married, supporting his or her spouse and not living separate and apart from the spouse because of a breakdown of their marriage, or

(b) in a common-law partnership, supporting his or her common-law partner and not living separate and apart from the common-law partner because of a breakdown of their common-law partnership.

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) $7,231, and

(b) the amount determined by the formula

$6,140 - (C - $614)

where

C is the greater of $614 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.

17(3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

17(4) In applying this section to the 2000 taxation year,

(a) subsection (1) shall be read without reference to paragraph (b), and

(b) the description for C in subsection (2) shall be read without reference to "or common-law partner" wherever it appears, to "or common-law partnership" and to "or in the common-law partnership",

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).

Equivalent to spouse credit (wholly dependent person)

18(1) This section applies to an individual who does not claim a deduction for the taxation year because of section 17 and who at any time in the taxation year

(a) is

(i) a person who is unmarried and who does not live in a common-law partnership, or

(ii) a person who is married or in a common-law partnership, who neither supported nor lived with his or her spouse or common-law partner and who is not supported by that spouse or common-law partner, and

(b) whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment in which the individual lives and actually supports in that establishment a person who, at that time, is

(i) except in the case of a child of the individual, resident in Canada,

(ii) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,

(iii) related to the individual, and

(iv) except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent because of mental or physical infirmity.

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) $7,231, and

(b) the amount determined by the formula

$6,140 - (C - $614)

where

C is the greater of $614 and the dependent person's income for the year.

18(3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

18(4) In applying this section to the 2000 taxation year,

(a) subparagraph (1)(a)(i) shall be read without reference to "and who does not live in a common-law partnership", and

(b) subparagraph (1)(a)(ii) shall be read without reference to "or in a common-law partnership" and "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).

Single status credit

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 $7,231.

In-home care of relative credit

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

(a) who has attained the age of 18 years before that time,

(b) who is

(i) the individual's child or grandchild, or

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

(c) who is

(i) the individual's parent or grandparent and has attained the age of 65 years before that time, or

(ii) dependent on the individual because of the particular person's mental or physical infirmity.

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

$14,047 - C

where

C is the greater of $11,661 and the particular person's income for the year.

20(3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

Dependants credit

21(1) This section applies to an individual who has any dependant for the taxation year who

(a) attained the age of 18 years before the end of the year, and

(b) was dependent on the individual because of mental or physical infirmity.

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

$7,231 - C

where

C is the greater of $4,845 and the dependant's income for the year.

21(3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

Additional amount for dependants

22(1) This section applies to an individual entitled to a deduction in respect of a person because of section 18 and who would also be entitled, but for paragraph 118(4)(c) of the Federal Act, as that provision applies to this Act, to a deduction because of section 20 or 21 in respect of the person.

22(2) For the purposes of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted the amount by which the amount that would be determined under section 20 or 21, as the case may be, exceeds the amount determined under section 18 in respect of the person.

22(3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

Age credit

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 ´ ($3,531 - 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 $26,284 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.

Pension credit

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

A ´ B

where

A is the appropriate percentage for the year; and

B is the lesser of $1000 and

(a) where the individual has attained the age of 65 years before the end of the year, the pension income received by the individual in the year, and

(b) where the individual has not attained the age of 65 years before the end of the year, the qualified pension income received by the individual in the year.

24(2) Subsections 118(7) and (8) of the Federal Act apply for the purposes of this section.

Charitable gifts credit

25 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 118.1(3) of the Federal Act for the year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula

(A ´ B) + [C ´ (D - B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the amount determined for D;

C is the highest percentage for the year; and

D is the amount determined for D in the formula in subsection 118.1(3) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year.

Medical expense credit

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 $1,637 and 3% of the individual's income for the year; and

D is 32% 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.

26(2) Section 118.4 of the Federal Act applies for the purposes of this section.

26(3) In applying this section to the 2000 taxation year, paragraph (a) of the description for D in subsection (1) shall be read without reference to "or common-law partner", 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).

Credit for mental or physical impairment

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 $4,293; 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

$2,941 - (D - $2,000)

where

D is the greater of $2,000 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.

27(2) Sections 118.3 and 118.4 of the Federal Act apply for the purposes of this section, except that subsection (1) of this section applies instead of subsection 118.3(1) of the Federal Act.

Tuition credit

28 Section 118.5 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage" as defined in section 13.

Education credit

29(1) Where an individual is entitled to deduct an amount under subsection 118.6(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

where

A is the appropriate percentage for the year; and

B is the total of the products obtained when

(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution, or as a part-time student at a designated educational institution if the part-time student has a physical or mental impairment; and

(b) $60 is multiplied by the number of months in the year, other than months described in paragraph (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

29(2) Section 118.6 of the Federal Act applies for the purposes of this section, except that subsection (1) of this section applies instead of subsection 118.6(2) of the Federal Act.

Unused tuition and education credits

30(1) Section 118.61 of the Federal Act applies for the purposes of this Act.

30(2) Notwithstanding subsection (1), for the purpose of section 118.61 of the Federal Act, as that section applies for the purposes of this Act, an individual's unused tuition and education tax credits at the end of the 1999 taxation year shall be the amount equal to the specific percentage of the individual's unused tuition and education tax credits at the end of the 1999 taxation year as determined under section 118.61 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.

30(3) Notwithstanding subsection (1) but subject to subsection (2), for the purpose of section 118.61 of the Federal Act, as that section applies for the purposes of this Act, where an individual did not reside in New Brunswick on the last day of the taxation year for the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year shall be equal to the lesser of

(a) the amount equal to the specific percentage of the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 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

(b) the amount equal to the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under a section, that is similar to section 118.61 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the individual resided on the last day of the taxation year for the preceding taxation year.

Credit for interest on student loan

31 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 section 118.62 of the Federal Act for the year, 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 for B in the formula in section 118.62 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year.

Credit for EI premium and CPP contribution

32 Section 118.7 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage" as defined in section 13.

Transfer of tax credits

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 equal to the lesser of

(a) the amount equal to the specific percentage of the amount determined in respect of the person for the taxation year under section 118.61 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;

(b) the amount determined in respect of the person for the taxation year as determined under a section, that is similar to section 118.61 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the person resided on the last day of the taxation year; and

(c) the amount determined in respect of the person for paragraph 118.81(b) of the Federal Act, as that provision applies for the purposes of this Act, for the taxation year.

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 purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the specific percentage of the amount determined 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

(ii) the amount that would be determined for the individual for B in the formula in a section, that is similar to section 118.8 of the Federal Act, of an income tax statute, or similar enactment of the province, if any, in which the individual's spouse or common-law partner resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year; and

(b) the amount for C in the formula in section 118.8 of the Federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the specific percentage of the amount determined for C 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

(ii) the amount that would be determined for the individual for C in the formula in a section, that is similar to section 118.8 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the individual's spouse or common-law partner resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year.

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).

Minimum tax carry-over

34 There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A ´ B

where

A is the specific percentage for the year; and

B is the amount that the individual may deduct for the taxation year under section 120.2 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act.

Deduction for taxable dividends

35 Section 121 of the Federal Act applies for the purposes of this Act, except that the reference to "2/3", or to the fraction that it is amended to read, in that section of the Federal Act shall be read as a reference to,

(a) for the 2000 taxation year, 39% for the purposes of this Act, and

(b) for any subsequent taxation year, 38% for the purposes of this Act.

Overseas employment tax credit

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.

Subdivision d

Restrictions on Credits and Other Rules

Part-year residents

37 Section 118.91 of the Federal Act applies for the purposes of this Act.

Ordering of non-refundable credits

38 In computing an individual's tax payable under this Part, the following provisions shall be applied in the following order: sections 17, 18, 19, 20, 21, 22, 23, 32, 24, 27, 30, 28, 29, subsection 33(2), subsection 33(1), and sections 26, 25, 31, 35, 36, 34, 49, 61 and 50.

Credits in separate returns

39 Section 118.93 of the Federal Act applies for the purposes of this Act.

Tax payable by non-resident

40 Section 118.94 of the Federal Act applies for the purposes of this Act.

Credits in year of bankruptcy

41 Section 118.95 of the Federal Act applies for the purposes of this Act.

Tax payable by inter vivos trust

42 Subsections 122(1) and (2) of the Federal Act apply for the purposes of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 122(1) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage" as defined in section 13.

Deductions not permitted for trusts

43 Subsection 122(1.1) of the Federal Act applies for the purposes of this Act.

Bankrupt individuals

44 Subsection 128(2) of the Federal Act applies for the purposes of this Act.

Subdivision e

Other Taxes Payable

Tax on split income

45 Section 120.4 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 120.4(2) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage" as defined in section 13.

Minimum tax

46 If an individual is required to pay tax under section 127.5 of the Federal Act in respect of a taxation year, the amount of tax that the individual is required to pay under Subdivisions a to e in respect of that taxation year is the amount determined by the formula

A ´ B

where

A is the specific percentage for the year; and

B is the tax payable under section 127.5 of the Federal Act if that section were read without reference to subparagraph 127.5(a)(ii) and paragraph 127.5(b).

Subdivision f

Multi-jurisdictional and Non-resident Individuals

Multi-jurisdictional and non-resident individuals

47(1) This section applies to an individual

(a) who resided in New Brunswick on the last day of the taxation year but had income earned in the taxation year outside New Brunswick, or

(b) who did not reside in New Brunswick on the last day of the taxation year but had income earned in the taxation year in New Brunswick.

47(2) Notwithstanding Subdivisions a to e, the tax payable under Subdivisions a to e for a taxation year by an individual referred to in subsection (1) shall be the amount determined by the formula

A

´

B

   

C

 

where

A is the tax otherwise payable by the individual under Subdivisions a to e;

B is the individual's income earned in the taxation year in New Brunswick; and

C is the individual's income for the year.

Subdivision g

Surtax

Surtax

48 In addition to the income tax payable, computed in accordance with Subdivisions a to f, by an individual for a taxation year, every individual shall pay a personal income surtax in respect of the taxation year equal to 8% of the amount, if any, by which the tax computed under Subdivisions a to f for the taxation year exceeds $13,500.

Subdivision h

Foreign Tax Deduction

Foreign tax deduction

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.

Subdivision i

Labour-sponsored Venture Capital Corporation Deduction

Deduction respecting labour-sponsored venture capital corporation

50(1) In this section

"approved share" means a share of the capital stock of a prescribed registered labour-sponsored venture capital corporation acquired or irrevocably subscribed and paid for by an individual where the individual is or will be the first person, other than a broker or dealer in securities, to be a registered holder thereof; («action approuvée»)

"individual" means a person other than a corporation and, notwithstanding the definition "individual" in section 1, does not include a trust or estate; («particulier»)

"net cost" means the amount, if any, by which the amount of consideration paid by an individual to acquire or subscribe for an approved share exceeds the amount of assistance, other than an amount included in computing a tax credit of the individual in respect of that share, provided or to be provided by a government, municipality or any public authority in respect of, or for the acquisition of, the approved share; («coût net»)

"registered labour-sponsored venture capital corporation" means a corporation registered under subsection 204.81(1) of the Federal Act; («corporation agréée à capital de risque de travailleurs»)

"tax otherwise payable" means the amount that would, but for this section, be the tax otherwise payable under this Act. («impôt payable par ailleurs»)

50(2) There may be deducted from the tax otherwise payable under this Act for a taxation year by an individual an amount equal to the lesser of

(a) $750, and

(b) 15% of the total of all amounts each of which is the net cost to the individual of an approved share of a prescribed registered labour-sponsored venture capital corporation

(i) that was acquired or irrevocably subscribed and paid for by the individual in the taxation year or within 60 days after the end of the taxation year,

(ii) in respect of which the individual has filed with the individual's return of income for the taxation year the information return described in paragraph 204.81(6)(c) of the Federal Act, and

(iii) for which no portion of the net cost was deducted under this section for the immediately preceding taxation year.

50(3) This section applies to the 2000 taxation year and to any subsequent taxation year that is prescribed.

Subdivision j

Child Tax Benefit and Working Income Supplement

Child tax benefit and working income supplement

51(1) In this section

"adjusted earned income", of an individual for a taxation year, means the total of all amounts each of which is the earned income for the year of the individual or of the person who was the individual's cohabiting spouse or common-law partner at the end of the year; («revenu gagné modifié»)

"adjusted income" means adjusted income as defined in section 122.6 of the Federal Act; («revenu modifié»)

"base taxation year" means base taxation year as defined in section 122.6 of the Federal Act; («année de base»)

"cohabiting spouse or common-law partner" means cohabiting spouse or common-law partner as defined in section 122.6 of the Federal Act; («époux ou conjoint de fait visé»)

"earned income", of an individual for a taxation year, means earned income as defined in subsection 63(3) of the Federal Act; («revenu gagné»)

"eligible individual" means eligible individual as defined in section 122.6 of the Federal Act; («particulier admissible»)

"qualified dependant" means qualified dependant as defined in section 122.6 of the Federal Act; («personne à charge admissible»)

"return of income" means return of income as defined in section 122.6 of the Federal Act. («déclaration de revenu»)

51(2) Paragraph 7(i) does not change a reference to Canada in the definitions "eligible individual" and "return of income" or in paragraph 122.61(3)(a) of the Federal Act, as those provisions apply for the purposes of this section, to a reference to New Brunswick.

51(3) An overpayment on account of an individual's liability under this Part for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year where

(a) the individual, and if the Minister of Finance so demands, the individual's cohabiting spouse or common-law partner at the end of the taxation year have filed a return of income for that year, and

(b) the individual was resident in New Brunswick for a period that commenced before the first day of the month and that included that day.

51(4) The overpayment deemed under subsection (3) to have arisen during a month on account of the individual's liability under this Part for a taxation year is equal to the amount determined by the formula

1/12[(A-B)+(C-D)]

where

A is the product obtained by multiplying $250 by the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month;

B is 5% (or where the individual is an eligible individual of only one qualified dependant at the beginning of the month, 2 1/2%) of the amount, if any, by which the individual's adjusted income for the year exceeds $20,000;

C is the lesser of $250 and 4% of the amount, if any, by which the individual's adjusted earned income for the year exceeds $3,750; and

D is 5% of the amount, if any, by which the individual's adjusted income for the year exceeds $20,921.

51(5) Notwithstanding subsections (3) and (4), subsection 122.61(2) and paragraph 122.61(3)(a) of the Federal Act apply for the purposes of this section.

51(6) Subsections 122.62(1), (2) and (4) of the Federal Act apply for the purposes of this section.

51(7) For the purposes of determining the amount deemed under this section to be an overpayment on account of an individual's liability under this Part, subsections 122.62(6) and (7) of the Federal Act apply in the circumstances set out in those subsections.

51(8) The Minister of Finance may, based on considerations of administrative efficiency, specify that a refund of an overpayment that is deemed to arise in a month be made in that month or before or after that month occurs.

51(9) A refund of an amount deemed under this section to be an overpayment on account of a person's liability under this Part for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

51(10) The Minister of Finance may specify the forms that are to be used for the purposes of this section.

51(11) In applying this section to the 2000 taxation year,

(a) in subsection (1)

(i) the definition "adjusted earned income" shall be read without reference to "or common-law partner", and

(ii) the definition "cohabiting spouse or common-law partner" shall be read without reference to "or common-law partner" wherever it appears, and

(b) paragraph (3)(a) shall be read without reference to "or common-law partner",

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).

Subdivision k

Seniors' Tax Benefit

Seniors' tax benefit

52(1) An overpayment of $100 on account of an individual's liability under this Act for a taxation year is deemed to have arisen in the taxation year if the individual

(a) resided in New Brunswick on the last day of the preceding taxation year,

(b) was in receipt of a spouse's allowance or an allowance, as the case may be, or a guaranteed income supplement under the Old Age Security Act (Canada) in the preceding taxation year, and

(c) has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of such amount and provided all of the information required by the form before the date required by that Minister.

52(2) The Minister of Finance of New Brunswick may, in his or her discretion, refund to an individual the amount deemed to be an overpayment under this section.

52(3) A refund of the amount deemed to be an overpayment under this section

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

52(4) Notwithstanding subsection (1), where both an individual and his or her spouse or common-law partner are eligible to apply for a refund under that subsection for a taxation year, only one of them may apply under that subsection for that year, except where otherwise provided by regulation.

52(5) For the purpose of applying this section to the 2000 taxation year, in this section

"spouse" means spouse as defined in the Federal Act, but, for the purposes of a void or voidable marriage, does not include a reference to any provision of that Act contained in that definition. («conjoint»)

52(6) In applying this section to the 2000 taxation year, subsection (4) shall be read without reference to "or common-law partner".

Subdivision l

Capital Gains Refund to Mutual Fund Trust

Capital gains refund to mutual fund trust

53(1) Where an amount is to be refunded to a trust in respect of a taxation year under section 132 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the trust an amount, in this section referred to as its "capital gains refund" for the year, equal to that proportion of the amount of the refund for the year calculated under subsection 132(1) of the Federal Act that

(a) the percentage obtained by multiplying the specific percentage for the year times the percentage referred to in paragraph 117(2)(c) of the Federal Act for the year,

is of

(b) the percentage referred to in the formula in the definition "refundable capital gains tax on hand" in subsection 132(4) of the Federal Act for the year.

53(2) For the purpose of computing the capital gains refund under subsection (1) for a trust in respect of a taxation year where the trust had income earned in the taxation year outside New Brunswick, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the trust's income earned in the taxation year in New Brunswick is of its income for the year.

53(3) Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.

Division C

Corporation Income Tax

Subdivision a

Computation of Tax

Definitions

54 In this Division

"taxable income earned in the year in New Brunswick" means the taxable income earned in the year in New Brunswick by a corporation as 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. («revenu imposable gagné dans l'année au Nouveau-Brunswick»)

Amount of tax payable

55 The tax payable by a corporation under this Part for a taxation year is 17% of the corporation's taxable income earned in the year in New Brunswick.

Subdivision b

Foreign Tax Deduction

Foreign tax deduction

56(1) Where the income for a taxation year of a corporation that maintained a permanent establishment in New Brunswick at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the Federal Act from sources in a country other than Canada, in this section referred to as "foreign investment income", and where the corporation has claimed a deduction under subsection 126(1) of the Federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of

(a) 17% of the product of

(i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) the corporation's taxable income earned in the year in New Brunswick; and

(b) that proportion of the amount by which such part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the Federal Act that

(i) the corporation's taxable income earned in the year in New Brunswick,

is of

(ii) the aggregate of the taxable income earned in the year in each province by the corporation as 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.

56(2) Where the income of a corporation 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.

56(3) For the purposes of paragraph (1)(b), the non-business-income tax paid by a corporation to the government of a country other than Canada in respect of the corporation's income for a taxation year is the non-business-income tax paid by the corporation 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.

Subdivision c

Small Business Deduction

Small business deduction

57 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) 4.5% 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) 17% of an amount calculated by deducting from the total taxable income earned in the year in New Brunswick the amount on which the 4.5% rate is applied in paragraph (a).

Subdivision d

Capital Gains Refund to Mutual Fund Corporation

Capital gains refund to mutual fund corporation

58(1) Where an amount is to be refunded to a corporation in respect of a taxation year under section 131 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation an amount, in this section referred to as its "capital gains refund" for the year, equal to that proportion of the amount of the refund for the year calculated under subsection 131(2) of the Federal Act that

(a) the percentage referred to in section 55 for the year,

is of

(b) the percentage for the year referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the Federal Act.

58(2) For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where

(a) the corporation's taxable income earned in the year in New Brunswick,

is less than

(b) the corporation's taxable income for the year,

the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under paragraph (a) is of the amount determined under paragraph (b).

58(3) Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the corporation is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action.

Subdivision e

Research and Development Tax Credit

Research and development tax credit

59(1) In this section

"eligible expenditure" means an expenditure made by a corporation with a permanent establishment in New Brunswick in respect of scientific research and experimental development to be carried out in New Brunswick, that is a qualified expenditure as defined in subsection 127(9) of the Federal Act, without reference to paragraph (b) of that definition; («dépense admissible»)

"research and development tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the total of

(a) an amount equal to 10% of the total of all amounts each of which is an eligible expenditure made by it in the year, computed without reference to subsection 13(7.1) of the Federal Act,

(b) an amount equal to 10% of the total of all amounts each of which is an eligible expenditure made by it in any of the 7 taxation years immediately preceding, or the 3 taxation years immediately following, the year, computed without reference to subsection 13(7.1) of the Federal Act,

(c) an amount equal to the total of all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of the year, and

(d) the total of all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of any of the 7 taxation years immediately preceding, or the 3 taxation years immediately following, the year,

exceeds the total of all amounts each of which is that portion of the amount deducted under subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of an eligible expenditure made in the year or in the 7 taxation years immediately preceding, or the 2 taxation years immediately following, the year. («crédit d'impôt pour la recherche et le développement»)

59(2) A corporation may deduct from the tax otherwise payable under this Part for a taxation year an amount not exceeding the lesser of

(a) its research and development tax credit at the end of the year, and

(b) its tax otherwise payable by it under this Part for the year.

59(3) Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be included, because of paragraph (a) or (c) of the definition "research and development tax credit" in subsection (1), in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share of that amount shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

59(4) Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be included, because of paragraph (a) or (c) of the definition "research and development tax credit" in subsection (1), in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share of that amount shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

59(5) Where two or more corporations amalgamate within the meaning of subsection 87(1) of the Federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Part for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.

59(6) Where a subsidiary of a parent corporation is wound up in accordance with subsection 88(1) of the Federal Act and the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Part for any taxation year, for the purposes of determining the research and development tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as and a continuation of the subsidiary.

59(7) A corporation may renounce the research and development tax credit on or before the date by which the corporation is required to file its return of income for the year under section 150 of the Federal Act and, where the corporation renounces entitlement to that credit, the corporation shall be deemed for all purposes never to have received, have been entitled to receive, or have had a reasonable expectation of receiving, that credit.

59(8) Notwithstanding subsections (2) to (7), no corporation may deduct a research and development tax credit for a taxation year of the corporation ending before February 26, 1994.

Subdivision f

New Brunswick Film Tax Credit

New Brunswick film tax credit

60(1) In this section

"eligible corporation" means a corporation incorporated in Canada, other than a corporation that holds a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission, that

(a) has a permanent establishment in New Brunswick, and

(b) at any time in the taxation year has assets of less than $25,000,000; («corporation admissible»)

"eligible employee", in respect of a taxation year, means an individual who was an employee of an eligible corporation in the taxation year and who was resident in New Brunswick on the last day of the immediately preceding taxation year, or, if not so resident, for whom the residency requirement is waived under subsection (5); («employé admissible»)

"eligible individual", in respect of a taxation year, means an individual who was resident in New Brunswick on the last day of the immediately preceding taxation year or, if not so resident, for whom the residency requirement is waived under subsection (5); («particulier admissible»)

"eligible salaries", of an eligible corporation for a taxation year in respect of an eligible project, means the total of the following amounts to the extent that they are reasonable in the circumstances and included in the cost or, in the case of depreciable property, the capital cost, to the corporation of the property:

(a) the salaries or wages of eligible employees directly attributable to the eligible project that are incurred in the year, or in the preceding taxation year, by the corporation for the stages of production of the eligible project, from the final script stage to the end of the post-production stage, and paid by the corporation in the year or within 60 days after the end of the year, other than amounts incurred in the preceding year that were paid within 60 days after the end of that preceding year;

(b) that portion of the remuneration, other than salaries or wages and other than remuneration that relates to services rendered in the preceding taxation year and that was paid within 60 days after the end of that preceding year, that is directly attributable to the production of the eligible project, that relates to services rendered in the year, or in the preceding taxation year, to the corporation for the stages of production, from the final script stage to the end of the post-production stage, and that is paid by the corporation in the year or within 60 days after the end of the year to

(i) an eligible individual who is not an employee of the corporation, to the extent that the amount paid

(A) is attributable to services personally rendered by the individual for the production of the eligible project, or

(B) is attributable to and does not exceed the salaries or wages of the individual's eligible employees for personally rendering services for the production of the eligible project,

(ii) another corporation, to the extent that the amount paid is attributable to and does not exceed the salaries or wages of the other corporation's eligible employees for personally rendering services for the production of the eligible project,

(iii) another corporation, all the issued and outstanding shares of the capital stock of which, except directors' qualifying shares, belong to an eligible individual and the activities of which consist principally of the provision of the individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production of the eligible project, or

(iv) a partnership that is carrying on business in Canada, to the extent that the amount paid

(A) is attributable to services personally rendered by an eligible individual who is a member of the partnership for the production of the eligible project, or

(B) is attributable to and does not exceed the salaries or wages of the partnership's eligible employees for personally rendering services for the production of the eligible project; and

(c) where

(i) the corporation is a subsidiary wholly owned corporation of another corporation, in this paragraph referred to as the "parent", and

(ii) the corporation and the parent have agreed that this paragraph applies in respect of the eligible project,

the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of that eligible project and that would be included in the eligible salaries of the corporation in respect of the eligible project for the particular taxation year because of paragraph (a) or (b) if

(iii) the corporation had had such a particular taxation year, and

(iv) the expenditure was incurred by the corporation for the same purpose as it was by the parent and was paid at the same time and to the same person or partnership as it was by the parent. («traitements admissibles»)

60(2) For the purposes of the definition "eligible salaries" in subsection (1),

(a) remuneration does not include remuneration determined by reference to profits or revenues;

(b) salaries or wages do not include an amount determined by reference to profits or revenues;

(c) where the value of remuneration, salaries or wages includes an amount determined by reference to profits or revenues, the Minister of Finance of New Brunswick, or any person designated by that Minister, may deem a value for that portion of the eligible salaries; and

(d) services referred to in paragraph (b) of that definition that relate to the post-production stage of the eligible project include only the services that are rendered at that stage by a person who performs the duties of animation cameraman, assistant colourist, assistant mixer, assistant sound-effects technician, boom operator, colourist, computer graphics designer, cutter, developing technician, director of post-production, dubbing technician, encoding technician, inspection technician-clean-up, mixer, optical-effects technician, picture editor, printing technician, projectionist, recording technician, senior editor, sound editor, sound-effects technician, special-effects editor, subtitle technician, timer, video-film recorder operator or videotape operator.

60(3) Where an eligible corporation that produces an eligible project in New Brunswick files with its return of income for a taxation year, a New Brunswick film tax credit certificate issued in accordance with the regulations, the corporation is eligible for a refundable film tax credit for the taxation year determined as follows:

(a) 40% of eligible salaries paid in the taxation year for the first eligible project;

(b) 30% of eligible salaries paid in the taxation year for subsequent eligible projects; and

(c) 35% of the amount by which the cost of eligible salaries for the taxation year exceeds the cost of eligible salaries for the preceding taxation year.

60(4) The New Brunswick film tax credit is subject to the following conditions:

(a) the tax credit applies with respect to eligible salaries incurred before January 1, 2002;

(b) an eligible corporation must, for each eligible project, pay, directly or indirectly, at least 25% of its total salaries and wages to eligible employees;

(c) the tax credit applies only with respect to that portion of eligible salaries that does not exceed 50% of the total production costs of the eligible project less the amount of production costs funded by the Province; and

(d) the tax credit is limited to $1,000,000 per eligible project and $2,000,000 per eligible corporation, together with all corporations associated with that corporation, of all eligible projects commenced in any twelve-month period.

60(5) The Minister of Finance of New Brunswick, or any person designated by that Minister, may waive the residency requirement for an eligible employee or eligible individual rendering services for an eligible corporation in respect of an eligible project.

60(6) A waiver under subsection (5) may be made in such circumstances and on such terms and conditions as are provided for in the regulations.

60(7) The amount by which the New Brunswick film tax credit exceeds the eligible corporation's tax payable for the taxation year calculated without reference to this section may be applied by the Minister of Finance to pay

(a) any tax, interest or penalty owing by the corporation for that or any previous taxation year under this Act, the income tax statute of another agreeing province or the Federal Act,

(b) any contribution, penalty or interest by the corporation for that or any previous taxation year as a result of payments required from the corporation under the Canada Pension Plan (Canada), and

(c) any premium, interest or penalty owing by the corporation for that or any previous taxation year under the Employment Insurance Act (Canada).

60(8) Any part of the amount not applied under subsection (7) shall be paid to the eligible corporation.

Division D

Deductions Available to All Taxpayers

Political contributions

61(1) In this section

"contribution" means a contribution made to a registered political party, a registered district association or a registered independent candidate under the Political Process Financing Act and "contributor" means a person who makes a contribution under that Act; («contribution»)

"corporation" means any corporation incorporated under the laws of New Brunswick and any corporation having its head office or other office or doing business or any part thereof in New Brunswick; («corporation»)

"individual" means a person other than a corporation and, notwithstanding the definition "individual" in section 1, does not include a trust or estate; («particulier»)

"official representative" means the official representative of a registered political party, registered district association or registered independent candidate, as the case may be, registered under section 137 of the Elections Act; («représentant officiel»)

"receipt" means a receipt for a contribution issued under the Political Process Financing Act; («reçu»)

"registered district association" means a district association that is registered under section 135 of the Elections Act; («association de district enregistrée»)

"registered independent candidate" means an independent candidate who is registered under section 136 of the Elections Act; («candidat indépendant enregistré»)

"registered political party" means a political party that is registered under section 133 of the Elections Act; («parti politique enregistré»)

"tax otherwise payable under this Part" means the amount that would, but for this section, be the tax otherwise payable under this Part. («impôt payable par ailleurs en vertu de la présente partie»)

61(2) There may be deducted from the tax otherwise payable under this Part by a taxpayer who is an individual or a corporation for a taxation year in respect of the aggregate of all amounts, each of which is the amount of a contribution of money made by the taxpayer in a year to a registered political party, a registered district association or a registered independent candidate,

(a) 75% of the aggregate if the aggregate does not exceed $100,

(b) $75 plus 50% of the amount by which the aggregate exceeds $100 if the aggregate exceeds $100 and does not exceed $550, or

(c) the lesser of

(i) $300 plus 33 1/3% of the amount by which the aggregate exceeds $550 if the aggregate exceeds $550, and

(ii) $500,

if each contribution that is included in the aggregate is proven by filing with the Minister a receipt signed by the official representative of the registered political party, registered district association or registered independent candidate, as the case may be.

61(3) No amount may be deducted under subsection (2) with respect to a contribution to a registered independent candidate unless it was made during an election period as defined in the Elections Act and after the candidate's official representative was registered under that Act in the election in which he or she is a candidate.

61(4) For the purposes of this section, a contribution shall be deemed to have been made on the date it is deemed to have been made under the Political Process Financing Act.

61(5) Subject to the provisions of the Political Process Financing Act, every official representative shall retain signed duplicates of all receipts issued by the official representative.

61(6) Notwithstanding any provision of the Political Process Financing Act, for the purposes of this section, the Minister may examine and make copies of any receipts or duplicates thereof, and of any return, record, report or other document filed with the Supervisor under the Political Process Financing Act.

PART II

TAX ON LARGE CORPORATIONS

Tax payable

62(1) Every corporation that has a permanent establishment within New Brunswick in a taxation year shall pay a tax under this Part for the taxation year equal to 0.3% of its taxable capital employed in New Brunswick for the year as determined under subsection (2).

62(2) The taxable capital employed in New Brunswick by a corporation for a taxation year is equal to

(a) where the corporation has no permanent establishment situated outside New Brunswick, the difference between its taxable capital employed in Canada for the year under subsection (4) and its capital deduction for the year under section 63, or

(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 for the year under subsection (4) and its capital deduction for the year under section 63.

62(3) The proportion referred to in paragraph (2)(b) shall be determined in accordance with Part IV of the Federal Regulations.

62(4) Sections 181, 181.2 and 181.4 of the Federal Act apply for the purposes of this Part.

62(5) Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection (1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365.

Capital deduction

63(1) The capital deduction of a corporation for a taxation year is $5,000,000 unless the corporation was related to another corporation in the year, in which case, subject to subsection (4), its capital deduction for the year is nil.

63(2) A corporation that is related to any other corporation in a taxation year of the corporation ending in a calendar year may file with the Minister in prescribed form an agreement on behalf of the related group of which the corporation is a member under which an amount that does not exceed $5,000,000 is allocated among all corporations that are members of the related group for each taxation year of each such corporation ending in the calendar year and at a time when it was a member of the related group.

63(3) The Minister may request a corporation that is related to any other corporation at the end of a taxation year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount not exceeding $5,000,000 among the members of the related group of which the corporation is a member for the year.

63(4) Subsections 181.5(4) to (7) of the Federal Act apply for the purposes of this Part.

63(5) In this section, a corporation is "related" to another corporation or is a member of a "related group" within the meaning assigned to those expressions by section 251 of the Federal Act.

63(6) In this section, one corporation is "associated" with another in a taxation year within the meaning assigned to that word by section 256 of the Federal Act.

Exemption

64 No tax is payable under this Part for a taxation year by a corporation included in subsection 181.1(3) of the Federal Act or by a corporation that is a financial institution.

Return

65 Every corporation that is liable to pay tax under this Part for a taxation year shall file with the Minister, not later than the day on or before which the corporation is required to file its return of income under the provisions of the Federal Act that apply for the purposes of this Act because of section 68, a return of capital for the year in prescribed form containing an estimate of the tax payable under this Part by it for the year.

Application of Federal Act

66 Notwithstanding any other provision of this Act, sections 152, 162, 163, 163.2 and 164 of the Federal Act apply to this Part.

Tax credits

67 Notwithstanding 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.

PART III

RETURNS, ASSESSMENTS, PAYMENT AND OBJECTIONS TO ASSESSMENT

Returns

68 Paragraph 70(7)(a) and sections 150 and 150.1 of the Federal Act apply for the purposes of this Act.

Estimate of tax

69 Section 151 of the Federal Act applies for the purposes of this Act.

Assessment

70 Subsections 152(1), (1.11), (1.111), (1.12), (1.2) and (2) to (8) of the Federal Act apply for the purposes of this Act.

Reassessment or additional assessments

71 Notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister of Finance shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

Reassessment respecting child tax benefit and working income supplement

72 Notwithstanding that the normal reassessment period for an individual in respect of a taxation year has elapsed, the Minister of Finance may redetermine the amount, if any, deemed under section 51 to be an overpayment on account of the taxpayer's liability for tax for that year.

Withholding

73 Subsections 153(1) to (3) of the Federal Act apply for the purposes of this Act.

Instalments for tax by farmers and fishermen

74 Section 155 of the Federal Act applies for the purposes of this Act.

Instalments for tax by other individuals

75 Section 156 of the Federal Act applies for the purposes of this Act.

Payment of remainder where paying by instalment

76 Subsection 156.1(4) of the Federal Act applies for the purposes of this Act.

Payment of tax by corporations

77(1) Subsections 157(1), (2), (2.1) and (4) of the Federal Act apply for the purposes of this Act.

77(2) Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the Federal Act and that is required to make payments under subsection 157(1) of the Federal Act, as it applies for the purposes of this Act, shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.

Payments, interest and special rules for trusts and estates

78(1) Subsection 70(2), subsection 104(2), paragraphs 104(23)(d) and (e), sections 158, 159 and 160, subsections 160.1(1), (2.1) and (3), sections 160.2 and 160.3 and subsections 161(1) to (7), (9) and (11) of the Federal Act apply for the purposes of this Act.

78(2) In applying subsections 160.1(1), (2.1) and (3) of the Federal Act for the purposes of this Act,

"refund" includes a refund that arises because of a provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable under this Act; or

(b) that deems an amount to have been paid by a taxpayer as or on account of the tax payable under this Act by the taxpayer. («remboursement»)

78(3) Where a taxpayer is deemed under subsection 161(4) of the Federal Act to be liable to pay, in respect of the taxpayer's tax payable under Part I of the Federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the Federal Act, notwithstanding subsection 161(4) of the Federal Act, as it applies for the purposes of this Act, the taxpayer shall be deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of the taxpayer's tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

78(4) Where a taxpayer is deemed under subsection 161(4.01) of the Federal Act to be liable to pay, in respect of the taxpayer's tax payable under Part I of the Federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the Federal Act, notwithstanding subsection 161(4.01) of the Federal Act, as it applies for the purposes of this Act, the taxpayer shall be deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of the taxpayer's tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

Penalties

79 Subsections 162(1) to (3), (5), (7) and (11) and section 235 of the Federal Act apply for the purposes of this Act.

Repeated failures to report income and gross negligence

80 Subsection 163(1), paragraph 163(2)(a) as it would apply without the references to subsection 120(2) of the Federal Act therein, and subsections 163(2.1), (3) and (4) of the Federal Act apply for the purposes of this Act.

Penalty for late or deficient instalments

81 Section 163.1 of the Federal Act applies for the purposes of this Act.

Refunds

82 Subsections 164(1) to (1.31), (1.5), (2), (3), (3.1), (3.2), (4), (4.1), (5), (5.1), (6) and (7) of the Federal Act apply for the purposes of this Act.

Objections to assessment

83 Sections 165, 166.1 and 166.2 of the Federal Act apply for the purposes of this Act.

PART IV

APPEALS

Appeals to The Court of Queen's Bench of New Brunswick

84(1) Section 169 of the Federal Act applies for the purposes of this Act.

84(2) Subject to subsection (4), an appeal from an assessment under this Act lies to the Court in respect of any question relating,

(a) in the case of an individual, to the determination of

(i) the individual's residence for the purposes of this Act,

(ii) the individual's income earned in the taxation year in New Brunswick as defined in section 13 and the individual's income for the year as defined in section 13,

(iii) the amount of tax payable by the individual for a taxation year based on the individual's taxable income under the Federal Act for that year,

(iv) an overpayment under section 51 in respect of a taxation year, or

(v) the liability of a director to pay an amount under section 227.1 of the Federal Act as that section applies for the purposes of this Act because of section 109; and

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in New Brunswick as defined in section 54, or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year.

84(3) Subject to subsection (4), an appeal lies to the Court in respect of the determination of an overpayment for the purposes of section 52.

84(4) No appeal from an assessment lies to the Court in respect of

(a) the computation of the net income or taxable income of an individual for a taxation year, or

(b) the computation of the taxable income of a corporation for a taxation year.

Notice of appeal

85(1) An appeal to the Court shall be instituted by serving upon the Minister of Finance a notice of appeal in duplicate in the form prescribed by the Rules of Court and by filing a copy of the notice in the Court within the time specified in section 169 of the Federal Act.

85(2) A notice of appeal shall be served upon the Minister of Finance by being sent by registered mail addressed to the deputy head.

85(3) The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the taxpayer intends to submit in support of the appeal.

85(4) The taxpayer appealing shall pay to the clerk of the Court a fee of $15 on the filing of the copy of the notice of appeal.

Reply

86 The Minister of Finance shall, within 60 days after the day the notice of appeal is received, or within such further time as the Court or a judge of the Court may either before or after the expiration of that time allow, serve on the appellant and file in the Court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and of such statutory provisions and reasons as the Minister of Finance intends to rely on.

Power of Court or judge

87(1) The Court or a judge of the Court may, in the Court's or judge's discretion, strike out a notice of appeal or any part of a notice of appeal for failure to comply with subsection 85(3) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

87(2) The Court or a judge of the Court may, in the Court's or judge's discretion,

(a) strike out any part of a reply for failure to comply with section 86 or permit the amendment of a reply, and

(b) strike out a reply for failure to comply with section 86 and order a new reply to be filed within a time to be fixed by the order.

87(3) Where a notice of appeal is struck out for failure to comply with subsection 85(3) and a new notice of appeal is not filed as and when permitted by the Court or a judge of the Court, the Court or judge may, in the Court's or judge's discretion, dispose of the appeal by dismissing it.

87(4) Where a reply is not filed as required by section 86 or is struck out under this section and a new reply is not filed as ordered by the Court or a judge of the Court within the time ordered, the Court may dispose of the appeal ex parte or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true.

Appeal deemed action in Court

88(1) Upon the filing of the material referred to in sections 85 to 87, the matter shall be deemed to be an action in the Court.

88(2) Subject to subsection (3) and section 87, the notice of appeal and reply shall be deemed to be pleadings in an action in the Court.

88(3) Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the Court may direct.

88(4) Subject to section 87, the Rules of Court with respect to any matter that may be dealt with before trial apply with the necessary modifications to an action referred to in subsection (1).

88(5) An action referred to in subsection (1) may proceed to trial upon the filing of a trial record with the Court and the Rules of Court with respect to a trial record apply with the necessary modifications for the purposes of this subsection.

88(6) Section 171 of the Federal Act applies for the purposes of this Act.

88(7) The Court may, in delivering judgment disposing of an appeal, order payment or repayment of tax, interest and penalties or costs by the taxpayer or the Minister of Finance.

Application of Federal Act

89 Sections 166, 167, 179 and 179.1 of the Federal Act apply for the purposes of this Act.

Appeal procedure

90(1) Except as provided in this Part or the regulations, the practice and procedure of the Court, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under section 88.

90(2) Every judgment and order given or made in every action referred to in subsection (1) may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the Court.

PART V

COLLECTION OF TAX

Collection agreement

91(1) The Minister of Finance of New Brunswick, with the approval of the Lieutenant-Governor in Council, may, on behalf of the Government of the Province of New Brunswick, enter into a collection agreement with the Government of Canada under which the Government of Canada will administer this Act on behalf of the Government of the Province of New Brunswick and will make payments to the Government of the Province of New Brunswick in respect of the taxes collected under the collection agreement in accordance with the terms and conditions of the collection agreement.

91(2) The Minister of Finance of New Brunswick, with the approval of the Lieutenant-Governor in Council, may, on behalf of the Government of the Province of New Brunswick, enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1).

91(3) An agreement under subsection (1) or (2) may be retroactive in its operation to January 1, 2000, or to any date after January 1, 2000.

91(4) Where a collection agreement is in effect, the Minister, on behalf of the Minister of Finance of New Brunswick, may employ all the powers, perform all the duties, and exercise any discretion that the Minister of Finance of New Brunswick or the deputy head has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in New Brunswick of any document that, in the opinion of the Minister, it is not in the interests of public policy to produce.

91(5) Where a collection agreement is in effect, the Commissioner of Customs and Revenue may

(a) employ all the powers, perform all the duties and exercise any discretion that the Minister has under subsection (4) or otherwise under this Act, and

(b) designate officers of the Canada Customs and Revenue Agency to carry out such functions, duties and powers as are similar to those that are exercised by them on the Commissioner's behalf under the Federal Act.

Application of tax payments

92(1) A collection agreement may provide that where a payment is received by the Minister of Finance on account of tax payable by a taxpayer for a taxation year under this Act, the Federal Act or an income tax statute of another agreeing province, or under any two or more such Acts or statutes, the payment so received may be applied by the Minister of National Revenue for Canada towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer directed that the payment be applied in any other manner or made no direction as to its application.

92(2) A payment or part of a payment applied by the Minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay such tax to the extent of the payment or part of the payment so applied, and

(b) shall be deemed to have been applied in accordance with a direction made by the taxpayer.

Remittances not recoverable

93 Where a collection agreement is in effect and an amount is remitted to the Minister of Finance under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of such amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

Tax paid to other agreeing province

94(1) Where a collection agreement is in effect, an individual resident in New Brunswick on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's tax for that year under the income tax statute of another agreeing province.

94(2) Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in New Brunswick on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of section 82 apply in respect of such individual as though the excess were an overpayment under this Act.

Non-agreeing provinces

95(1) In this section

"adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of the Government of the Province of New Brunswick to a non-agreeing province; («paiement de rajustement»)

"amount deducted or withheld" does not include any refund made in respect of that amount; («montant déduit ou retenu»)

"non-agreeing province" means a province that is not an agreeing province. («province non participante»)

95(2) Where, in respect of a taxation year, a non-agreeing province is authorized to make a payment to the Government of the Province of New Brunswick that, in the opinion of the Minister of Finance of New Brunswick corresponds to an adjusting payment, the Lieutenant-Governor in Council may authorize the Minister of Finance of New Brunswick to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.

95(3) Where a collection agreement is entered into, the adjusting payment that may be made under subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of the Government of the Province of New Brunswick as communicated by the Minister of Finance of New Brunswick to the Minister of National Revenue for Canada.

95(4) The adjusting payment to be made under this section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, in respect of the tax payable for a taxation year by individuals who

(a) file returns under the Federal Act,

(b) are taxable under the Federal Act in respect of that year, and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

95(5) Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, on account of the tax for a taxation year of an individual who is taxable under the Federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) no action lies for the recovery of such amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

95(6) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in New Brunswick on the last day of that taxation year is not required to remit any amount on account of tax that is payable or might have been payable by the individual under this Act for that taxation year to the extent of the amount deducted or withheld on account of the individual's income tax for that taxation year under the law of that non-agreeing province.

95(7) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year and the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in New Brunswick on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of section 82 apply in respect of such individual as though the excess were an overpayment under this Act.

95(8) Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the Government of the Province of New Brunswick and to make an adjusting payment on behalf of the Government of the Province of New Brunswick, the adjusting payment

(a) shall be made out of any money that has been collected on account of tax under this Act for any taxation year, and

(b) shall be the amount calculated by the Minister to be the amount required to be paid under subsection (4).

95(9) A payment of an adjusting payment under subsection (8) discharges any obligation the Government of Canada may have with respect to the payment to the Government of the Province of New Brunswick of any amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, to which subsection (5) applies.

Reciprocal enforcement of judgments

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.

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.

PART VI

ADMINISTRATION AND ENFORCEMENT

Administration

97 Section 220 of the Federal Act applies for the purposes of this Act.

Application of interest

98 Section 221.1 of the Federal Act applies for the purposes of this Act.

Enforcement

99 Section 222 of the Federal Act applies for the purposes of this Act.

Certificates

100(1) Paragraph 223(1)(a) and subsections 223(2) to (4) of the Federal Act apply for the purposes of this Act.

100(2) Where a collection agreement is in effect, subsection (1) does not apply, but the Minister may proceed under section 223 of the Federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

Warrants

101 The Minister of Finance may issue a warrant directed to the sheriff for a judicial district in which any property of the taxpayer is located or situate, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest on such amount from the date of the issue of the warrant and the fees, costs and expenses of the sheriff, and such warrant has the same force and effect as an order for seizure and sale issued out of The Court of Queen's Bench of New Brunswick.

Garnishment

102 Section 224 of the Federal Act applies for the purposes of this Act.

Acquisition of debtor's property

103 Section 224.2 of the Federal Act applies for the purposes of this Act.

Payment of money seized from tax debtor

104 Section 224.3 of the Federal Act applies for the purposes of this Act.

Direction to seize chattels

105 Section 225 of the Federal Act applies for the purposes of this Act.

Restrictions on collection

106 Sections 225.1 and 225.2 of the Federal Act apply for the purposes of this Act.

Demand for payment

107 Section 226 of the Federal Act applies for the purposes of this Act.

Money withheld

108(1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10), (10.2) and (11) to (13) of the Federal Act apply for the purposes of this Act.

108(2) The Minister of Finance may assess

(a) any person for any amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, and

(b) any person for any amount payable by that person under subsection 224(4) or (4.1) or section 227.1 or 235 of the Federal Act, as they apply for the purposes of this Act, or under section 115.

108(3) Where the Minister of Finance sends a notice of assessment to a person referred in paragraph (2)(a) or (b), sections 68 and 78 to 90 apply with the necessary modifications.

108(4) Notwithstanding any other provision of this Act or any other Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the Federal Regulations made for the purposes of subsection 153(1) of the Federal Act, as both those Federal Regulations and that subsection apply for the purposes of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds $500.

Liability of directors

109 Section 227.1 of the Federal Act applies for the purposes of this Act.

Books and records

110 Section 230 of the Federal Act applies for the purposes of this Act.

Inspections

111 Sections 231 to 231.5 of the Federal Act apply for the purposes of this Act.

Privilege

112 Section 232 of the Federal Act applies for the purposes of this Act.

Information return

113 Section 233 of the Federal Act applies for the purposes of this Act.

Execution of documents by corporations

114 Section 236 of the Federal Act applies for the purposes of this Act.

Offence respecting regulations

115(1) Every person who fails to comply with a regulation made under subsection 124(1) commits an offence and is liable on conviction to a fine of $10 per day for each day the offence is committed, but the fine is not to exceed $2,500 in total.

115(2) Every person who fails to comply with the Federal Regulations made under subsection 221(1) of the Federal Act, as they apply for the purposes of this Act because of subsection 124(3), commits an offence and is liable on conviction to a fine of $10 per day for each day the offence is committed, but the fine is not to exceed $2,500 in total.

Offence respecting returns and records

116(1) Every person who fails to file a return as and when required by or under this Act or a regulation, or by or under a provision of the Federal Act or of the Federal Regulations, as the provision applies for the purposes of this Act, or who fails to comply with any of subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the Federal Act, as it applies for the purposes of this Act, commits an offence and, in addition to any penalty otherwise provided, is liable on conviction to

(a) a fine of not less than $1,000 and not exceeding $25,000; or

(b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months.

116(2) Subsection 238(2) of the Federal Act applies for the purposes of this Act.

116(3) Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, that person is not liable to a penalty under subsection 227(8), (9) or (9.5) of the Federal Act, as those subsections apply for the purposes of this Act, a penalty under the provisions of the Federal Act that apply for the purposes of this Act because of section 79, or a penalty under section 115 for the same failure, unless that person was assessed for that penalty or that penalty was demanded from that person before the information or complaint giving rise to the conviction was laid or made.

Other offences and penalties

117 Subsections 239(1) and (1.1) of the Federal Act apply for the purposes of this Act.

Action under section 116 or 117

118 Where a collection agreement is entered into and proceedings under section 238 or subsection 239(1) or (1.1) of the Federal Act are taken against any person, the Minister may take or refrain from any action against such person contemplated by section 116 or 117 of this Act, as the case may be.

Offence respecting disclosure of tax information

119(1) Every person who, while employed in the administration of this Act,

(a) knowingly communicates or knowingly allows to be communicated to any person not legally entitled thereto any information obtained by or on behalf of the Minister of Finance for the purposes of this Act,

(b) knowingly allows any person not legally entitled thereto to inspect or to have access to any book, record, writing, return or other document obtained by or on behalf of the Minister of Finance for the purposes of this Act, or

(c) knowingly uses, other than in the course of that person's duties in connection with the administration or enforcement of this Act, any information obtained by or on behalf of the Minister of Finance for the purposes of this Act,

commits an offence and is liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment.

119(2) Subsection (1) does not apply to the communication of information between

(a) the Minister of Finance of New Brunswick and the Minister of National Revenue for Canada; or

(b) the Minister of Finance of New Brunswick or the Minister of National Revenue for Canada and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of

(i) another agreeing province, or

(ii) a non-agreeing province to which an adjusting payment may be made under subsection 95(2).

119(3) Section 241 of the Federal Act applies for the purposes of this Act.

Officers, directors and agents of corporations

120 Section 242 of the Federal Act applies for the purposes of this Act.

Power to decrease punishment

121 Section 243 of the Federal Act applies for the purposes of this Act.

Procedure and evidence

122(1) Subsections 244(1) to (5), (7) to (11), (13) to (22) of the Federal Act apply for the purposes of this Act.

122(2) Judicial notice shall be taken of

(a) all orders or regulations made under this Act, and

(b) a collection agreement or any agreement for the collection by Canada of the tax imposed under the income tax statute of another agreeing province,

without such orders, regulations or agreements being specially pleaded or proven.

122(3) For the purposes of this Act, anything sent by first class mail or its equivalent shall be deemed to have been received by the person to whom it is sent on the day that it was mailed, except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, shall be deemed to have been remitted on the day it is received by the Minister of Finance.

122(4) A document purporting to be a collection agreement that is

(a) published in the Canada Gazette, or

(b) certified as such by or on behalf of

(i) the Minister of National Revenue for Canada, or

(ii) the Minister of Finance of New Brunswick,

is admissible in evidence and is, in the absence of evidence to the contrary, proof of the contents of the collection agreement.

122(5) A document purporting to be an agreement with Canada for the collection of tax imposed under the income tax statute of another agreeing province that is

(a) published in the Canada Gazette, or

(b) certified as such by or on behalf of

(i) the Minister of National Revenue for Canada, or

(ii) the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of that agreeing province,

is admissible in evidence and is, in the absence of evidence to the contrary, proof of the contents of the agreement.

122(6) Every certificate of the Minister of Finance as to

(a) a taxpayer's tax payable under the Federal Act as defined in section 13,

(b) a taxpayer's income for the year as defined in section 13, or

(c) the taxable income of a corporation,

is admissible in evidence and is, in the absence of evidence to the contrary, proof that a taxpayer's tax payable under the Federal Act, the taxpayer's income for the year or the taxable income of a corporation, as the case may be, is in the amount set out in the certificate.

122(7) Where a collection agreement is entered into, any document or certificate that is executed or issued by the Minister, the Commissioner of Customs and Revenue, or an official of the Canada Customs and Revenue Agency on behalf or in place of the Minister of Finance, the Minister of Finance's deputy or an officer of the department under the Minister of Finance, shall be deemed, for the purposes of this Act, to be executed or issued by the Minister of Finance, the deputy or the officer, as the case may be.

122(8) Where no collection agreement is entered into, a reference to the Royal Canadian Mounted Police in the provisions of the Federal Act that apply for the purposes of this Act because of subsection (1) shall be construed as a reference to the police force carrying out the duties of a provincial police force in New Brunswick.

General anti-avoidance rule and benefit conferred on a person

123 Sections 245 and 246 of the Federal Act apply for the purposes of this Act.

PART VII

REGULATIONS

Regulations

124(1) The Lieutenant-Governor in Council may make regulations

(a) for the purposes of paragraph (d) of the definition "prescribed" in section 1, prescribing anything that is to be prescribed under this Act;

(b) respecting anything that, by this Act, is to be provided for, determined or regulated by regulation;

(c) respecting the circumstances under which both an individual and his or her spouse or common-law partner may apply under section 52;

(d) respecting New Brunswick film tax credit certificates under section 60, including applications for the certificates, issuance of the certificates, revocation of the certificates and form of the certificates;

(e) respecting eligible projects for the purposes of section 60;

(f) respecting the circumstances and terms and conditions under which a waiver may be made under subsection 60(5);

(g) respecting the enforcement in New Brunswick of judgments in respect of taxes in other agreeing provinces;

(h) respecting the deduction or withholding of amounts from payments described in subsection 153(1) of the Federal Act, as that subsection applies for the purposes of this Act because of section 73, and the remittance of such amounts to the Receiver General;

(i) respecting the determination of amounts referred to in paragraph (h);

(j) requiring persons making payments referred to in paragraph (h) to deduct, withhold or remit the amounts determined under paragraph (i);

(k) respecting elections by persons in respect of amounts deducted or withheld from payments referred to in paragraph (h) made to such persons;

(l) respecting the filing of forms with persons deducting or withholding payments referred to in paragraph (h);

(m) respecting the practice and procedure on appeals under Part IV;

(n) defining any word or expression used in but not defined in this Act;

(o) respecting the circumstances in which and the extent to which a provision of the Federal Regulations applies.

124(2) A regulation made under subsection (1) may be retroactive in its operation to January 1, 2000, or to any date after January 1, 2000.

124(3) Except to the extent that the Federal Regulations are inconsistent with a regulation made under subsection (1) or are expressed by a regulation made under subsection (1) to be inapplicable, the Federal Regulations made under subsection 221(1) of the Federal Act apply with the necessary modifications for the purposes of this Act with respect to all matters enumerated in subsection 221(1) of the Federal Act.

124(4) In applying paragraph (1)(c) to the 2000 taxation year, paragraph (1)(c) shall be read without reference to "or common-law partner".

PART VIII

TRANSITIONAL PROVISIONS

Tax Agreement Act, 1957

125(1) Each Act or provision of an Act that is enumerated in Appendix "A" to the Agreement, appended as a schedule to the Tax Agreement Act, 1957, and that is repealed, suspended or nullified shall continue to be repealed, suspended or nullified unless the Lieutenant-Governor in Council by proclamation declares that the Act or provision is operative.

125(2) Where the Lieutenant-Governor in Council makes a declaration under subsection (1), the Act or provision shall be in full force and effect.

Collection agreement

126 A collection agreement entered into under the Income Tax Act and in effect on the date of Royal Assent of this Act applies for the purposes of this Act as if it were a collection agreement entered into under this Act, until a collection agreement is entered into under this Act.

Common-law partners

127 Section 146 of the Modernization of Benefits and Obligations Act (Canada) applies for the purposes of this Act.

PART IX

CONSEQUENTIAL AMENDMENTS

Income Tax Act

128(1) The Income Tax Act, chapter I-2 of the Revised Statutes, 1973, is amended by adding before Part I the following:

0.1 Notwithstanding any other provision of this Act except subsection 3(2.9), this Act does not apply to

(a) the 2000 taxation year or any subsequent taxation year of an individual, and

(b) the taxation years of a corporation that end after December 31, 1999.

128(2) Paragraph 2(3)(q) of the Act is repealed and the following is substituted:

(q) 60 per cent in respect of the 1999 taxation year.

128(3) Section 2.01 of the Act is amended by striking out "the 1991 and subsequent taxation years" and substituting "the 1991 to 1999 taxation years, inclusive,".

128(4) Subsection 2.5(6) of the Act is repealed and the following is substituted:

2.5(6) This section applies to the 1998 and 1999 taxation years.

128(5) Section 5.1 of the Act is amended

(a) in subsection (1) in the definition "eligible expenditure" by striking out "made after February 25, 1994" and substituting "made after February 25, 1994, and before January 1, 2000,";

(b) in subsection (5) by striking out "after February 25, 1994" and substituting "after February 25, 1994, and before January 1, 2000";

(c) in subsection (6) by striking out "after February 25, 1994" and substituting "after February 25, 1994, and before January 1, 2000".

128(6) Section 5.2 of the Act is amended

(a) in subsection (1) in the definition "eligible salaries"

(i) in paragraph (a) by striking out "on or after June 13, 1996" and substituting "on or after June 13, 1996, and before January 1, 2000";

(ii) in paragraph (b) by striking out "on or after June 13, 1996" and substituting "on or after June 13, 1996, and before January 1, 2000";

(b) by repealing paragraph (4)(a) and substituting the following:

(a) the tax credit applies with respect to eligible salaries incurred on or after June 13, 1996, and before January 1, 2000;

128(7) Subsection 27.3(1) of the Act is amended by striking out "in a taxation year ending after March 31, 1997" and substituting "in a taxation year ending after March 31, 1997, and before January 1, 2000".

128(8) Subsection 54(9) of the Act is repealed.

Stock Savings Plan Act

129(1) The Stock Savings Plan Act, chapter S-14.2 of the Acts of New Brunswick, 1989, is repealed.

129(2) New Brunswick Regulation 90-87 under the Stock Savings Plan Act is repealed.

PART X

COMMENCEMENT

Commencement

130 This Act shall be deemed to have come into force on January 1, 2000.