Consequential Amendments

R.S., c. E-15Excise Tax Act

Marginal note:1993, c. 27, s. 128(3)

• 68. (1) Subparagraph 295(5)(d)(i) of the Excise Tax Act is replaced by the following:

  • (i) to an official of the Department of Finance solely for the purposes of the formulation or evaluation of fiscal policy or for the purposes of an administration agreement, as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act, entered into with an aboriginal government, as defined in that subsection, or for the purposes of an administration agreement, as defined in subsection 2(1) of the First Nations Goods and Services Tax Act,

• (2) Paragraph 295(5)(d) of the Act is amended by adding the following after subparagraph (iv.1):

  • (iv.2) to a person authorized by the governing body of a first nation listed in the schedule to the First Nations Goods and Services Tax Act solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax referred to in that Act,

PART 10AMENDMENTS TO THE INCOME TAX ACT AND ANOTHER ACT AS A CONSEQUENCE

R.S., c. 1 (5th Supp.)Income Tax Act

• 69. (1) The descriptions of A and B in subsection 6(2) of the Income Tax Act are replaced by the following:

  A

  is

  • (a) the lesser of the total kilometres that the automobile is driven (otherwise than in connection with or in the course of the taxpayer’s office or employment) during the total available days and the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, if

    • (i) the taxpayer is required by the employer to use the automobile in connection with or in the course of the office or employment, and

    • (ii) the distance travelled by the automobile in the total available days is primarily in connection with or in the course of the office or employment, and

  • (b) the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, in any other case;

  B

  is the product obtained when 1,667 is multiplied by the quotient obtained by dividing the total available days by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers;

• (2) Subsection (1) applies to the 2003 and subsequent taxation years.

• 70. (1) The definitions “qualifying cost”, “qualifying portion of a capital gain” and “qualifying portion of the proceeds of disposition” in subsection 44.1(1) of the Act are repealed.

• (2) The descriptions of E and F in the definition “ACB reduction” in subsection 44.1(1) of the Act are replaced by the following:

  E

  is the cost to the individual of the replacement share; and

  F

  is the cost to the individual of all the replacement shares of the individual in respect of the qualifying disposition.

• (3) The descriptions of G, H and I in the definition “permitted deferral” in subsection 44.1(1) of the Act are replaced by the following:

  G

  is the lesser of the individual’s proceeds of disposition from the qualifying disposition and the total of all amounts each of which is the cost to the individual of a replacement share in respect of the qualifying disposition;

  H

  is the individual’s proceeds of disposition from the qualifying disposition; and

  I

  is the individual’s capital gain from the qualifying disposition.

• (4) Paragraph (a) of the definition “replacement share” in subsection 44.1(1) of the Act is replaced by the following:

  • (a) acquired by the individual in the year or within 120 days after the end of the year; and

• (5) Subsections (1) to (4) apply in respect of dispositions that occur after February 18, 2003.

• 71. (1) Subparagraph 60(l)(v) of the Act is amended by adding the following after clause (B):

  • (B.01) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a registered pension plan as a consequence of the death of an individual of whom the taxpayer was a child or grandchild, if the taxpayer was, immediately before the death, financially dependent on the individual for support because of mental or physical infirmity,

• (2) The portion of subclause 60(l)(v)(B.1)(II) of the Act before sub-subclause 1 is replaced by the following:

  • (II) the amount (other than any portion of it that is included in the amount determined under clause (B), (B.01) or (B.2)) that is included in computing the taxpayer’s income for the year as

• (3) Subsections (1) and (2) apply in respect of deaths that occur after 2002.

• 72. (1) Paragraph 104(27)(c) of the French version of the Act is replaced by the following:

  • c) lorsque la prestation est un montant unique, au sens du paragraphe 147.1(1), qu’un régime de pension agréé verse à la fiducie par suite du décès de l’auteur de celle-ci :

    • (i) si le bénéficiaire était, immédiatement avant le décès de l’auteur, l’enfant ou le petit-enfant de celui-ci qui était financièrement à sa charge en raison d’une déficience mentale ou physique, la part du bénéficiaire sur la prestation (à l’exception de toute fraction de celle-ci qui se rapporte à un surplus actuariel) est réputée, pour l’application de l’alinéa 60l), être un montant provenant d’un régime de pension agréé qui est inclus dans le calcul du revenu du bénéficiaire pour l’année donnée à titre de paiement visé à la division 60l)(v)(B.01),

    • (ii) si le bénéficiaire — enfant ou petit-enfant de l’auteur — avait moins de 18 ans au décès de l’auteur, la part du bénéficiaire sur la prestation (à l’exception de toute fraction de celle-ci qui se rapporte à un surplus actuariel) est réputée, pour l’application de l’alinéa 60l), être un montant provenant d’un régime de pension agréé qui est inclus dans le calcul du revenu du bénéficiaire pour l’année donnée à titre de paiement visé à la subdivision 60l)(v)(B.1)(II).

• (2) Paragraph 104(27)(e) of the English version of the Act is replaced by the following:

  • (e) where the benefit is a single amount (within the meaning assigned by subsection 147.1(1)) paid by a registered pension plan to the trust as a consequence of the death of the settlor of the trust,

    • (i) if the beneficiary was, immediately before the settlor’s death, a child or grandchild of the settlor who, because of mental or physical infirmity, was financially dependent on the settlor for support, the beneficiary’s share of the benefit (other than any portion of it that relates to an actuarial surplus) is deemed, for the purposes of paragraph 60(l), to be an amount from a registered pension plan included in computing the beneficiary’s income for the particular year as a payment described in clause 60(l)(v)(B.01), and

    • (ii) if the beneficiary was, at the time of the settlor’s death, under 18 years of age and a child or grandchild of the settlor, the beneficiary’s share of the benefit (other than any portion of it that relates to an actuarial surplus) is deemed, for the purposes of paragraph 60(l), to be an amount from a registered pension plan included in computing the beneficiary’s income for the particular year as a payment described in subclause 60(l)(v)(B.1)(II).

• (3) Subsections (1) and (2) apply in respect of deaths that occur after 2002.

• 73. (1) Paragraph 118.2(2)(l.4) of the Act is replaced by the following:

  • (l.4) on behalf of the patient who has a speech or hearing impairment, for sign language interpretation services or real-time captioning services, to the extent that the payment is made to a person in the business of providing such services;

  • (l.41) on behalf of the patient who has a mental or physical impairment, for note-taking services, if

    • (i) the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and

    • (ii) the payment is made to a person in the business of providing such services;

  • (l.42) on behalf of the patient who has a physical impairment, for the cost of voice recognition software, if the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software;

• (2) Subsection 118.2(2) of the Act is amended by striking out the word “or” at the end of paragraph (p), by adding the word “or” at the end of paragraph (q) and by adding the following after paragraph (q):

  • (r) on behalf of the patient who has celiac disease, the incremental cost of acquiring gluten-free food products as compared to the cost of comparable non-gluten-free food products, if the patient has been certified in writing by a medical practitioner to be a person who, because of that disease, requires a gluten-free diet.

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 74. (1) Subparagraph 118.3(1)(a.2)(iii) of the English version of the Act is replaced by the following:

  • (iii) an impairment with respect to an individual’s ability in feeding or dressing themself, or in walking, a medical doctor or an occupational therapist,

• (2) Subparagraph 118.3(1)(a.2)(iv) of the French version of the Act is replaced by the following:

  • (iv) s’il s’agit d’une déficience quant à la capacité de marcher, de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute,

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 75. (1) Subparagraph 118.4(1)(c)(ii) of the Act is replaced by the following:

  • (ii) feeding oneself or dressing oneself,

• (2) Subsection 118.4(1) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by adding the following after paragraph (d):

  • (e) feeding oneself does not include

    • (i) any of the activities of identifying, finding, shopping for or otherwise procuring food, or

    • (ii) the activity of preparing food to the extent that the time associated with the activity would not have been necessary in the absence of a dietary restriction or regime; and

  • (f) dressing oneself does not include any of the activities of identifying, finding, shopping for or otherwise procuring clothing.

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 76. (1) Paragraph 118.6(3)(b) of the English version of the Act is amended by adding the following after subparagraph (i):

  • (i.1) a speech impairment, by a medical doctor or a speech-language pathologist,

• (2) Paragraph 118.6(3)(b) of the French version of the Act is amended by adding the following after subparagraph (ii):

  • (ii.1) s’il s’agit d’un trouble de la parole, un médecin en titre ou un orthophoniste,

• (3) Subparagraph 118.6(3)(b)(iii) of the English version of the Act is replaced by the following:

  • (iii) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, by a medical doctor or an occupational therapist, or

• (4) Subparagraph 118.6(3)(b)(iv) of the French version of the Act is replaced by the following:

  • (iv) s’il s’agit d’une déficience quant à la capacité de marcher, de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute,

• (5) Subsections (1) and (2) apply in respect of certifications made after October 17, 2000.

• (6) Subsections (3) and (4) apply to the 2003 and subsequent taxation years.

• 77. (1) The first formula in subsection 122.61(1) of the Act is replaced by the following:

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

• (2) Subsection 122.61(1) of the Act is amended by striking out the word “and” at the end of the description of B and by replacing paragraphs (a) and (b) of the description of F in the description of C with the following:

  • (a) only one qualified dependant, $1,463, and

  • (b) two or more qualified dependants, the total of

    • (i) $1,463 for the first qualified dependant,

    • (ii) $1,254 for the second qualified dependant, and

    • (iii) $1,176 for each of the third and subsequent qualified dependants,

• (3) The descriptions of G and H in the description of C in subsection 122.61(1) of the Act are replaced by the following:

  G

  is the amount determined by the formula

  J - [K - (L/0.122)]

  where

  J

  is the person’s adjusted income for the year,

  K

  is the amount referred to in paragraph (b) of the description of B, and

  L

  is the amount referred to in paragraph (a) of the description of F, and

  H

  is

  • (a) if the person is an eligible individual in respect of only one qualified dependant, 12.2%, and

  • (b) if the person is an eligible individual in respect of two or more qualified dependants, the fraction (expressed as a percentage rounded to the nearest one-tenth of one per cent) of which

    • (i) the numerator is the total that would be determined under the description of F in respect of the eligible individual if that description were applied without reference to the fourth and subsequent qualified dependants in respect of whom the person is an eligible individual, and

    • (ii) the denominator is the amount referred to in paragraph (a) of the description of F, divided by 0.122; and

• (4) Subsection 122.61(1) of the Act is amended by adding the following after the description of C:

  M

  is the amount determined by the formula

  N - (O x P)

  where

  N

  is the product obtained by multiplying $1,600 by the number of qualified dependants in respect of whom both

  • (a) an amount may be deducted under section 118.3 for the taxation year that includes the month, and

  • (b) the person is an eligible individual at the beginning of the month,

  O

  is the amount determined by the formula

  J - [F/H + (K - L/0.122)]

  where the descriptions of J, F, H, K, and L are described in the description of C, and

  P

  is the amount that would be determined for the description of H if the person were an eligible individual in respect of only the number of qualified dependants included in the description of N.

• (5) Subsection 122.61(6) of the Act is replaced by the following:

  • Marginal note:Additions to NCB supplement — July 2005 and 2006

    (6) Each amount referred to in the description of F in subsection (1) that is to be used for the purpose of determining the amount deemed to be an overpayment arising during months that are

    • (a) after June 2005 and before July 2006, is to be replaced with the amount that is the total of $185 and the amount otherwise determined under subsection (5) for those months; and

    • (b) after June 2006 and before July 2007, is to be replaced with the amount that is the total of $185 and the amount otherwise determined, for those months, by applying subsection (5) to the amount determined under paragraph (a).

• (6) Subsections (1) to (5) apply in respect of overpayments deemed to arise during months that are after June 2003 except that, for overpayments deemed to arise during those months that are before July 2004, the following applies:

  • (a) the description of G in subsection 122.61(1) of the Act, as enacted by subsection (3), is to be read as follows:

    G

    is the amount, if any, by which the person’s adjusted income for the year exceeds $21,529, and

  • (b) subparagraph (b)(ii) in the description of H in subsection 122.61(1) of the Act, as enacted by subsection (3), is to be read as follows:

    • (ii) the denominator is the amount by which the amount referred to in paragraph (b) of the description of B exceeds $21,529.

  • (c) the description of O in subsection 122.61(1) of the Act, as enacted by subsection (4), is to be read as follows:

    O

    is the amount determined by the formula

    • (a) “J - $33,487”, if the person is an eligible individual in respect of three or fewer qualified dependants, and

    • (b) “J - (F/H + $21,529)”, if the person is an eligible individual in respect of more than three qualified dependants,

    where the descriptions of J, F and H are described in the description of C, and