Budget Implementation Act, 2006 (S.C. 2006, c. 4)
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Assented to 2006-06-22
PART 2R.S., c. 1 (5th Supp.)AMENDMENTS TO THE INCOME TAX ACT
58. (1) Subsection 117(2) of the Act is replaced by the following:
Marginal note:Rates for the 2005 taxation year
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2005 taxation year is
(a) 15% of the amount taxable, if the amount taxable is equal to or less than $35,595;
(b) $5,339 plus 22% of the amount by which the amount taxable exceeds $35,595, if the amount taxable is greater than $35,595 and is equal to or less than $71,190;
(c) $13,170 plus 26% of the amount by which the amount taxable exceeds $71,190, if the amount taxable is greater than $71,190 and is equal to or less than $115,739; and
(d) $24,753 plus 29% of the amount by which the amount taxable exceeds $115,739, if the amount taxable is greater than $115,739.
(2) Subsection 117(2) of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Rates for the 2006 taxation year
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2006 taxation year is
(a) 15.25% of the amount taxable, if the amount taxable is equal to or less than $36,378;
(b) $5,548 plus 22% of the amount by which the amount taxable exceeds $36,378, if the amount taxable is greater than $36,378 and is equal to or less than $72,756;
(c) $13,551 plus 26% of the amount by which the amount taxable exceeds $72,756 if the amount taxable is greater than $72,756 and is equal to or less than $118,285; and
(d) $25,388 plus 29% of the amount by which the amount taxable exceeds $118,285, if the amount taxable is greater than $118,285.
(3) Subsection 117(2) of the Act, as enacted by subsection (2), is replaced by the following:
Marginal note:Rates for taxation years after 2006
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is
(a) 15.5% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $36,378;
(b) if the amount taxable is greater than the amount determined for the year in respect of $36,378 and is equal to or less than the amount determined for the year in respect of $72,756, the amount determined in respect of the taxation year under paragraph (a) plus 22% of the amount by which the amount taxable exceeds the amount determined in respect of $36,378 for the year;
(c) if the amount taxable is greater than the amount determined for the year in respect of $72,756, but is equal to or less than the amount determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a) and (b) plus 26% of the amount by which the amount taxable exceeds the amount determined in respect of $72,756; and
(d) if the amount taxable is greater than the amount that would be determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a), (b) and (c) plus 29% of the amount by which the amount taxable exceeds the amount determined in respect of $118,825.
(4) Subsection (1) applies to the 2005 taxation year.
(5) Subsection (2) applies to the 2006 taxation year.
(6) Subsection (3) applies to the 2007 and subsequent taxation years.
59. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Annual adjustment (indexing)
117.1 (1) Each of the amounts expressed in dollars in subsection 117(2), the description of B in subsection 118(1), subsections 118(2) and118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of
(2) Subsection (1) applies to the 2006 and subsequent taxation years.
60. (1) Subsections 118(3.1) to (3.3) of the Act are replaced by the following:
Marginal note:Additions to personal credits — basic personal amount
(3.1) The amount of $7,131 referred to in paragraphs (a) to (c) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2005 taxation year, to be replaced by $8,648;
(b) for the 2006 taxation year, to be replaced by $8,839, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $8,639;
(c) for the 2007 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $8,639 as deemed under paragraph (b);
(d) for the 2008 taxation year, to be replaced by the amount that is the total of $200 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);
(e) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the total of $600 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and
(ii) $10,000; and
(f) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year.
Marginal note:Additions to personal credits — spouse or common-law partner or wholly dependent person
(3.2) The amount of $6,055 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2005 taxation year, to be replaced by $7,344;
(b) for the 2006 taxation year, to be replaced by $7,505, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $7,335;
(c) for the 2007 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $7,335 as deemed under paragraph (b);
(d) for the 2008 taxation year, to be replaced by the amount that is the total of $170 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);
(e) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the total of $510 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and
(ii) $8,500; and
(f) for each of the 2010 and subsequent taxation years, to be replaced by the amount determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined for that description for the immediately preceding taxation year in respect of the particular amount.
Marginal note:Additions to personal credits — net income threshold
(3.3) The amount of $606 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2005 taxation year, to be replaced by $734;
(b) for the 2006 taxation year, to be replaced by $751, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $734;
(c) for the 2007 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $734 as deemed under paragraph (b);
(d) for the 2008 taxation year, to be replaced by the amount that is the total of $17.00 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);
(e) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the total of $51.00 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d); and
(ii) $850; and
(f) for each of the 2010 and subsequent taxation years, to be replaced by the amount determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined for that description for the immediately preceding taxation year in respect of the particular amount.
(2) Section 118 of the Act is amended by adding the following after subsection (8):
Marginal note:Rounding
(9) If an amount determined under any of paragraphs (3.1)(a) to (f), (3.2)(a) to (f) and (3.3)(a) to (f) is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the greater multiple.
(3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years.
61. (1) The Act is amended by adding the following after section 118:
Marginal note:Definitions
118.01 (1) The following definitions apply in this section.
“adoption period”
« période d’adoption »
“adoption period”, in respect of an eligible child of an individual, means the period that
(a) begins at the earlier of the time that the eligible child’s adoption file is opened with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and
(b) ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child, and the time that the child first begins to reside permanently with the individual.
“eligible adoption expense”
« dépense d’adoption admissible »
“eligible adoption expense”, in respect of an eligible child of an individual, means an amount paid for expenses incurred during the adoption period in respect of the adoption of that child, including
(a) fees paid to an adoption agency licensed by a provincial government;
(b) court costs and legal and administrative expenses related to an adoption order in respect of that child;
(c) reasonable and necessary travel and living expenses of that child and the adoptive parents;
(d) document translation fees;
(e) mandatory fees paid to a foreign institution;
(f) mandatory expenses paid in respect of the immigration of that child; and
(g) any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government.
“eligible child”
« enfant admissible »
“eligible child”, of an individual, means a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual.
Marginal note:Adoption expense tax credit
(2) For the purpose of computing the tax payable under this Part by an individual for the taxation year that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the taxation year; and
- B
- is the lesser of
(a) $10,000, and
(b) the amount determined by the formula
C - D
where
- C
- is the total of all eligible adoption expenses in respect of the eligible child, and
- D
- is the total of all amounts each of which is the amount of a reimbursement or any other form of assistance (other than an amount that is included in computing the individual’s income and that is not deductible in computing the individual’s taxable income) that any individual is or was entitled to receive in respect of an amount included in computing the value of C.
Marginal note:Apportionment of credit
(3) Where more than one individual is entitled to a deduction under this section for a taxation year in respect of the adoption of an eligible child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(2) Subsection (1) applies to the 2005 and subsequent taxation years.
62. (1) The portion of the description of D in subsection 118.2(1) of the Act before the formula is replaced by the following:
- D
- is the total of all amounts each of which is, in respect of a dependant of the individual (within the meaning assigned by subsection 118(6), other than a child of the individual who has not attained the age of 18 years before the end of the taxation year), the lesser of $10,000 and the amount determined by the formula
(2) Paragraph 118.2(2)(i) of the Act is replaced by the following:
(i) for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an iliostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient;
(3) Paragraphs 118.2(2)(l.2) and (l.21) of the Act are replaced by the following:
(l.2) for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses
(i) are not of a type that would typically be expected to increase the value of the dwelling, and
(ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;
(l.21) for reasonable expenses relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient’s principal place of residence, provided that such expenses
(i) are not of a type that would typically be expected to increase the value of the dwelling, and
(ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;
(4) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (l.42):
(l.43) on behalf of the patient who is blind or has a severe learning disability, for reading 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.44) on behalf of the patient who is blind and profoundly deaf, for deaf-blind intervening services, if the payment is made to a person in the business of providing those services;
(5) Subsection 118.2(2) of the Act is amended by striking out the word “or” at the end of paragraph (q) and by adding the following after paragraph (r):
(s) for drugs obtained under Health Canada’s Special Access Programme in accordance with sections C.08.010 and C.08.011 of the Food and Drug Regulations and purchased for use by the patient;
(t) for medical devices obtained under Health Canada’s Special Access Programme in accordance with Part 2 of the Medical Devices Regulations and purchased for use by the patient; or
(u) on behalf of the patient who is authorized to possess marihuana for medical purposes under the Marihuana Medical Access Regulations or section 56 of the Controlled Drugs and Substances Act, for
(i) the cost of medical marihuana or marihuana seeds purchased from Health Canada, or
(ii) the cost of marihuana purchased from an individual who possesses, on behalf of that patient, a designated-person production licence to produce marihuana under the Marihuana Medical Access Regulations or an exemption for cultivation or production under section 56 of the Controlled Drugs and Substances Act.
(6) Subsections (1), (2), (4) and (5) apply to the 2005 and subsequent taxation years.
(7) Subsection (3) applies to expenses incurred after February 22, 2005.
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