Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)

B

is the total of all amounts each of which is, in respect of a qualifying child of the individual for the taxation year, the lesser of $250 and the amount determined by the formula

• (b) a university outside Canada at which the individual referred to in the definition qualifying student in this subsection was enrolled in a course, of not less than three consecutive weeks duration, leading to a degree, or

• (c) if the individual referred to in the definition qualifying student in this subsection resided, throughout the  year referred to in that definition, in Canada near the boundary between Canada and the United States, an educational institution in the United States to which the individual commuted that is a university, college or other educational institution providing courses at a post-secondary school level; (établissement d’enseignement agréé)

• (b) a benefit, if any, received by the student because of a loan made to the student in accordance with the requirements of the Canada Student Loans Act, the Apprentice Loans Act or An Act respecting financial assistance for education expenses, R.S.Q., c. A-13.3, or because of financial assistance given to the student in accordance with the requirements of the Canada Student Financial Assistance Act, or

qualifying student

qualifying student, for a month in a taxation year, means an individual who,

• (a) in the month,

  • (i) is enrolled in a qualifying educational program as a full-time student at a designated educational institution, or

  • (ii) is not described in subparagraph (i) and 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,

• (b) if requested by the Minister, proves the enrolment by filing with the Minister a certificate in prescribed form issued by the designated educational institution and containing prescribed information, and

• (c) in the case of an individual who is enrolled in a program at a designated educational institution described in subparagraph (a)(ii) of the definition designated educational institution,

  • (i) has attained the age of 16 years before the end of the year, and

  • (ii) is enrolled in the program to obtain skills for, or improve the individual’s skills in, an occupation; (étudiant admissible)

• Marginal note:Students eligible for disability tax credit

  (3) For the purposes of subparagraph (a)(i) of the definition qualifying student in subsection (1), the reference to “full-time student” is to be read as “student” if

B

is the total of all amounts each of which may be deducted under section 118.5 in computing the individual’s tax payable under this Part for the year;

E

is the tuition tax credit transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.

• Marginal note:Change of appropriate percentage

  (4) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula

A

is the tuition tax credit transferred for the year by the spouse or common-law partner to the individual;

• (i) the total of all amounts that may be deducted under section 118.5 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, and

Marginal note:Tuition tax credit transferred

118.81 In this subdivision, the tuition tax credit transferred for a taxation year by a person to an individual is the lesser of

• (i) the total of all amounts that may be deducted under section 118.5 in computing the person’s tax payable under this Part for the year, and

Marginal note:Transfer to parent or grandparent

118.9 If for a taxation year a parent or grandparent of an individual (other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount under section 118 or 118.8 for the year) is the only person designated in writing by the individual for the year for the purpose of this section, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition tax credit transferred for the year by the individual to the parent or grandparent, as the case may be.

• (i) such of the deductions permitted under subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.62 and 118.7 as can reasonably be considered wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and

Marginal note:Ordering of credits

118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.031, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

Marginal note:Ordering of credits

118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

Marginal note:Tax payable by non-residents (credits restricted)

118.94 Sections 118 to 118.07 and 118.2, subsections 118.3(2) and (3) and sections 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year.

• (a) such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and

• (a) the product of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual’s income for the year multiplied by 21/29, and

Canada Child Benefit

• (v) is an Indian within the meaning of the Indian Act,

Marginal note:Deemed overpayment

• 122.61 (1) If a person and, if the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula

  (A + C + M)/12

  where

  A

  is the amount determined by the formula

  E – Q – R

  where

  E

  is the total of

  • (a) the product obtained by multiplying $6,400 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month who have not reached the age of six years at the beginning of the month, and

  • (b) the product obtained by multiplying $5,400 by the number of qualified dependants, other than those qualified dependants referred to in paragraph (a), in respect of whom the person was an eligible individual at the beginning of the month,

  Q

  is

  • (a) if the person’s adjusted income for the year is less than or equal to $30,000, nil,

  • (b) if the person’s adjusted income for the year is greater than $30,000 but less than or equal to $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of

    • (i) only one qualified dependant, 7% of the person’s adjusted income for the year in excess of $30,000,

    • (ii) only two qualified dependants, 13.5% of the person’s adjusted income for the year in excess of $30,000,

    • (iii) only three qualified dependants, 19% of the person’s adjusted income for the year in excess of $30,000, or

    • (iv) more than three qualified dependants, 23% of the person’s adjusted income for the year in excess of $30,000, and

  • (c) if the person’s adjusted income for the year is greater than $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of

    • (i) only one qualified dependant, the total of $2,450 and 3.2% of the person’s adjusted income for the year in excess of $65,000,

    • (ii) only two qualified dependants, the total of $4,725 and 5.7% of the person’s adjusted income for the year in excess of $65,000,

    • (iii) only three qualified dependants, the total of $6,650 and 8% of the person’s adjusted income for the year in excess of $65,000, or

    • (iv) more than three qualified dependants, the total of $8,050 and 9.5% of the person’s adjusted income for the year in excess of $65,000, and

  R

  is the amount determined for C;

  C

  is the amount determined by the formula

  F – (G × H)

  where

  F

  is, if the person is, at the beginning of the month, an eligible individual in respect of

  • (a) only one qualified dependant, $2,308, and

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

    • (i) $2,308 for the first qualified dependant,

    • (ii) $2,042 for the second qualified dependant, and

    • (iii) $1,943 for each of the third and subsequent qualified dependants,

  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 $45,282, 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

  M

  is the amount determined by the formula

  N – O

  where

  N

  is the product obtained by multiplying $2,730 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, and

  O

  is

  • (a) if the person’s adjusted income for the year is less than or equal to $65,000, nil, and

  • (b) if the person’s adjusted income for the year is greater than $65,000,

    • (i) where the person is an eligible individual in respect of only one qualified dependant described in N, 3.2% of the person’s adjusted income for the year in excess of $65,000, and

    • (ii) where the person is an eligible individual in respect of two or more qualified dependants described in N, 5.7% of the person’s adjusted income for the year in excess of $65,000.