Marginal note:Proportionate allowance

• 71. (1) For the quarter during which this section comes into force, the allowance payable to a registered party under section 435.02 of the Canada Elections Act, as enacted by this Act, shall be proportionate to that part of the quarter during which that section is in force.

• Marginal note:Advance payment

  (2) The allowance payable to a registered party under section 435.02 of the Canada Elections Act, as enacted by section 40 of this Act, for the quarter during which this section comes into force and for any remaining quarters of the year during which it comes into force shall be estimated on the basis of the most recent general election preceding the coming into force of this section and paid within 30 days after its coming into force. Subsection 435.02(2) of the Canada Elections Act, as enacted by this Act, applies to that payment with any modifications that may be required.

• Marginal note:Advance payment to be taken into account

  (3) In the application of sections 435.01 and 435.02 of the Canada Elections Act, as enacted by this Act, any amount paid under subsection (2) in relation to a quarter shall be taken into account. A registered party that received an amount under subsection (2) for a quarter that is in excess of the amount to which it is entitled under those sections for that quarter shall without delay return to the Receiver General the amount of that excess. The Receiver General may reduce any other amount payable to the party by the amount of that excess.

Marginal note:Next general election

72. For the first general election after the coming into force of this section, the reference to “50%” in subsection 435(1) of the Canada Elections Act, as enacted by this Act, shall be read as a reference to “60%”.

• 73. (1) Subsections 127(3) to (4.1) of the Income Tax Act are replaced by the following:

  • Marginal note:Monetary contributions — Canada Elections Act

    (3) There may be deducted from the tax otherwise payable by a taxpayer under this Part for a taxation year in respect of the total of all amounts each of which is a monetary contribution referred to in the Canada Elections Act made by the taxpayer in the year to a registered party, a provincial division of a registered party, a registered association or a candidate, as those terms are defined in that Act,

    • (a) when that total does not exceed $400, 75% of that total,

    • (b) when that total exceeds $400 and does not exceed $750, $300 plus 50% of the amount by which that total exceeds $400, and

    • (c) when that total exceeds $750, the lesser of

      • (i) $650, and

      • (ii) $475 plus 33 1/3% of the amount by which the total exceeds $750,

    if payment of each monetary contribution that is included in that total is evidenced by filing with the Minister a receipt, signed by the agent authorized under that Act to accept that monetary contribution, that contains prescribed information.

  • Marginal note:Issue of receipts

    (3.1) A receipt referred to in subsection (3) must be issued only in respect of the monetary contribution that it provides evidence for and only to the contributor who made it.

  • Marginal note:Authorization required for receipts from registered associations

    (3.2) No agent of a registered association of a registered party shall issue a receipt referred to in subsection (3) unless the leader of the registered party has, in writing, notified the financial agent, as referred to in the Canada Elections Act, of the registered association that its agents are authorized to issue those receipts.

  • Marginal note:Monetary contributions — form and content

    (4.1) For the purpose of subsections (3), (3.1) and (4.2), a monetary contribution made by a taxpayer may be in the form of cash or of a negotiable instrument issued by the taxpayer. However, it does not include

    • (a) a monetary contribution that a taxpayer who is an agent authorized under the Canada Elections Act to accept monetary contributions makes in that capacity; or

    • (b) a monetary contribution in respect of which a taxpayer has received or is entitled to receive a financial benefit of any kind (other than a prescribed financial benefit or a deduction under subsection (3)) from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan or deduction from tax or an allowance or otherwise.

• (2) Subsection (1) applies to monetary contributions made in taxation years ending after 2003.

• (3) For monetary contributions made in 2004 taxation years but before the day on which subsection 74(1) comes into force, subsection 127(3) of the Income Tax Act is to be read as enacted by subsection (1) except that the expression “to a registered party, a registered association or a candidate” is to be replaced by the expression “to a registered party or a candidate”.

• (4) If the day on which subsection 74(1) comes into force occurs during an election period, within the meaning assigned by the Canada Elections Act, subsection 127(3) of the Income Tax Act is to be read, in respect of that election, as described by subsection (3).