Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)
Full Document:
Assented to 2016-06-22
22 (1) Section 118.92 of the Act is replaced by the following:
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.
(2) Section 118.92 of the Act, as enacted by subsection (1), is replaced by the following:
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.
(3) Subsection (1) applies to the 2016 taxation year.
(4) Subsection (2) applies to the 2017 and subsequent taxation years.
23 (1) Section 118.94 of the Act is replaced by the following:
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.
(2) Subsection (1) applies to the 2017 and subsequent taxation years.
24 (1) Paragraph 118.95(a) of the Act is replaced by the following:
(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
(2) Subsection (1) applies to the 2017 and subsequent taxation years.
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
26 (1) Paragraph 121(a) of the Act is replaced by the following:
(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
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
27 (1) The heading of Subdivision A.1 of the Act is replaced by the following:
Canada Child Benefit
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.
28 (1) Paragraph (e) of the definition eligible individual in section 122.6 of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iv) and by adding the following after subparagraph (iv):
(v) is an Indian within the meaning of the Indian Act,
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.
29 (1) Subsection 122.61(1) of the Act is replaced by the following:
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
- 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
- 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.
(2) The first formula in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:
(A + M)/12
(3) The formula in the description of A in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:
E − Q
(4) The description of C in subsection 122.61(1) of the Act, as enacted by subsection (1), is repealed.
(5) Subsection 122.61(1) of the Act, as enacted by subsection (1), is amended by striking out “and” at the end of the description of Q, by adding “and” at the end of the description of E and by repealing the description of R.
(6) Subsection 122.61(5) of the Act is repealed.
(7) Subsection 122.61(7) of the Act is repealed.
(8) Subsections (1), (6) and (7) come into force, or are deemed to have come into force, on July 1, 2016.
(9) Subsections (2) to (5) come into force on July 1, 2017.
- Date modified: