Income Tax Act

Marginal note:Definitions

• 118.02 (1) The following definitions apply in this section.

  eligible electronic payment card

  eligible electronic payment card means an electronic payment card that is

  • (a) used by an individual for at least 32 one-way trips, between the place of origin of the trip and its termination, during an uninterrupted period not exceeding 31 days, and

  • (b) issued by or on behalf of a qualified Canadian transit organization, which organization records and receipts the cost and usage of the electronic payment card and identifies the right, of the individual who is the holder or owner of such a card, to use public commuter transit services of that qualified Canadian transit organization. (carte de paiement électronique admissible)

  eligible public transit pass

  eligible public transit pass means a document

  • (a) issued by or on behalf of a qualified Canadian transit organization; and

  • (b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization

    • (i) on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days, or

    • (ii) on an unlimited number of occasions during an uninterrupted period of at least five consecutive days, if the combination of that document and one or more other such documents gives the right to the individual to use those public commuter transit services on at least 20 days in a 28-day period. (laissez-passer de transport admissible)

  public commuter transit services

  public commuter transit services means services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure. (services de transport en commun)

  qualified Canadian transit organization

  qualified Canadian transit organization means a person authorised, under a law of Canada or a province, to carry on in Canada a business that is the provision of public commuter transit services, which is carried on through a permanent establishment (as defined by regulation) in Canada. (organisme de transport canadien admissible)

  qualifying relation

  qualifying relation of an individual for a taxation year means a person who is

  • (a) the individual’s spouse or common-law partner at any time in the taxation year; or

  • (b) a child of the individual who has not, during the taxation year, attained the age of 19 years. (proche admissible)

• Marginal note:Transit pass tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, 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 amount determined by the formula

  C - D

  where

  C

  is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year and before July 2017 by the individual or by a person who is in the taxation year a qualifying relation of the individual, and

  D

  is the total of all amounts each of which is the amount of a reimbursement, allowance or any other form of assist­ance that any person is or was entitled to receive in respect of an amount included in computing the value of C (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).

• Marginal note:Apportionment of credit

  (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass or of an eligible electronic payment card, 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 eligible public transit pass or eligible electronic payment card 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.