CHAPTER 217
OF THE
REVISED STATUTES, 1989
Short title
1 This Act may be cited as the Income Tax Act. R.S., c. 217, s. 1.
(a) "agreeing province" means a province of Canada that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;
(b) "collection agreement" means the agreement referred to in subsection 101(1), as amended in accordance with subsection 101(2), or the new collection agreement referred to in subsection 101(2), as amended in accordance with subsection 101(2);
(c) "Commissioner of Customs and Revenue" means the Commissioner of Customs and Revenue, appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada);
(d) "Court" means the Supreme Court of Nova Scotia;
(e) "Department of Finance" means
(ii) when a collection agreement is in effect, the Commissioner of Customs and Revenue;
(g) "Federal Act" means the Income Tax Act (Canada);
(h) "Federal ITAR" means the Income Tax Application Rules (Canada);
(i) "Federal Regulations" means the regulations, as amended from time to time, made pursuant to the Federal Act;
(j) "income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;
(k) "Minister" means the Minister of National Revenue for Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Minister shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;
(l) "Minister of Finance" means
(m) "permanent establishment", where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Act or the Federal Regulations;
(ii) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance of the Province,
(iii) in the case where the word "prescribed" is mentioned in a provision of the Federal Act that applies for the purposes of this Act otherwise than in respect of a case to which subclauses (i) or (ii) apply, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act, in the Federal Regulations under that provision, and
(iv) in any other case where the word is mentioned in this Act, prescribed by regulations;
(o) "Receiver General of Canada" means the Receiver General of Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Receiver General of Canada shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;
(p) "registrar" means prothonotary;
(q) "regulations" means a regulation made by the Governor in Council under this Act;
(r) "taxation year" of a person means the period determined under the Federal Act as the person's taxation year.
(2) The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.
(3) The tax payable by a taxpayer under this Act or under Part I of the Federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with this Act, or Part I of the Federal Act, as the case may be.
(4) For the purposes of this Act, except where they are at variance with the definitions contained in this Section, the definitions and interpretations contained in, or made by regulations under, the Federal Act apply.
(5) In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the Federal Act.
(6) Any reference in any enactment other than this Act to Chapter 3 of the Acts of 1961, the Individual and Corporation Income Tax Act, shall be read and construed as a reference to this Act.
(7) Subsections 104 (1) and (2) of the Federal Act apply for the purposes of this Act.
(8) Subsection 248(11) of the Federal Act applies for the purposes of this Act.
(9) Section 257 of the Federal Act applies for the purposes of this Act.
(10) Where a provision, in this subsection referred to as "that section", of the Federal Act or the Federal Regulations is made applicable for the purpose of this Act, that section, as amended from time to time, applies with such modifications as the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act, and in applying that section for the purpose of this Act, in addition to any other modifications required by the circumstances,
(a) a reference in that section to tax pursuant to Part I of the Federal Act shall be read as a reference to tax pursuant to this Act;
(b) except for the purpose of Part III of this Act, where that section contains a reference to tax pursuant to any of Parts I.1 to XIV of the Federal Act, that section shall be read without reference therein to tax pursuant to any of those Parts and without reference to any portion of that section that applies only to or in respect of tax pursuant to any of those Parts;
(c) a reference in that section to a particular provision of the Federal Act that is the same as, or similar to, a provision of this Act shall be read as a reference to the provision of this Act;
(d) any reference in that section to a particular provision of the Federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act;
(e) except for the purpose of Part III of this Act, where that section contains a reference to any of Parts I.1 to XIV of the Federal Act or to a provision in any of those Parts, that section shall be read without reference therein to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;
(f) where that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section shall be read without reference therein to the Bankruptcy and Insolvency Act (Canada);
(g) subject to clause (h), any reference in that section to the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;
(h) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to "under this Act";
(i) any reference in that section to the Federal Act or the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;
(j) any reference in that section to a word or expression set out in the left-hand column of the following Table shall be read as a reference to the word or expression set out opposite thereto in the right-hand column of the following Table:
Her Majesty Her Majesty in
right of the
Province
Criminal Code Summary
Proceedings Act
Receiver General Minister of Finance
Canada Customs and Department of
Revenue Agency Finance
Commissioner of Customs Deputy Head
and Revenue
Deputy Attorney General Deputy Attorney
of Canada General of
Nova Scotia
Tax Court of Canada Supreme Court of
Nova Scotia
Tax Court of Canada Act Judicature Act
Federal Court of Canada Supreme Court of
Nova Scotia
Federal Court Act Judicature Act
Registrar of the Tax Court Prothonotary of the
of Canada Supreme Court of
Nova Scotia
Registry of the Federal Office of the
Court Supreme Court
of Nova Scotia
(a) "federal amendment" means an amendment to a federal provision;
(b) "federal application rule" means a provision, in this clause referred to as "the provision", of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply
(ii) in respect of specified fiscal periods,
(iii) before or after a specified time,
(iv) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or
(v) in respect of such other criteria as may be set out in the provision; and
(c) "federal provision" means a provision of the Federal Act that applies for the purposes of this Act.
(2) Where a federal application rule governs the application of a federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purposes of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purposes of this Act.
(3) Where a federal provision or a federal amendment comes into force, or is deemed to come into force, at a particular time, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purposes of this Act, to come into force at that particular time.
(4) Where a federal provision is repealed and another provision is not substituted therefor, the federal provision ceases to apply for the purposes of this Act
(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; and
(b) if the repeal is not governed by a federal application rule, at the time the repeal comes into force or is deemed to come into force.
(5) For the purposes of this Act, where a particular federal provision is replaced by another federal provision, or is repealed and another federal provision is substituted therefor, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision. 2000, c. 4, s. 61.
4 No tax is payable under this Act by a person for a period when
(a) no tax is payable under Part I of the Federal Act for the period on the person's taxable income because of subsection 149(1) of the Federal Act; or
(b) that person was a non-resident-owned investment corporation. 2000, c. 4, s. 61.
5 An income tax shall be paid as hereinafter required for each taxation year by every individual
(a) who was resident in the Province on the last day of the taxation year; or
(b) who, not being resident in the Province on the last day of the taxation year, had income earned in the taxation year in the Province, as defined in clause 7(c). 2000, c. 4, s. 61.
6 An income tax shall be paid as hereinafter required for each taxation year by every corporation that maintained a permanent establishment in the Province at any time in the year. 2000, c. 4, s. 61.
(a) "appropriate percentage" for a taxation year means the lowest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;
(b) "highest percentage" for a taxation year means the highest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;
(c) "income earned in the taxation year in the Province" means income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "income earned in the year in a province" in subsection 120(4) of the Federal Act;
(d) "income earned in the taxation year outside the Province" means income for the year minus income earned in the taxation year in the Province;
(e) "income for the year" means
(ii) in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purposes of, the Federal Act;
(f) "provincial percentage" for a taxation year means 57.5%;
(g) "tax payable under the Federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the Federal Act in respect of the individual for the year. 2000, c. 4, s. 61.
8 The tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, in this Division referred to as the "amount taxable", for the 2000 and subsequent taxation years is
(a) 8.79% of the amount taxable if the amount taxable does not exceed $29,590;
(b) $2,601 plus 14.95% of the amount by which the amount taxable exceeds $29,590 if the amount taxable exceeds $29,590 and does not exceed $59,180;
(c) $7,025 plus 16.67% of the amount by which the amount taxable exceeds $59,180 and does not exceed $93,000; and
(d) $12,662 plus 17.5% of the amount by which the amount taxable exceeds $93,000. 2000, c. 4, s. 61; 2003, c. 4, s. 15; 2004, c. 3, s. 26.
9 There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula
A is the provincial percentage; and
(a) the amount added under section 120.3 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year;
(b) the amount added under section 120.31 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year; and
(c) the amount added under section 40 of the Federal ITAR for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year. 2000, c. 4, s. 61.
10 (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
(a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual's spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of
C is the greater of $614 and the income of the individual's spouse or common-law partner for the year or, where the individual and the individual's spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse's or common-law partner's income for the year while married or in a common-law partnership and not so separated;
(b) in the case of an individual who does not claim a deduction for the year because of clause (a) and who, at any time in the year,
(B) a person who is married or in a common-law partnership who neither supported nor lived with their spouse or common-law partner and who is not supported by that spouse or common-law partner,
(B) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,
(C) related to the individual, and
(D) except in the case of a parent or grandparent of the individual, either under eighteen years of age or so dependent by reason of mental or physical infirmity,
D is the greater of $614 and the dependent person's income for the year;
(c) except in the case of an individual entitled to a deduction because of clause (a) or (b), $7,231;
(d) in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment that is the ordinary place of residence of the individual and of a particular person
E is the greater of $11,661 and the particular person's income for the year;
(e) for each dependant of the individual for the year who
(ii) was dependent on the individual because of mental or physical infirmity,
the amount determined by the formula
F is the greater of $4,845 and the dependant's income for the year; and
(f) in the case of an individual entitled to a deduction in respect of a person because of clause (b) and who would also be entitled, but for paragraph 118(4)(c) of the Federal Act, as that provision applies to this Act, to a deduction because of clause (d) or (e) in respect of the person, the amount by which the amount that would be determined under clause (d) or (e), as the case may be, exceeds the amount determined under clause (b) in respect of the person.
(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of sixty-five years, there may be deducted the amount determined by the formula
A is the appropriate percentage for the year; and
B is 15% of the amount, if any, by which the individual's income for the year would exceed $26,284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income.
(3) For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
(a) where the individual has attained the age of sixty-five years before the end of the year, the pension income received by the individual in the year; and
(b) where the individual has not attained the age of sixty-five years before the end of the year, the qualified pension income received by the individual in the year.
(4) Subsections 118(4), (5) and (6) of the Federal Act apply to subsection (1) and subsections 118(7) and (8) of the Federal Act apply to subsection (3).
(5) Subject to subsections (6), (7) and (8), for the purpose of computing the tax payable under this Part for a taxation year by an individual there may be deducted in respect of each child of the individual who has not attained the age of six years before the end of the taxation year a tax credit in the amount determined by the formula
AP is the appropriate percentage for the taxation year;
Y is $600 for the 2006 taxation year, or $1,200 for the 2007 and subsequent taxation years; and
QD is the number of children to whom subsection (7) applies.
(6) Subsection (5) applies with respect to an individual who, on the last day of the taxation year
(a) does not have a cohabiting spouse or common-law partner as defined in section 122.6 of the Federal Act;
(b) has a cohabiting spouse or common-law partner, as defined in section 122.6 of the Federal Act, whose taxable income for the taxation year is greater than the individual's taxable income for the taxation year; or
(c) has a cohabiting spouse or common-law partner, as defined in section 122.6 of the Federal Act, whose taxable income for the taxation year is equal to the individual's taxable income for the taxation year and the cohabiting spouse or common-law partner renounces his or her entitlement to claim a credit pursuant to subsection (5).
(7) Subsection (5) applies with respect to a child who
(a) is residing with the individual on the last day of the taxation year or, in the case of a child who dies during the taxation year, is residing with the individual on the date of the child's death; and
(b) is a qualified dependent, as defined in section 122.6 of the Federal Act, of the individual at any time during the taxation year.
(8) Where an individual claims a credit pursuant to subsection 10(1)(b) for a taxation year with respect to a child, the individual is not entitled to a credit pursuant to subsection (5) with respect to the same child for that taxation year. 2000, c. 4, s. 61; 2000, c. 29, s. 17; 2003, c. 4, s. 16; 2005, c. 6, s. 7; 2006, c. 2, s. 16.
10A (1) The dollar amount of $7,231 referred to in clauses 10(1)(a) to (f) and included in the description of B in subsection 10(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $7,481;
(b) for the 2008 taxation year, $7,731;
(c) for the 2009 taxation year, $7,981; and
(d) for the 2010 taxation year, $8,231.
(2) The dollar amount of $6,140 referred to in clauses 10(1)(a) and (b) and included in the description of B in subsection 10(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $6,352;
(b) for the 2008 taxation year, $6,565;
(c) for the 2009 taxation year, $6,778; and
(d) for the 2010 taxation year, $6,989.
(3) The dollar amount of $614 referred to in clauses 10(1)(a) and (b) and included in the description of B in subsection 10(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $635;
(b) for the 2008 taxation year, $656;
(c) for the 2009 taxation year, $678; and
(d) for the 2010 taxation year, $699.
(4) The dollar amount of $15,837 referred to in clause 10(1)(d) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $16,384;
(b) for the 2008 taxation year, $16,932;
(c) for the 2009 taxation year, $17,480; and
(d) for the 2010 taxation year, $18,027.
(5) The dollar amount of $11,661 referred to in clause 10(1)(d) and included in the description of E is replaced with the following dollar amount:
(a) for the 2007 taxation year, $12,064;
(b) for the 2008 taxation year, $12,467;
(c) for the 2009 taxation year, $12,870; and
(d) for the 2010 taxation year, $13,274.
(6) The dollar amount of $4,845 referred to in clauses 10(1)(e) and (f) and included in the description of F is replaced with the following dollar amount:
(a) for the 2007 taxation year, $5,013;
(b) for the 2008 taxation year, $5,180;
(c) for the 2009 taxation year, $5,348; and
(d) for the 2010 taxation year, $5,515.
(7) The dollar amount of $3,531 referred to in subsection 10(2) and included in the description of B in subsection 10(2) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $3,653;
(b) for the 2008 taxation year, $3,775;
(c) for the 2009 taxation year, $3,897; and
(d) for the 2010 taxation year, $4,019.
(8) The dollar amount of $26,284 referred to in subsection 10(2) and included in the description of B in subsection 10(2) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $27,193;
(b) for the 2008 taxation year, $28,101;
(c) for the 2009 taxation year, $29,010; and
(d) for the 2010 taxation year, $29,919.
(9) The dollar amount of $1,000 referred to in subsection 10(3) and included in the description of B in subsection 10(3) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $1,035;
(b) for the 2008 taxation year, $1,069;
11 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.1(3) of the Federal Act for the year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula
A is the appropriate percentage for the year;
B is the lesser of $200 and the amount determined for D;
C is the highest percentage; and
D is the amount determined for D in the formula in subsection 118.1(3) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year. 2000, c. 4, s. 61.
12 For the purpose of computing the tax payable under this Part by an individual for a taxation year ending after December 31, 2003, if the individual is entitled to a deduction under subsection 118.2(1) of the Federal Act for the year, there may be deducted an amount determined by the formula,
A is the appropriate percentage for the year;
B is the total of the individual's medical expenses in respect of the individual, the individual's spouse, the individual's common-law partner or a child of the individual who has not attained the age of eighteen years before the end of the taxation year that are included in determining the individual's medical expense credit for the year under subsection 118.2 (1) of the Federal Act;
C is the lesser of $1,637 and three per cent of the individual's income for the year; and
D is the total of all amounts each of which
(a) is in respect of a dependant of the individual, within the meaning assigned by subsection 118 (6) of the Federal Act, other than a child of the individual who has not attained the age of eighteen years before the end of the taxation year; and
(b) is, in respect of the dependant,
(ii) in taxation years after 2004, the lesser of $10,000 and the amount that would be determined by the formula "E - F" in subsection 118.2 (1) of the Federal Act, if the dollar amount set out in the description of "C" in this subsection were substituted for the dollar amount set out in the description of "F" in subsection 118.2 (1) of the Federal Act. 2006, c. 2, s. 18.
12A (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual there may be deducted in respect of each child of the individual who has not attained the age of eighteen years before the end of the year an amount determined by the formula
A is the appropriate percentage for the year;
(b) the total of all amounts paid by the individual or by the individual's spouse or common-law partner, for the registration of the child in a designated sport or recreational activity.
(2) Where more than one individual is entitled to a deduction under subsection (1) in respect of the same child,
(a) the total of all amounts so deductible for the year 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 because of that subsection for the child; and
(b) if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(3) The extended meaning of "child" in subsection 252(1) of the Federal Act applies for the purpose of this Section.
(4) The Governor in Council may make regulations designating sport or recreational activities for the purpose of this Section. 2005, c. 6, s. 8; 2006, c. 2, s. 19.
13 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.3(1) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year;
(a) where the individual has not attained eighteen years of age before the end of the year, the amount determined by the formula
D is the greater of $2,000 or the total of the amounts paid in the year for the care and supervision of the individual and included in computing a deduction under sections 63, 64 and 118.2 of the Federal Act; and
(2) Sections 118.3 and 118.4 of the Federal Act apply for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.3(1) of the Federal Act.
(3) Notwithstanding subsection (1) and (2), for the purpose of computing the tax payable under this Part for a taxation year by an individual who is entitled to a deduction under subsection 118.3(2) of the Federal Act for the taxation year in respect of a person referred to in that subsection there may be deducted the amount, if any, by which
(a) the amount deductible under subsection (1) in computing that person's tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under Section 5 to pay tax for the taxation year,
(b) the amount of that person's tax payable under this Part for the taxation year if the person were liable under Section 5 to pay tax for the taxation year, computed before any deductions under this Division other than deductions referred to in Sections 10 and 18. 2000, c. 4, s. 61; 2001, c. 3, s. 10; 2005, c. 6, s. 9.
13A (1) The dollar amount of $4,293 referred to in subsection 13(1) and included in the description of B and C in subsection 13(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $4,441;
(b) for the 2008 taxation year, $4,596;
(c) for the 2009 taxation year, $4,738; and
(d) for the 2010 taxation year, $4,887.
(2) The dollar amount of $2,941 referred to in subsection 13(1) and included in the description of C in subsection 13(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $3,043;
(b) for the 2008 taxation year, $3,144;
(c) for the 2009 taxation year, $3,246; and
(d) for the 2010 taxation year, $3,348.
(3) The dollar amount of $2,000 referred to in subsection 13(1) and included in the description of C in subsection 13(1) is replaced with the following dollar amount:
(a) for the 2007 taxation year, $2,069;
(b) for the 2008 taxation year, $2,138;
14 Section 118.5 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act. 2000, c. 4, s. 61.
15 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.6(2) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
B is the total of the products obtained when
(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and
(b) $60 is multiplied by the number of months in the year, other than months described in clause (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than twelve hours in the month on courses in the program.
(2) Section 118.6 of the Federal Act applies for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.6(2) of the Federal Act. 2000, c. 4, s. 61.
16 (1) For the purpose of computing an individual's tax payable under this Part for a taxation year, there may be deducted the lesser of
(a) the individual's unused tuition and education credits at the end of the preceding taxation year; and
(b) the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18.
(2) An individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula
A is the individual's unused tuition and education credits at the end of the preceding taxation year;
B is the total of all amounts each of which may be deducted under Sections 14 and 15 in computing the individual's tax payable under this Part for the year;
C is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18;
D is the amount that the individual may deduct under subsection (1) for the year; and
E is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.
(3) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003 by an individual who was not resident in the Province on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year is equal to the amount that would be the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year instead of the appropriate percentage as defined in the Federal Act.
(4) For the purpose of subsection (3), the amounts mentioned in that subsection may be used only to the extent that they have not been used in claiming a credit pursuant to section 118.5, 118.6 or 118.61 of the Federal Act, or in determining credits transferred pursuant to section 118.81 of the Federal Act, for any taxation year.
(5) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003, the unused tuition and education tax credits of an individual who resided in the Province at the end of the 2003 taxation year is equal to 8.79 / 9.77 of the amount that would be the individual's unused tuition and education tax credits at the end of the 2003 taxation year if this Section were read without reference to this subsection. 2005, c. 6, s. 10.
17 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under section 118.62 of the Federal Act for the year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
B is the amount determined for B in the formula in section 118.62 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year. 2000, c. 4, s. 61.
(a) "eligible program" means a program of post-secondary study delivered at an approved institution that
(ii) is recognized by the Minister in accordance with any criteria that may be prescribed in the regulations;
(c) "Minister" means the Minister of Finance of the Province;
(d) "qualified individual" means an individual who has graduated from an eligible program in a taxation year;
(e) "taxation year" means the 2006 taxation year or a subsequent taxation year in which a qualified individual graduates from an eligible program.
(2) A qualified individual who has not previously received a graduate tax credit pursuant to this Section may apply to the Minister for a graduate tax credit under this Section in the manner, within the time and in such form as may be prescribed by regulation.
(3) Where the Minister is satisfied that an individual is a qualified individual, the Minister may allow the qualified individual a graduate tax credit for the taxation year in which the qualified individual graduated or in either of the next two taxation years immediately following the taxation year in which the qualified individual graduated, in an amount calculated in accordance with the following formula and rounded up to the next whole dollar:
(4) Where the Minister allows a graduate tax credit to a qualified individual, the Minister shall issue a form confirming the following:
(a) the qualified individual's entitlement to the tax credit;
(b) the amount of the tax credit that is allowed;
(c) any additional information that may be required in the regulations.
(5) For the purpose of computing tax payable by a qualified individual under this Part, there may be deducted an amount certified by the Minister in clause (4)(b), in whole or in part, in the taxation year in which the amount is allowed by the Minister and any unused portion may be deducted in any subsequent taxation year up to and including the second taxation year following the taxation year in which the qualified individual graduated, following which there is no further deduction permitted.
(6) Where a qualified individual claims a graduate tax credit in computing the tax payable under this Part for a taxation year, the qualified individual's annual return is to be accompanied by the form issued to the qualified individual pursuant to clause (4)(b).
(7) The Governor in Council may make regulations
(a) establishing criteria to define eligible programs and approved institutions;
(b) respecting additional information that must be provided for an application under subsection (2);
(c) respecting any additional criteria for approval, amendment or rejection of applications under subsection (2);
(d) respecting the form of the certificate to be provided under clause (4)(b);
(e) defining, expanding or restricting the meaning of any word or expression used but not defined in this Section;
(f) respecting any other matter that the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Section.
(8) A regulation made pursuant to this Section may be made retroactive to a day not earlier than January 1, 2006. 2006, c. 2, s. 21.
18 Section 118.7 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act. 2000, c. 4, s. 61.
19 (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of the individual's marriage or common-law partnership, is living separate and apart from the individual's spouse or common-law partner at the end of the year and for a period of ninety days commencing in the year, there may be deducted an amount determined by the formula
A is the tuition and education tax credits transferred for the year by the spouse or common-law partner to the individual;
B is the total of all amounts each of which is deductible under subsections 10(2) and (3) and Section 13 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under Section 5 to pay tax for the year; and
C is the amount, if any, by which
(a) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under clause 10(1)(c) and Sections 12A, 16 and 18,
(ii) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under Sections 10, 12A, 13, 16 and 18.
(3) In this Section, the tuition and education tax credits transferred for a tuition year by a person to an individual is the lesser of
(a) the amount determined by the formula
(ii) the amount obtained by multiplying $5,000 by the appropriate percentage for the year; and
(b) the amount for the year that the person designates in writing for the purpose of subsection (1) or (2). 2005, c. 6, s. 11.
(a) "benefit year" means the 2003 calendar year;
(b) "eligible individual" means an individual other than a trust.
(2) An eligible individual is deemed to have made an overpayment on account of the tax payable by the individual under this Act for the taxation year ending in or at the same time as the benefit year if the following conditions are satisfied:
(a) the individual files a return of income, other than a return of income filed under paragraph 128(2)(e) of the Federal Act, for the taxation year ending on the last day of 2001, 2002 or 2003 no later than twelve months after the end of the respective taxation year;
(b) the Minister of Finance assesses an amount of tax payable under this Act on or before December 31st of the immediately following taxation year;
(c) the individual is resident in the Province as at May 1, 2003, if the eligibility determination is made in June 2003, and for eligibility determinations made in months subsequent to June 2003, the individual is resident in the Province at the beginning of that month; and
(d) the amount of tax payable by the individual for the taxation year, as determined on assessment or reassessment by the Minister of Finance, is equal to or greater than $1.00.
(3) Subject to subsection (4), the amount of the deemed overpayment for the benefit year is $155 and that overpayment is deemed to have an effective date that is the day of the month in which the individual's eligibility is determined.
(4) An individual who filed a return of income for the 2001, 2002 or 2003 calendar year is not entitled to the deemed overpayment referred to in subsection (3) if
(a) for the 2001 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2003;
(b) for the 2002 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2004; or
(c) for the 2003 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2005.
(5) An individual who would be eligible for a refund with respect to a return of income filed and assessed for either the 2001, 2002 or 2003 taxation year but who has since died and for whom a return of income pursuant to subsection 70(1) of the Federal Act has not been filed and assessed is deemed to be resident in the Province as at May 1, 2003, if the eligibility determination is made in June, 2003, and for eligibility determinations made in months subsequent to June 2003, the individual is deemed to be resident in the Province at the beginning of the month in which the determination is made.
(6) The Minister of Finance shall determine, without an application by an individual, whether the individual is or remains an eligible individual for the benefit year.
(7) After making a determination under subsection (6), the Minister of Finance shall pay a refund to the individual in the amount of the deemed overpayment.
(8) The Minister of Finance shall not pay a refund under this Section after January 15, 2005.
(9) Where an individual receives a refund under this Section to which the individual is not entitled, the individual shall repay the amount to the Minister of Finance.
(10) No amount is repayable under subsection (9) if the individual's entitlement to a refund or the amount of the individual's refund is reduced by reason of an assessment or reassessment of tax issued
(a) with respect to the 2001 taxation year, after December 31, 2002;
(b) with respect to the 2002 taxation year, after December 31, 2003; or
(c) with respect to the 2003 taxation year, after December 31, 2004.
(11) An amount payable under subsection (9), that has not been paid to the Minister of Finance,
(a) constitutes a debt to Her Majesty in right of the Province and may be recovered by way of deduction or set-off or may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act; and
(b) is deemed for the purpose of Sections 81 to 106 to be tax payable under this Act.
(12) For the purpose of section 164 of the Federal Act as it applies for the purpose of this Act, a refund paid under this Section is deemed to be a refund of tax under this Act.
(13) Notwithstanding subsection (12), no interest is payable on the amount of a refund under this Section or on an amount repayable under subsection (9).
(14) An individual is not entitled to the deemed overpayment pursuant to this Section where the Minister has made an assessment pursuant to subsection 152(7) of the Federal Act.
(15) Notwithstanding anything contained in this Section, the Minister shall not take into consideration a change in the residency determination made with respect to an individual
(a) for the 2001 or 2002 taxation year, after December 31, 2003; or
(b) for the 2003 taxation year, after December 31, 2004.
(16) A decision of the Minister of Finance pursuant to this Section is final and not subject to appeal.
(17) For greater certainty, a taxpayer is only entitled to one payment pursuant to subsection (3). 2003, c. 4, s. 17
20 There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula
A is the provincial percentage; and
B is the amount that the individual may deduct for the taxation year under section 120.2 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act. 2000, c. 4, s. 61.
21 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount equal to 38.5% of any amount required by paragraph 82(1)(b) of the Federal Act to be included in computing the individual's income for the year. 2005, c. 6, s. 12.
22 For the purposes of computing tax payable under this Part by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount equal to the provincial percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year. 2000, c. 4, s. 61; 2005, c. 6, s. 13.
22A (1) The Governor in Council shall, commencing the taxation year 2011, for each taxation year, on the recommendation of the Minister of Finance, make regulations
(a) prescribing the rate or rates or the manner of calculating the same or specifying the fixed amounts for the purpose of indexing the tax credits available under this Part;
(b) prescribing the rate or rates or the manner of calculating the same or specifying the fixed amounts to be applied to an individual's taxable income or taxable income earned in Canada, including the minimum tax amount for the purpose of the calculation in Section 8;
(c) defining any word or expression used but not defined in this Part.
(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act. 2006, c. 2, s. 22.
23 Section 118.91 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
24 Section 118.92 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
25 Section 118.93 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
26 Section 118.94 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
27 Section 118.95 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
28 Section 122 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 122(1) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage". 2000, c. 4, s. 61.
29 Subsection 128(2) of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
30 Section 120.4 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 120.4(2) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage". 2000, c. 4, s. 61.
31 If an individual is required to pay tax under section 127.5 of the Federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula
A is the provincial percentage; and
B is the individual's additional tax for the taxation year determined pursuant to subsection 120.2(3) of the Federal Act. 2000, c. 4, s. 61.
32 Notwithstanding subdivisions a to e, the tax payable under subdivisions a to e for a taxation year by an individual
(a) who resided in the Province on the last day of the taxation year but had income earned in the taxation year outside the Province; or
(b) who did not reside in the Province on the last day of the taxation year but had income earned in the taxation year in the Province,
shall be the amount determined by the formula
A is the tax otherwise payable by the individual under subdivisions a to e;
B is the individual's income earned in the taxation year in the Province; and
C is the individual's income for the year. 2000, c. 4, s. 61.
32A Where an individual resided in the Province on the last day of a taxation year but had income earned in the taxation year outside the Province, the individual may deduct from the amount of tax otherwise payable for the taxation year as determined under Section 32 an amount determined by the formula
A is the total of all amounts each of which is deductible under subsection 10(3) and Sections 21 or 22 by the individual for the taxation year;
B is the individual's income earned in the taxation year outside the Province; and
C is the individual's income for the year. 2005, c. 6, s. 14.
33 In addition to the income tax payable, computed in accordance with subdivisions a to f, by an individual for a taxation year, every individual shall pay a personal income surtax in respect of the taxation year equal to 10% of the amount, if any, by which the tax computed pursuant to subdivisions a to f for the taxation year exceeds $10,000. 2000, c. 4, s. 61.
34 (1) Where an individual resided in the Province on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of
(a) the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of such other country exceeds
(ii) if section 127.5 of the Federal Act applies to the individual for the taxation year, the amount of the individual's special foreign tax credit for the year determined under section 127.54 of the Federal Act that is in respect of any non-business-income tax paid to the government of such other country; and
(B) for the part of the year throughout which the individual is resident in Canada, if the individual is non-resident at any time of the year,
(D) no amount was deducted under subsection 91(5) of the Federal Act in computing the individual's income for the year, and
(E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the Federal Act for the year,
(B) if the individual was non-resident at any time in the year, the individual's income earned in the year in the Province that is included in the amount determined under paragraph 114(a) of the Federal Act in respect of the individual for the year,
(3) For the purpose of this Section and Section 43,
(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country;
(b) where a taxpayer's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection 34(1) and Section 43 shall be read as providing for separate deductions in respect of each of the countries other than Canada; and
(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country.
(4) For the purpose of this Section and Section 43, the definitions of "qualifying incomes", "qualifying losses" and "tax-exempt income" in subsection 126(7) of the Federal Act apply. 2003, c. 4, s. 18.
(a) "adjusted income" of an individual for a taxation year means the total of all amounts each of which would be the income for the year of
both calculated as if no amount were included under subsection 56(6) of the Federal Act or in respect of any gain from a disposition of property to which section 79 of the Federal Act applies in computing that income and as if no amount were deductible under paragraph 60(y) of the Federal Act in computing that income;(b) "eligible individual" for a taxation year means an individual, other than a trust, who is resident in the Province on December 31st of that year, and is
(ii) a child of the individual residing with the individual at the end of the year,
(iv) the qualified relation of an individual for the year, or
(v) a person in respect of whom an amount is deemed under this Section to be paid by any other individual for the year;
(2) For the purpose of this Section, the income of a person who is non-resident at any time in a taxation year is deemed to be equal to the amount that would, if the person were resident in Canada throughout the year, be the person's income for the year.
(3) Notwithstanding subsection (1), a person is deemed not to be an eligible individual for a taxation year or a qualified relation or qualified dependant of an individual for a taxation year where the person
(a) is, at the end of the year, a person described in paragraph 149(1)(a) or (b) of the Federal Act; or
(b) is, at the end of the year, confined to a prison or similar institution and has been so confined for a period of, or periods the total of which in the year was more than, six months.
(4) Subject to subsection (5), where an eligible individual for a taxation year files with the individual's return of income under this Act for the year a prescribed form, containing prescribed information, the amount, if any, by which the total of
(b) $300 for a person who is the qualified relation of the individual for the year;
(c) $300, where the individual has no qualified relation for the year and is entitled to deduct an amount for the year under subsection 118(1) of the Federal Act by reason of paragraph (b) thereof in respect of a qualified dependant of the individual for the year; and
(d) the product obtained when $165 is multiplied by the number of qualified dependants of the individual for the year, other than a qualified dependant in respect of whom an amount is included by reason of clause (c) in computing an amount deemed to be paid pursuant to this subsection for the year,
(e) 5% of the amount, if any, by which
(5) Notwithstanding subsection (4), where an individual is a qualified relation of another individual for a taxation year, only one of those individuals may apply under subsection (4) for the year.
(6) The Governor in Council may make regulations adjusting annually the dollar amounts set out in subsection (4). 2005, c. 6, s. 15; 2006, c. 2, s. 23.
(a) "housing unit" includes any premises that an individual ordinarily occupies and inhabits as the individual's residence in the taxation year but does not include premises that are part of a chronic care facility or other similar institution that is prescribed, or that are part of any charitable institution, home for special care, home for the aged, public nursing home or private nursing home;
(b) "income" of a person for a taxation year means the amount equal to the sum of the person's taxable income for the taxation year and all amounts deducted pursuant to Division C of Part I of the Federal Act in determining such taxable income, less any amounts added pursuant to Division C of Part I of the Federal Act in determining such taxable income;
(c) "individual" means a person, other than
(ii) a trust or estate referred to in subdivision k of Division B of Part I of the Federal Act, or
(iii) a person who died in the taxation year or a person who is, on December 31st in the taxation year,
(B) a person referred to in paragraph 149(1)(a) or (b) of the Federal Act,
(C) a person, or a member of the family of the person, who is on active military service as a member of the armed forces of a country other than Canada and is not a Canadian citizen, or
(D) a person who, by virtue of an agreement, convention or tax treaty entered into by Canada and another country, is not required to pay tax pursuant to the Federal Act with respect to the taxation year;
(d) "Nova Scotia Home Ownership Savings Plan" means a Nova Scotia Home Ownership Savings Plan pursuant to the Home Ownership Savings Plan (Nova Scotia) Act;
(e) "principal residence", in respect of an individual, means a housing unit in the Province that was occupied by the individual during the taxation year as the individual's primary place of residence and that is designated by the individual in the prescribed manner as the individual's principal residence for the taxation year;
(f) "qualifying contribution" made by an individual to a Nova Scotia Home Ownership Savings Plan means a contribution that is a qualifying contribution pursuant to the Home Ownership Savings Plan (Nova Scotia) Act and in respect of which a receipt in the prescribed form has been issued by the depositary of the plan and has been filed by the individual with the Minister of Finance;
(g) "tax payable" and "tax otherwise payable" mean the amount of tax that would be payable pursuant to this Act if the tax were calculated without reference to sections 121 and 122.3 of the Federal Act, as they apply for the purposes of this Act, and this Section.
(2) For the purpose of this Section, the qualifying adjusted income of an individual for a taxation year is the aggregate of the income for the taxation year of
(b) the individual's spouse or common-law partner if the individual was married or in a common-law partnership at the end of the taxation year and resided with the spouse or common-law partner at the end of the taxation year.
(3) Subject to subsection (5), every individual resident in the Province on December 31st in a taxation year may deduct from tax otherwise payable pursuant to this Act in respect of the taxation year the amount, if any, equal to the product of
(ii) where the individual is married or in a common-law partnership at the end of the taxation year and resided on December 31st in the taxation year with the individual's spouse or common-law partner, the lesser of $2,000 and the total of all qualifying contributions made by the spouse or common-law partner in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the spouse or common-law partner is the planholder;
(b) the prescribed percentage.
(4) Notwithstanding clause (3)(a), a reference in that clause to a taxation year includes the period up to sixty days following the end of the taxation year.
(5) Where, on December 31st in a taxation year, an individual is married or in a common-law partnership and resides with their spouse or common-law partner, any deduction from tax of an amount by either or both of them pursuant to subsection (3) for the taxation year that would have been permitted but for this subsection shall be made by only one of them and shall include all amounts that would otherwise have been deductible from tax pursuant to subsection (3) by either of them.
(6) The amount by which the deduction to which an individual is entitled pursuant to this Section exceeds the individual's tax payable pursuant to this Act for the taxation year calculated without reference to this Section may be applied by the Minister of Finance to pay any
(a) tax, interest or penalty owing by the individual for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;
(b) contribution, penalty or interest owing by the individual for that or any prior taxation year as a result of payments required from the individual pursuant to the Canada Pension Plan Act (Canada);
(c) premium, interest or penalty owing by the individual for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),
and the part of the amount not so applied shall be paid to the individual.
(7) For the purpose of this Section,
(a) where an individual or someone on the individual's behalf is entitled to file returns pursuant to the Federal Act in respect of the individual's income for more than one taxation year ending in the same calendar year, the deduction to which the individual may be entitled pursuant to this Section may be claimed only with respect to that taxation year that ends on or next before the last day of the calendar year;
(b) no deduction pursuant to this Section may be claimed in a return
(ii) filed on behalf of an individual by a trustee in bankruptcy pursuant to the provisions of paragraph 128(2)(e) or (h) of the Federal Act.
(8) Where an individual makes a claim to the Minister of Finance not more than three years after the end of the taxation year to which the claim relates that the individual is entitled to a deduction or an additional deduction pursuant to this Section for a taxation year in excess of the amount of any deduction pursuant to this Section previously allowed to the individual for the taxation year, the Minister of Finance may allow the deduction or additional deduction claimed by the individual if the Minister of Finance is satisfied that the individual is entitled to the deduction or additional deduction pursuant to this Section for the taxation year, and the Minister of Finance shall apply the amount of any deduction or additional deduction in the manner described in subsection (6). 2000, c. 4, s. 61; 2000, c. 29, s. 20.
(a) "equity tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 8(2) of the Equity Tax Credit Act;
(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.
(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of
(a) the aggregate of the equity tax credit and any amount referred to in clauses (5)(c) or (d); or
(3) A taxpayer who is entitled to a deduction pursuant to this Section shall file, with the taxpayer's annual return for any taxation year in respect of which a deduction is claimed pursuant to this Section, a copy of the tax-credit certificate.
(4) Notwithstanding Section 51 and subsection 62(1), a taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return within three years after the end of the taxation year to which the deduction pertains.
(a) has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act; and
(b) the amount of the equity tax credit exceeds the amount of tax payable by that taxpayer for the taxation year,
(c) carry back and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's three previous taxation years if, in any taxation year the equity tax credit is carried back, the total equity tax credit deducted from tax otherwise payable does not exceed the amount in clause (2)(b) that was applicable for that taxation year ; or
(d) carry forward and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's seven subsequent taxation years if, in any taxation year the equity tax credit is carried forward, the total equity tax credit deducted from tax otherwise payable does not exceed the amount in clause (2)(b) that is applicable for that taxation year .
(6) For greater certainty, subsection 9(2) of the Equity Tax Credit Act applies for the purpose of this Section. 2000, c. 4, s. 61; 2003, c. 4, s. 19; 2005, c. 6, s. 16; 2006, c. 2, s. 24.
(a) "labour-sponsored venture-capital tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 18(2) of the Equity Tax Credit Act;
(b) "tax otherwise payable" means the amount that would, but for this ection, be the tax otherwise payable pursuant to this Act.
(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 18(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of
(a) the labour-sponsored venture-capital tax credit; or
(ii) one thousand dollars for an investment made after December 31, 2004.
(4) Notwithstanding Section 51 and subsection 62(1), a taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return
(a) within three years after the end of the taxation year to which the deduction pertains for eligible shares purchased on or before April 25, 1996; or
(b) within seven years after the end of the taxation year to which the deduction pertains for eligible shares purchased after April 25, 1996.
(5) For greater certainty, subsection 18A(2) of the Equity Tax Credit Act applies for the purpose of this Section. 2000, c. 4, s. 61; 2004, c. 3, s. 27; 2005, c. 6, s. 17.
39 (1) Where an amount is to be refunded to a trust in respect of a taxation year pursuant to section 132 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the trust an amount, in this Section referred to as its "capital gains refund" for the year, equal to the amount obtained by multiplying the provincial percentage for the year times the amount of the refund for the year calculated under subsection 132(1) of the Federal Act.
(2) For the purpose of computing the capital gains refund under subsection (1) for a trust in respect of a taxation year, where the trust had income earned in the taxation year outside the Province, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the trust's income earned in the taxation year in the Province is of its income for the year.
(3) Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action. 2000, c. 4, s. 61; 2001, c. 3, s. 11; 2005, c. 6, s. 18.
40 (1) The tax payable by a corporation under this Part for a taxation year is 16% of the corporation's taxable income earned in the year in the Province.
(2) Notwithstanding subsection (1), if in a taxation year a corporation is eligible for a deduction under subsection 125(1) of the Federal Act, the tax payable by that corporation under this Part for that taxation year is equal to the amount determined by the formula
B is the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year;
C is the corporation's taxable income earned in the year in the Province;
D is the corporation's taxable income earned in the year in a province; and
(3) For the purposes of this Division,
(a) "taxable income earned in the year in the Province" of a corporation means its taxable income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act; and
(b) "taxable income earned in the year in a province" is the amount determined for the corporation for the taxation year for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act.
(4) For the purpose of subsection (2), where a corporation is a member of a partnership, the amount determined pursuant to paragraph 125(1)(a) of the Federal Act, in relation to a corporation for each taxation year, shall be the amount that would be the corporation's specified partnership income within the meaning of subsection 125(7) of the Federal Act if the amounts expressed in dollars in the description of "M" in the definition of "specified partnership income" in that subsection were read as
(a) for the first amount, "$350,000" and, for the second amount, "$959" for the period commencing on April 1, 2005, and ending on March 31, 2006; and
(b) for the first amount, "$400,000" and, for the second amount, "$1,096" for the period commencing on April 1, 2006.
(5) The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $350,000 for the period commencing on April 1, 2005.
(6) Notwithstanding subsection (5), the business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $400,000 for the period commencing on April 1, 2006. 2000, c. 4, s. 61; 2005, c. 6, s. 19.
(a) "eligible expenditure" means an expenditure made after 1983 by a corporation with a permanent establishment in the Province in respect of scientific research to be carried out in the Province that is a qualified expenditure under subsection 127(9) of the Federal Act,
(ii) without reference to paragraph (d) of subsection 127(9) of the Federal Act after April 10, 2000,
and, for greater certainty, for the purpose of this clause and paragraph (h) of subsection 127(9) of the Federal Act, the reference to "government assistance" in subsections 127(18), (19) and (20) of the Federal Act does not include the research and development tax credit determined pursuant to this Section;
(b) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending on or before December 31, 1993, means the amount, if any, by which the aggregate of
(ii) an amount equal to 10% of the aggregate of all amounts each of which is an eligible expenditure made by it in any of the seven taxation years immediately preceding or the three taxation years immediately following that year, computed without reference to subsection 13(7.1) of the Federal Act,
(iii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of the year, and
(iv) the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following that year,
exceeds the aggregate of all amounts each of which is that portion of the amount deducted under subsection (2