2010 BILL 3

	3


Third Session, 46th General Assembly 59 Elizabeth II, 2010
BILL 3
AN ACT TO AMEND THE INCOME TAX ACT, 2000
Received and Read the First Time...................................................................................................
Second Reading.................................................................................................................................
Committee............................................................................................................................................
Third Reading.....................................................................................................................................
Royal Assent......................................................................................................................................
HONOURABLE THOMAS W. MARSHALL, Q.C. Minister of Finance and President of Treasury Board
Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

The amendments proposed to the Income Tax Act, 2000 in this Bill would provide clarification with respect to the amount a taxpayer may claim for charitable and other donations, clarify when a claim for the research and development tax credit must be made and remove an ambiguity as to whether tax credits may be applied against the capital tax payable.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

1. S.10 Amdt.
Charitable and other gifts

2. S.42 Amdt.
Research and development tax credit

3. S.66.2 Amdt.
Capital tax payable

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1
as amended

1. Subsection 10(1) of the Income Tax Act, 2000 is repealed and the following substituted:

Charitable and other gifts

10. (1) 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 x B) + [C x (D - B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the individual's total gifts for the year;

C is the highest percentage for the year; and

D is the individual's total gifts used to determine the deducted amount under subsection 118.1(3) of the federal Act by the individual for the year.

2. Section 42 of the Act is amended by adding immediately after subsection (2) the following:

(2.1) A taxpayer is not entitled to make a deduction under subsection (2) where the taxpayer does not file for the deduction on or before the day that is one year after the taxpayer's filing due date for the particular taxation year to which the deduction relates.

3. (1) Section 66.2 of the Act is amended by adding immediately after subsection (1) the following:

(1.1) The amount of tax payable under this Part shall not be reduced by a tax credit provided under this Act.

(2) Subsections 66.2(2) and (3) of the Act are repealed and the following substituted:

(2) Subject to section 66.3, where the capital of a corporation, or the total of the capital for a related group, is $10 million or less, the capital deduction is $5 million.

(3) Where the capital of a corporation, or the total of the capital for a related group, is an amount other than the amount referred to in subsection (2), the deduction is nil.