Be it enacted by the Lieutenant-Governor and
House of Assembly in Legislative Session convened, as follows:
SNL2000 cI-1.1
as amended
1. Section 5 of the Income Tax Act, 2000 is amended by deleting the word
"and" at the end of paragraph (f), by deleting the period at the end
of paragraph (g) and substituting a semi-colon and the word "and",
and by adding immediately after that paragraph the following:
(h) "temporary deficit reduction levy"
means the tax described in section 7.1.
2. The Act is amended by adding immediately after
section 7 the following:
Temporary deficit
reduction levy
7.1 (1) An
individual shall pay a deficit reduction levy in accordance with subsection (3)
for each of the taxation years 2016 to 2019, inclusive, if the individual is
resident in the province on the last day of each of those taxation years.
(2) Notwithstanding subsection (1), a trust is not
required to pay the temporary deficit reduction levy.
(3) The temporary deficit reduction levy payable by
an individual for a taxation year shall be calculated using the formula in the
following paragraph that applies to the individual for the taxation year,
subject to subsections (4) to (6):
(a) where the individuals taxable income for the taxation
year does not exceed $50,000, the individuals temporary deficit reduction levy
for the taxation year is nil;
(b) where the individuals taxable income for the taxation
year exceeds $50,000 but does not exceed $55,000, the individuals temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
(0.1 x A)
where
A
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $50,000 for the taxation year;
(c) where the individual's taxable income for the taxation
year exceeds $55,000 but does not exceed $60,000, the individuals temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
B + (0.1 x C)
where
B
= $100, and
C
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $55,000 for the taxation year;
(d) where the individual's taxable income for the taxation
year exceeds $60,000 but does not exceed $65,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
D + (0.1 x E)
where
D
= $200, and
E
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $60,000 for the taxation year;
(e) where the individual's taxable income for the taxation
year exceeds $65,000 but does not exceed $70,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
F + (0.1 x G)
where
F
= $300, and
G
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $65,000 for the taxation year;
(f) where the individual's taxable income for the taxation
year exceeds $70,000 but does not exceed $75,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
H + (0.1 x I)
where
H
= $400, and
I
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $70,000 for the taxation year;
(g) where the individual's taxable income for the taxation
year exceeds $75,000 but does not exceed $80,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
J + (0.1 x K)
where
J
= $500, and
K
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $75,000 for the taxation year;
(h) where the individual's taxable income for the taxation
year exceeds $80,000 but does not exceed $100,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
L + (0.1 x M)
where
L
= $600, and
M
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $80,000 for the taxation year;
(i) where the individual's taxable income for the taxation
year exceeds $100,000 but does not exceed $125,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
N + (0.1 x O)
where
N
= $700, and
O
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $100,000 for the taxation year;
(j) where the individual's taxable income for the taxation
year exceeds $125,000 but does not exceed $175,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
P + (0.1 x Q)
where
P
= $800, and
Q
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $125,000 for the taxation year;
(k) where the individual's taxable income for the taxation
year exceeds $175,000 but does not exceed $250,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
R + (0.1 x S)
where
R
= $900, and
S
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $175,000 for the taxation year;
(l) where the individual's taxable income for the taxation
year exceeds $250,000 but does not exceed $300,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
T + (0.1 x U)
where
T
= $1,000, and
U
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $250,000 for the taxation year;
(m) where the individual's taxable income for the taxation
year exceeds $300,000 but does not exceed $350,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
V + (0.1 x W)
where
V
= $1,100, and
W
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $300,000 for the taxation year;
(n) where the individual's taxable income for the taxation
year exceeds $350,000 but does not exceed $400,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
X + (0.1 x Y)
where
X
= $1,200, and
Y
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $350,000 for the taxation year;
(o) where the individual's taxable income for the taxation
year exceeds $400,000 but does not exceed $450,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
Z + (0.1 x AA)
where
Z
= $1,300, and
AA
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $400,000 for the taxation year;
(p) where the individual's taxable income for the taxation
year exceeds $450,000 but does not exceed $500,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
BB + (0.1 x CC)
where
BB
= $1,400, and
CC
= the lesser of $1,000 and the amount of the
individual's taxable income in excess of $450,000 for the taxation year;
(q) where the individual's taxable income for the taxation
year exceeds $500,000 but does not exceed $550,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
DD + (0.1 x EE)
where
DD
= $1,500, and
EE
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $500,000 for the taxation year;
(r) where the individual's taxable income for the taxation
year exceeds $550,000 but does not exceed $600,000, the individual's temporary
deficit reduction levy for the taxation year is the amount calculated using the
formula,
FF + (0.1 x GG)
where
FF
= $1,600, and
GG
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $550,000 for the taxation year;
and
(s) where the individual's taxable income for the taxation
year exceeds $600,000, the individual's temporary deficit reduction levy for
the taxation year is the amount calculated using the formula,
HH + (0.1 x II)
where
HH
= $1,700, and
II
= the lesser of $1,000 and the amount of
the individual's taxable income in excess of $600,000 for the taxation year.
(4) For the
purpose of subsection (3), the
following rules apply if an individual is bankrupt in a calendar year:
(a) the
individuals taxable income for the calendar year for the purposes of this
section is deemed to be the sum of all amounts, each of which is his or her
taxable income for a taxation year ending in the year;
(b) the
individuals temporary deficit reduction levy for the calendar year shall be
allocated to and payable in respect of each taxation year ending in the year in
the manner described in paragraphs (c) to (e);
(c) for
a taxation year that is deemed to end under subparagraph 128(2)(d)(ii) of the federal
Act on the day immediately before the day on which the individual became a
bankrupt, the amount of the individuals temporary deficit reduction levy
payable for the year is the amount that would be determined in accordance with
subsection (3) if the taxation year were the only taxation year of the individual
ending in the calendar year;
(d) for
a taxation year that ends after the day on which the individual became a
bankrupt, the temporary deficit reduction levy payable in respect of a return
filed under subparagraph 128(2)(e) of the federal Act is deemed to be nil; and
(e) for
any other return filed for a taxation year that ends after the day on which the
individual became a bankrupt, the temporary deficit reduction levy payable in
respect of the return is the amount calculated using the formula
A - B
where
A = the individuals temporary deficit reduction levy for the calendar
year as determined under subsection (3) as if each reference in that subsection
to "taxation year" were read as a reference to "calendar year",
and
B = the amount of the individuals temporary deficit reduction levy, if
any, in respect of the taxation year described in paragraph (c).
(5) For the purpose of subsection (3), the taxable
income of an individual who dies in a particular year does not include income
that is reported in a return filed as a result of an election made under subsection
70 (2), 104 (23) or 150 (4) of the federal Act.
(6) The amount of the temporary deficit reduction
levy payable by an individual for a taxation year that ends on or before
December 31, 2016 is 50 per cent of the amount otherwise calculated under subsection
(3).
Commencement
3. This Act comes into force on July 1, 2016.
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