48

 

 

Second Session, 45th General Assembly

54 Elizabeth II, 2005

BILL 48

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE LOYOLA SULLIVAN

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

Clause 1 of the Bill would amend the Income Tax Act, 2000 to provide for a non-refundable tax credit for eligible adoption expenses up to a maximum of $10,000, based upon the federal adoption tax credit.

Clause 2 of the Bill would amend section 23 of the Act to include the new adoption tax credit in the ordering of tax credits for the purpose of computing the income tax payable by an individual under the Act.

 

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2

Analysis


        1.   S.17.1 Added
Adoption credit

        2.   S.23 Amdt.
Ordering of credits


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

SNL2000 cI-1.1
as amended

        1. The Income Tax Act, 2000 is amended by adding immediately after section 17 the following:

Adoption credit

   17.1 (1) 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 x B

where

              A  is the appropriate percentage for the year; and

               B  is the amount that would be determined in the formula in subsection 118.01(2) of the federal Act for B in computing the individual's deduction under that section for the year, if the amount in paragraph 118.01(2)(a) of the federal Act is read as $10,000.

             (2)  Section 118.01 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.01(2) of the federal Act.

 

        2. Subsection 23(2) of the Act is amended by adding immediately after paragraph (b) the following:

          (b.1)  section 17.1;