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First
Session, 48th General Assembly 65
Elizabeth II, 2016 |
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AN ACT TO AMEND THE
INCOME TAX ACT, 2000 NO. 3 |
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Received and Read the First Time................................................................................................. |
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Second |
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Committee.......................................................................................................................................... |
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Third |
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Royal Assent...................................................................................................................................... |
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HONOURABLE
CATHY BENNETT Minister of Finance and President of Treasury Board |
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Ordered
to be printed by the Honourable House of Assembly |
EXPLANATORY NOTE This Bill would amend the Income Tax Act, 2000 by increasing the tax on corporations from 14% to 15%. |
A BILL AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 3 Analysis 1.
S.40 Amdt. 2. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: SNL2000 cI-1.1 1. (1) Subsection 40(1) of the Income Tax Act, 2000 is repealed and the following substituted: Corporation tax 40. (1) The tax payable by a corporation for a taxation year is 15% of the corporation's taxable income earned in the year in the province. (1.1) Notwithstanding subsection (1), if a corporation's taxation year includes January 1, 2016, the tax payable by that corporation for the taxation year is the amount determined when the corporation's taxable income earned in the year in the province is multiplied by the total of (a) that proportion of 14% that the number of days in the taxation year that are before January 1, 2016 is of the number of days in the taxation year; and (b) that proportion of 15% that the number of days in the taxation year that are after December 31, 2015 is of the number of days in the taxation year. (2) Paragraph 40(3)(b) of the Act is repealed and the following substituted: (b) 15% of an amount calculated by deducting from the corporation's taxable income earned in the year in the province the amount allocated to the province under paragraph (a) in respect of the corporation for the year. (3) Section 40 of the Act is amended by adding immediately after subsection (3) the following: (3.1) Notwithstanding subsections (1), (1.1) and (3), if a corporations taxation
year includes January 1, 2016, and the corporation is eligible for a deduction
under section 125 of the federal Act, the tax payable by that corporation under
this Act for the taxation year is (a) 3%
of an amount calculated by allocating to the province, on the same basis as set
out in the regulations made for the purpose of the definition "taxable
income earned in the year in a province" in subsection 124(4) of the
federal Act, a portion of the amount that is the least of the amounts calculated
under paragraphs 125(1)(a), (b) and (c) of the federal Act and allowed for the
purpose of subsection 125(1) of the federal Act in respect of the corporation
for the year; and (b) the
amount determined when the corporations taxable income earned in the year in
the province less the amount allocated to the province under paragraph (a) in
respect of the corporation for the year is multiplied by the total of (i) that proportion of 14% that the number of days in the taxation year
that are before January 1, 2016 is of the number of days in the taxation year,
and (ii) that proportion of 15% that the number of days in the taxation year
that are after December 31, 2015 is of the number of days in the taxation year. Commencement 2. This Act is considered to have come into force on January 1, 2016. ©Queen's Printer |