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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. 4 |
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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 to increase the financial corporations capital tax rate from 5% to 6%. |
A BILL AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 4 Analysis 1.
S.66.2 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 (1) Subsection 66.2(1) of the Income Tax Act, 2000 is repealed and the following substituted: Capital tax payable 66.2 (1) Every corporation that is a financial institution with a permanent establishment in the province at any time during a taxation year shall pay a tax under this Part for the taxation year equal to 6% of the amount, if any, by which its taxable capital employed in the province for the taxation year exceeds its capital deduction for the year. (2) Subsection 66.2(4) of the Act is repealed and the following substituted: (4) Notwithstanding subsection (1), if a corporations taxation year includes January 1, 2016, the tax payable under this Part by that corporation for the taxation year is the amount, if any, determined when the corporations taxable capital employed in the province for the taxation year is reduced by its capital deduction for the year and multiplied by the total of (a) that proportion of 5% 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 6% 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 |