Economic Action Plan 2015 Act, No. 1 (S.C. 2015, c. 36)
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Assented to 2015-06-23
PART 1AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION
C.R.C., c. 945Income Tax Regulations
24. Section 8506 of the Regulations is amended by adding the following after subsection (10):
Recontribution for 2015
(11) If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (12), the contribution
(a) is deemed to have been made in accordance with the plan as registered;
(b) is to be disregarded for the purposes of paragraph (2)(c.1); and
(c) is deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a).
Conditions Referred to in Subsection (11)
(12) The conditions referred to in subsection (11) are as follows:
(a) the contribution is made after December 31, 2014 and before March 1, 2016;
(b) the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and
(c) the amount of the contribution does not exceed the amount determined by the formula
A – B – C
where
A is the lesser of
(i) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and
(ii) the amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014,
B is the minimum amount for the account for 2015, and
C is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.
25. Paragraph (a) of Class 43 of Schedule II to the Regulations is replaced by the following:
(a) is not included in Class 29 or 53, but that would otherwise be included in Class 29 if that Class were read without reference to its subparagraphs (b)(iii) and (v) and paragraph (c); or
26. Schedule II to the Regulations is amended by adding the following after Class 52:
Class 53
Property acquired after 2015 and before 2026 that is not included in Class 29, but that would otherwise be included in that Class if
(a) subparagraph (a)(ii) of that Class were read without reference to “in Canadian field processing carried on by the lessee or”; and
(b) that Class were read without reference to its subparagraphs (b)(iv) to (vi) and paragraph (c).
C.R.C., c. 385Canada Pension Plan Regulations
27. (1) Subsection 8(1) of the Canada Pension Plan Regulations is replaced by the following:
8. (1) Subject to subsections (1.1), (1.11), (1.12), (1.13) and (2), the employee’s contribution and the employer’s contribution shall be remitted to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the employee the remuneration in respect of which those contributions were required to be made.
(2) Subsection 8(1.2) of the Regulations is replaced by the following:
(1.13) If an employer is a new employer throughout a particular month in a particular calendar year, contributions payable in the month may be remitted by the employer to the Receiver General
(a) in respect of those contributions paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b) in respect of those contributions paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c) in respect of those contributions paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d) in respect of those contributions paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.
(1.2) For the purpose of this section,
(a) the average monthly withholding amount of an employer for a calendar year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations;
(b) the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations; and
(c) the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations.
(3) Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.
SOR/97-33Insurable Earnings and Collection of Premiums Regulations
28. (1) Subsection 4(1) of the Insurable Earnings and Collection of Premiums Regulations is replaced by the following:
4. (1) Subject to subsections (2), (3), (3.1), (3.2) and (5), every employer shall remit the employee’s premiums and the employer’s premiums payable under the Act and these Regulations to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the insured person insurable earnings in respect of which those premiums were required to be deducted or paid under the Act and these Regulations.
(2) Subsection 4(4) of the Regulations is replaced by the following:
(3.2) If an employer is a new employer throughout a particular month in a particular calendar year, premiums payable in the month may be remitted to the Receiver General
(a) in respect of insurable earnings paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b) in respect of insurable earnings paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c) in respect of insurable earnings paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d) in respect of insurable earnings paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.
(4) For the purpose of this section,
(a) the average monthly withholding amount of an employer for a year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations;
(b) the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations; and
(c) the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations.
(3) Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.
PART 2SUPPORT FOR FAMILIES
Division 1R.S., c. 1 (5th Supp.)Income Tax Act
29. (1) Paragraphs (a) and (b) of the definition “annual child care expense amount” in subsection 63(3) of the Income Tax Act are replaced by the following:
(a) $11,000, if the child is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the year, and
(b) if the child is not a person referred to in paragraph (a),
(i) $8,000, if the child is under 7 years of age at the end of the year, and
(ii) $5,000, in any other case;
(2) Subsection (1) applies to the 2015 and subsequent taxation years.
30. (1) Paragraph (b.1) of the description of B in subsection 118(1) of the Act is replaced by the following:
Marginal note:Family caregiver amount for child
(b.1) $2,000 for each child, who is under the age of 18 years at the end of the taxation year, of the individual and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s personal needs and care, when compared to children of the same age if
(i) the child ordinarily resides throughout the taxation year with the individual together with another parent of the child, or
(ii) except if subparagraph (i) applies, the individual
(A) may deduct an amount under paragraph (b) in respect of the child, or
(B) could deduct an amount under paragraph (b) in respect of the child if
(I) paragraph (4)(a) and the reference in paragraph (4)(b) to “or the same domestic establishment” did not apply to the individual for the taxation year, and
(II) the child had no income for the year,
(2) Subsection (1) applies to the 2015 and subsequent taxation years. For the purpose of making the adjustment provided under subsection 117.1(1) of the Act as it applies to paragraph (b.1) of the description of B in subsection 118(1) of the Act, as enacted by subsection (1), the amount to be used in the 2015 taxation year for the preceding taxation year is the amount under clause (b.1)(i)(B) of the description of B in subsection 118(1) of the Act that would, but for subsection 117.1(3) of the Act, be the amount to be used under that clause for the 2014 taxation year.
31. (1) Section 118.92 of the Act is replaced by the following:
Marginal note:Ordering of credits
118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(2) Section 118.92 of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Ordering of credits
118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(3) Subsection (1) applies to the 2014 taxation year.
(4) Subsection (2) applies to the 2015 taxation year.
32. (1) The Act is amended by adding the following after section 119:
Marginal note:Definitions
119.1 (1) The following definitions apply in this section.
“adjusted base tax payable”
« impôt payable de base rajusté »
“adjusted base tax payable”, of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year, if
(a) the individual’s taxable income for the year were the individual’s split-adjusted income for the year; and
(b) no amount were deductible under this Division other than the individual’s adjusted non-refundable tax credits amount for the year.
“adjusted non-refundable tax credits amount”
« montant de crédits non remboursables rajustés »
“adjusted non-refundable tax credits amount”, of an individual for a taxation year, means the amount determined by the formula
A + B
where
- A
- is the total of all amounts, each of which is an amount claimed by the individual — not exceeding the amount that may be deducted by the individual — in computing the individual’s tax payable for the taxation year
(a) under any of subsections 118(2), (3) and (10) and sections 118.01 to 118.07, 118.1 to 118.3, 118.5 to 118.7 and 118.9, and
(b) under section 118.8, not exceeding the amount determined by the formula
A1 – A2
where
- A1
- is the amount determined for the description of A in section 118.8 for the taxation year, and
- A2
- is the amount, if any, by which the amount determined for the description of C in section 118.8 for the taxation year exceeds the amount determined for the description of B in that section for the taxation year; and
- B
- is the amount that would be deductible by the individual under subsection 118(1) in computing the individual’s tax payable for the taxation year if
(a) the dollar amount set out in the formula in subparagraph (a)(ii) of the description of B in that subsection were nil, and
(b) the amount determined for the description of C.1 in subparagraph (a)(ii) of the description of B in that subsection were determined by the formula
C – D
where
- C
- is the income of the individual’s spouse or common-law partner for the year, and
- D
- is the dollar amount set out in subparagraph (a)(i) of the description of B in that subsection.
“base tax payable”
« impôt payable de base »
“base tax payable”, of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division other than an amount deductible under any of sections 118 to 118.9.
“combined adjusted base tax payable”
« impôt payable de base rajusté réuni »
“combined adjusted base tax payable”, of a qualifying individual for a taxation year, means the total of the qualifying individual’s adjusted base tax payable for the year and the adjusted base tax payable for the year of the qualifying individual’s eligible relation.
“combined base tax payable”
« impôt payable de base réuni »
“combined base tax payable”, of a qualifying individual for a taxation year, means the total of the qualifying individual’s base tax payable for the year and the base tax payable for the year of the qualifying individual’s eligible relation.
“eligible relation”
« proche admissible »
“eligible relation”, of a particular individual for a taxation year, means an individual who
(a) is resident in Canada,
(i) if the individual dies in the year, at the time that is immediately before the individual’s death, and
(ii) in any other case, at the end of the year; and
(b) is at any time in the year, married to, or in a common-law partnership with, the particular individual and not, by reason of the breakdown of their marriage or common-law partnership, living separate and apart from the particular individual at the end of the year and for a period of at least 90 days commencing in the year.
“qualifying individual”
« particulier admissible »
“qualifying individual”, for a taxation year, means an individual who
(a) has an eligible relation for the year who has not deducted an amount under this section for the year;
(b) has a child who
(i) is under the age of 18 years at the end of the year, and
(ii) ordinarily resides throughout the year with the individual or the individual’s eligible relation for the year;
(c) is resident in Canada,
(i) if the individual dies in the year, at the time that is immediately before the individual’s death, and
(ii) in any other case, at the end of the year; and
(d) is not confined to a prison or similar institution for a period of at least 90 days during the year.
“split-adjusted income”
« revenu rajusté par fractionnement »
“split-adjusted income”, of an individual for a taxation year, means
(a) if the individual’s taxable income for the year is greater than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income less the individual’s split adjustment for the year;
(b) if the individual’s taxable income for the year is less than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income plus the individual’s split adjustment for the year; and
(c) in any other case, the amount that is equal to the individual’s taxable income for the year.
“split adjustment”
« rajustement par fractionnement »
“split adjustment”, of an individual for a taxation year, means the lesser of $50,000 and one half of the absolute value of the positive or negative amount determined by the formula
A – B
where
- A
- is the individual’s taxable income for the year; and
- B
- is the taxable income for the year of the individual’s eligible relation.
Marginal note:Family tax cut credit
(2) For the purpose of computing the tax payable under this Part by a qualifying individual for a taxation year, there may be deducted the lesser of $2,000 and the amount determined by the formula
A – B
where
- A
- is the qualifying individual’s combined base tax payable for the year; and
- B
- is the qualifying individual’s combined adjusted base tax payable for the year.
Marginal note:Deduction not available
(3) No amount is deductible under subsection (2) in computing an individual’s tax payable under this Part for a taxation year if the individual or the individual’s eligible relation
(a) does not file with the Minister a return of income in respect of the taxation year;
(b) becomes bankrupt in the calendar year in which the taxation year ends; or
(c) makes an election for the taxation year under section 60.03.
Marginal note:Taxation year deeming rules
(4) For the purpose of applying the definition “qualifying individual” in subsection (1), in determining whether a child ordinarily resides throughout a taxation year with an individual or the individual’s eligible relation, the taxation year is deemed not to include
(a) in the case of a child who is born or is adopted in the year, the portion of the year before the child’s birth or adoption;
(b) in the case of an individual who marries or becomes a common-law partner at any time in the year, the portion of the year before that time;
(c) in the case of an individual, an eligible relation of an individual or a child who dies in the year, the portion of the year after the death; and
(d) in the case of an individual or an eligible relation of an individual who becomes resident in Canada in the year, any portion of the year in which the person is non-resident.
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
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