Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Modification for purposes of provincial program

122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.

Marginal note:Advance payment

• 122.72 (1) Subject to subsection (5), an individual in relation to a month specified for a taxation year who is an eligible individual for the preceding taxation year who files a return of income for the preceding taxation year on or before the first day of November of the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/6 of the total of the amounts, if any, determined for the individual for the preceding taxation year under subsections 122.7(2) and (3).

• Marginal note:Conditions of application of subsection (3)

  (2) Subsection (3) applies in respect of an individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if absent subsection (3)

  • (a) the amount deemed by subsection (1) to have been paid by the individual during the particular month specified for the taxation year would be less than $33; and

  • (b) it is reasonable to conclude that the amount deemed by subsection (1) to have been paid by the individual during each subsequent month specified for the taxation year would be less than $33.

• Marginal note:Single advance payment

  (3) If this subsection applies

  • (a) the total of all amounts that would otherwise be deemed by subsection (1) to have been paid on account of the individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year; and

  • (b) the amount deemed by subsection (1) to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection.

• Marginal note:Months specified

  (4) For the purposes of this section, the months specified for a taxation year are July and October of the taxation year and January of the immediately following taxation year.

• Marginal note:No advance payment

  (5) For the purposes of subsection (1), an individual is not an eligible individual for the preceding taxation year in relation to a month specified for a taxation year if the individual

  • (a) dies in the taxation year before the first day of July;

  • (b) is confined to a prison or similar institution for a period in the taxation year of at least 90 days that begins on or before the first day of the specified month; or

  • (c) ceases to be resident in Canada on a day in the taxation year that is on or before the first day of the specified month.

• Marginal note:Notification to Minister

  (6) If, in the absence of subsection (5), an individual or their cohabiting spouse or common-law partner at the end of the preceding taxation year would be deemed in a taxation year to have paid an amount on account of tax payable for the taxation year under this section, the individual (or, in the case of a deceased individual, their legal representative) shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

  • (a) the individual dies in the taxation year;

  • (b) the individual ceases to be resident in Canada in the taxation year; or

  • (c) the individual is confined to a prison or similar institution for a period of at least 90 days in the taxation year.

• Marginal note:Advance payment – no eligible spouse

  (7) Subsection (1) is to be applied to a particular individual in relation to a month specified for a taxation year as if section 122.7 applied to the particular individual for the preceding taxation year on the basis that the particular individual had no eligible spouse for the preceding taxation year, if

  • (a) another individual was, for the purposes of section 122.7, the eligible spouse of the particular individual for the preceding taxation year; and

  • (b) the other individual is not, for the purposes of subsection (1), an eligible individual for the preceding taxation year in relation to the month specified for the taxation year because of subsection (5).

SUBDIVISION A.3Climate Action Incentive

Marginal note:Definitions

• 122.8 (1) The following definitions apply in this section.

  cohabiting spouse or common-law partner

  cohabiting spouse or common-law partner, of an individual at any time, has the same meaning as in section 122.6. (époux ou conjoint de fait visé)

  eligible individual

  eligible individual, in relation to a month specified for a taxation year, means an individual (other than a trust) who

  • (a) has, before the specified month, attained the age of 19 years; or

  • (b) was, at any time before the specified month,

    • (i) a parent who resided with their child, or

    • (ii) married or in a common-law partnership. (particulier admissible)

  qualified dependant

  qualified dependant, of an individual in relation to a month specified for a taxation year, means a person who at the beginning of the specified month

  • (a) is the individual’s child or is dependent for support on the individual or on the individual’s cohabiting spouse or common-law partner;

  • (b) resides with the individual;

  • (c) is under the age of 19 years;

  • (d) is not an eligible individual in relation to the specified month; and

  • (e) is not a qualified relation of any individual in relation to the specified month. (personne à charge admissible)

  qualified relation

  qualified relation, of an individual in relation to a month specified for a taxation year, means the person, if any, who, at the beginning of the specified month, is the individual’s cohabiting spouse or common-law partner. (proche admissible)

  relevant census

  relevant census means

  • (a) for the 2023 and 2024 taxation years, the 2016 census published by Statistics Canada; and

  • (b) in any other case, the last census published by Statistics Canada before the taxation year. (recensement pertinent)

  return of income

  return of income, in respect of a person for a taxation year, means the person’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under this Part for the taxation year. (déclaration de revenu)

• Marginal note:Persons not eligible or qualified

  (2) Despite subsection (1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, in relation to a month specified for a taxation year, if the person

  • (a) died before the specified month;

  • (b) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the specified month;

  • (c) is at the beginning of the specified month a non-resident person, other than a non-resident person who

    • (i) is at that time the cohabiting spouse or common-law partner of a person who is deemed under subsection 250(1) to be resident in Canada throughout the taxation year that includes the first day of the specified month, and

    • (ii) was resident in Canada at any time before the specified month;

  • (d) is at the beginning of the specified month a person described in paragraph 149(1)(a) or (b); or

  • (e) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for the specified month.

• Marginal note:Residence

  (3) For the purposes of this section, an individual is considered to reside at any time only at their principal place of residence.

• Marginal note:Deemed payment on account of tax

  (4) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid, during the specified month, on account of their tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

  (A + B + C × D) × E

  where

  A

  is the amount specified by the Minister of Finance for an eligible individual in relation to the specified month for the province (in this subsection and subsection (6) referred to as the “relevant province”) in which the eligible individual resides at the beginning of the specified month;

  B

  is

  • (a) the amount specified by the Minister of Finance for a qualified relation in relation to the specified month for the relevant province, if

    • (i) the eligible individual has a qualified relation at the beginning of the specified month, or

    • (ii) subparagraph (i) does not apply and the eligible individual has a qualified dependant at the beginning of the specified month, and

  • (b) in any other case, nil;

  C

  is the amount specified by the Minister of Finance for a qualified dependant in relation to the specified month for the relevant province;

  D

  is the number of qualified dependants of the eligible individual at the beginning of the specified month, other than a qualified dependant in respect of whom an amount is included because of subparagraph (a)(ii) of the description of B in relation to the specified month; and

  E

  is

  • (a) 1.2, if there is a census metropolitan area, as determined in the relevant census, in the relevant province and the individual does not reside in a census metropolitan area at the beginning of the specified month, and

  • (b) 1, in any other case.

• Marginal note:Shared-custody parent

  (4.1) Despite subsection (4), if an eligible individual is a shared-custody parent (as defined in section 122.6, but the definition qualified dependent in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (4) to have been paid during a specified month is equal to the amount determined by the formula

  0.5(A + B)

  where

  A

  is the amount determined under subsection (4), calculated without reference to this subsection; and

  B

  is the amount determined under subsection (4), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.

• Marginal note:Months specified

  (4.2) For the purposes of this section, the months specified for a taxation year are April, July and October of the immediately following taxation year and January of the second immediately following taxation year.

• Marginal note:Authority to specify amounts

  (5) The Minister of Finance may specify amounts for a province in relation to a month specified for a taxation year for the purposes of this section. If the Minister of Finance does not specify a particular amount that is relevant for the purposes of this section, that particular amount is deemed to be nil for the purpose of applying this section.

• Marginal note:Deemed rebate in respect of fuel charges

  (6) The amount deemed by this section to have been paid during a specified month on account of tax payable for a taxation year is deemed to have been paid during the specified month as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the relevant province.

• Marginal note:Only one eligible individual

  (7) If an individual is a qualified relation of another individual in relation to a month specified for a taxation year and both those individuals would be, but for this subsection, eligible individuals in relation to the specified month, only the individual that the Minister designates is the eligible individual in relation to the specified month.

• Marginal note:Exception — qualified dependant

  (8) If a person would, if this Act were read without reference to this subsection, be the qualified dependant of two or more individuals, in relation to a month specified for a taxation year,

  • (a) the person is deemed to be a qualified dependant, in relation to that month, of the one of those individuals on whom those individuals agree;

  • (b) in the absence of an agreement referred to in paragraph (a), the person is deemed to be, in relation to that month, a qualified dependant of the individuals, if any, who are, at the beginning of that month, eligible individuals (as defined in section 122.6, but the definition qualified dependant in that section having the meaning assigned by subsection (1)) in respect of that person; and

  • (c) in any other case, the person is deemed to be, in relation to that month, a qualified dependant only of the individual that the Minister designates.

• Marginal note:Notification to Minister

  (8.1) An individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

  • (a) the individual ceases to be an eligible individual;

  • (b) a person becomes or ceases to be the individual’s qualified relation; and

  • (c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.

• Marginal note:Effect of bankruptcy

  (9) For the purposes of this section, if an individual becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year.

SUBDIVISION A.4School Supplies Tax Credit

Marginal note:Definitions

• 122.9 (1) The following definitions apply in this section.

  eligible educator

  eligible educator, in respect of a taxation year, means an individual who, at any time during the taxation year,

  • (a) is employed in Canada as a teacher or an early childhood educator at

    • (i) an elementary or secondary school, or

    • (ii) a regulated child care facility; and

  • (b) holds a valid and recognized (in the province or territory in which the individual is employed)

    • (i) teaching certificate, licence, permit or diploma, or

    • (ii) certificate or diploma in early childhood education. (éducateur admissible)

  eligible supplies expense

  eligible supplies expense, of an eligible educator for a taxation year, means an amount (other than any amount deducted in computing any person’s income for any taxation year or any amount otherwise included in computing a deduction from any person’s tax payable under this Act for any taxation year) paid by the eligible educator in the taxation year for teaching supplies to the extent that

  • (a) the teaching supplies were

    • (i) purchased by the eligible educator for the purpose of teaching or facilitating students’ learning, and

    • (ii) directly consumed or used in the performance of the duties of the eligible educator’s employment; and

  • (b) the eligible educator is not entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the eligible educator and that is not deductible in computing the taxable income of the eligible educator) in respect of the amount paid. (dépense admissible)

  return of income

  return of income filed by an eligible educator for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the year or that would be required to be filed if the eligible educator had tax payable under this Part for the year. (déclaration de revenu)

  teaching supplies

  teaching supplies means

  • (a) consumable supplies; and

  • (b) prescribed durable goods. (fournitures scolaires)

• Marginal note:Deemed overpayment

  (2) An eligible educator who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to 25% of the least of

  • (a) $1,000;

  • (b) the total of all amounts each of which is an eligible supplies expense of the eligible educator for the year; and

  • (c) if the eligible educator fails to provide the certificate referred to in subsection (3) in respect of the year, as and when requested by the Minister, nil.

• Marginal note:Certificate

  (3) If the Minister so demands, an eligible educator making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from their employer, or a delegated official of the employer, attesting to the eligible supplies expenses of the eligible educator for the year.

• Marginal note:Effect of bankruptcy

  (4) For the purposes of this Subdivision, if an eligible educator becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the eligible educator (other than in this subsection) is deemed to be a reference to the particular calendar year.

• Marginal note:Part-year residents

  (5) If an eligible educator is resident in Canada throughout part of a taxation year and is non-resident throughout another part of the year, the total of the amounts that are deemed to be paid by the eligible educator under subsection (2) for the year cannot exceed the lesser of

  • (a) the total of

    • (i) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is not resident in Canada, computed as though that period or those periods were the whole taxation year, and

    • (ii) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is resident in Canada, computed as though that period or those periods were the whole taxation year; and

  • (b) the total of the amounts that would have been deemed to have been paid under subsection (2) for the year had the eligible educator been resident in Canada throughout the year.

• Marginal note:Non-residents

  (6) Subsection (2) does not apply in respect of a taxation year of an eligible educator if the eligible educator is, at no time in the year, resident in Canada, unless all or substantially all the eligible educator’s income for the year is included in computing the eligible educator’s taxable income earned in Canada for the year.