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[1992, c. 48, assented to 15th October, 1992]
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| R.S., c. 1 (5th
Supp.)
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1. (1) Subsections 56(5) to (7) of the
Income Tax Act
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(2) Subsection 56(9) of the Act is replaced
by the following:
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| Meaning of
``income for
the year''
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(9) For the purposes of paragraphs (1)(s)
and (u), ``income for the year'' of a person
means the amount that would, but for those
paragraphs, paragraphs 60(v.1) and (w) and
section 63, be the income of that person for the
year.
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(3) Subsections (1) and (2) apply to the
1993 and subsequent taxation years.
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2. (1) Paragraph 60(p) of the Act is
replaced by the following:
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| Overpayment
of allowance
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(p) the amount of any overpayment of an
allowance included under subsection 56(5)
in computing the taxpayer's income for the
year or a preceding taxation year or an
amount included because of subparagraph
115(2)(e)(iii) in computing the taxpayer's
taxable income earned in Canada for the
year or a preceding taxation year to the
extent of the amount thereof repaid in the
year under the Family Allowances Act, or
under a law of a province that provides for
the payment of an allowance similar to the
family allowance provided under the
Family Allowances Act;
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(2) Paragraph 60(p) of the Act is
repealed.
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(3) Subsection (1) applies to the 1990 and
subsequent taxation years.
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(4) Subsection (2) applies to the 1995 and
subsequent taxation years.
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3. (1) Paragraphs (a) to (c) of the
definition ``earned income'' in subsection
63(3) of the Act are replaced by the
following:
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(a) all salaries, wages and other
remuneration, including gratuities,
received by the taxpayer in respect of in
the course of, or because of, offices and
employments,
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(b) all amounts that are included or that
would, but for paragraph 81(1)(a), be
included because of section 6 or 7 or
paragraph 56(1)(m), (n) or (o), in
computing the taxpayer's income,
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(c) all the taxpayer's incomes or the
amounts that would, but for paragraph
81(1)(a), be the taxpayer's incomes from
all businesses carried on either alone or
as a partner actively engaged in the
business, and
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(d) all amounts described in paragraph
56(8)(a) received by the taxpayer in the
year;
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(2) Paragraph (b) of the definition
``eligible child'' in subsection 63(3) of the
Act is replaced by the following:
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(b) a child dependent on the taxpayer or
the taxpayer's spouse and whose income
for the year does not exceed the amount
used under paragraph (c) of the
description of B in subsection 118(1) for
the year
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(3) Subsections (1) and (2) apply to the
1993 and subsequent taxation years.
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4. (1) The portion of subsection 74.1(2) of
the Act before paragraph (a) is replaced by
the following:
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| Transfers and
loans to
minors
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(2) Where an individual has transferred or
lent property, either directly or indirectly, by
means of a trust or by any other means
whatever, to or for the benefit of a person who
was under 18 years of age (other than an
amount received in respect of that person as a
consequence of the operation of subsection
122.61(1)) and who
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(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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5. (1) Subparagraph 115(2)(e)(iii) of the
Act is replaced by the following:
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(iii) amounts that would be required by
subsection 56(5) to be included in
computing the non-resident person's
income for the year if the non-resident
person were resident in Canada
throughout the year,
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(2) Subparagraph 115(2)(e)(iii) of the Act
is repealed.
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(3) Subsection (1) applies to the 1990 and
subsequent taxation years.
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(4) Subsection (2) applies to the 1993 and
subsequent taxation years.
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6. (1) Subsection 117(7) of the Act is
repealed.
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(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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7. (1) Paragraph 117.1(1)(b) of the Act is
replaced by the following:
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(b) the amounts expressed in dollars in
subsection 117(2), paragraphs (c) and (d) of
the description of B in subsection 118(1)and
subsections 118(2), 118.2(1), 118.3(1) and
180.2(1)
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(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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8. (1) Paragraph (d) of the description of
B in subsection 118(1) of the Act is replaced
by the following:
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| Dependants
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(d) for each dependant of the individual for
the year who
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(i) attained the age of 18 years before the
end of the year, and
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(ii) was dependent on the individual
because of mental or physical infirmity,
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an amount determined by the formula
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$1,471 - (E - $2,500)
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E is the greater of $2,500 and the income
for the year of the dependant.
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(2) Subsection 118(4) of the Act is
amended by adding the word ``and'' at the
end of paragraph (c) and by repealing
paragraph (d).
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(3) Subsections (1) and (2) apply to the
1993 and subsequent taxation years.
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9. (1) Subsection 118.2(1) of the Act is
replaced by the following:
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| Medical
expense credit
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118.2 (1) For the purpose of computing the
tax payable under this Part by an individual for
a taxation year, there may be deducted an
amount determined by the formula
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A(B - C) - D
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where
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A is the appropriate percentage for the year;
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B is the total of the individual's medical
expenses that are proven by filing receipts
therefor with the Minister, that were not
included in determining a deduction for
medical expenses for a preceding taxation
year and that were paid by either the
individual or the individual's legal
representative,
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(a) where the individual died in the
year, within any period of 24 months
that includes the day of death, and
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(b) in any other case, within any period
of 12 months ending in the year;
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C is the lesser of $1,500 and 3% of the
individual's income for the year; and
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D is 68% of the total of all amounts each of
which is the amount, if any, by which
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(a) the income for the year of a person
(other than the individual and the
individual's spouse) in respect of
whom an amount is included in
computing the individual's deduction
under this section for the year
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(b) the amount used under paragraph
(c) of the description of B in subsection
118(1) for the year.
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(2) Paragraph 118.2(2)(a) of the Act is
replaced by the following:
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(a) to a medical practitioner, dentist or
nurse or a public or licensed private hospital
in respect of medical or dental services
provided to a person (in this subsection
referred to as the ``patient'') who is the
individual, the individual's spouse or a
dependant of the individual (within the
meaning assigned by subsection 118(6)) in
the taxation year in which the expense was
incurred;
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(3) Subsections (1) and (2) apply to the
1993 and subsequent taxation years.
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10. (1) The definition ``eligible child'' in
subsection 122.2(2) of the Act is replaced by
the following:
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``eligible
child''
« enfant
admissible »
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``eligible child'' of an individual for a
taxation year means a child in respect of
whom the individual
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(a) is entitled to receive a family
allowance under the Family Allowances
Act
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(i) in December of the year, or
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(ii) where the child died or attained the
age of 18 years during any month in the
year, in that month, or
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(b) would be entitled to receive a family
allowance under the Family Allowances
Act in December of the year if under that
Act such an allowance were payable in
the month in which the child becomes a
child of the individual or becomes
resident in Canada;
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(2) Section 122.2 of the Act is repealed.
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(3) Subsection (1) applies to the 1992
taxation year.
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(4) Subsection (2) applies to the 1993 and
subsequent taxation years.
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11. (1) Subparagraph 122.5(3)(f)(ii) of the
Act is replaced by the following:
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(2) Subsection (1) applies to the 1992 and
subsequent taxation years.
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12. (1) The Act is amended by adding the
following after section 122.5:
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Subdivision a.1
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Child Tax Benefit
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| Definitions
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122.6 In this subdivision,
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``adjusted
earned
income''
« revenu
gagné
modifié »
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``adjusted earned income'' of an individual for
a taxation year means the total of all
amounts each of which is the earned income
for the year of the individual or of the person
who was the individual's cohabiting spouse
at the end of the year;
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``adjusted
income''
« revenu
modifié »
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``adjusted income'' of an individual for a
taxation year means the total of all amounts
each of which is the income for the year of
the individual or of the person who was the
individual's cohabiting spouse at the end of
the year;
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``base taxation
year''
« année de
base »
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``base taxation year'', in relation to a month,
means
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(a) where the month is any of the first 6
months of a calendar year, the taxation
year that ended on December 31 of the
second preceding calendar year, and
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(b) where the month is any of the last 6
months of a calendar year, the taxation
year that ended on December 31 of the
preceding calendar year;
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``cohabiting
spouse''
« conjoint
visé »
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``cohabiting spouse'' of an individual at any
time means the person who at that time is
the individual's spouse and who is not at
that time living separate and apart from the
individual and, for the purpose of this
definition, a person shall not be considered
to be living separate and apart from an
individual at any time unless they were
living separate and apart at that time,
because of a breakdown of their marriage,
for a period of at least 90 days that includes
that time;
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``earned
income''
« revenu
gagné »
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``earned income'' of an individual for a
taxation year has the meaning assigned by
subsection 63(3);
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``eligible
individual''
« particulier
admissible »
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``eligible individual'' in respect of a qualified
dependant at any time means a person who
at that time
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(a) resides with the qualified dependant,
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(b) is the parent of the qualified
dependant who primarily fulfils the
responsibility for the care and upbringing
of the qualified dependant,
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(c) is resident in Canada,
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(d) is not described in paragraph
149(1)(a) or (b), and
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(e) is, or whose cohabiting spouse is, a
Canadian citizen or a person who
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(i) is a permanent resident (within the
meaning assigned by the Immigration
Act),
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(ii) is a visitor in Canada or the holder
of a permit in Canada (within the
meanings assigned by the Immigration
Act) who was resident in Canada
throughout the 18 month period
preceding that time, or
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(iii) was determined before that time
by the Convention Refugee
Determination Division of the
Immigration and Refugee Board to be
a Convention refugee,
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and, for the purpose of this definition,
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(f) where a qualified dependant resides
with the dependant's female parent, the
parent who primarily fulfils the
responsibility for the care and upbringing
of the qualified dependant is presumed to
be the female parent,
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(g) the presumption referred to in
paragraph (f) does not apply in
circumstances set out in regulations
made by the Governor in Council on the
recommendation of the Minister of
National Health and Welfare, and
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(h) factors to be considered in
determining what constitutes care and
upbringing may be set out in regulations
made by the Governor in Council on the
recommendation of the Minister of
National Health and Welfare;
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``qualified
dependant''
« personne à
charge
admissible »
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``qualified dependant'' at any time means a
person who at that time
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(a) has not attained the age of 18 years,
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(b) is not a person in respect of whom an
amount was deducted under paragraph
(a) of the description of B in subsection
118(1) in computing the tax payable
under this Part by the person's spouse for
the base taxation year in relation to the
month that includes that time, and
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(c) is not a person in respect of whom a
special allowance under the Children's
Special Allowances Act is payable for the
month that includes that time;
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``return of
income''
« déclaration
de revenu »
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``return of income'' filed by an individual for
a taxation year means
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(a) where the individual was resident in
Canada throughout the year, the
individual's 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 filed or
required to be filed under this Part for the
year, and
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(b) in any other case, a prescribed form
containing prescribed information, that
is filed with the Minister.
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| Deemed
overpayment
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122.61 (1) Where a person and, where the
Minister so demands, the person's cohabiting
spouse at the end of a taxation year have filed
a return of income for the year, an
overpayment on account of the person's
liability under this Part for the year shall be
deemed to have arisen during a month in
relation to which the year is the base taxation
year, equal to the amount determined by the
formula
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12
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where
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A is the total of
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(a) the product obtained by multiplying
$1,020 by the number of qualified
dependants in respect of whom the
person was an eligible individual at the
beginning of the month,
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(b) the product obtained by multiplying
$75 by the number of qualified
dependants, in excess of 2, in respect of
whom the person was an eligible
individual at the beginning of the month,
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(c) where the person is, at the beginning
of the month, an eligible individual in
respect of one or more qualified
dependants, the amount determined by
the formula
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C - D
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C is the lesser of $500 and 8% of the
amount, if any, by which the person's
adjusted earned income for the year
exceeds $3,750, and
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D is 10% of the amount, if any, by which
the person's adjusted income for the
year exceeds $20,921, and
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(d) the amount determined by the
formula
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E - F
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E is the product obtained by
multiplying $213 by the number of
qualified dependants who have not
attained the age of 7 years before the
month and in respect of whom the
person is an eligible individual at the
beginning of the month, and
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F is 25% of the total of all amounts
deducted under section 63 in respect
of qualified dependants in computing
the income for the year of the person
or the person's cohabiting spouse;
and
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B is 5% (or where the person is an eligible
individual in respect of only one qualified
dependant at the beginning of the month,
2 1/2%) of the amount, if any, by which the
person's adjusted income for the year
exceeds $25,921.
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| Exceptions
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(2) Notwithstanding subsection (1), where
a particular month is the first month during
which an overpayment that is less than $10 (or
such other amount as is prescribed) is deemed
under that subsection to have arisen on
account of a person's liability under this Part
for the base taxation year in relation to the
particular month, any such overpayment that
would, but for this subsection, reasonably be
expected at the end of the particular month to
arise during another month in relation to
which the year is the base taxation year shall
be deemed to arise under that subsection
during the particular month and not during the
other month.
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| Non-residents
and part-year
residents
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(3) For the purposes of this section, unless
a person was resident in Canada throughout a
taxation year,
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(a) for greater certainty, the person's
income for the year shall be deemed to be
equal to the amount that would have been
the person's income for the year had the
person been resident in Canada throughout
the year; and
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(b) the person's earned income for the year
shall not exceed that portion of the amount
that would, but for this paragraph, be the
person's earned income that is included
because of section 114 or subsection 115(1)
in computing the person's taxable income
or taxable income earned in Canada, as the
case may be, for the year.
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| Amount not to
be charged,
etc.
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(4) A refund of an amount deemed by this
section to be an overpayment on account of a
person's liability under this Part for a taxation
year
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(a) shall not be subject to the operation of
any law relating to bankruptcy or
insolvency;
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(b) cannot be assigned, charged, attached or
given as security;
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(c) does not qualify as a refund of tax for the
purposes of the Tax Rebate Discounting
Act;
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(d) cannot be retained by way of deduction
or set-off under the Financial
Administration Act; and
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(e) is not garnishable moneys for the
purposes of the Family Orders and
Agreements Enforcement Assistance Act.
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| Annual
adjustment
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(5) Each amount (other than the amount of
$20,921) expressed in dollars in subsection (1)
shall be adjusted so that, where the base
taxation year in relation to a particular month
is after 1991, the amount to be used under that
subsection for the month is equal to the total
of
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(a) the amount that would, but for
subsection (7), be the relevant amount used
under subsection (1) for the month that is
one year before the particular month, and
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(b) the product obtained by multiplying
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(i) the amount referred to in paragraph (a)
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(ii) the amount, adjusted in such manner
as is prescribed and rounded to the
nearest one-thousandth or, where the
result obtained is equidistant from 2 such
consecutive one-thousandths, to the
higher thereof, that is determined by the
formula
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A / B - 1.03
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A is the Consumer Price Index (within
the meaning assigned by subsection
117.1(4)) for the 12 month period that
ended on March 31 in the calendar
year following the base taxation year,
and
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B is the Consumer Price Index for the
12 month period preceding the period
referred to in the description of A.
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| Idem
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(6) The amount of $20,921 referred to in
subsection (1) shall be adjusted so that the
amount to be used thereunder for a month in
relation to a base taxation year that is after
1991 is equal to the amount by which
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(a) the amount of $25,921 referred to in
subsection (1), as adjusted and rounded
under this section for the year,
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exceeds
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(b) the product obtained by multiplying the
amount of $500 referred to in subsection
(1), as adjusted and rounded under this
section for the year, by 10.
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| Rounding
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(7) Where an amount referred to in
subsection (1), when adjusted as provided in
subsection (5), is not a multiple of one dollar,
it shall be rounded to the nearest multiple of
one dollar or, where it is equidistant from 2
such consecutive multiples, to the higher
thereof.
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| Eligible
individuals
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122.62 (1) For the purposes of this
subdivision, a person may be considered to be
an eligible individual in respect of a particular
qualified dependant at the beginning of a
month only if the person has, no later than 11
months after the end of the month, filed with
the Minister of National Health and Welfare a
notice in a form authorized, and containing
information required, by that minister.
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| Extension for
notices
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(2) The Minister of National Health and
Welfare may at any time extend the time for
filing a notice under subsection (1).
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| Exception
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(3) Where at the beginning of 1993 a person
is an eligible individual in respect of a
qualified dependant, subsection (1) does not
apply to the person in respect of the qualified
dependant if the qualified dependant was an
eligible child (within the meaning assigned by
subsection 122.2(2) because of subparagraph
(a)(i) of the definition ``eligible child'' in that
subsection) of the individual for the 1992
taxation year.
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| Person
ceasing to be
an eligible
individual
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(4) Where during a particular month a
person ceases to be an eligible individual in
respect of a particular qualified dependant
(otherwise than because of the qualified
dependant attaining the age of 18 years), the
person shall inform the Minister of National
Health and Welfare of that fact, in such form
as that minister may require, before the end of
the first month following the particular month.
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| Waiver
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(5) The Minister of National Health and
Welfare may at any time waive the
requirement
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(a) under subsection (1) to file a notice; or
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(b) under subsection (4) to inform that
minister that the person has ceased to be an
eligible individual in respect of a particular
qualified dependant.
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| Death of
cohabiting
spouse
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(6) Where before the end of a particular
month the cohabiting spouse of an eligible
individual in respect of a qualified dependant
dies and the individual so elects, before the
end of the eleventh month following the
particular month, in a form that is acceptable
to the Minister of National Health and
Welfare, for the purpose of determining the
amount deemed under subsection 122.61(1) to
be an overpayment arising in any month after
the particular month on account of the
individual's liability under this Part for the
base taxation year in relation to the particular
month subject to any subsequent election
under subsection (7) or (8), the individual's
adjusted income for the year shall be deemed
to be equal to the individual's income for the
year and the individual's adjusted earned
income for the year shall be deemed to be
equal to the individual's earned income for the
year.
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| Separation
from
cohabiting
spouse
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(7) Where before the end of a particular
month an eligible individual in respect of a
qualified dependant commences to live
separate and apart from the individual's
cohabiting spouse, because of a breakdown of
their marriage, for a period of at least 90 days
that includes a day in the particular month and
the individual so elects, before the end of the
eleventh month following the particular
month, in a form that is acceptable to the
Minister of National Health and Welfare, for
the purpose of determining the amount
deemed under subsection 122.61(1) to be an
overpayment arising in any month after the
particular month on account of the
individual's liability under this Part for the
base taxation year in relation to the particular
month subject to any subsequent election
under subsection (6) or (8), the individual's
adjusted income for the year shall be deemed
to be equal to the individual's income for the
year and the individual's adjusted earned
income for the year shall be deemed to be
equal to the individual's earned income for the
year.
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| Person
becoming a
cohabiting
spouse
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(8) Where at any particular time before the
end of a particular month a taxpayer has
become the cohabiting spouse of an eligible
individual and the taxpayer and the eligible
individual jointly so elect, before the end of
the eleventh month following the particular
month, in a form that is acceptable to the
Minister of National Health and Welfare, the
taxpayer shall be deemed to have been the
eligible individual's cohabiting spouse
throughout the period commencing
immediately before the end of the base
taxation year in relation to the particular
month and ending at the particular time for the
purpose of determining the amount deemed by
subsection 122.61(1) to be an overpayment
arising in any month after the particular month
on account of the eligible individual's liability
under this Part for the year.
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| Advice of
Department of
National
Health and
Welfare
|
(9) The Minister may obtain the advice of
the Department of National Health and
Welfare as to whether
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(a) a taxpayer is an eligible individual in
respect of a qualified dependant;
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(b) a person is a qualified dependant; or
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|
(c) a person is a taxpayer's cohabiting
spouse.
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| Agreement
|
122.63 (1) The Minister of Finance and the
Minister of National Health and Welfare may
enter jointly into an agreement with the
government of a province whereby the
amounts determined under paragraph (a) of
the description of A in subsection 122.61(1)
with respect to persons resident in the
province shall, for the purpose of calculating
overpayments deemed to arise under that
subsection, be replaced by amounts
determined in accordance with the agreement.
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| Idem
|
(2) The amounts determined under
paragraph (a) of the description of A in
subsection 122.61(1) for a base taxation year
because of any agreement entered into with a
province and referred to in subsection (1) shall
be based on the age of qualified dependants of
eligible individuals, or on the number of such
qualified dependants, or both, and shall result
in an amount in respect of a qualified
dependant that is not less, in respect of that
qualified dependant, than 85% of the amount
that would otherwise be determined under that
paragraph in respect of that qualified
dependant for that year.
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| Idem
|
(3) Any agreement entered into with a
province and referred to in subsection (1) shall
provide that, where the operation of the
agreement results in a total of all amounts,
each of which is an amount deemed under
subsection 122.61(1) to be an overpayment on
account of the liability under this Part for a
taxation year of a person subject to the
agreement, that exceeds 101% of the total of
such overpayments that would have otherwise
been deemed to have arisen under subsection
122.61(1), the excess shall be reimbursed by
the government of the province to the
Government of Canada.
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| Confidentialit
y of
information
|
122.64 (1) Information obtained under this
Act or the Family Allowances Act by or on
behalf of the Minister of National Health and
Welfare is deemed to be obtained on behalf of
the Minister of National Revenue for the
purposes of this Act.
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| Communicati
on of
information
|
(2) Notwithstanding subsection 241(1), an
official or authorized person may provide
information obtained under subsection
122.62(1), (4), (6), (7) or (8) or the Family
Allowances Act
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|
(a) to an official of the government of a
province, solely for the purposes of the
administration or enforcement of a
prescribed law of the province; or
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|
(b) to an official of the Department of
National Health and Welfare, for the
purposes of the administration of the
Children's Special Allowances Act, the
Canada Pension Plan and the Old Age
Security Act.
|
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| Taxpayer's
address
|
(3) Notwithstanding subsection 241(1), an
official or authorized person may provide a
taxpayer's name and address that has been
obtained by or on behalf of the Minister of
National Revenue for the purposes of this
subdivision, for the purposes of the
administration or enforcement of Part I of the
Family Orders and Agreements Enforcement
Assistance Act.
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| Offence
|
(4) Every person to whom information has
been provided under subsection (2) or (3) and
who knowingly uses, communicates or allows
to be communicated that information for any
purpose other than that for which it was
provided is guilty of an offence and is liable on
summary conviction to a fine not exceeding
$5,000 or to imprisonment for a term not
exceeding 12 months or to both that fine and
imprisonment.
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| ``official'' and
``authorized
person''
|
(5) For the purposes of subsections (2) and
(3), ``official'' and ``authorized person'' have
the meanings assigned by subsection 241(10).
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|
(2) Sections 122.6 to 122.63 of the Act, as
enacted by subsection (1), apply to
overpayments deemed to arise during
months that are after 1992, and to
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|
(a) any amount deemed by subsection
122.61(1) of the Act, as enacted by
subsection (1), to be an overpayment on
account of an individual's liability under
Part I of the Act
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|
(i) during any month before July 1993,
the individual's cohabiting spouse at
the end of 1991 includes a person who
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(A) is of the opposite sex to the
individual,
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|
(B) is at the beginning of the month
a parent of a child of whom the
individual is a parent, and
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|
(C) is not living separate and apart
from the individual for a period of at
least 90 days that includes December
31, 1991, and
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|
(ii) during any month after June 1993
and before July 1994, the cohabiting
spouse of an individual at the end of
1992 includes the person of the
opposite sex who, at the end of 1992,
was cohabiting with the individual in a
conjugal relationship and
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|
(A) had so cohabited with the
individual throughout a 12 month
period ending before the end of 1992,
or
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|
(B) is a parent of a child of whom the
individual is a parent,
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|
and, for the purpose of this
subparagraph, where before the end of
1992 the individual and the person
cohabited in a conjugal relationship,
they shall be deemed to be cohabiting
in a conjugal relationship at the end of
1992, unless they were not cohabiting
at that time for a period of at least 90
days that includes that time because of
a breakdown of their conjugal
relationship; and
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|
(b) any amount deemed by the said
subsection 122.61(1) to be an
overpayment on account of a person's
liability under Part I of the Act arising in
any month in relation to which the 1992
taxation year is the base taxation year,
the expression ``earned income'' as
defined in section 122.6 shall be deemed
to have the meaning assigned by
subsection 63(3) of the Act as that
subsection reads in its application to the
1993 taxation year.
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|
(3) The Minister of National Revenue
may during any month
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|
(a) in relation to which the 1991 taxation
year is the base taxation year, and
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|
|
(b) that is before the month in which that
minister mails to an individual a notice of
determination of the amounts deemed by
subsection 122.61(1) of the Act, as
enacted by subsection (1), to be
overpayments on account of the
individual's liability under Part I of the
Act for the 1991 taxation year,
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|
pay to the individual, in respect of a
qualified dependant who was an eligible
child (within the meaning assigned by
subsection 122.2(2) of the Act) of the
individual for the 1992 taxation year, an
amount not exceeding the amount that
would be deemed by the said subsection
122.61(1) to be an overpayment on account
of the individual's liability under Part I of
the Act for the 1991 taxation year that
would have arisen in that month or a
preceding month if the individual's
adjusted income and adjusted earned
income for the 1991 taxation year were
equal to zero and if the individual had filed
a return of income for that year, and any
amount so paid shall be deemed to be an
amount refunded on account of the
individual's liability under Part I of the Act
for the 1991 taxation year that arose as a
consequence of the operation of the said
subsection 122.61(1).
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|
(4) Section 122.64 of the Act, as enacted
by subsection (1), is deemed to have come
into force on January 1, 1993.
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|
13. (1) The portion of the definition
``refund of premiums'' in subsection 146(1)
of the Act after paragraph (b) is replaced by
the following:
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and for the purpose of paragraph (b), it is
assumed, unless the contrary is established,
that a dependant was not financially
dependent on the annuitant for support at
the time of the annuitant's death if the
income of the dependant for the taxation
year preceding the taxation year in which
the annuitant died exceeded the amount
used under paragraph (c) of the description
of B in subsection 118(1) for that preceding
year;
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|
(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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|
|
14. (1) The portion of subsection 150(1) of
the Act before paragraph (a) is replaced by
the following:
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| Returns
|
150. (1) A return of income for each
taxation year in the case of a corporation
(other than a corporation that was a registered
charity throughout the year) and in the case of
an individual, for each taxation year for which
tax is payable by the individual or in which the
individual has a taxable capital gain or has
disposed of a capital property, shall, without
notice or demand therefor, be filed with the
Minister in prescribed form containing
prescribed information,
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|
(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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|
15. (1) Paragraph 152(1)(b) of the Act is
replaced by the following:
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|
(b) the amount of tax, if any, deemed by
subsection 120(2), 120.1(4), 122.5(3),
127.1(1), 144(9) or 210.2(3) or (4) to be
paid on account of the taxpayer's tax under
this Part for the year or deemed by
subsection 119(2) to be an overpayment.
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|
(2) Section 152 of the Act is amended by
adding the following after subsection (3.1):
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| Determination
of deemed
overpayment
|
(3.2) A taxpayer may, during any month,
request in writing that the Minister determine
the amount deemed by subsection 122.61(1)
to be an overpayment on account of the
taxpayer's liability under this Part for a
taxation year that arose during the month or
any of the 11 preceding months.
|
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| Notice of
determination
|
(3.3) On receipt of the request referred to in
subsection (3.2), the Minister shall, with all
due dispatch, determine the amounts deemed
by subsection 122.61(1) to be overpayments
on account of the taxpayer's liability under
this Part that arose during the months in
respect of which the request was made or
determine that there is no such amount, and
shall send a notice of the determination to the
taxpayer.
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|
(3) Paragraph 152(4.2)(d) of the Act is
replaced by the following:
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(d) redetermine the amount, if any, deemed
by subsection 120(2), 120.1(4), 122.5(3),
127.1(1), 144(9) or 210.2(3) or (4) to be
paid on account of the taxpayer's tax under
this Part for the year or deemed by
subsection 119(2) or 122.61(1) to be an
overpayment on account of the taxpayer's
liability under this Part for the year.
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|
(4) Subsection (1) applies to the 1993 and
subsequent taxation years.
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|
(5) Subsection (2) applies to months that
are after 1992.
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|
(6) Subsection (3) applies to
redeterminations made in respect of the
1991 and subsequent taxation years except
that, in its application to redeterminations
made in respect of the 1991 and 1992
taxation years, paragraph 152(4.2)(d) of the
Act, as enacted by subsection (3), shall be
read as follows:
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|
(d) redetermine the amount, if any, deemed
by subsection 120(2), 120.1(4), 122.2(1),
122.5(3), 127.1(1), 144(9) or 210.2(3) or (4)
to be paid on account of the taxpayer's tax
under this Part for the year or deemed by
subsection 119(2) or 122.61(1) to be an
overpayment on account of the taxpayer's
liability under this Part for the year.
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|
16. (1) Paragraph 160.1(1)(b) of the Act is
replaced by the following:
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|
(b) the taxpayer shall pay to the Receiver
General interest at the prescribed rate on the
excess (other than any portion thereof that
can reasonably be considered to arise as a
consequence of the operation of section
122.5 or 122.61) from the day it became
payable to the date of payment.
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|
(2) Subsection 160.1(2) of the Act is
repealed.
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|
(3) Subsection 160.1(3) of the Act is
replaced by the following:
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| Liability for
refunds by
reason of
section 122.61
|
(2.1) Where a person was a cohabiting
spouse (within the meaning assigned by
section 122.6) of an individual at the end of a
taxation year, the person and the individual are
jointly and severally liable to pay any excess
described in subsection (1) that was refunded
in respect of the year to, or applied to a liability
of, the individual as a consequence of the
operation of section 122.61 if the person was
the individual's cohabiting spouse at the time
the excess was refunded, but nothing in this
subsection shall be deemed to limit the
liability of any person under any other
provision of this Act.
|
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| Assessment
|
(3) The Minister may at any time assess a
taxpayer in respect of any amount payable by
the taxpayer because of subsection (1) or (1.1)
or for which the taxpayer is liable because of
subsection (2.1), and this Division applies,
with such modifications as the circumstances
require, to an assessment made under this
section as though it had been made under
section 152.
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|
(4) Subsection (1) applies after 1992.
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|
(5) Subsection (2) applies to the 1993 and
subsequent taxation years.
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|
(6) Subsection (3) applies to the 1991 and
subsequent taxation years except that, in its
application to the 1991 and 1992 taxation
years, subsection 160.1(3) of the Act, as
enacted by subsection (3), shall be read as
follows:
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| Assessment
|
(3) The Minister may at any time assess a
taxpayer in respect of any amount payable by
the taxpayer because of subsection (1) or (1.1)
or for which the taxpayer is liable because of
subsection (2) or (2.1), and the provisions of
this Division apply, with such modifications
as the circumstances require, in respect of an
assessment made under this section as though
it had been made under section 152.
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|
17. (1) Paragraph 163(2)(b) of the Act is
repealed.
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|
(2) Subsection 163(2) of the Act is
amended by adding the following after
paragraph (b):
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|
(c) the total of all amounts each of which is
the amount, if any, by which
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|
(i) the amount that would be deemed by
subsection 122.61(1) to be an
overpayment on account of the person's
liability under this Part for the year that
arose during a particular month or, where
that person is a cohabiting spouse (within
the meaning assigned by section 122.6)
of an individual at the end of the year and
at the beginning of the particular month,
of that individual's liability under this
Part for the year that arose during the
particular month, as the case may be, if
that total were calculated by reference to
the information provided
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(ii) the amount that is deemed by
subsection 122.61(1) to be an
overpayment on account of the liability
of that person or that individual, as the
case may be, under this Part for the year
that arose during the particular month,
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|
(3) Subsection (1) applies to the 1993 and
subsequent taxation years.
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|
(4) Subsection (2) applies to the 1991 and
subsequent taxation years.
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|
18. (1) Section 164 of the Act is amended
by adding the following after subsection
(2.1):
|
|
| Application
respecting
refunds re
section 122.61
|
(2.2) Subsection (2) does not apply to a
refund to be made to a taxpayer and arising
because of section 122.61 except to the extent
that the taxpayer's liability referred to in that
subsection arose from the operation of
paragraph 160.1(1)(a) with respect to an
amount refunded to the taxpayer in excess of
the amount to which the taxpayer was entitled
because of section 122.61.
|
|
| Form deemed
to be a return
of income
|
(2.3) For the purpose of subsection (1),
where a taxpayer files the form referred to in
paragraph (b) of the definition ``return of
income'' in section 122.6 for a taxation year,
the form shall be deemed to be a return of the
taxpayer's income for that year and a notice of
assessment thereof shall be deemed to have
been mailed by the Minister.
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|
(2) The portion of subsection 164(3) of the
Act before paragraph (a) is replaced by the
following:
|
|
| Interest on
refunds and
repayments
|
(3) Where under this section an amount in
respect of a taxation year (other than an
amount or portion thereof that can reasonably
be considered to arise because of section 122.5
or 122.61) is refunded or repaid to a taxpayer
or applied to another liability of the taxpayer,
the Minister shall pay or apply interest thereon
at the prescribed rate for the period beginning
on the day that is the latest of
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|
(3) Subsections (1) and (2) apply to
overpayments arising after 1992.
|
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|
19. (1) The portion of subsection 164.1(1)
of the Act after paragraph (b) is replaced by
the following:
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|
if
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|
(c) an amount was deemed under subsection
122.2(1) to have been paid for the preceding
taxation year by
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|
(ii) the individual's spouse, where that
spouse died after the end of that
preceding year,
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|
in respect of the child, and
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|
(d) for that preceding year,
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|
(i) the total determined under
subparagraph 122.2(1)(b)(i) in respect of
the individual, or
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|
(ii) the individual's income, where the
individual's spouse died after the end of
that preceding year,
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|
(iii) where the amount or amounts to be
paid because of this subsection are in
respect of 3 or more eligible children of
the individual, $24,090, and
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|
(iv) in any other case, 2/3 of $24,090.
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|
(2) Section 164.1 of the Act is repealed.
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|
(3) Subsection (1) applies to the 1992
taxation year.
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|
(4) Subsection (2) applies to the 1993 and
subsequent taxation years.
|
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|
20. (1) Section 165 of the Act is amended
by adding the following after subsection (3):
|
|
| Decision by
Minister of
National
Health and
Welfare
|
(3.1) Notwithstanding subsection (3), on
receipt of a notice of objection to a
determination that includes matters relating to
whether, for the purposes of subdivision a.1 of
Division E,
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|
(a) a taxpayer is an eligible individual in
respect of a qualified dependant,
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|
(b) a person is a qualified dependant, or
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|
|
(c) a person is a taxpayer's cohabiting
spouse,
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|
|
the Minister of National Revenue shall refer
those matters to the Minister of National
Health and Welfare who shall, with all due
dispatch, decide the matters and notify the
Minister of National Revenue of the decision.
|
|
| Reconsiderati
on of
determination
|
(3.2) On receipt of the notification of a
decision of the Minister of National Health
and Welfare under subsection (3.1), the
Minister of National Revenue shall, with all
due dispatch, reconsider the determination to
which the decision relates and vacate, confirm
or vary the determination or redetermine in
accordance with the decision, and shall
thereupon notify the taxpayer in writing of
that action.
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|
(2) Subsection (1) is deemed to have come
into force on January 1, 1993.
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|
21. (1) Paragraph 180.2(1)(a) of the Act is
replaced by the following:
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|
(a) the total of all amounts each of which is
the amount of any pension, supplement or
spouse's allowance under the Old Age
Security Act included in computing the
individual's income under Part I for the
year, to the extent that no deduction is
allowed under paragraph 60(n) for the year
or any subsequent taxation year in respect
of that amount, and
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|
(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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|
22. (1) Paragraph 250(1)(f) of the Act is
replaced by the following:
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|
(f) was at any time in the year a child of an
individual described in paragraph (b), (c),
(d) or (d.1) and the person's income for the
year did not exceed the amount used under
paragraph (c) of the description of B in
subsection 118(1) for the year.
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(2) Subsection (1) applies to the 1993 and
subsequent taxation years.
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