BILL 58
An Act to Amend the
New Brunswick Income Tax Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
14 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts
of New Brunswick, 2000, is repealed and the following is substituted:
14 For the 2007 taxation year and subsequent
taxation years, the tax payable under this Part for a taxation year
by an individual on the individual’s taxable income or taxable
income earned in Canada, as the case may be, referred to in this Division
as the “amount taxable”, is
(a) 10.12% of the amount taxable if
the amount taxable does not exceed $34,186;
(b) $3,460 plus 15.48% of the amount
by which the amount taxable exceeds $34,186 and does not exceed $68,374;
(c) $8,752 plus 16.80% of the amount
by which the amount taxable exceeds $68,374 and does not exceed $111,161;
and
(d) $15,940 plus 17.95% of the amount
by which the amount taxable exceeds $111,161.
2 Section
16.1 of the Act is amended by adding after subsection (1.1) the following:
16.1(1.11) This section does not apply to section 14 for the 2007 taxation year.
3 The
heading “Crédit d’impôt pour dividendes imposables”
preceding section 35 of the French version of the Act is repealed
and the following is substituted:
Déduction pour dividendes imposables
4 Section
35 of the Act is repealed and the following is substituted:
35 Section 121 of the Federal Act applies
for the purposes of this Act, except that:
(a) effective January 1, 2006,
(i) the reference to “2/3”,
or to the fraction that it is amended to read, in paragraph (a) of
that section of the Federal Act shall be read as a reference to 37/200
to yield a New Brunswick dividend tax credit rate of 3.7%; and
(ii) the reference to “11/18”,
or to the fraction that it is amended to read, in paragraph (b) of
that section of the Federal Act shall be read as a reference to 87/225
to yield a New Brunswick dividend tax credit rate of 12%; and
(b) effective January 1, 2007,
(i) the reference to “2/3”,
or to the fraction that it is amended to read, in paragraph (a) of
that section of the Federal Act shall be read as a reference to 53/200
to yield a New Brunswick dividend tax credit rate of 5.3%; and
(ii) the reference to “11/18”,
or to the fraction that it is amended to read, in paragraph (b) of
that section of the Federal Act shall be read as a reference to 87/225
to yield a New Brunswick dividend tax credit rate of 12%.
5 Subsection
52(1) of the Act is amended in the portion preceding paragraph (a)
by striking out “$100” and substituting “$200”.
6 Subsection
55(3) of the Act is repealed.
7 Section
56 of the Act is amended
(a) by repealing
subsection (5);
(b) by repealing
subsection (6).
8 Section
57 of the Act is amended
(a) by repealing
subsection (1.01) and substituting the following:
57(1.01) For the period commencing on July 1, 2006, and ending on December
31, 2006, the references to “2%” in subsection (1) shall
be read as references to “1.5%”.
(b) by repealing
subsection (1.02) and substituting the following:
57(1.02) For the period commencing on January 1, 2007, the references
to “2%” in subsection (1) shall be read as references
to “5%”.
(c) by repealing
subsection (1.03);
(d) in subsection
(1.1)
(i) by repealing paragraph
(f) and substituting the following:
(f) for the first amount, “$475,000”
and, for the second amount, “$1,302” for the period commencing
on July 1, 2006, and ending on December 31, 2006, and
(ii) by
repealing paragraph (g) and substituting the following:
(g) for the first amount, “$400,000”
and, for the second amount, “$1,096” for the period commencing
on January 1, 2007.
(e) by repealing
subsection (2.3) and substituting the following:
57(2.3) The business limit otherwise determined under section 125 of
the Federal Act shall be deemed for the purposes of subsection (1)
to be $475,000 for the period commencing on July 1, 2006, and ending
on December 31, 2006.
(f) by repealing
subsection (2.4) and substituting the following:
57(2.4) The business limit otherwise determined under section 125 of
the Federal Act shall be deemed for the purposes of subsection (1)
to be $400,000 for the period commencing on January 1, 2007.
COMMENCEMENT
9(1) Sections 3 and 4 of this Act shall be deemed
to have come into force on January 1, 2006.
9(2) Sections 1, 2, 6, 7 and 8 of this Act shall
be deemed to have come into force on January 1, 2007.
9(3) Section 5 of this Act shall be deemed to
have come into force on April 1, 2007.
EXPLANATORY NOTES
Section 1
The existing provision is as follows:
14 For the 2004 taxation year and subsequent taxation years, the tax
payable under this Part for a taxation year by an individual on the
individual’s taxable income or taxable income earned in Canada,
as the case may be, referred to in this Division as the “amount
taxable”, is
(a) 9.68% of the amount taxable if the
amount taxable does not exceed $32,183;
(b) $3,115 plus 14.82% of the amount
by which the amount taxable exceeds $32,183 and does not exceed $64,368;
(c) $7,885 plus 16.52% of the amount
by which the amount taxable exceeds $64,368 and does not exceed $104,648;
and
(d) $14,539 plus 17.84% of the amount
by which the amount taxable exceeds $104,648.
Section 2
New provision.
Section 3
A section heading is changed.
Section 4
The existing provision is as follows:
35 Section 121 of the Federal Act applies for the purposes of this Act,
except that the reference to “2/3”, or to the fraction
that it is amended to read, in that section of the Federal Act shall
be read as a reference to 18.5% for the purposes of this Act.
Section 5
The existing provision is as follows:
52(1) An overpayment of $100 on account of an individual’s liability
under this Act for a taxation year is deemed to have arisen in the
taxation year if the individual
(a) resided in New Brunswick on the
last day of the preceding taxation year,
(b) was in receipt of a spouse’s
allowance or an allowance, as the case may be, or a guaranteed income
supplement under the Old Age Security
Act (Canada) in the preceding taxation year, and
(c) has, either on his or her own behalf
or through a representative, filed an application on the form provided
by the Minister of Finance of New Brunswick for a refund of such amount
and provided all of the information required by the form before the
date required by that Minister.
Section 6
The existing provision is as follows:
55(3) Effective January 1, 2007, the tax payable by a corporation under
this Part for a taxation year is 12% of the corporation’s taxable
income earned in the year in New Brunswick.
Section 7
(a) The existing provision is
as follows:
56(5) Effective January 1, 2007, the reference
to “14.5%” in subsection (1) shall be read as a reference
to “12%”.
(b) The existing provision is
as follows:
56(6) Where a corporation has a taxation
year part of which begins before January 1, 2007, and part of which
ends after December 31, 2006, the reference to “14.5%”
in subsection (1) shall be read as a reference to the total of
(a) 13% multiplied by the proportion
that the number of days in the taxation year that are before January
1, 2007, is of the number of days in the taxation year, and
(b) 12% multiplied by the proportion
that the number of days in the taxation year that are after December
31, 2006, is of the number of days in the taxation year.
Section 8
(a) The existing provision is
as follows:
57(1.01) For the period commencing on July
1, 2006, and ending on June 30, 2007, the references to “2%”
in subsection (1) shall be read as references to “1.5%”.
(b) The existing provision is
as follows:
57(1.02) For the period commencing on July
1, 2007, the references to “1.5%” in subsection (1) shall
be read as references to “1%”.
(c) The existing provision is
as follows:
57(1.03) For the period commencing on January
1, 2007, the reference to “13%” in paragraph (1)(b) shall
be read as a reference to “12%”.
(d)
i) The existing provision is
as follows:
57(1.1) For the purposes of subsection (1),
where a corporation is a member of a partnership, the amount determined
pursuant to paragraph 125(1)(a) of the Federal Act, in relation to
a corporation for each taxation year, shall be the amount that would
be the corporation’s specified partnership income within the
meaning of subsection 125(7) of the Federal Act if the amounts expressed
in dollars in the description of “M” in the definition
of “specified partnership income” in that subsection were
read as.....
(f) for the first amount, “$475,000”
and, for the second amount, “$1,302” for the period commencing
on July 1, 2006, and ending on June 30, 2007, and
ii) The existing provision is
as follows:
57(1.1) For the purposes of subsection (1),
where a corporation is a member of a partnership, the amount determined
pursuant to paragraph 125(1)(a) of the Federal Act, in relation to
a corporation for each taxation year, shall be the amount that would
be the corporation’s specified partnership income within the
meaning of subsection 125(7) of the Federal Act if the amounts expressed
in dollars in the description of “M” in the definition
of “specified partnership income” in that subsection were
read as....
(g) for the first amount, “$500,000”
and, for the second amount, “$1,370” for the period commencing
on July 1, 2007.
(e) The existing provision is
as follows:
57(2.3) The business limit otherwise determined
under section 125 of the Federal Act shall be deemed for the purposes
of subsection (1) to be $475,000 for the period commencing on July
1, 2006, and ending on June 30, 2007.
(f) The existing provision is
as follows:
57(2.4) The business limit otherwise determined
under section 125 of the Federal Act shall be deemed for the purposes
of subsection (1) to be $500,000 for the period commencing on July
1, 2007.
Section 9
1) Commencement provision.
2) Commencement provision.
3) Commencement provision.