BILL 52

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1 Section 25 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is repealed and the following is substituted:

Charitable gifts credit

25 For the purpose of computing the tax payable under this Part by an individual for the 2009 taxation year and for any subsequent taxation year, if the individual is entitled to a deduction under subsection 118.1(3) of the Federal Act for the year, there may be deducted an amount that the individual claims not exceeding the amount determined by the formula

(A × B) + [C × (D – B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the amount determined for D;

C is 17.95%; and

D is the amount determined for D in the formula in subsection 118.1(3) of the Federal Act for the purpose of computing the individual’s tax payable under Part I of the Federal Act for the year.

2 The Act is amended by adding after section 51 the following:

Subdivision j.01

School Supplement

School supplement

51.01(1) The following definitions apply in this section.

“qualified dependant” means qualified dependant as defined in section 122.6 of the Federal Act. (personne à charge admissible)

“adjusted income” means adjusted income as defined in section 122.6 of the Federal Act. (revenu modifié)

51.01(2) An overpayment on account of an individual’s liability under this Part for a taxation year is deemed to have arisen for the 2010 taxation year and for any subsequent taxation year if

(a)  on July 1 of the year following the taxation year, the individual

(i) is a resident of New Brunswick, and

(ii) has a qualified dependant who is at least five years of age and has not attained 18 years of age,

(b)  the individual is eligible for a refund under section 51 for the taxation year, and

(c)  the adjusted income of the individual for the taxation year is $20,000 or less.

51.01(3) Paragraph 122.61(3)(a) of the Federal Act applies for the purposes of paragraph (2)(c).

51.01(4) The overpayment deemed under subsection (2) to have arisen is equal to an amount of $100 per qualified dependant who, on July 1 of the year following the taxation year, is at least five years of age and has not attained 18 years of age.

51.01(5) Despite subsection (4), if two individuals are eligible for a refund under subsection (2) with respect to the same qualified dependant, each individual is eligible for one-half of the refund.

51.01(6) A refund of an amount deemed to be an overpayment under this section

(a)  cannot be charged or given as security,

(b)  cannot be assigned except under a prescribed Act,

(c)  cannot be garnished or attached,

(d)  is exempt from execution or seizure, and

(e)  cannot be retained by way of deduction or set-off under the Financial Administration Act.

51.01(7) The Minister of Finance may specify the forms that are to be used for the purposes of this section.