BILL 34
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1 Subsection 20(3) of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is repealed and the following is substituted:
20( 3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.
2 Subsection 21(3) of the Act is repealed and the following is substituted:
21( 3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.
3 Section 22 of the Act is amended
ain subsection (1) by striking out “but for paragraph 118(4)(c) of the Federal Act, as that provision applies to this Act,” and substituting “but for paragraph 118(4)(c) of the Federal Act, as that provision read in its application to the 2016 taxation year and as it applies to this Act,”;
bby repealing subsection (3) and substituting the following:
22( 3) Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.
4 Section 23 of the Act is amended in the description of B by striking out “if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income” and substituting “if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income and no amount were deductible under paragraph 20(1)(ww) of the Federal Act”.
5 Subsection 24(1) of the Act is repealed and the following is substituted:
24( 1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in New Brunswick on the last day of the taxation year, there may be deducted an amount determined by the formula
A × B
where
A is the appropriate percentage for the year; and
B is the lesser of
(a) $1000, and
(b) the amount determined for that year for paragraph (b) of variable B in the formula in subsection 118(3) of the Federal Act.
6 The Act is amended by adding after section 32.1 the following:
Transfer of tax credits
32.2 For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual’s spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula
A – B
where
A is the total of all amounts each of which is deductible under section 23, 24 or 27 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year; and
B is the amount, if any, by which
(a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under section 19, 30 or 32,
exceeds
(b) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 30 and 32.
7 Section 38 of the Act is amended by striking out “27.1, subsection 32.1(2)” and substituting “27.1, 32.2, subsection 32.1(2)”.
8 Paragraph 53(1)(a) of the Act is amended by striking out “117(2)(d) of the Federal Act” and substituting “117(2)(e) of the Federal Act”.
9 Section 57 of the Act is amended
ain paragraph (1.1)(h) by striking out “for the period commencing on January 1, 2009” and substituting “for the period commencing on January 1, 2009, and ending at the end of a taxation year that begins before March 22, 2016, and ends after March 21, 2016”;
bby repealing subsection (2.5) and substituting the following:
57( 2.5) The first-mentioned business limit in subsection 125(2) of the Federal Act shall be deemed for the purposes of subsection (1) to be $500,000 for the period commencing on January 1, 2009.
Commencement
10( 1) Sections 1 to 3 of this Act shall be deemed to have come into force on January 1, 2017.
10( 2) Section 4 of this Act shall be deemed to have come into force on January 1, 2018.
10( 3) Section 5 of this Act shall be deemed to have come into force on January 1, 2015.
10( 4) Sections 6 and 7 of this Act shall be deemed to have come into force on January 1, 2017.
10( 5) Section 8 of this Act shall be deemed to have come into force on January 1, 2016.
10( 6) Paragraph 9(a) of this Act shall be deemed to have come into force on March 21, 2016.
10( 7) Paragraph 9(b) of this Act shall be deemed to have come into force on January 1, 2009.