;

Bill C-15

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

Royal Assent

PDF

	SCHEDULE VII
	AN ACT TO AMEND THE INCOME TAX ACT, TO ENACT THE CHILDREN'S SPECIAL ALLOWANCES ACT, TO AMEND CERTAIN OTHER ACTS IN CONSEQUENCE THEREOF AND TO REPEAL THE FAMILY ALLOWANCES ACT
	[1992, c. 48, assented to 15th October, 1992]
R.S., c. 1 (5th Supp.)	Income Tax Act
	1. (1) Subsections 56(5) to (7) of the Income Tax Act
	(2) Subsection 56(9) of the Act is replaced by the following:
Meaning of ``income for the year''	(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.
	(3) Subsections (1) and (2) apply to the 1993 and subsequent taxation years.
	2. (1) Paragraph 60(p) of the Act is replaced by the following:
Overpayment of allowance	(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;
	(2) Paragraph 60(p) of the Act is repealed.
	(3) Subsection (1) applies to the 1990 and subsequent taxation years.
	(4) Subsection (2) applies to the 1995 and subsequent taxation years.
	3. (1) Paragraphs (a) to (c) of the definition ``earned income'' in subsection 63(3) of the Act are replaced by the following:
	(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,
	(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,
	(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
	(d) all amounts described in paragraph 56(8)(a) received by the taxpayer in the year;
	(2) Paragraph (b) of the definition ``eligible child'' in subsection 63(3) of the Act is replaced by the following:
	(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
	(3) Subsections (1) and (2) apply to the 1993 and subsequent taxation years.
	4. (1) The portion of subsection 74.1(2) of the Act before paragraph (a) is replaced by the following:
Transfers and loans to minors	(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
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	5. (1) Subparagraph 115(2)(e)(iii) of the Act is replaced by the following:
	(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,
	(2) Subparagraph 115(2)(e)(iii) of the Act is repealed.
	(3) Subsection (1) applies to the 1990 and subsequent taxation years.
	(4) Subsection (2) applies to the 1993 and subsequent taxation years.
	6. (1) Subsection 117(7) of the Act is repealed.
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	7. (1) Paragraph 117.1(1)(b) of the Act is replaced by the following:
	(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)
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	8. (1) Paragraph (d) of the description of B in subsection 118(1) of the Act is replaced by the following:
Dependants	(d) for each dependant of the individual for the year who
	(i) attained the age of 18 years before the end of the year, and
	(ii) was dependent on the individual because of mental or physical infirmity,
	an amount determined by the formula
	$1,471 - (E - $2,500)
	where
	E is the greater of $2,500 and the income for the year of the dependant.
	(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).
	(3) Subsections (1) and (2) apply to the 1993 and subsequent taxation years.
	9. (1) Subsection 118.2(1) of the Act is replaced by the following:
Medical expense credit	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
	A(B - C) - D
	where
	A is the appropriate percentage for the year;
	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,
	(a) where the individual died in the year, within any period of 24 months that includes the day of death, and
	(b) in any other case, within any period of 12 months ending in the year;
	C is the lesser of $1,500 and 3% of the individual's income for the year; and
	D is 68% of the total of all amounts each of which is the amount, if any, by which
	(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
	exceeds
	(b) the amount used under paragraph (c) of the description of B in subsection 118(1) for the year.
	(2) Paragraph 118.2(2)(a) of the Act is replaced by the following:
	(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;
	(3) Subsections (1) and (2) apply to the 1993 and subsequent taxation years.
	10. (1) The definition ``eligible child'' in subsection 122.2(2) of the Act is replaced by the following:
``eligible child'' « enfant admissible »	``eligible child'' of an individual for a taxation year means a child in respect of whom the individual
	(a) is entitled to receive a family allowance under the Family Allowances Act
	(i) in December of the year, or
	(ii) where the child died or attained the age of 18 years during any month in the year, in that month, or
	(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;
	(2) Section 122.2 of the Act is repealed.
	(3) Subsection (1) applies to the 1992 taxation year.
	(4) Subsection (2) applies to the 1993 and subsequent taxation years.
	11. (1) Subparagraph 122.5(3)(f)(ii) of the Act is replaced by the following:
	(ii) $25,921,
	(2) Subsection (1) applies to the 1992 and subsequent taxation years.
	12. (1) The Act is amended by adding the following after section 122.5:
	Subdivision a.1
	Child Tax Benefit
Definitions	122.6 In this subdivision,
``adjusted earned income'' « revenu gagné modifié »	``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;
``adjusted income'' « revenu modifié »	``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;
``base taxation year'' « année de base »	``base taxation year'', in relation to a month, means
	(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
	(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;
``cohabiting spouse'' « conjoint visé »	``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;
``earned income'' « revenu gagné »	``earned income'' of an individual for a taxation year has the meaning assigned by subsection 63(3);
``eligible individual'' « particulier admissible »	``eligible individual'' in respect of a qualified dependant at any time means a person who at that time
	(a) resides with the qualified dependant,
	(b) is the parent of the qualified dependant who primarily fulfils the responsibility for the care and upbringing of the qualified dependant,
	(c) is resident in Canada,
	(d) is not described in paragraph 149(1)(a) or (b), and
	(e) is, or whose cohabiting spouse is, a Canadian citizen or a person who
	(i) is a permanent resident (within the meaning assigned by the Immigration Act),
	(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
	(iii) was determined before that time by the Convention Refugee Determination Division of the Immigration and Refugee Board to be a Convention refugee,
	and, for the purpose of this definition,
	(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,
	(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
	(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;
``qualified dependant'' « personne à charge admissible »	``qualified dependant'' at any time means a person who at that time
	(a) has not attained the age of 18 years,
	(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
	(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;
``return of income'' « déclaration de revenu »	``return of income'' filed by an individual for a taxation year means
	(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
	(b) in any other case, a prescribed form containing prescribed information, that is filed with the Minister.
Deemed overpayment	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
	12
	where
	A is the total of
	(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,
	(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,
	(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
	C - D
	where
	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
	D is 10% of the amount, if any, by which the person's adjusted income for the year exceeds $20,921, and
	(d) the amount determined by the formula
	E - F
	where
	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
	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
	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.
Exceptions	(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.
Non-residents and part-year residents	(3) For the purposes of this section, unless a person was resident in Canada throughout a taxation year,
	(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
	(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.
Amount not to be charged, etc.	(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
	(a) shall not be subject to the operation of any law relating to bankruptcy or insolvency;
	(b) cannot be assigned, charged, attached or given as security;
	(c) does not qualify as a refund of tax for the purposes of the Tax Rebate Discounting Act;
	(d) cannot be retained by way of deduction or set-off under the Financial Administration Act; and
	(e) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Annual adjustment	(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
	(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
	(b) the product obtained by multiplying
	(i) the amount referred to in paragraph (a)
	by
	(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
	A / B - 1.03
	where
	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
	B is the Consumer Price Index for the 12 month period preceding the period referred to in the description of A.
Idem	(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
	(a) the amount of $25,921 referred to in subsection (1), as adjusted and rounded under this section for the year,
	exceeds
	(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.
Rounding	(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.
Eligible individuals	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.
Extension for notices	(2) The Minister of National Health and Welfare may at any time extend the time for filing a notice under subsection (1).
Exception	(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.
Person ceasing to be an eligible individual	(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.
Waiver	(5) The Minister of National Health and Welfare may at any time waive the requirement
	(a) under subsection (1) to file a notice; or
	(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.
Death of cohabiting spouse	(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.
Separation from cohabiting spouse	(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.
Person becoming a cohabiting spouse	(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.
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
	(a) a taxpayer is an eligible individual in respect of a qualified dependant;
	(b) a person is a qualified dependant; or
	(c) a person is a taxpayer's cohabiting spouse.
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.
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.
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.
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.
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
	(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
	(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.
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.
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.
``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).
	(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
	(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
	(i) during any month before July 1993, the individual's cohabiting spouse at the end of 1991 includes a person who
	(A) is of the opposite sex to the individual,
	(B) is at the beginning of the month a parent of a child of whom the individual is a parent, and
	(C) is not living separate and apart from the individual for a period of at least 90 days that includes December 31, 1991, and
	(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
	(A) had so cohabited with the individual throughout a 12 month period ending before the end of 1992, or
	(B) is a parent of a child of whom the individual is a parent,
	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
	(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.
	(3) The Minister of National Revenue may during any month
	(a) in relation to which the 1991 taxation year is the base taxation year, and
	(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,
	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).
	(4) Section 122.64 of the Act, as enacted by subsection (1), is deemed to have come into force on January 1, 1993.
	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:
	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;
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	14. (1) The portion of subsection 150(1) of the Act before paragraph (a) is replaced by the following:
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,
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	15. (1) Paragraph 152(1)(b) of the Act is replaced by the following:
	(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.
	(2) Section 152 of the Act is amended by adding the following after subsection (3.1):
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.
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.
	(3) Paragraph 152(4.2)(d) of the Act is replaced by the following:
	(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.
	(4) Subsection (1) applies to the 1993 and subsequent taxation years.
	(5) Subsection (2) applies to months that are after 1992.
	(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:
	(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.
	16. (1) Paragraph 160.1(1)(b) of the Act is replaced by the following:
	(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.
	(2) Subsection 160.1(2) of the Act is repealed.
	(3) Subsection 160.1(3) of the Act is replaced by the following:
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.
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.
	(4) Subsection (1) applies after 1992.
	(5) Subsection (2) applies to the 1993 and subsequent taxation years.
	(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:
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.
	17. (1) Paragraph 163(2)(b) of the Act is repealed.
	(2) Subsection 163(2) of the Act is amended by adding the following after paragraph (b):
	(c) the total of all amounts each of which is the amount, if any, by which
	(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
	exceeds
	(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,
	(3) Subsection (1) applies to the 1993 and subsequent taxation years.
	(4) Subsection (2) applies to the 1991 and subsequent taxation years.
	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.
	(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
	(3) Subsections (1) and (2) apply to overpayments arising after 1992.
	19. (1) The portion of subsection 164.1(1) of the Act after paragraph (b) is replaced by the following:
	if
	(c) an amount was deemed under subsection 122.2(1) to have been paid for the preceding taxation year by
	(i) the individual, or
	(ii) the individual's spouse, where that spouse died after the end of that preceding year,
	in respect of the child, and
	(d) for that preceding year,
	(i) the total determined under subparagraph 122.2(1)(b)(i) in respect of the individual, or
	(ii) the individual's income, where the individual's spouse died after the end of that preceding year,
	did not exceed,
	(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
	(iv) in any other case, 2/3 of $24,090.
	(2) Section 164.1 of the Act is repealed.
	(3) Subsection (1) applies to the 1992 taxation year.
	(4) Subsection (2) applies to the 1993 and subsequent taxation years.
	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,
	(a) a taxpayer is an eligible individual in respect of a qualified dependant,
	(b) a person is a qualified dependant, or
	(c) a person is a taxpayer's cohabiting spouse,
	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.
	(2) Subsection (1) is deemed to have come into force on January 1, 1993.
	21. (1) Paragraph 180.2(1)(a) of the Act is replaced by the following:
	(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
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	22. (1) Paragraph 250(1)(f) of the Act is replaced by the following:
	(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.
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.

Bill C-15

SCHEDULE VII

AN ACT TO AMEND THE INCOME TAX ACT, TO ENACT THE CHILDREN'S SPECIAL ALLOWANCES ACT, TO AMEND CERTAIN OTHER ACTS IN CONSEQUENCE THEREOF AND TO REPEAL THE FAMILY ALLOWANCES ACT

Income Tax Act