Bill C-244

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First Reading

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	1st Session, 36th Parliament, 46 Elizabeth II, 1997
	The House of Commons of Canada
	BILL C-244
	An Act to amend the Income Tax Act and the Canada Pension Plan (transfer of income to spouse)
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. 1 (5th Supp.); 1994, cc. 7, 8, 13, 21, 29, 38, 41; 1995, cc. 1, 3, 11, 18, 21, 38, 46; 1996, cc. 11, 21, 23; 1997, cc. 10, 12, 25, 26	INCOME TAX ACT
	*1. Subsection 56(1) of the Income Tax Act* is amended by adding the following after paragraph (c.2):**
Income received from spouse	(c.3) an amount received in the year by the taxpayer from the spouse of the taxpayer that is deducted by the spouse in computing the spouse's earned income for the year under paragraph 60(i.1);
	2. Section 60 of the Act is amended by adding the following after paragraph (i):
Income paid to spouse	(i.1) an amount paid by the taxpayer in the year to the spouse of the taxpayer if
	(i) the taxpayer and the spouse were living together at the end of the year and for a period of at least 180 days beginning in the year,
	(ii) the taxpayer or the spouse of the taxpayer had at least one dependent child who had not yet been a student in full-time attendance at an educational institution, and
	(iii) neither the taxpayer nor the spouse, in computing their incomes for the year, deducts child care expenses under section 63,
	and the amount that the taxpayer deducts for the year does not exceed
	(iv) if the taxpayer's earned income for the year is $50,000 or less, one half of the taxpayer's earned income for the year, or
	(v) if the taxpayer's earned income for the year exceeds $50,000, the amount determined by the formula
	$25,000 - (A - $50,000 ) 2
	where
	A is the taxpayer's earned income for the year,
	less the amount of the earned income of the taxpayer's spouse for the year.
	3. The Act is amended by adding the following after section 60.001:
``earned income'' « revenu gagné »	60.002 For the purposes of paragraph 60(i.1), ``earned income'' of an individual for a taxation year has the meaning assigned by subsection 63(3).
	4. Paragraph (b) of the definition ``earned income'' in subsection 146(1) of the Act is replaced by the following:
	(b) an amount included under paragraph 56(1)(b), (c), (c.1), (c.2), (c.3) , (g) or (o) in computing the taxpayer's income for a period in the year throughout which the taxpayer was resident in Canada,
R.S., c. C-8; R.S., cc. 6, 41 (1st Supp.), cc. 5, 13, 27, 30 (2nd Supp.) cc. 18, 38 (3rd Supp.), cc. 1, 46, 51 (4th Supp.); 1990, c. 8; 1991, cc. 14, 44, 49; 1992, cc. 1, 2, 27, 48; 1993, cc. 24, 27, 28; 1994, cc. 13, 21; 1995, c. 33; 1996, cc. 11, 16, 23	CANADA PENSION PLAN
	*5. The Canada Pension Plan* is amended by adding the following after section 11:**
Income received from spouse	11.01 For the purpose of this Act, a spouse who has included in computing the spouse's income an amount referred to in paragraph 56(1)(c.3) of the Income Tax Act and who satisfies the requirements referred to in subparagraphs 60(i.1)(i) to (iii) of that Act is deemed to be self-employed.
	6. This Act is applicable to the 1997 and subsequent taxation years.

Bill C-244

BILL C-244