Bill C-36

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	PART 9
	NATIONAL CHILD BENEFIT SYSTEM
R.S., c. 1 (5th Supp.)	Income Tax Act
	*91. (1) The heading ``Child Tax Benefit'' before section 122.6 of the Income Tax Act* is replaced by the following:**
	Canada Child Tax Benefit
	(2) Subsection (1) applies after June 1998.
	92. (1) The definitions ``adjusted earned income'' and ``earned income'' in section 122.6 of the Act are repealed.
	(2) Subsection (1) applies with respect to overpayments deemed to arise during months that are after June 1998.
	93. (1) Subsection 122.61(1) of the Act is replaced by the following:
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 is 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
	1/12[(A - B) + C]
	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, and
	(c) the amount determined by the formula
	D - E
	where
	D 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
	E 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;
	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; and
	C is the amount determined by the formula
	F - (G x H)
	where
	F is, where the person is an eligible individual in respect of
	(a) only one qualified dependant, $605, and
	(b) two or more qualified dependants, the total of
	(i) $605 for the first qualified dependant,
	(ii) $405 for the second qualified dependant, and
	(iii) $330 for each, if any, of the third and subsequent qualified dependants,
	G is the amount, if any, by which the person's adjusted income for the year exceeds $20,921, and
	H is, where the person is an eligible individual in respect of
	(a) only one qualified dependant, 12.1%,
	(b) two qualified dependants, 20.2%, and
	(c) three or more qualified dependants, 26.8%.
	(2) Subsection 122.61(5.1) of the Act is repealed.
	(3) Subsections (1) and (2) apply with respect to overpayments deemed to arise during months that are after June 1998.
Conditional amendment - Bill C-28	94. If Bill C-28, introduced in the first session of the thirty-sixth Parliament and entitled the Income Tax Amendments Act, 1997, is assented to, then, on the later of the coming into force of subsection 141(1) of that Act and this section, paragraphs 122.61(3.1)(a) to (c) of the Income Tax Act, as enacted by that subsection, are replaced by the following:
	(a) the individual's income for the year shall include the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and
	(b) the total of all amounts deducted under section 63 in computing the individual's income for the year shall include the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.
Conditional amendment - Bill C-28	95. If Bill C-28, introduced in the first session of the thirty-sixth Parliament and entitled the Income Tax Amendments Act, 1997, is assented to, then, on the later of the coming into force of subsection 142(2) of that Act and this section,
	*(a) the portion of subsection 122.62(5) of the Income Tax Act* after paragraph (b), as enacted by the said subsection 142(2), is replaced by the following:**

	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 (7), the individual's adjusted income for the year is deemed to be equal to the individual's income for the year.
	*(b) the portion of subsection 122.62(6) of the Income Tax Act* after paragraph (b), as enacted by the said subsection 142(2), is replaced by the following:**

	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 (5) or (7), the individual's adjusted income for the year is deemed to be equal to the individual's income for the year.
	96. Paragraph 239(2.21)(b) of the Act is replaced by the following:
	(b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f), (i) or (j.1)
	97. (1) Subsection 241(4) of the Act is amended by adding the following after paragraph (j):
	(j.1) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to
	(i) a social assistance payment made on the basis of a means, needs or income test, or
	(ii) a payment pursuant to a prescribed law of a province in respect of a child within the meaning of the prescribed law,
	where the purpose of the adjustment is to take into account the amount determined for C in subsection 122.61(1) in respect of a person for a taxation year;
	(2) The portion of the definition ``official'' in subsection 241(10) of the Act after paragraph (b) is replaced by the following:
	or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged and, for the purposes of subsection 239(2.21), subsections (1) and (2), the portion of subsection (4) before paragraph (a), and subsections (5) and (6), includes a designated person;
	(3) Subsection 241(10) of the Act is amended by adding the following in alphabetical order:
``designated person'' « personne déterminée »	``designated person'' means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of,
	(a) a municipality in Canada, or
	(b) a public body performing a function of government in Canada,
	or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged;
1992, c. 48, Sch.	Children's Special Allowances Act
	*98. (1) Subsection 8(1) of the Children's Special Allowances Act* is replaced by the following:**
Calculation of amount	8. (1) The amount of special allowance to be paid in respect of a child for each month is one twelfth of the total of
	(a) the amount expressed in dollars in paragraph (a) of the description of A in subsection 122.61(1) of the Income Tax Act, and
	(b) the amount expressed in dollars in paragraph (a) of the description of F in that subsection,
	each such amount being adjusted and rounded in accordance with subsections 122.61(5) and (7) of that Act.
	(2) Subsection (1) applies with respect to special allowances payable for months that are after June 1998.
	PART 10
	STUDENT LOANS
1994, c. 28	Canada Student Financial Assistance Act
	*99. Section 9 of the Canada Student Financial Assistance Act* is repealed.**
	100. (1) Paragraph 15(i) of the Act is replaced by the following:
	(i) prescribing the circumstances under which a loan or a certificate of eligibility may be denied to a student, or an interest-free period referred to in subsection 7(1) may be terminated by the Minister;
	(2) Paragraph 15(l) of the Act is replaced by the following:
	(l) providing, in respect of student loans made to full-time and part-time students, for the gratuitous payment, including the method of calculating it, whether conditionally or unconditionally, by the Minister to lenders of amounts in respect of such loans, and for the discharge of such loans to the extent of those amounts;
R.S., c. S-23	Canada Student Loans Act
	101. Section 10 of the Canada Student Loans Act is amended by adding the word ``and'' at the end of paragraph (a), by deleting the word ``and'' at the end of paragraph (b) and by repealing paragraph (c).
	102. Section 17 of the Act is amended by adding the following after paragraph (q):
	(q.1) providing, in respect of student loans made to full-time and part-time students, for the gratuitous payment, including the method of calculating it, whether conditionally or unconditionally, by the Minister to lenders of amounts in respect of those loans, and for the discharge of those loans to the extent of those amounts;