Bill C-205

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First Reading

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	2nd Session, 36th Parliament, 48 Elizabeth II, 1999
	The House of Commons of Canada
	BILL C-205
	An Act to amend the Income Tax Act (deduction of expenses incurred by a mechanic for tools required in employment)
R.S., cc. 1, 2 (5th Supp.); 1994, cc. 7, 8, 13, 21, 28, 29, 38, 41; 1995, cc. 1, 3, 11, 18, 21, 38, 46; 1996, cc. 11, 21, 23; 1997, cc. 10, 12, 25, 26; 1998, cc. 19, 21, 34	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	1. Subsection 8(1) of the Income Tax Act is amended by deleting the word ``and'' at the end of paragraph (p), by adding the word ``and'' at the end of paragraph (q) and by adding the following after paragraph (q):
Mechanic's tool expenses	(r) where the taxpayer was employed in the year as a mechanic and, as a condition of the employment, was required to provide tools for a period in the year, an amount (not exceeding the taxpayer's income for the year from the employment computed without reference to this paragraph) equal to the total of
	(i) amounts expended by the taxpayer during the year for the maintenance, rental or insurance of the tools except to the extent that the amounts are otherwise deducted in computing the taxpayer's income for any taxation year,
	(ii) the capital cost of any tool that had a cost of two hundred and fifty dollars or less or such higher limit as may be allowed in the regulations to take into consideration inflation, and
	(iii) such proportion of the capital cost to the taxpayer of any tool, the cost of which exceeded the limit set pursuant to subparagraph (ii), as is allowed by regulation.