Bill C-25

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	(5) Paragraph (c) of the description of B in subsection 118(1) of the Act is replaced by the following:
Single status	(c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $7,131 ,
	(6) The portion of paragraph (d) of the description of B in subsection 118(1) of the Act after subparagraph (ii) is replaced by the following:
	the amount determined by the formula
	$7,131 - E
	where
	E is the greater of $4,778 and the dependant's income for the year, and
	(7) Subsections (1), (2), (5) and (6) apply to the 1999 and subsequent taxation years except that, in their application to the 1999 taxation year, the references to ``$7,131'', ``$6,055'', ``$606'' and ``$4,778'' in subparagraphs (a)(i) and (ii) and (b)(iii) and (iv) and paragraphs (c) and (d) of the description of B in subsection 118(1) of the Act, as enacted or amended by those subsections, as the case may be, shall be read as references to ``$6,794'', ``$5,718'', ``$572'' and ``$4,441'', respectively.
	(8) Subsection (3) applies to the 1999 taxation year.
	(9) Subsection (4) applies to the 2000 and subsequent taxation years.
	25. (1) Paragraph (b) of the description of D in subsection 118.2(1) of the Act is replaced by the following:
	(b) the amount used under paragraph (c) of the description of B in subsection 118(1) for the year.
	(2) Subparagraph 118.2(2)(b.1)(ii) of the Act is replaced by the following:
	(ii) no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.2 ), (c), (d) or (e) for any taxation year,
	(3) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (b.1):
	(b.2) as remuneration for the patient's care or supervision provided in a group home in Canada maintained and operated exclusively for the benefit of individuals who have a severe and prolonged impairment, if
	(i) because of the patient's impairment, the patient is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer's tax payable under this Part for the taxation year in which the expense is incurred,
	(ii) no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.1), (c), (d) or (e) for any taxation year, and
	(iii) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;
	(4) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (l.8):
	(l.9) as remuneration for therapy provided to the patient because of the patient's severe and prolonged impairment, if
	(i) because of the patient's impairment, an amount may be deducted under section 118.3 in computing a taxpayer's tax payable under this Part for the taxation year in which the remuneration is paid,
	(ii) the therapy is prescribed by, and administered under the general supervision of,
	(A) a medical doctor or a psychologist, in the case of mental impairment, and
	(B) a medical doctor or an occupational therapist, in the case of a physical impairment,
	(iii) at the time the remuneration is paid, the payee is neither the individual's spouse nor an individual who is under 18 years of age, and
	(iv) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;
	(l.91) as remuneration for tutoring services that are rendered to, and are supplementary to the primary education of, the patient who
	(i) has a learning disability or a mental impairment, and
	(ii) has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services,
	if the payment is made to a person ordinarily engaged in the business of providing such services to individuals who are not related to the payee.
	(5) Subsections (1) to (4) apply to the 1999 and subsequent taxation years except that, in its application to the 1999 taxation year, paragraph (b) of the description of D in subsection 118.2(1) of the Act, as enacted by subsection (1), shall be read as follows:
	(b) $7,044.
	26. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following:
	(a) the amount that would be the spouse's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection or under section 118.61 or 118.7)
	(2) Subsection (1) applies to the 2000 and subsequent taxation years.
	27. (1) Section 120 of the Act is amended by adding the following after subsection (2.1):
Amount deemed paid	(2.2) An individual is deemed to have paid on the last day of a taxation year, on account of the individual's tax under this Part for the year, an amount equal to the individual's income tax payable for the year to an Aboriginal government pursuant to a law of that government made in accordance with a tax sharing agreement between that government and the Government of Canada.
	(2) The portion of subsection 120(3) of the Act before paragraph (a) is replaced by the following:
Definition of ``the individual's income for the year''	(3) For the purpose of this section , ``the individual's income for the year'' means
	(3) Subsection 120(3) of the Act is amended by striking out the word ``and'' at the end of paragraph (a), by adding the word ``and'' at the end of paragraph (b) and by adding the following after paragraph (b):
	(c) in the case of an individual who is a specified individual in relation to the year, the individual's income for the year computed without reference to paragraph 20(1)(ww).
	(4) The definition ``tax otherwise payable under this Part'' in subsection 120(4) of the Act is replaced by the following:
``tax otherwise payable under this Part'' « impôt qu'il est par ailleurs tenu de payer en vertu de la présente partie » ou « impôt payable par ailleurs en vertu de la présente partie »	``tax otherwise payable under this Part'' by an individual for a taxation year means the total of
	(a) the greater of
	(i) the individual's minimum amount for the year determined under section 127.51, and
	(ii) the amount that, but for this section, would be the individual's tax payable under this Part for the year if this Part were read without reference to
	(A) subsection 120.4(2) and sections 126, 127, 127.4 and 127.41 , and
	(B) where the individual is a specified individual in relation to the year, section 121 in its application to dividends included in computing the individual's split income for the year, and
	(b) where the individual is a specified individual in relation to the year, the amount, if any, by which
	(i) 29% of the individual's split income for the year
	exceeds
	(ii) the total of all amounts each of which is an amount that may be deducted under section 121 and that can reasonably be considered to be in respect of a dividend included in computing the individual's split income for the year.
	(5) Subsection (1) applies to the 1999 and subsequent taxation years.
	(6) Subsections (2) to (4) apply to the 2000 and subsequent taxation years.
	28. (1) Section 120.1 of the Act is repealed.
	(2) Subsection (1) applies to the 1998 and subsequent taxation years.
	29. (1) The portion of subsection 120.2(1) of the Act before paragraph (a) is replaced by the following:
Minimum tax carry-over	120.2 (1) There may be deducted from the amount that, but for this section, section 120 and subsection 120.4(2) , would be an individual's tax payable under this Part for a particular taxation year such amount as the individual claims not exceeding the lesser of
	(2) Subparagraph 120.2(1)(b)(i) of the Act is replaced by the following:
	(i) the amount that, but for this section, section 120 and subsection 120.4(2) , would be the individual's tax payable under this Part for the particular year if the individual were not entitled to any deduction under any of sections 126, 127 and 127.4
	(3) Paragraph 120.2(3)(b) of the Act is replaced by the following:
	(b) the amount that, but for section 120 and subsection 120.4(2) , would be the individual's tax payable under this Part for the year if the individual were not entitled to any deduction under any of sections 126, 127 and 127.4, and
	(4) Subsections (1) to (3) apply to the 2000 and subsequent taxation years.
	30. (1) The Act is amended by adding the following after section 120.3:
	Lump-sum Payments
Definitions	120.31 (1) The definitions in subsection 110.2(1) apply in this section.
Addition to tax payable	(2) There shall be added in computing an individual's tax payable under this Part for a particular taxation year the total of all amounts each of which is the amount, if any, by which
	(a) the individual's notional tax payable for an eligible taxation year to which a specified portion of a qualifying amount received by the individual relates and in respect of which an amount is deducted under section 110.2 in computing the individual's taxable income for the particular year
	exceeds
	(b) the individual's tax payable under this Part for the eligible taxation year.
Notional tax payable	(3) For the purpose of subsection (2), an individual's notional tax payable for an eligible taxation year, calculated for the purpose of computing the individual's tax payable under this Part for a taxation year (in this subsection referred to as ``the year of receipt'') in which the individual received a qualifying amount, is the total of
	(a) the amount, if any, by which
	(i) the amount that would be the individual's tax payable under this Part for the eligible taxation year if the total of all amounts, each of which is the specified portion, in relation to the eligible taxation year, of a qualifying amount received by the individual before the end of the year of receipt, were added in computing the individual's taxable income for the eligible taxation year
	exceeds
	(ii) the total of all amounts each of which is an amount, in respect of a qualifying amount received by the individual before the year of receipt, that was included because of this paragraph in computing the individual's notional tax payable under this Part for the eligible taxation year, and
	(b) where the eligible taxation year ended before the taxation year preceding the year of receipt, an amount equal to the amount that would be calculated as interest payable on the amount determined under paragraph (a) if it were so calculated
	(i) for the period that began on May 1 of the year following the eligible taxation year and that ended immediately before the year of receipt, and
	(ii) at the prescribed rate that is applicable for the purpose of subsection 164(3) with respect to the period.

Bill C-25

Lump-sum Payments