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(l.9) as remuneration for therapy provided
to the patient because of the patient's severe
and prolonged impairment, if
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(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,
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(ii) the therapy is prescribed by, and
administered under the general
supervision of,
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(A) a medical doctor or a psychologist,
in the case of mental impairment, and
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(B) a medical doctor or an
occupational therapist, in the case of a
physical impairment,
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(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
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(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;
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(l.91) as remuneration for tutoring services
that are rendered to, and are supplementary
to the primary education of, the patient who
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(i) has a learning disability or a mental
impairment, and
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(ii) has been certified in writing by a
medical practitioner to be a person who,
because of that disability or impairment,
requires those services,
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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.
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(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:
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26. (1) Paragraph (a) of the description of
C in section 118.8 of the Act is replaced by
the following:
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(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)
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(2) Subsection (1) applies to the 2000 and
subsequent taxation years.
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27. (1) Section 120 of the Act is amended
by adding the following after subsection
(2.1):
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| 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.
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(2) The portion of subsection 120(3) of the
Act before paragraph (a) is replaced by the
following:
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| Definition of
``the
individual's
income for the
year''
|
(3) For the purpose of this section, ``the
individual's income for the year'' means
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(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):
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(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).
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(4) The definition ``tax otherwise payable
under this Part'' in subsection 120(4) of the
Act is replaced by the following:
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``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
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(i) the individual's minimum amount
for the year determined under section
127.51, and
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(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
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(A) subsection 120.4(2) and
sections 126, 127, 127.4 and 127.41,
and
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(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
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(b) where the individual is a specified
individual in relation to the year, the
amount, if any, by which
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(i) 29% of the individual's split income
for the year
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(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.
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(5) Subsection (1) applies to the 1999 and
subsequent taxation years.
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(6) Subsections (2) to (4) apply to the 2000
and subsequent taxation years.
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28. (1) Section 120.1 of the Act is
repealed.
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(2) Subsection (1) applies to the 1998 and
subsequent taxation years.
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29. (1) The portion of subsection 120.2(1)
of the Act before paragraph (a) is replaced
by the following:
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| 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
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(2) Subparagraph 120.2(1)(b)(i) of the
Act is replaced by the following:
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(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
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(3) Paragraph 120.2(3)(b) of the Act is
replaced by the following:
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(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
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|
(4) Subsections (1) to (3) apply to the 2000
and subsequent taxation years.
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30. (1) The Act is amended by adding the
following after section 120.3:
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|
| 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
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(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
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exceeds
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(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
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(a) the amount, if any, by which
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(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
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(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
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(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
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(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
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(ii) at the prescribed rate that is
applicable for the purpose of subsection
164(3) with respect to the period.
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|
| Definitions
|
120.4 (1) The definitions in this subsection
apply in this section.
|
|
``excluded
amount''
« montant
exclu »
|
``excluded amount'', in respect of an
individual for a taxation year, means an
amount that is the income from a property
acquired by or for the benefit of the
individual as a consequence of the death of
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(a) a parent of the individual; or
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(b) any person, if the individual is
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(i) enrolled as a full-time student
during the year at a post-secondary
educational institution (as defined in
subsection 146.1(1)), or
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(ii) an individual 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 year.
|
|
``specified
individual''
« particulier
déterminé »
|
``specified individual'', in relation to a
taxation year, means an individual who
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|
(a) had not attained the age of 17 years
before the year;
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(b) at no time in the year was
non-resident; and
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|
(c) has a parent who is resident in Canada
at any time in the year.
|
|
``split
income''
« revenu
fractionné »
|
``split income'', of a specified individual for a
taxation year, means the total of all amounts
(other than excluded amounts) each of
which is
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(a) an amount required to be included in
computing the individual's income for
the year
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|
(i) in respect of taxable dividends
received by the individual in respect of
shares of the capital stock of a
corporation (other than shares of a
class listed on a prescribed stock
exchange or shares of the capital stock
of a mutual fund corporation), or
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(ii) because of the application of
section 15 in respect of the ownership
by any person of shares of the capital
stock of a corporation (other than
shares of a class listed on a prescribed
stock exchange),
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(b) a portion of an amount included
because of the application of paragraph
96(1)(f) in computing the individual's
income for the year, to the extent that the
portion
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(i) is not included in an amount
described in paragraph (a), and
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|
(ii) can reasonably be considered to be
income derived from the provision of
goods or services by a partnership or
trust to or in support of a business
carried on by
|
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|
(A) a person who is related to the
individual at any time in the year,
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|
(B) a corporation of which a person
who is related to the individual is a
specified shareholder at any time in
the year, or
|
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|
(C) a professional corporation of
which a person related to the
individual is a shareholder at any
time in the year, or
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|
(c) a portion of an amount included
because of the application of subsection
104(13) or 105(2) in respect of a trust
(other than a mutual fund trust) in
computing the individual's income for
the year, to the extent that the portion
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|
(i) is not included in an amount
described in paragraph (a), and
|
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|
(ii) can reasonably be considered
|
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|
(A) to be in respect of taxable
dividends received in respect of
shares of the capital stock of a
corporation (other than shares of a
class listed on a prescribed stock
exchange or shares of the capital
stock of a mutual fund corporation),
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|
(B) to arise because of the
application of section 15 in respect
of the ownership by any person of
shares of the capital stock of a
corporation (other than shares of a
class listed on a prescribed stock
exchange), or
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|
(C) to be income derived from the
provision of goods or services by a
partnership or trust to or in support
of a business carried on by
|
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|
|
(I) a person who is related to the
individual at any time in the year,
|
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|
(II) a corporation of which a
person who is related to the
individual is a specified
shareholder at any time in the
year, or
|
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|
|
(III) a professional corporation of
which a person related to the
individual is a shareholder at any
time in the year.
|
|
| Tax on split
income
|
(2) There shall be added to a specified
individual's tax payable under this Part for a
taxation year 29% of the individual's split
income for the year.
|
|
| Tax payable
by a specified
individual
|
(3) Notwithstanding any other provision of
this Act, where an individual is a specified
individual in relation to a taxation year, the
individual's tax payable under this Part for the
year shall not be less than the amount by which
|
|
|
|
(a) the amount added under subsection (2)
to the individual's tax payable under this
Part for the year
|
|
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|
exceeds
|
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|
(b) the total of all amounts each of which is
an amount that
|
|