Bill C-397

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

First Reading

PDF

	1st Session, 37th Parliament, 49-50 Elizabeth II, 2001
	House of Commons of Canada
	BILL C-397
	An Act to amend the Income Tax Act (support payments)
R.S., c. 1 (5th Supp.)	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. (1) Subparagraphs (b)(i) and (ii) of the description of B in subsection 118(1) of the Income Tax Act* are replaced by the following:**
	(i) is either a person who is unmarried and who does not live in a common-law partnership or a person who is married or in a common-law partnership, who neither supported nor lived with their spouse or common-law partner and who is not supported by that spouse or common-law partner, and whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment (in which the individual lives) and actually supports in that establishment a person who, at that time, is
	(A) except in the case of a child of the individual, resident in Canada,
	(B) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,
	(C) related to the individual, and
	(D) except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent by reason of mental or physical infirmity, or
	(ii) is an individual to whom subsection (5) does not apply,
	(2) Paragraph 118(4)(b) of the Act is replaced by the following:
	(b) subject to subsection (4.1), not more than one individual is entitled to a deduction under subsection (1) because of paragraph (b) of the description of B in subsection (1) for a taxation year in respect of the same person or the same domestic establishment and where two or more individuals, none of whom is an individual referred to in subparagraph (1)(b)(ii), are otherwise entitled to such a deduction and fail to agree as to the individual by whom the deduction may be made, no such deduction for the year shall be allowed to either or any of them;
	(3) Section 118 of the Act is amended by adding the following after subsection (4):
Amount of deduction to be shared	(4.1) Subject to subsection (4.2), where an individual referred to in subparagraph (1)(b)(ii) and the spouse or common-law partner or former spouse or common-law partner of that individual are, in respect of a taxation year, each entitled to deduct, in respect of the same child, an amount under subsection (1) because of paragraph (b) of the description of B in that subsection, the individual and the spouse or common-law partner or former spouse or common-law partner may each deduct a portion of that amount based on the number of days the child lived in that year with the individual or spouse or common-law partner or former spouse or common-law partner, as the case may be, which in the case of the individual shall be at least one hundred days in that year or such number of days as is prescribed by a regulation made under section 118.01. Any disagreement between the individual and the spouse or common-law partner or former spouse or common-law partner respecting the number of days the child lived with each of them in a taxation year shall be resolved by the Minister or pursuant to any mechanism established by a regulation made under section 118.01.
Limitation	(4.2) Where an individual referred to in subparagraph (1)(b)(ii) and the spouse or common-law partner or former spouse or common-law partner of that individual are, in respect of a taxation year, each entitled to deduct, in respect of the same child, an amount under subsection (1) because of paragraph (b) of the description of B in that subsection, the total of all amounts so deducted for the year shall not exceed the maximum amount that would be deductible by reason of that paragraph for the year by either the individual or the individual's spouse or common-law partner or former spouse or common-law partner in respect of that child if the individual or individual's spouse or common-law partner or former spouse or common-law partner was the only person entitled to deduct an amount for the year by reason of that paragraph for that child.
	(4) Section 118 of the Act is amended by adding the following after subsection (5):
Non-applica- tion	(5.1) Subsection (5) does not apply to an individual described in paragraph (a) or (b) of that subsection who is required to pay and has paid a support amount (as defined in subsection 56.1(4)) in a taxation year in respect of a child of the individual to the individual's spouse or common-law partner or former spouse or common-law partner and has had the child living with him or her for at least one hundred days in that year or such number of days in that year as is prescribed by a regulation made under section 118.01.
	2. The Act is amended by adding the following before section 118.1:
Regulations	118.01 The Minister may make regulations
	(a) prescribing the number of days a child must have lived with an individual for the purposes of subsection 118(4.1);
	(b) respecting the establishment and operation of a mechanism for resolving any disagreement referred to in subsection 118(4.1); and
	(c) that he deems necessary for the effective operation of subsection 118(4.1).

Bill C-397

BILL C-397