Bill C-639

3rd Session, 40th Parliament,

59-60 Elizabeth II, 2010-2011

house of commons of canada

BILL C-639

An Act to amend the Income Tax Act (universal child care benefit)

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

INCOME TAX ACT

1. (1) Subsection 56(6) of the Income Tax Act is repealed.

(2) The portion of subsection 56(8) of the Act before paragraph (b) is replaced by the following:

(8) Notwithstanding subsection (1), if

(a) one or more amounts are received by an individual (other than a trust) in a taxation year as, on account of, in lieu of payment of or in satisfaction of, any benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan, and

2. Section 60 of the Act is amended by adding “and” at the end of paragraph (x) and by repealing paragraph (y).

3. The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following:

“adjusted income”, of an individual for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if no amount were included under paragraph 56(1)(q.1) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and as if no amount were deductible under paragraph 60(z) in computing that income.

4. The definition “adjusted income” in section 122.6 of the Act is replaced by the following:

“adjusted income”, of an individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if no amount were included under paragraph 56(1)(q.1) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(z) in computing that income;

5. Paragraphs (b) and (c) of the definition “adjusted net income” in subsection 122.7(1) of the Act are replaced by the following:

(b) in computing that income, no amount were included under paragraph 56(1)(q.1) or in respect of any gain from a disposition of property to which section 79 applies; and

(c) in computing that income, no amount were deductible under paragraph 60(z).

6. The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

“adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under paragraph 56(1)(q.1) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w) or (z) in computing that income;

COORDINATING AMENDMENTS

7. (1) Subsections (2) to (4) apply if Bill C-9, introduced in the 3rd session of the 40th Parliament and entitled An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures (in this section referred to as the “other Act”), receives royal assent.

(2) If section 4 of the other Act comes into force before section 1 of this Act, then, on the day on which that section 1 comes into force, subsection 56(6.1) of the Income Tax Act is repealed.

(3) If section 1 of this Act comes into force before section 4 of the other Act, then that section 4 is deemed never to have come into force and is repealed.

(4) If section 1 of this Act comes into force on the same day as section 4 of the other Act, then that section 4 is deemed to have come into force before that section 1 and subsection (2) applies as a consequence.