Bill C-401
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- ENGLISH
- SUMMARY SUMMARY
- Income Tax Act Income Tax Act
- SCHEDULE SCHEDULE
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First Session, Forty-fourth Parliament, 70-71 Elizabeth II – 1-2 Charles III, 2021-2022-2023-2024 |
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HOUSE OF COMMONS OF CANADA |
An Act to amend the Income Tax Act (northern residents deduction)
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FIRST READING, June 13, 2024
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Mr. Hanley |
SUMMARY
This enactment amends the Income Tax Act to increase the daily deduction that can be claimed for residing in a certain northern zone, to tie that amount to the Consumer Price Index and to remove the distinction between the intermediate zone and the northern zone by merging those two zones into one northern zone.
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Available on the House of Commons website at the following address:
www.ourcommons.ca
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1st Session, 44th Parliament, 70-71 Elizabeth II – 1-2 Charles III, 2021-2022-2023-2024 |
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HOUSE OF COMMONS OF CANADA |
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BILL C-401 |
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An Act to amend the Income Tax Act (northern residents deduction) |
His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. 1 (5th Supp.)
Income Tax Act
1 (1) Subsections 110.7(1) and (2) of the Income Tax Act are replaced by the following:
Residing in northern zone
110.7 (1) Insertion start When Insertion end , throughout a period (in this section referred to as the “qualifying period”) of not less than Insertion start six Insertion end consecutive months beginning or ending in a taxation year, a taxpayer who is an individual has resided in one or more particular areas each of which is a northern zone Insertion start referred to in Schedule 1 Insertion end for the year and files for the year a claim in Insertion start the Insertion end prescribed form, there may be deducted in computing the taxpayer’s taxable income for the year
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(a) the total of all amounts of trip costs to the taxpayer in respect of trips that begin during the particular period Insertion start in Insertion end the taxation year; and
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(b) the lesser of
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(i) 20% of the taxpayer’s income for the year, and
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(ii) the total of all amounts each of which is the total of
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(A) $ Insertion start 13 Insertion end .00 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in Insertion start a Insertion end particular area, and
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(B) $ Insertion start 13 Insertion end .00 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in Insertion start a Insertion end particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).
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(2) The portion of subsection 110.7(3.1) of the Act before paragraph (a) is replaced by the following:
Additional restrictions
(3.1) For the purpose of paragraph (1)(a), an amount may only be included in Insertion start computing Insertion end the Insertion start total of all amounts of trip costs Insertion end for a taxation year if
(3) Subsection 110.7(3.2) of the Act is replaced by the following:
Additional restriction
(3.2) If all amounts determined under paragraph 7304(2)(a) of the Income Tax Regulations are nil in respect of trips (beginning in the taxation year) made by an individual, the total of all amounts Insertion start of trip costs referred to Insertion end in paragraph (1)(a) in the taxation year for all taxpayers in respect of the individual must not exceed the standard amount for the individual for the taxation year.
(4) Paragraph 110.7(4)(b) of the Act is replaced by the following:
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(b) can reasonably be considered to be attributable to that portion of the qualifying period that is in the year and during which the taxpayer maintained a self-contained domestic establishment as the taxpayer’s principal place of residence in an area other than a northern zone Insertion start referred to in Schedule 1 Insertion end for the year.
(5) Section 110.7 of the Act is amended by adding the following after subsection (6):
Order in Council
Start of inserted block(7) The Governor in Council may, by order, amend Schedule 1 by adding, replacing or deleting the name or the coordinates of an area.
End of inserted block2 Subsection 117.1(2) of the Act is amended by adding the following after paragraph (c):
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(c.1) each of the amounts expressed in dollars in subparagraph 110.7(1)(b)(ii);
3 Subparagraph (g)(i) of the definition financial institution in subsection 181(1) of the Act is replaced by the following:
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(i) listed in Schedule Insertion start 2 Insertion end , or
4 The schedule to the Act is numbered as Schedule 2.
5 The Act is amended by adding, before Schedule 2, the Schedule 1 set out in the schedule to this Act.
6 This Act applies to the 2025 and subsequent taxation years.
SCHEDULE
1 The Yukon Territory
2 The Northwest Territories
3 Nunavut
4 That part of British Columbia that lies
(a) north of 55°35′N latitude;
(b) north of 55°00′N latitude and east of 122°00′W longitude; or
(c) north of 55°13′N latitude and east of 123°16′W longitude.
5 That part of Alberta that lies north of 55°00′N latitude.
6 That part of Saskatchewan that lies
(a) north of 55°00′N latitude;
(b) north of 54°15′N latitude and east of 107°00′W longitude; or
(c) north of 53°20′N latitude and east of 103°00′W longitude.
7 That part of Manitoba that lies
(a) north of 53°20′N latitude;
(b) north of 52°30′N latitude and east of 95°25′W longitude;
(c) north of 52°10′N latitude and east of 97°40′W longitude; or
(d) north of 51°30′N latitude and east of 96°00′W longitude.
8 That part of Ontario that lies north of 50°35′N latitude.
9 That part of Quebec that lies
(a) north of 50°35′N latitude and west of 79°00′W longitude;
(b) north of 49°00′N latitude, east of 79°00′W longitude and west of 74°00′W longitude;
(c) north of 50°00′N latitude, east of 74°00′W longitude and west of 70°00′W longitude;
(d) north of 50°45′N latitude, east of 70°00′W longitude and west of 65°30′W longitude; or
(e) north of the Gulf of St. Lawrence, east of 65°30′W longitude.
10 Labrador, including Belle Isle
11 The Queen Charlotte Islands
12 Anticosti Island
13 The Magdalen Islands
14 Sable Island