Bill C-46
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- ENGLISH
- RECOMMENDATION RECOMMENDATION
- SUMMARY SUMMARY
- Short Title Short Title
- Federal-Provincial Fiscal Arrangements Act Federal-Provincial Fiscal Arrangements Act
- Income Tax Act Income Tax Act
- EXPLANATORY NOTES EXPLANATORY NOTES
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First Session, Forty-fourth Parliament, 70-71 Elizabeth II – 1 Charles III, 2021-2022-2023 |
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HOUSE OF COMMONS OF CANADA |
An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act
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FIRST READING, March 29, 2023
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DEPUTY PRIME MINISTER AND MINISTER OF FINANCE |
RECOMMENDATION
Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act”.
SUMMARY
This enactment amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories. It also amends the Income Tax Act to provide an additional payment of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit equal to double the amount of the regular January 2023 payment.
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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 Charles III, 2021-2022-2023 |
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HOUSE OF COMMONS OF CANADA |
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BILL C-46 |
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An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act |
His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short Title
Short title
1 This Act may be cited as the Cost of Living Relief Act, No. 3.
R.S., c. F-8; 1995, c. 17, s. 45
Federal-Provincial Fiscal Arrangements Act
2 The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 24.73:
Total payment of $2 billion
Start of inserted block24.74 The Minister may pay an additional cash payment equal to
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(a) for Ontario, $776,262,000;
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(b) for Quebec, $447,067,000;
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(c) for Nova Scotia, $52,306,000;
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(d) for New Brunswick, $41,674,000;
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(e) for Manitoba, $72,450,000;
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(f) for British Columbia, $273,238,000;
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(g) for Prince Edward Island, $8,759,000;
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(h) for Saskatchewan, $61,385,000;
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(i) for Alberta, $233,120,000;
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(j) for Newfoundland and Labrador, $27,051,000;
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(k) for Yukon, $2,252,000;
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(l) for the Northwest Territories, $2,348,000; and
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(m) for Nunavut, $2,088,000.
End of inserted block
R.S., c. 1 (5th Supp.)
Income Tax Act
3 (1) Section 122.5 of the Income Tax Act is amended by adding the following after subsection (3.002):
Additional deemed payment – January 2023
Start of inserted block(3.003) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula
- A
(a) $918,
(b) $918 for the qualified relation, if any, of the individual in relation to the specified month,
(c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $918,
(d) $483 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
(e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $483, and
(f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $483 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $9,919;
- B
- C
(2) Section 122.5 of the Act is amended by adding the following after subsection (3.03):
January 2023 payment – shared-custody parent
Start of inserted block(3.04) Notwithstanding subsection (3.003), if an eligible individual is a shared-custody parent (as defined in section 122.6, but with the term “qualified dependant” in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.003) to have been paid during the specified month is equal to the amount determined by the formula
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- B
(3) Section 122.5 of the Act is amended by adding the following after subsection (4.2):
January 2023 – month specified
Start of inserted block(4.3) Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.003) is January 2023 and the taxation year is the 2021 taxation year.
End of inserted block4 (1) Paragraph 152(1)(b) of the Act is replaced by the following:
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(b) the amount of tax, if any, deemed by Insertion start any of subsections Insertion end 120(2) or (2.2), 122.5(3) Insertion start to (3.003) Insertion end , 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(2) Paragraph 152(1.2)(d) of the Act is replaced by the following:
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(d) the Minister determines the amount deemed by Insertion start any of subsections Insertion end 122.5(3) Insertion start to (3.003) Insertion end or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(3) Paragraph 152(4.2)(b) of the Act is replaced by the following:
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(b) redetermine the amount, if any, deemed by Insertion start any of subsections Insertion end 120(2) or (2.2), 122.5(3) Insertion start to (3.003) Insertion end , 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
5 Paragraph 160.1(1.1)(b) of the Act is replaced by the following:
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(b) the total of the amounts deemed by subsection 122.5(3), (3.002) or Insertion start (3.003) Insertion end to have been paid by the individual during those specified months.
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Published under authority of the Speaker of the House of Commons
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EXPLANATORY NOTES
152 (1) The Minister shall, with all due dispatch, examine a taxpayer’s return of income for a taxation year, assess the tax for the year, the interest and penalties, if any, payable and determine
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(b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(1.2) Paragraphs 56(1)(l) and 60(o), this Division and Division J, as they relate to an assessment or a reassessment and to assessing or reassessing tax, apply, with any modifications that the circumstances require, to a determination or redetermination under subsection (1.01) and to a determination or redetermination of an amount under this Division or an amount deemed under section 122.61 to be an overpayment on account of a taxpayer’s liability under this Part, except that
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(d) the Minister determines the amount deemed by subsection 122.5(3), (3.001) or (3.002) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(4.2) Notwithstanding subsections (4), (4.1) and (5), for the purpose of determining — at any time after the end of the normal reassessment period, of a taxpayer who is an individual (other than a trust) or a graduated rate estate, in respect of a taxation year — the amount of any refund to which the taxpayer is entitled at that time for the year, or a reduction of an amount payable under this Part by the taxpayer for the year, the Minister may, if the taxpayer makes an application for that determination on or before the day that is 10 calendar years after the end of that taxation year,
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(b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
(1.1) If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of
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(b) the total of the amounts deemed by subsection 122.5(3) or (3.002) to have been paid by the individual during those specified months.