Tax on individuals and trusts
2(1)The tax payable under this Act for a taxation year by an individual who resided in New Brunswick on the last day of the taxation year and had no income earned in the taxation year outside New Brunswick is the percentage of the tax payable under the Federal Act for that year specified in subsection (3).
2(2)The tax payable under this Act for a taxation year by an individual
(a)
who resided in New Brunswick on the last day of the taxation year but had income earned in the taxation year outside New Brunswick, or
(b)
who did not reside in New Brunswick on the last day of the taxation year but had income earned in the taxation year in New Brunswick,
is the amount that bears the same relation to the percentage of the tax payable under the Federal Act for that year specified in subsection (3) that his income earned in the taxation year in New Brunswick bears to his income for the year.
2(2.1)In addition to the tax payable under subsections (1) and (2), an individual, other than a trust, who resided in New Brunswick on the 31st day of December, 1978, shall pay a tax for the 1978 taxation year equal to the amount deductible by him pursuant to any provision of the Federal Act based on paragraph 13 of the
Notice of Ways and Means Motion to Amend the Income Tax Act tabled in the House of Commons on April 10, 1978.
2(2.2)The tax payable under subsection (2.1) shall not be taken into consideration in determining the payments required to be made by section 12 or 13 or in determining the reduction prescribed under subsection (3.1).
2(2.3)For the 1982 taxation year, the tax payable by an individual described in paragraph (2)(a) for the year is the amount equal to the aggregate of
(a)
the amount determined under subsection (2) for the year, and
(b)
the amount that bears the same relation to the product obtained when the amount added under subsection 120.1(2) of the Federal Act for the year is multiplied by the percentage specified in subsection (3) for the year that his income earned in the taxation year outside New Brunswick bears to his income for the year.
2(2.4)For the 1982 taxation year, the tax payable by an individual described in paragraph (2)(b) for the year is the amount by which
(a)
the amount determined under subsection (2) for the year
(b)
the amount that bears the same relation to the product obtained when the amount added under subsection 120.1(2) of the Federal Act for the year is multiplied by the percentage specified in subsection (3) for the year that his income earned in the taxation year in New Brunswick bears to his income for the year.
2(2.5)An individual to whom section 1 is applicable for a taxation year shall be deemed to have paid on account of his tax for the year an amount equal to the product obtained when
(a)
an amount that bears the same relation to the excess determined under subsection 120.1(4) of the Federal Act for the year that his income earned in the taxation year in New Brunswick bears to his income for the year
(b)
the percentage specified in subsection (3) for the year.
2(3)For the purposes of this section the percentage of the tax payable under the Federal Act to be used for computing the tax payable under this section is as follows:
(a)
16 per cent in respect of the 1962 taxation year;
(b)
17 per cent in respect of the 1963 taxation year;
(c)
18 per cent in respect of the 1964 taxation year;
(d)
21 per cent in respect of the 1965 taxation year;
(e)
24 per cent in respect of the 1966 taxation year;
(f)
28 per cent in respect of each of the 1967 and 1968 taxation years;
(g)
35.5 per cent in respect of the 1969 taxation year;
(h)
38 per cent in respect of the 1970 and the 1971 taxation years;
(i)
41.5 per cent in respect of the 1972 to 1976 taxation years inclusive;
(j)
55.5 per cent in respect of the 1977 to 1982 taxation years inclusive;
(k)
58 per cent in respect of the 1983 to 1987 taxation years inclusive;
(l)
60 per cent in respect of the 1988 to 1992 taxation years inclusive;
(m)
62 per cent in respect of the 1993 taxation year;
(n)
64 per cent in respect of the 1994 to 1996 taxation years inclusive;
(o)
63 per cent in respect of the 1997 taxation year;
(p)
61 per cent in respect of the 1998 taxation year;
(q)
60 per cent in respect of the 1999 taxation year.
2(3.1)The amount of tax payable as computed pursuant to this section is reduced
(a)
2 per cent in respect of the 1976 taxation year;
(b)
1.5 per cent in respect of the 1977 taxation year;
(c)
3.0 per cent in respect of the 1978 taxation year; and
(d)
5.5 per cent in respect of the 1979, 1980 and 1981 taxation years.
(a)
“tax payable under the Federal Act” by an individual in respect of a taxation year means the tax or amount referred to in paragraph 120(4)(c) of the Federal Act for the year in respect of that individual;
(b)
“income earned in the taxation year in New Brunswick” means the income earned in the taxation year in New Brunswick as determined in accordance with regulations made under paragraph 120(4)(a) of the Federal Act;
(c)
“income earned in the taxation year outside New Brunswick” means income for the year minus income earned in the taxation year in New Brunswick;
(d)
“income for the year” means
(i)
in the case of an individual resident in Canada during part only of the taxation year in respect of whom section 114 of the Federal Act applies, the aggregate of
(A)
his income for the period or periods in the year referred to in paragraph 114(a) of the Federal Act as determined in accordance with and for the purposes of the Federal Act, and
(B)
his income for the portion of that year that is not included in the period or periods referred to in clause (A), computed under paragraphs 115(1)(a), (b) and (c) of the Federal Act as though such portion of the year were the whole taxation year,
(ii)
in the case of an individual not resident in Canada at any time in the taxation year, his income for the year as computed under paragraphs 115(1)(a), (b) and (c) of the Federal Act, and
(iii)
in the case of any other individual, his income for the year as determined in accordance with and for the purposes of the Federal Act.
2(5)An individual who, under the Federal Act, pays tax computed in accordance with subsection 117(6) thereof, may, in lieu of the tax under subsection (1), pay a tax determined by reference to a table prepared in accordance with prescribed rules.
2(6)Where an individual resided in New Brunswick on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which any non-business-income tax was paid by him to the government of a country other than Canada, he may deduct from the tax payable by him under this Act for that taxation year an amount equal to the lesser of
(a)
the amount, if any, by which any non-business-income tax paid by him for the year to the government of such other country exceeds the aggregate of all amounts each of which is an amount claimed by him as a deduction for that year under subsection 126(1) or 180.1(1.1) of the Federal Act; and
(b)
that proportion of the tax otherwise payable under this Act for that taxation year, not including the tax payable under subsection (2.1), that
(i)
the aggregate of the taxpayer’s incomes from sources in that country, excluding any portion thereof that was deductible by him under subparagraph 110(1)(f)(i) of the Federal Act or in respect of which an amount was deductible by him under section 110.6 of the Federal Act,
(A)
for that year, if section 114 of the Federal Act is not applicable, or
(B)
if section 114 of the Federal Act is applicable, for the period or periods in the year referred to in paragraph (a) thereof,
(C)
no businesses were carried on by him in that country,
(D)
no amount was deducted under subsection 91(5) of the Federal Act in computing his income for the year, and
(E)
his income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the Federal Act for the year,
(ii)
the taxpayer’s income earned in New Brunswick
(A)
in the year, if section 114 of the Federal Act is not applicable, or
(B)
if section 114 of the Federal Act is applicable, in the period or periods of the year referred to in paragraph (a) thereof,
minus any amounts deducted by him under section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible by him under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f) or (j) or section 112 of the Federal Act for the year or in respect of such period or periods, as the case may be.
2(6.1)For the purposes of subsection (6), “tax payable” and “tax otherwise payable” mean the amount that would, but for sections 120.1 and 127.4 of the Federal Act, be the tax otherwise payable under this Act.
2(7)For the purposes of subsection (6) and paragraph 4(1)(b), the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of his income for a year is the non-business-income tax paid by him to the government of that country in respect of that year as computed under paragraph 126(7)(c) of the Federal Act for the purposes of that Act.
2(8)Where an amount is to be refunded to a trust in respect of a taxation year pursuant to section 132 of the Federal Act, the Minister shall, subject to subsection (9), at such time and in such manner as is provided in that section, refund to the trust an amount (in this section referred to as its “capital gains refund” for the year) equal to that proportion of the amount of the refund for the year calculated under subsection 132(1) of the Federal Act that
(a)
the percentage obtained by multiplying the percentage referred to in subsection (3) for the year times the percentage referred to in paragraph 122(3)(a) of the Federal Act for the year,
(b)
the percentage referred to in subparagraph 132(4)(b)(i) of the Federal Act for the year.
2(9)For the purpose of computing the capital gains refund under subsection (8) for a trust in respect of a taxation year where the trust had income earned in the taxation year outside New Brunswick, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (8), that the trust’s income earned in the taxation year in New Brunswick is of its income for the year.
2(10)Instead of making a refund that might otherwise be made under subsection (8), the Minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.
1961-62, c.2, s.3; 1963, c.10, s.3, 4; 1965, c.22, s.1; 1966, c.66, s.1; 1966, c.155, s.2; 1969, c.41, s.1; 1972, c.35, s.2; 1973, c.46, s.1; 1975, c.29, s.1; 1975, c.80, s.1; 1977, c.15, s.1, 2, 3; 1978, c.29, s.1; 1979, c.35, s.1; 1981, c.32, s.1; 1982, c.30, s.1; 1983, c.39, s.1; 1984, c.46, s.1; 1986, c.45, s.1; 1987, c.6, s.42; 1988, c.19, s.1; 1990, c.12, s.1; 1993, c.33, s.1; 1997, c.40, s.1; 1999, c.31, s.1; 2000, c.N-6.001, s.128