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Chapter	Title
2001-11	Registered Labour-sponsored Venture Capital Corporations
2001-12	New Brunswick Film Tax Credit
2011-73	Home Energy Benefits
2022-69	Tax Withholding and Deductions

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1In this Act

“agreeing province” means a province that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province’s income tax statute and will make payments to that province in respect of the taxes so collected; (province participante)

“collection agreement” means an agreement entered into under subsection 91(1) and includes any amendments made under subsection 91(2); (arrangement relatif à la perception)

“Commissioner of Customs and Revenue” means the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada); (commissaire des douanes et du revenu)

“Court” means The Court of King’s Bench of New Brunswick; (Cour)

“deputy head” means(administrateur général)

(a) where no collection agreement is in effect, the Deputy Minister of Finance and Treasury Board of New Brunswick or permanent head of that portion of the public service of New Brunswick administered by the Minister of Finance and Treasury Board of New Brunswick, or

(b) where a collection agreement is in effect, the Commissioner of Customs and Revenue;

“Federal Act” means the Income Tax Act (Canada); (loi fédérale)

“Federal ITAR” means the Income Tax Application Rules (Canada); (RAIR fédérales)

“Federal Regulations” means the regulations made under the Federal Act; (règlements fédéraux)

“income tax statute” means, with reference to another agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; (loi de l’impôt sur le revenu)

“individual” means a person other than a corporation and includes a trust or estate; (particulier)

“Minister” means the Minister of National Revenue for Canada, but in any provision of the Federal Act that is incorporated by reference in this Act, a reference to the Minister shall be read and construed for the purposes of this Act as a reference to the Minister of Finance and Treasury Board; (Ministre)

“Minister of Finance” Repealed: 2019, c.29, s.101

“Minister of Finance and Treasury Board” means(ministre des Finances et du Conseil du Trésor)

(a) where no collection agreement is in effect, the Minister of Finance and Treasury Board of New Brunswick, or

(b) where a collection agreement is in effect,

(i) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General, and

(ii) in relation to any other matter, the Minister of National Revenue for Canada;

“permanent establishment” , where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Regulations; (établissement stable)

“prescribed” means(prescrit)

(a) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister or the Minister of Finance and Treasury Board of New Brunswick,

(b) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance and Treasury Board of New Brunswick,

(c) in the case where the word “prescribed” is mentioned in a provision of the Federal Act that applies for the purposes of this Act otherwise than in respect of a case to which paragraph (a) or (b) applies, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act, in the Federal Regulations under that provision, and

(d) in any other case where the word is mentioned in this Act, prescribed by regulation;

“province” means a province of Canada and includes the Yukon Territory, the Northwest Territories and Nunavut; (province)

“Receiver General” means the Receiver General of Canada, but in any provision of the Federal Act that is incorporated by reference in this Act, a reference to the Receiver General shall be read and construed for the purposes of this Act as a reference to the Minister of Finance and Treasury Board; (receveur général)

“regulation” means a regulation made by the Lieutenant-Governor in Council under this Act; (règlement)

“taxation year” of a person means the period determined under the Federal Act as the person’s taxation year. (année d’imposition)

2019, c.29, s.101; 2023, c.17, s.174

Last day of taxation year

2The expression “last day of the taxation year” shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.

Tax payable

3The tax payable by a taxpayer under Part I of this Act or under Part I of the Federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with Parts III and IV of this Act, or Part I of the Federal Act, as the case may be.

Federal definitions and interpretations

4For the purposes of this Act, except where they are at variance with the definitions contained in this Act, the definitions and interpretations contained in the Federal Act and the Federal Regulations apply.

Consistency with Federal Act

5In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the Federal Act.

Application of Federal Act

6Subsection 248(11) of the Federal Act applies for the purposes of this Act to the extent that that subsection applies to a provision of the Federal Act that applies for the purposes of this Act.

Modifications for application of Federal Act

7Where a provision, in this section referred to as “that section”, of the Federal Act or the Federal Regulations is made applicable for the purposes of this Act, that section, as amended from time to time heretofore or hereafter, applies with such modifications as the circumstances require for the purposes of this Act as though it had been enacted as a provision of this Act and in applying that section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in that section to tax under Part I of the Federal Act shall be read as a reference to tax under Part I of this Act;

(b) except for the purposes of Part II of this Act, where that section contains a reference to tax under any of Parts I.01 to XIV of the Federal Act, that section shall be read without reference therein to tax under any of those Parts and without reference to any portion of that section which applies only to or in respect of tax under any of those Parts;

(c) a reference in that section to a particular provision of the Federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;

(d) any reference in that section to a particular provision of the Federal Act that applies for the purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes of this Act;

(e) except for the purposes of Part II of this Act, where that section contains a reference to any of Parts I.01 to XIV of the Federal Act or to a provision in any of those Parts, that section shall be read without reference therein to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;

(f) where that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section shall be read without reference therein to the Bankruptcy and Insolvency Act (Canada);

(g) a reference in that section to a Federal Regulation that applies for the purposes of this Act shall be read as a reference to the Regulation as it applies for the purposes of this Act;

(h) any reference in that section to “under this Act or under an Act of a province with which the Minister of Finance and Treasury Board has entered into an agreement for the collection of taxes payable to the province under that Act” shall be read as a reference to “under this Act”; and

(i) any reference in that section to a word or expression set out in the left-hand column of the following table shall be read as a reference to the word or expression set out opposite thereto in the right-hand column of the following table:

Table
His Majesty		His Majesty in right of the Province of New Brunswick
Canada		New Brunswick
Criminal Code		Provincial Offences Procedure Act
Minister		Minister of Finance and Treasury Board
Receiver General		Minister of Finance and Treasury Board
Canada Customs and Revenue Agency		Department under the Minister of Finance and Treasury Board
Commissioner of Customs and Revenue		deputy head
Deputy Attorney General of Canada		Deputy Attorney General of New Brunswick
the Tax Court of Canada		The Court of King’s Bench of New Brunswick
Tax Court of Canada Act		Judicature Act
the Federal Court of Canada		The Court of King’s Bench of New Brunswick
Federal Court Act		Judicature Act
Registrar of the Tax Court of Canada		Registrar of The Court of King’s Bench of New Brunswick
Registry of the Federal Court		The Court of King’s Bench of New Brunswick

2012, c.39, s.100; 2017, c.57, s.1; 2019, c.29, s.101; 2023, c.17, s.174

Application of federal provisions and amendments

8(1)In this section

“federal amendment” means an amendment to a federal provision; (modification fédérale)

“federal application rule” means a provision, in this definition referred to as “the provision”, of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply(règle d’application fédérale)

(a) in respect of specified taxation years,

(b) in respect of specified fiscal periods,

(c) before or after a specified time,

(d) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or

(e) in respect of such other criteria as may be set out in the provision;

“federal provision” means a provision of the Federal Act that applies for the purposes of this Act. (disposition fédérale)

8(2)Where a federal application rule governs the application of a federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purposes of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purposes of this Act.

8(3)Where a federal provision or a federal amendment comes into force, or is deemed to come into force, on a particular day, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purposes of this Act, to come into force on that particular day.

8(4)Where a federal provision is repealed and another provision is not substituted therefor, the federal provision ceases to apply for the purposes of this Act

(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; and

(b) if the repeal is not governed by a federal application rule, on the day the repeal comes into force or is deemed to come into force.

8(5)For the purposes of this Act, where a particular federal provision is replaced by another federal provision, or is repealed and another federal provision is substituted therefor, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision.

Application of Act

9This Act applies to

(a) the 2000 taxation year and any subsequent taxation year of an individual, and

(b) the taxation years of a corporation that end after December 3l, 1999.

Exemption

10(1)No tax is payable under this Act by a person for a period when

(a) no tax is payable under Part I of the Federal Act on the person’s taxable income because of section 149 of the Federal Act, or

(b) that person was a non-resident-owned investment corporation.

10(2)Any definitions or descriptions in the Federal Act applying to a person referred to in subsection (1) apply with the necessary modifications for the purposes of this Act unless otherwise provided.

I

INCOME TAX

A

Liability for Tax

Liability of individual

11An income tax shall be paid, as required by this Act, for each taxation year by every individual

(a) who was resident in New Brunswick on the last day of the taxation year, or

(b) who, not being resident in New Brunswick on the last day of the taxation year, had income earned in the taxation year in New Brunswick as defined in section 13.

Liability of corporation

12An income tax shall be paid, as required by this Act, for each taxation year by every corporation that has maintained a permanent establishment in New Brunswick at any time in the taxation year.

B

Individual Income Tax

a

Computation of Tax

Definitions

13In this Division

“appropriate percentage” , for a taxation year, means the lowest percentage referred to in section 14 that is applicable in determining tax payable under this Part for the year; (taux de base pour l’année)

“highest percentage” , for a taxation year, means the highest percentage referred to in section 14 that is applicable in determining tax payable under this Part for the year; (taux le plus élevé)

“income earned in the taxation year in New Brunswick” means income earned in the year in New Brunswick as determined in accordance with the Federal Regulations made for the purposes of the definition “income earned in the year in a province” in subsection 120(4) of the Federal Act; (revenu gagné au Nouveau-Brunswick dans l’année d’imposition)

“income earned in the taxation year outside New Brunswick” means income for the year minus income earned in the taxation year in New Brunswick; (revenu gagné hors du Nouveau-Brunswick dans l’année d’imposition)

“income for the year” means(revenu pour l’année)

(a) in the case of an individual resident in Canada during only part of the taxation year in respect of whom section 114 of the Federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual’s income for the year as computed under subsection 120(3) of the Federal Act, and

(b) in the case of any other individual, the individual’s income for the year as determined in accordance with and for the purposes of the Federal Act;

“specific percentage” , for a taxation year, means the specific percentage set out in section 15 for the year; (taux spécifique)

“tax payable under the Federal Act” , by an individual in respect of a taxation year, means the amount determined under the definition “tax otherwise payable under this Part” in subsection 120(4) of the Federal Act in respect of the individual for the year. (impôt payable en vertu de la loi fédérale)

Amount of tax payable

14(1)For the 2009 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is:

(a) 9.65% of the amount taxable if the amount taxable does not exceed $35,707;

(b) $3,446 plus 14.50% of the amount by which the amount taxable exceeds $35,707 and does not exceed $71,415;

(c) $8,623 plus 16% of the amount by which the amount taxable exceeds $71,415 and does not exceed $116,105; and

(d) $15,774 plus 17% of the amount by which the amount taxable exceeds $116,105.

14(2)Subject to subsection (5), for the 2010 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.30% of the portion of the amount taxable that is less than or equal to $36,421;

(b) 12.50% of the amount by which the amount taxable exceeds $36,421 and does not exceed $72,843;

(c) 13.30% of the amount by which the amount taxable exceeds $72,843 and does not exceed $118,427; and

(d) 14.30% of the amount by which the amount taxable exceeds $118,427.

14(3)Subject to subsection (5), for the 2011 and 2012 taxation years, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.10% of the portion of the amount taxable that is less than or equal to $37,150;

(b) 12.10% of the amount by which the amount taxable exceeds $37,150 and does not exceed $74,300;

(c) 12.40% of the amount by which the amount taxable exceeds $74,300 and does not exceed $120,796; and

(d) 14.30% of the amount by which the amount taxable exceeds $120,796.

14(3.1)For the 2013 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.39% of the portion of the amount taxable that is less than or equal to $38,954;

(b) 13.46% of the amount by which the amount taxable exceeds $38,954 and does not exceed $77,908;

(c) 14.46% of the amount by which the amount taxable exceeds $77,908 and does not exceed $126,662; and

(d) 16.07% of the amount by which the amount taxable exceeds $126,662.

14(3.2)For the 2014 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.68% of the portion of the amount taxable that is less than or equal to $38,954;

(b) 14.82% of the amount by which the amount taxable exceeds $38,954 and does not exceed $77,908;

(c) 16.52% of the amount by which the amount taxable exceeds $77,908 and does not exceed $126,662; and

(d) 17.84% of the amount by which the amount taxable exceeds $126,662.

14(3.3)For the 2015 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.68% of the portion of the amount taxable that is less than or equal to $39,973;

(b) 14.82% of the amount by which the amount taxable exceeds $39,973 and does not exceed $79,946;

(c) 16.52% of the amount by which the amount taxable exceeds $79,946 and does not exceed $129,975;

(d) 17.84% of the amount by which the amount taxable exceeds $129,975 and does not exceed $150,000;

(e) 21% of the amount by which the amount taxable exceeds $150,000 and does not exceed $250,000; and

(f) 25.75% of the amount by which the amount taxable exceeds $250,000.

14(3.4)For the 2016 to 2020 taxation years, inclusive, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.68% of the portion of the amount taxable that is less than or equal to $40,492;

(b) 14.82% of the amount by which the amount taxable exceeds $40,492 and does not exceed $80,985;

(c) 16.52% of the amount by which the amount taxable exceeds $80,985 and does not exceed $131,664;

(d) 17.84% of the amount by which the amount taxable exceeds $131,664 and does not exceed $150,000; and

(e) 20.3% of the amount by which the amount taxable exceeds $150,000.

14(3.5)For the 2021 and 2022 taxation years, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.4% of the portion of the amount taxable that is less than or equal to $43,835;

(b) 14.82% of the amount by which the amount taxable exceeds $43,835 and does not exceed $87,671;

(c) 16.52% of the amount by which the amount taxable exceeds $87,671 and does not exceed $142,534;

(d) 17.84% of the amount by which the amount taxable exceeds $142,534 and does not exceed $162,383; and

(e) 20.3% of the amount by which the amount taxable exceeds $162,383.

14(3.6)For the 2023 taxation year and subsequent taxation years, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

(a) 9.4% of the portion of the amount taxable that is less than or equal to $47,715;

(b) 14% of the amount by which the amount taxable exceeds $47,715 and does not exceed $95,431;

(c) 16% of the amount by which the amount taxable exceeds $95,431 and does not exceed $176,756; and

(d) 19.5 % of the amount by which the amount taxable exceeds $176,756.

14(4)Repealed: 2011, c.40, s.1

14(5)If the adjusted amounts calculated under subsection 16.1(2) for the 2010, 2011 or 2012 taxation year are greater than the amounts expressed in dollars that are referred to in subsection (2) or (3), as the case may be, then the adjusted amounts shall be used for the purpose of computing the tax payable by an individual for the 2010, 2011 or 2012 taxation year instead of the amounts referred to in subsection (2) or (3).

2001, c.25, s.1; 2004, c.29, s.1; 2007, c.65, s.1; 2009, c.16, s.1; 2011, c.40, s.1; 2013, c.18, s.1; 2015, c.25, s.1; 2016, c.30, s.1; 2021, c.20, s.1; 2022, c.50, s.1

Specific percentage

15The specific percentage is:

(a) for the 2000 taxation year, 58.5%; and

(b) for any subsequent taxation year, 57%.

b

Adjustments to Tax

CPP/QPP disability benefits and other lump sum payments for previous years

16There shall be added in computing an individual’s tax payable under this Part for a taxation year the amountdetermined by the formula

A × B

where

A is the specific percentage for the year; and

B is the total of

(a) the amount added under section 120.3 of the Federal Act for the purpose of computing the individual’s tax payable under Part I of the Federal Act for the taxation year;

(b) the amount added under section 120.31 of the Federal Act for the purpose of computing the individual’s tax payable under Part I of the Federal Act for the taxation year; and

(c) the amount added under section 40 of the Federal ITAR for the purpose of computing the individual’s tax payable under Part I of the Federal Act for the taxation year.

Indexing

2001, c.25, s.2

16.1(1)In this section,

“relevant provision” means section 14, 17 to 23, 26, 27 or 49.1.

16.1(1.1)This section does not apply to the 2004 taxation year.

16.1(1.11)This section does not apply to section 14 for the 2007 taxation year.

16.1(1.2)This section does not apply to section 49.1 for the 2007 taxation year.

16.1(1.3)This section does not apply to subsection 14(1) and sections 26 and 49.1 for the 2009 taxation year.

16.1(1.4)This section does not apply to subsection 14(3.1) for the 2013 taxation year.

16.1(1.5)For the 2015 taxation year, this section does not apply to

(a) the amount “$150,000” referred to in paragraph 14(3.3)(d), and

(b) paragraphs 14(3.3)(e) and (f).

16.1(1.6)This section does not apply to subsection 14(3.4) for the 2016 taxation year.

16.1(1.7)This section does not apply to subsection 14(3.5) and section 49.1 for the 2021 taxation year.

16.1(1.8)This section does not apply for the 2022 taxation year to

(a) paragraph (a) of the description of B in subsections 17(2) and 18(2), and

(b) sections 19 and 49.1.

16.1(1.9)This section does not apply to subsection 14(3.6) for the 2023 taxation year.

16.1(2)For the purpose of computing the tax payable by an individual for a taxation year, each amount expressed in dollars in a relevant provision shall be adjusted so that the amount to be used under the relevant provision for the year is the total of

(a) the amount that would, but for subsection (4), be the amount to be used under the relevant provision for the immediately preceding taxation year, and

(b) the product obtained by multiplying

(i) the amount referred to in paragraph (a),

by

(ii) the amount, adjusted in the prescribed manner and rounded to the nearest one-thousandth, or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth, that is determined by the formula

	A	– 1
	B

where

A is the Consumer Price Index for Canada for the 12 month period that ended on September 30 next before that year, and

B is the Consumer Price Index for Canada for the 12 month period immediately preceding the period mentioned in the description of A.

16.1(2.1)For the purpose of calculating an adjusted amount under subsection (2) that is to be used under the relevant provisions for the 2010, 2011 or 2012 taxation year, if the formula in subparagraph (2)(b)(ii) produces a percentage that is less than 2% for the applicable taxation year, then the percentage to be used under that subparagraph shall be read as 2% for the applicable taxation year.

16.1(3)For the purpose of paragraph (2)(a), the amount to be used under the relevant provision for the 2001 taxation year shall be deemed to be:

(a) $7,411.60485 with respect to paragraph (a) of the description of B in subsections 17(2) and 18(2);

(b) $6,293.26425 and $629.8461, respectively, with respect to paragraph (b) of the description of B in subsections 17(2) and 18(2);

(c) $629.8461 with respect to the description of C in subsections 17(2) and 18(2);

(d) $7,411.60485 with respect to the description of B in section 19;

(e) $3,618.956263 with respect to the amount in section 23;

(f) $26,940.99135 with respect to the threshold amount in the description of B in section 23; and

(g) $1,677.5109 with respect to the description of C in subsection 26(1).

16.1(4)If an amount to which subsection (2) applies is not a multiple of one dollar when adjusted as provided in this section, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such consecutive multiples, to the higher multiple.

16.1(5)In this section, the Consumer Price Index for Canada for any 12 month period is the result arrived at by

(a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in the prescribed manner, for each month in that period,

(b) dividing the aggregate obtained under paragraph (a) by 12, and

(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

2001, c.25, s.2; 2004, c.29, s.2; 2005, c.23, s.1; 2006, c.29, s.1; 2007, c.65, s.2; 2009, c.16, s.2; 2013, c.18, s.2; 2015, c.25, s.2; 2016, c.30, s.2; 2021, c.20, s.2; 2022, c.24, s.1; 2022, c.50, s.2

c

Tax Credits and Deductions

Married status credit

17(1)This section applies to an individual who at any time in the taxation year is

(a) married, supporting his or her spouse and not living separate and apart from the spouse because of a breakdown of their marriage, or

(b) in a common-law partnership, supporting his or her common-law partner and not living separate and apart from the common-law partner because of a breakdown of their common-law partnership.

17(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the total of

(a) $11,720, and

(b) the amount determined by the formula

$6,586 – (C – $659)

where

C is the greater of $659 and the income of the individual’s spouse or common-law partner for the year or, where the individual and his or her spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the income of the spouse or common-law partner for the year while married or in the common-law partnership and not so separated.

17(3)Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

17(4)In applying this section to the 2000 taxation year,

(a) subsection (1) shall be read without reference to paragraph (b), and

(b) the description for C in subsection (2) shall be read without reference to “or common-law partner” wherever it appears, to “or common-law partnership” and to “or in the common-law partnership”,

unless the individual and his or her common-law partner have made an election under section 144 of the Modernization of Benefits and Obligations Act (Canada).

2001, c.25, s.3; 2004, c.29, s.3; 2022, c.24, s.2

Equivalent to spouse credit (wholly dependent person)

18(1)This section applies to an individual who does not claim a deduction for the taxation year because of section 17 and who at any time in the taxation year

(a) is

(i) a person who is unmarried and who does not live in a common-law partnership, or

(ii) a person who is married or in a common-law partnership, who neither supported nor lived with his or her spouse or common-law partner and who is not supported by that spouse or common-law partner, and

(b) 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

(i) except in the case of a child of the individual, resident in Canada,

(ii) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,

(iii) related to the individual, and

(iv) except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent because of mental or physical infirmity.

18(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the total of

(a) $11,720, and

(b) the amount determined by the formula

$6,586 – (C – $659)

where

C is the greater of $659 and the dependent person’s income for the year.

18(3)Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section.

18(4)In applying this section to the 2000 taxation year,

(a) subparagraph (1)(a)(i) shall be read without reference to “and who does not live in a common-law partnership”, and

(b) subparagraph (1)(a)(ii) shall be read without reference to “or in a common-law partnership” and “or common-law partner” wherever it appears,

unless the individual and his or her common-law partner have made an election under section 144 of the Modernization of Benefits and Obligations Act (Canada).

2001, c.25, s.4; 2004, c.29, s.4; 2022, c.24, s.3

Single status credit

19Except in the case of an individual entitled to a deduction under section 17 or 18, for the purpose of computing the tax payable under this Part for a taxation year by an individual, there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is $11,720.

2001, c.25, s.5; 2004, c.29, s.5; 2022, c.24, s.4

In-home care of relative credit

20(1)This section applies to an individual who, at any time in the taxation year alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of a particular person

(a) who has attained the age of 18 years before that time,

(b) who is

(i) the individual’s child or grandchild, or

(ii) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual’s spouse or common-law partner, and

(c) who is

(i) the individual’s parent or grandparent and has attained the age of 65 years before that time, or

(ii) dependent on the individual because of the particular person’s mental or physical infirmity.

20(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the amount determined by the formula

$16,172 – C

where

C is the greater of $12,509 and the particular person’s income for the year.

20(3)Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.

2001, c.25, s.6; 2004, c.29, s.6; 2021, c.9, s.1

Dependants credit

21(1)This section applies to an individual who has any dependant for the taxation year who

(a) attained the age of 18 years before the end of the year, and

(b) was dependent on the individual because of mental or physical infirmity.

21(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the amount determined by the formula

$8,860 – C

where

C is the greater of $5,197 and the dependant’s income for the year.

21(3)Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.

2001, c.25, s.7; 2004, c.29, s.7; 2021, c.9, s.2

Additional amount for dependants

22(1)This section applies to an individual entitled to a deduction in respect of a person because of section 18 and who would also be entitled, but for paragraph 118(4)(c) of the Federal Act, as that provision read in its application to the 2016 taxation year and as it applies to this Act, to a deduction because of section 20 or 21 in respect of the person.

22(2)For the purposes of computing the tax payable under this Part for a taxation year by an individual referred to in subsection (1), there may be deducted the amount by which the amount that would be determined under section 20 or 21, as the case may be, exceeds the amount determined under section 18 in respect of the person.

22(3)Subsections 118(4), (5) and (6) of the Federal Act apply for the purposes of this section, except that paragraphs 118(4)(c), (d) and (e) of the Federal Act, as those paragraphs read in their application to the 2016 taxation year, apply instead of paragraphs 118(4)(c) and (d) of the Federal Act.

2021, c.9, s.3

Age credit

23For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula

A × ($3,787 – B)

where

A is the appropriate percentage for the year; and

B is 15% of the amount, if any, by which the individual’s income for the year would exceed $28,193 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income and no amount were deductible under paragraph 20(1)(ww) of the Federal Act.

2001, c.25, s.8; 2004, c.29, s.8; 2021, c.9, s.4

Pension credit

24(1)For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in New Brunswick on the last day of the taxation year, there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the lesser of

(a) $1000, and

(b) the amount determined for that year for paragraph (b) of variable B in the formula in subsection 118(3) of the Federal Act.

24(2)Subsections 118(7) and (8) of the Federal Act apply for the purposes of this section.

2004, c.29, s.9; 2021, c.9, s.5

Charitable gifts credit

25For the purpose of computing the tax payable under this Part by an individual for the 2016 taxation year and for any subsequent taxation year, if the individual is entitled to a deduction under subsection 118.1(3) of the Federal Act for the year, there may be deducted an amount that the individual claims not exceeding the amount determined by the formula

(A × B) + [C × (D – B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the amount determined for D;

C is 17.95%;

D is the individual’s total gifts for the year.

2012, c.28, s.1; 2017, c.57, s.2

Medical expense credit

26(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.2(1) of the Federal Act for the year, there may be deducted an amount determined by the formula

A × [(B – C) + D]

where

1A is the appropriate percentage for the year;

1B is the amount that is determined in the formula in subsection 118.2(1) of the Federal Act for B in computing the individual’s tax payable under Part I of the Federal Act for the year;

1C is the lesser of $1,947 and 3% of the individual’s income for the year; and

1D is the amount that would be determined in the formula in subsection 118.2(1) of the Federal Act for D in computing the individual’s deduction under that subsection for the year if the reference to “$1,813” in the description of F is read as a reference to “$1,947”.

26(2)Section 118.4 of the Federal Act applies for the purposes of this section.

26(3)In applying this section to the 2000 taxation year, paragraph (a) of the description for D in subsection (1) shall be read without reference to “or common-law partner”, unless the individual and his or her common-law partner have made an election under section 144 of the Modernization of Benefits and Obligations Act (Canada).

2001, c.25, s.9; 2004, c.29, s.10; 2009, c.16, s.3

Credit for mental or physical impairment

27(1)Where an individual is entitled to deduct an amount under subsection 118.3(1) of the Federal Act for the purpose of computing the individual’s tax payable for a taxation year under Part I of the Federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A × (B+C)

where

A is the appropriate percentage for the year;

B is $6,279; and

C is

(a) where the individual has not attained 18 years of age before the end of the year, the amount determined by the formula

$3,663 – (D – $2,145)

where

D is the greater of $2,145 and the total amount paid in the year for the care and supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 of the Federal Act for a taxation year, and

(b) where the individual has attained 18 years of age before the end of the year, nil.

27(1.1)For the purpose of computing the tax payable under this Part for a taxation year by an individual who is entitled to a deduction under subsection 118.3(2) of the Federal Act for the taxation year in respect of a person referred to in that subsection, there may be deducted the amount, if any, by which

(a) the amount deductible under subsection (1) in computing that person’s tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under section 11 to pay tax for the taxation year,

exceeds

(b) the amount of that person’s tax payable under this Part for the taxation year if the person were liable under section 11 to pay tax for the taxation year, computed before any deductions under this Division, other than deductions referred to in sections 17 to 24 and 32.

27(2)Sections 118.3 and 118.4 of the Federal Act apply for the purposes of this section, except that subsection (1) of this section applies instead of subsection 118.3(1) of the Federal Act.

2001, c.25, s.10; 2002, c.36, s.1; 2004, c.29, s.11

Tuition tax credit

2019, c.13, s.1

27.1Section 118.5 of the Federal Act applies for the purposes of this Act, except that any reference to “appropriate percentage” in that section is to be read as a reference to “appropriate percentage” as defined in section 13.

2019, c.13, s.1

Unused tuition tax credits

2019, c.13, s.1

27.2(1)For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the lesser of

(a) the individual’s unused tuition tax credits at the end of the preceding taxation year, and

(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32.

27.2(2)The amount of an individual’s unused tuition tax credits at the end of the 2018 taxation year is the amount determined by the formula

A + B + C

where

A is the amount of tuition tax credits that would have been deductible under section 27.1 by the individual in computing the individual’s tax payable under this Part for the 2017 taxation year if section 27.1 had been in force for the 2017 taxation year,

B is the amount of tuition tax credits that would have been deductible under section 27.1 by the individual in computing the individual’s tax payable under this Part for the 2018 taxation year if section 27.1 had been in force for the 2018 taxation year, and

C is the amount of the individual’s tuition tax credits that remains unused at the end of the 2018 taxation year.

27.2(3)Subject to subsection (4), the amount of an individual’s unused tuition tax credits at the end of the 2019 taxation year or a subsequent taxation year is the amount determined by the formula

A + (B – C) – (D + E)

where

A is the amount of the individual’s unused tuition tax credits at the end of the preceding taxation year,

B is the total of all amounts each of which may be deducted under section 27.1 in computing the individual’s tax payable under this Part for the year,

C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32,

D is the amount that the individual may deduct under subsection (1) for the year, and

E is the amount of the tuition tax credits transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.

27.2(4)If an individual was not resident in New Brunswick on the last day of the preceding taxation year, the amount of the individual’s unused tuition tax credits at the end of the preceding taxation year is equal to the amount that would be the individual’s unused tuition tax credits at the end of the preceding taxation year as determined under section 118.61 of the Federal Act if the percentage applied under section 118.5 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act.

27.2(5)For the purposes of subsection (4), the amounts that are determined under the Federal Act shall be used only to the extent that they have not been used in claiming a credit under section 118.5 or 118.61 of the Federal Act, or in determining credits transferred under section 118.81 of the Federal Act, for any taxation year.

2019, c.13, s.1

Tuition credit

Repealed: 2017, c.11, s.1

2017, c.11, s.1

28Repealed: 2017, c.11, s.2

2017, c.11, s.2

Education credit

Repealed: 2017, c.11, s.3

2017, c.11, s.3

29Repealed: 2017, c.11, s.4

2001, c.25, s.11; 2002, c.36, s.2; 2017, c.11, s.4

Unused education credits

2019, c.13, s.2

30(1)This section applies if an individual

(a) was resident in New Brunswick on December 31, 2016, and has unused education credits at the end of the 2016 taxation year or any subsequent taxation year, or

(b) became resident in New Brunswick after the 2016 taxation year and has unused education credits as determined under section 118.61 of the Federal Act at the end of the 2016 taxation year.

30(2)References in this section to sections 118.6 and 118.61 of the Federal Act are references to those sections of the Federal Act as they read on December 31, 2016.

30(3)For the purpose of computing an individual’s tax payable under this Part for a taxation year after 2016, there may be deducted the lesser of

(a) the individual’s unused education credits at the end of the preceding taxation year, and

(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32.

30(4)Subject to subsection (5), the amount of an individual’s unused education credits at the end of a taxation year after 2016 is the amount determined by the formula

A - B

where:

A is the amount of the individual’s unused education credits at the end of the preceding taxation year; and

B is the amount that the individual may deduct under subsection (3) for the year.

30(5)If an individual was not resident in New Brunswick on December 31, 2016, but became resident in New Brunswick after the 2016 taxation year, the amount of the individual’s unused education credits at the end of the taxation year preceding the year the individual became resident in New Brunswick is the amount determined by the formula

C - D

where:

C is the amount of the individual’s unused education credits at the end of the 2016 taxation year, as determined under section 118.61 of the Federal Act if the percentage applied under section 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act; and

D is the total of the individual’s unused education credits deducted for each taxation year after the 2016 taxation year up to and including the taxation year preceding the year the individual became resident in New Brunswick, as determined under section 118.61 of the Federal Act if the percentage applied under section 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act.

2002, c.36, s.3; 2004, c.29, s.12; 2017, c.11, s.5; 2019, c.13, s.3

Repealed

2006, c.T-16.5, s.18

30.1Repealed: 2015, c.43, s.7

2006, c.T-16.5, s.18; 2009, c.6, s.2; 2015, c.43, s.6; 2015, c.43, s.7

Credit for interest on student loan

31For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under section 118.62 of the Federal Act for the year, there may be deducted an amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the amount determined for B in the formula in section 118.62 of the Federal Act for the purpose of computing the individual’s tax payable under Part I of the Federal Act for the year.

Credit for EI premium and CPP contribution

32Section 118.7 of the Federal Act applies for the purposes of this Act, except that any reference to “appropriate percentage” in that section is to be read as a reference to “appropriate percentage” as defined in section 13.

Transfer of tuition tax credits

2019, c.13, s.4

32.1(1)For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual’s spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula

A – B

where

A is the amount of the tuition tax credits transferred for the year by the spouse or common-law partner to the individual, and

B is the amount, if any, by which

(a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under section 19, 27.2, 30 or 32,

exceeds

(b) the lesser of

(i) the total of all amounts that may be deducted under section 27.1 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year, and

(ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 27.2, 30 and 32.

32.1(2)In subsection (1), the amount of the tuition tax credits transferred for a taxation year by the spouse or common-law partner of an individual to the individual is the lesser of

(a) the amount determined by the formula

A – B

where

A is the lesser of

(i) the total of all amounts that may be deducted under section 27.1 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year, and

(ii) the amount obtained by multiplying $5,000 by the appropriate percentage for the year, and

B is the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 27.2, 30 and 32, and

(b) the amount for the year that the spouse or common-law partner designates in writing for the purpose of subsection (1).

32.1(3)If for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount for the year under subsection (1) or section 17 of this Act, section 118 or 118.8 of the Federal Act or similar provisions of an income tax statute of another province, is the only person designated in writing by the individual for the year for the purpose of this subsection, and no other person is designated in writing by the individual for the year for the purpose of section 118.9 of the Federal Act or a similar provision of an income tax statute of another province, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent so designated the tuition tax credits transferred for the year by the individual to that parent or grandparent.

32.1(4)In subsection (3), the amount of the tuition tax credits transferred for a taxation year by an individual to a parent or grandparent of the individual is the lesser of

(a) the amount determined by the formula

A – B

where

A is the lesser of

(i) the total of all amounts that may be deducted under section 27.1 in computing the individual’s tax payable under this Part for the year, or that would be so deductible if the individual were liable under section 11 to pay tax for the year, and

(ii) the amount obtained by multiplying $5,000 by the appropriate percentage for the year, and

B is the amount that would be the individual’s tax payable under this Part for the year, or that would be so payable if the individual were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 27.2, 30 and 32, and

(b) the amount for the year that the individual designates in writing for the purpose of subsection (3).

2019, c.13, s.4

Transfer of tax credits

2021, c.9, s.6

32.2For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual’s spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula

A – B

where

A is the total of all amounts each of which is deductible under section 23, 24 or 27 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under section 11 to pay tax for the year; and

B is the amount, if any, by which

(a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under section 19, 30 or 32,

exceeds

(b) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under section 11 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under any of sections 17 to 24, 27, 30 and 32.

2021, c.9, s.6

Transfer of tax credits

Repealed: 2017, c.11, s.6

2017, c.11, s.6

33Repealed: 2017, c.11, s.7

2002, c.36, s.4; 2004, c.29, s.13; 2017, c.11, s.7

Minimum tax carry-over

34There may be deducted in computing an individual’s tax payable under this Part for a taxation year the amount determined by the formula

A × B

where

A is the specific percentage for the year; and

B is the amount that the individual may deduct for the taxation year under section 120.2 of the Federal Act for the purpose of computing the individual’s tax payable under Part I of the Federal Act.

Deduction for taxable dividends

2007, c.65, s.3

35Section 121 of the Federal Act applies for the purposes of this Act, except that:

(a) effective January 1, 2006,

(i) the reference to “2/3”, or to the fraction that it is amended to read, in paragraph (a) of that section of the Federal Act shall be read as a reference to 37/200 to yield a New Brunswick dividend tax credit rate of 3.7%; and

(ii) the reference to “11/18”, or to the fraction that it is amended to read, in paragraph (b) of that section of the Federal Act shall be read as a reference to 87/225 to yield a New Brunswick dividend tax credit rate of 12%;

(b) effective January 1, 2007, to December 31, 2009, both dates inclusive,

(i) the reference to “2/3”, or to the fraction that it is amended to read, in paragraph (a) of that section of the Federal Act shall be read as a reference to 53/200 to yield a New Brunswick dividend tax credit rate of 5.3%; and

(ii) the reference to “11/18”, or to the fraction that it is amended to read, in paragraph (b) of that section of the Federal Act shall be read as a reference to 87/225 to yield a New Brunswick dividend tax credit rate of 12%;

(c) effective January 1, 2010, to December 31, 2013, both dates inclusive,

(i) the reference to “2/3”, or to the fraction that it is amended to read, in paragraph (a) of that section of the Federal Act shall be read as a reference to 53/200 to yield a New Brunswick dividend tax credit rate of 5.3%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 12%;

(d) effective January 1, 2014, to December 31, 2014, both dates inclusive:

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 5.3%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 12%;

(e) for the 2015 taxation year,

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 4%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 12%;

(f) for the 2016 taxation year,

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 3.625%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 13.5%;

(g) for the 2017 taxation year,

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 3.245%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 14%;

(h) for the 2018 taxation year,

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 2.853%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 14%; and

(i) for the 2019 taxation year and subsequent taxation years,

(i) the reference to the fraction in paragraph (a) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 2.75%; and

(ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 14%.

2003, c.26, s.1; 2007, c.65, s.4; 2013, c.18, s.3; 2015, c.25, s.3; 2016, c.30, s.3; 2017, c.32, s.1; 2017, c.57, s.3

Overseas employment tax credit

36For the purposes of computing tax payable under this Part for a taxation year by an individual who was resident in New Brunswick on the last day of the taxation year, there may be deducted an amount equal to the specific percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year.

2004, c.29, s.14

d

Restrictions on Credits and Other Rules

Part-year residents

37Section 118.91 of the Federal Act applies for the purposes of this Act.

Ordering of non-refundable credits

38In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: sections 17, 18, 19, 20, 21, 22, 23, 32, 24, 27, 30, 27.2, 27.1, 32.2, subsection 32.1(2), subsection 32.1(1) and sections 26, 25, 31, 35, 36, 34, 49, 49.1, 50.01, 50 and 61.1.

2001, c.25, s.12; 2003, c.S-9.05, s.40; 2014, c.20, s.16; 2017, c.11, s.8; 2019, c.12, s.26; 2019, c.13, s.5; 2021, c.9, s.7

Credits in separate returns

39Section 118.93 of the Federal Act applies for the purposes of this Act.

Tax payable by non-resident

40Section 118.94 of the Federal Act applies for the purposes of this Act.

Credits in year of bankruptcy

41Section 118.95 of the Federal Act applies for the purposes of this Act.

Tax payable by inter vivos trust

42Subsections 122(1) and (2) of the Federal Act apply for the purposes of this Act, except that the reference to “29%”, or to the percentage that it is amended to read, in subsection 122(1) of the Federal Act shall be read, for the purposes of this Act, as a reference to the “highest percentage” as defined in section 13.

Deductions not permitted for trusts

43Subsection 122(1.1) of the Federal Act applies for the purposes of this Act.

Bankrupt individuals

44Subsection 128(2) of the Federal Act applies for the purposes of this Act.

e

Other Taxes Payable

Tax on split income

45Section 120.4 of the Federal Act applies for the purposes of this Act, except that the reference to “29%”, or to the percentage that it is amended to read, in subsection 120.4(2) of the Federal Act shall be read, for the purposes of this Act, as a reference to the “highest percentage” as defined in section 13.

Minimum tax

46If tax is payable by an individual under section 127.5 of the Federal Act for a taxation year, there must be added in computing the individual’s tax payable under this Act for the taxation year the amount determined by the formula

A

×

B

where

A is the specific percentage for the year; and

B is the amount that would be determined under subsection 120.2(3) of the Federal Act if that subsection were read without reference to paragraph (c) of that subsection.

2002, c.36, s.5

f

Multi-jurisdictional and Non-resident Individuals

Multi-jurisdictional and non-resident individuals

47(1)This section applies to 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.

47(2)Notwithstanding Subdivisions a to e, the tax payable under Subdivisions a to e for a taxation year by an individual referred to in subsection (1) shall be the amount determined by the formula

	A	×	B
			C

where

A is the tax otherwise payable by the individual under Subdivisions a to e;

B is the individual’s income earned in the taxation year in New Brunswick; and

C is the individual’s income for the year.

47(3)In applying this section to determine the tax payable under Subdivisions a to e for the taxation year of an individual referred to in paragraph (1)(b), the value for “A” in the formula in subsection (2) shall be calculated without reference to section 35.

47(4)An individual referred to in paragraph (1)(a) may deduct from the tax payable under Subdivisions a to e for the taxation year, as determined under subsection (2), the amount determined by the formula

	A	×	B
			C

where

A is the total of all amounts, each of which is deductible under section 24, 35, or 36 by the individual for the taxation year;

B is the individual’s income earned in the taxation year outside New Brunswick; and

C is the individual’s income for the year.

47(5)Subsections (3) and (4) apply to the 2004 and subsequent taxation years.

2017, c.57, s.4

g

Repealed: 2001, c.25, s.13

2001, c.25, s.13

Surtax

Repealed: 2001, c.25, s.13

2001, c.25, s.13

Surtax

Repealed: 2001, c.25, s.13

2001, c.25, s.13

Repealed

48Repealed: 2001, c.25, s.13

2001, c.25, s.13

h

Foreign Tax Deduction

Foreign tax deduction

49(1)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 non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual 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 the individual for the year to the government of such other country exceeds

(i) if section 127.5 of the Federal Act does not apply to the individual for the taxation year, the amount deductible from the individual’s tax payable under Part I of the Federal Act for that year pursuant to subsection 126(1) of the Federal Act in respect of any non-business-income tax paid to the government of such other country, or

(ii) if section 127.5 of the Federal Act applies to the individual for the taxation year, the amount of the individual’s special foreign tax credit for the year determined under section 127.54 of the Federal Act in respect of any non-business-income tax paid to the government of such other country; and

(b) that proportion of the tax otherwise payable under this Act for that taxation year that

(i) the amount, if any, by which the total of the individual’s qualifying incomes exceeds the total of the individual’s qualifying losses

(A) for the year, if the individual is resident in Canada throughout the year, and

(B) for the part of the year throughout which the individual is resident in Canada, if the individual is non-resident at any time in the year,

from sources in that country, on the assumption that

(C) no businesses were carried on by the individual in that country,

(D) no amount was deducted under subsection 91(5) of the Federal Act in computing the individual’s income for the year, and

(E) the individual’s 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,

is of

(ii) the amount, if any, by which,

(A) if the individual was resident in Canada throughout the year, the individual’s income earned in the taxation year in New Brunswick computed without reference to paragraph 20(1)(ww) of the Federal Act, and

(B) if the individual was non-resident at any time in the year, the individual’s income earned in the taxation year in New Brunswick that is included in the amount determined under paragraph 114(a) of the Federal Act in respect of the individual for the year,

exceeds

(C) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) of the Federal Act for the year, in computing the individual’s taxable income for the year.

49(2)For the purposes of subsection (1), the non-business-income tax paid by an individual to the government of a country other than Canada in respect of the individual’s income for a taxation year is the non-business-income tax paid by the individual to the government of that country in respect of that year as determined under the definition “non-business-income tax” in subsection 126(7) of the Federal Act.

49(3)Where an individual’s income for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.

49(4)For the purposes of this section,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country;

(b) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country;

(b.1) if, in computing a taxpayer’s income for a taxation year from a business carried on by the taxpayer in New Brunswick, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a country other than Canada, and the taxpayer has paid to the government of that other country a non-business income tax for the year with respect to the amount, the amount is, in applying the definition “qualifying incomes” referred to in paragraph (c) for the purpose of subsection (1), deemed to be income from a source in that other country; and

(c) the definitions of “qualifying incomes”, “qualifying losses” and “tax-exempt income” in subsection 126(7) of the Federal Act apply.

2004, c.29, s.15; 2015, c.25, s.4

h.1

2001, c.25, s.14

Low-income Tax Reduction

2001, c.25, s.14

Low-income tax reduction

2001, c.25, s.14

49.1(1)In this section

“adjusted income” means adjusted income as defined in section 122.5 of the Federal Act; (revenu rajusté)

“eligible individual” , for a taxation year, means an individual, other than a trust, who is resident in New Brunswick on December 31 of the taxation year and includes an individual who died in the taxation year and was a resident of New Brunswick on the day of death; (particulier admissible)

“qualified dependant” means qualified dependant as defined in section 122.5 of the Federal Act; (personne à charge admissible)

“qualified relation” means qualified relation as defined in section 122.5 of the Federal Act; (proche admissible)

“tax otherwise payable” means the amount that would, but for this section and sections 50, 50.01 and 61.1, be the tax otherwise payable under this Act. (impôt payable par ailleurs)

49.1(2)Where an eligible individual applies on a prescribed form for a deduction under this section in respect of a taxation year and files the application with the individual’s return of income for the taxation year, there may be deducted from the tax otherwise payable for the taxation year by the eligible individual the amount, if any, by which the total of

(a) the amount, rounded up to the next dollar, determined by the formula

A × ($19,177 – B)

where

A is the appropriate percentage for the taxation year, and

B is the amount prescribed for B in section 19,

(b) the amount determined under paragraph (a) for a person who is the qualified relation of the eligible individual for the taxation year, and

(c) the amount determined under paragraph (a), where the eligible individual has no qualified relation for the taxation year and is entitled to deduct an amount for the taxation year under paragraph 118(1)(b) of the Federal Act in respect of a qualified dependant of the eligible individual for the taxation year,

exceeds

(d) 4% of the amount, if any, by which

(i) the eligible individual’s adjusted income for the taxation year,

exceeds

(ii) $19,177.

49.1(2.01)Effective January 1, 2010, the reference to “4%” in subsection (2) shall be read as a reference to “3%”.

49.1(2.1)Repealed: 2009, c.16, s.4

49.1(2.2)Repealed: 2009, c.16, s.4

49.1(3)Notwithstanding subsection (2), where an individual is a qualified relation of another individual for a taxation year, only one of those individuals may apply under subsection (2) for the taxation year.

49.1(4)Notwithstanding subsection (3), where an eligible individual, in this subsection referred to as the “applying eligible individual”, has applied under subsection (2) in respect of a taxation year, a qualified relation of the applying eligible individual, if the qualified relation is also an eligible individual, may deduct from the qualified relation’s tax otherwise payable for the taxation year an amount determined by the formula

A – B

where

A is the amount determined under subsection (2) which the applying eligible individual may deduct from the applying eligible individual’s tax otherwise payable for the taxation year; and

B is the lesser of

(a) the amount that is the applying eligible individual’s tax otherwise payable for the taxation year, and

(b) the amount deducted under subsection (2) by the applying eligible individual from the applying eligible individual’s tax otherwise payable for the taxation year.

2001, c.25, s.14; 2002, c.36, s.6; 2003, c.S-9.05, s.40; 2006, c.29, s.2; 2009, c.16, s.4; 2014, c.20, s.16; 2017, c.57, s.5; 2021, c.20, s.3; 2022, c.24, s.5

i

Labour-sponsored Venture Capital
Corporation Deduction

Deduction respecting labour-sponsored venture capital corporation

50(1)In this section

“approved share” means a share of the capital stock of a prescribed registered labour-sponsored venture capital corporation acquired or irrevocably subscribed and paid for by an individual, or by a qualifying trust for the individual in respect of the share, where the individual is or will be the first person, other than a broker or dealer in securities, to be a registered holder thereof;(action approuvée)

“individual” means a person other than a corporation and, notwithstanding the definition “individual” in section 1, does not include a trust or estate; (particulier)

“net cost” means the amount, if any, by which the amount of consideration paid by an individual to acquire or subscribe for an approved share exceeds the amount of assistance, other than an amount included in computing a tax credit of the individual in respect of that share, provided or to be provided by a government, municipality or any public authority in respect of, or for the acquisition of, the approved share; (coût net)

“qualifying trust” means qualifying trust as defined in subsection 127.4(1) of the Federal Act;(fiducie admissible)

“registered labour-sponsored venture capital corporation” means a corporation registered under subsection 204.81(1) of the Federal Act; (corporation agréée à capital de risque de travailleurs)

“tax otherwise payable” means the amount that would, but for this section and section 61.1, be the tax otherwise payable under this Act. (impôt payable par ailleurs)

50(2)There may be deducted from the tax otherwise payable under this Act for a taxation year by an individual an amount equal to the lesser of

(a) $2,000, and

(b) 20% of the total of all amounts each of which is the net cost to the individual, or to a qualifying trust for the individual in respect of the share, of an approved share of a prescribed registered labour-sponsored venture capital corporation

(i) that was acquired or irrevocably subscribed and paid for by the individual, or by the qualifying trust for the individual in respect of the share, in the taxation year or within 60 days after the end of the taxation year,

(ii) in respect of which the individual has filed with the individual’s return of income for the taxation year the information return described in paragraph 204.81(6)(c) of the Federal Act, and

(iii) for which no portion of the net cost was deducted under this section for the immediately preceding taxation year.

50(2.1)Subject to subsection (2.2), the holder of an approved share in respect of which a deduction has been allowed under this section who disposes of the share less than 8 years after the date it was acquired or irrevocably subscribed and paid for shall remit to the Minister of Finance and Treasury Board of New Brunswick within 30 days after the disposition of the share

(a) an amount equal to the amount deducted in respect of that share, including interest thereon where prescribed, or

(b) in circumstances prescribed by regulation, a lesser amount determined in accordance with the regulations.

50(2.2)Subsection (2.1) does not apply where the holder of an approved share disposes of it in February or on the first day of March of a calendar year and the date of disposition is not more than 31 days before the day that is 8 years after the date it was acquired or irrevocably subscribed and paid for.

50(2.3)The holder of an approved share in respect of which a deduction has been allowed under this section who disposes of the share more than 8 years after the date it was acquired or irrevocably subscribed and paid for may make a deduction under subsection (2) in respect of a subsequent acquisition or purchase of the same share or substantially the same share.

50(2.4)A registered labour-sponsored venture capital corporation shall meet the prescribed investment requirements.

50(2.5)The Minister of Finance and Treasury Board of New Brunswick may extend, with or without conditions, the time limit for meeting the prescribed investment requirements and may grant the extension even though the time limit to be extended has expired.

50(2.6)The Minister of Finance and Treasury Board of New Brunswick may impose a penalty on a registered labour-sponsored venture capital corporation that fails to meet the prescribed investment requirements.

50(3)Subject to subsection (4), this section applies to the 2000 taxation year and to any subsequent taxation year that is prescribed.

50(4)Paragraph (2)(b) as it relates to a qualifying trust and subsection (2.3) apply to the 2007 and subsequent taxation years.

2003, c.S-9.05, s.40; 2008, c.9, s.1; 2009, c.16, s.5; 2014, c.20, s.16; 2019, c.29, s.101

i.01

Political Contributions Tax Credit

2017, c.57, s.6

Political contributions tax credit

2017, c.57, s.6

50.01(1)The following definitions apply in this section.

“contribution” means a contribution made to a registered political party, a registered district association or a registered independent candidate under the Political Process Financing Act and “contributor” means a person who makes a contribution under that Act. (contribution)

“individual” means a person other than a corporation and, notwithstanding the definition “individual” in section 1, does not include a trust or estate. (particulier)

“official representative” means the official representative of a registered political party, registered district association or registered independent candidate, as the case may be, registered under section 137 of the Elections Act.(représentant officiel)

“receipt” means a receipt for a contribution issued under the Political Process Financing Act.(reçu)

“registered district association” means a district association that is registered under section 135 of the Elections Act.(association de circonscription enregistrée)

“registered independent candidate” means an independent candidate who is registered under section 136 of the Elections Act.(candidat indépendant enregistré)

“registered political party” means a political party that is registered under section 133 of the Elections Act.(parti politique enregistré)

“tax otherwise payable under this Part” means the amount that would, but for this section and sections 50 and 61.1, be the tax otherwise payable under this Part. (impôt payable par ailleurs en vertu de la présente partie)

50.01(2)There may be deducted from the tax otherwise payable under this Part by a taxpayer who is an individual for a taxation year in respect of the aggregate of all amounts, each of which is the amount of a contribution of money made by the taxpayer in a year to a registered political party, a registered district association or a registered independent candidate,

(a) 75% of the aggregate if the aggregate does not exceed $200,

(b) $150 plus 50% of the amount by which the aggregate exceeds $200 if the aggregate exceeds $200 and does not exceed $550, or

(c) the lesser of

(i) $325 plus 331/3% of the amount by which the aggregate exceeds $550 if the aggregate exceeds $550, and

(ii) $500.

50.01(3)No amount may be deducted under subsection (2) unless each contribution that is included in the aggregate is proven by filing with the Minister a receipt signed by the official representative of the registered political party, registered district association or registered independent candidate, as the case may be.

50.01(4)No amount may be deducted under subsection (2) with respect to a contribution to a registered independent candidate unless it was made during an election period as defined in the Elections Act and after the candidate’s official representative was registered under that Act in the election in which he or she is a candidate.

50.01(5)For the purposes of this section, a contribution shall be deemed to have been made on the date it is deemed to have been made under the Political Process Financing Act.

50.01(6)Subject to the provisions of the Political Process Financing Act, every official representative shall retain signed duplicates of all receipts issued by the official representative.

50.01(7)Notwithstanding any provision of the Political Process Financing Act, for the purposes of this section, the Minister may examine and make copies of any receipts or duplicates thereof, and of any return, record, report or other document filed with the Supervisor under the Political Process Financing Act.

2017, c.57, s.6

i.1

Small Business Investor Tax Credit

Repealed: 2014, c.20, s.16

2014, c.20, s.16

Small business investor tax credit

Repealed: 2014, c.20, s.16.

2003, c.S-9.05, s.40; 2014, c.20, s.16.

50.1Repealed: 2014, c.20, s.16.

2003, c.S-9.05, s.40; 2007, c.49, s.6; 2009, c.14, s.7; 2014, c.20, s.16.

j

Child Tax Benefit and
Working Income Supplement

Child tax benefit and working income supplement

51(1)In this section

“adjusted earned income” , of an individual for a taxation year, means the total of all amounts each of which is the earned 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; (revenu gagné modifié)

“adjusted income” means adjusted income as defined in section 122.6 of the Federal Act; (revenu modifié)

“base taxation year” means base taxation year as defined in section 122.6 of the Federal Act; (année de base)

“cohabiting spouse or common-law partner” means cohabiting spouse or common-law partner as defined in section 122.6 of the Federal Act; (époux ou conjoint de fait visé)

“earned income” , of an individual for a taxation year, means earned income as defined in subsection 63(3) of the Federal Act; (revenu gagné)

“eligible individual” means eligible individual as defined in section 122.6 of the Federal Act; (particulier admissible)

“qualified dependant” means qualified dependant as defined in section 122.6 of the Federal Act; (personne à charge admissible)

“return of income” means return of income as defined in section 122.6 of the Federal Act. (déclaration de revenu)

51(2)Paragraph 7(i) does not change a reference to Canada in the definitions “eligible individual” and “return of income” or in paragraph 122.61(3)(a) of the Federal Act, as those provisions apply for the purposes of this section, to a reference to New Brunswick.

51(3)An overpayment on account of an individual’s liability under this Part for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year where

(a) the individual, and if the Minister of Finance and Treasury Board so demands, the individual’s cohabiting spouse or common-law partner at the end of the taxation year have filed a return of income for that year, and

(b) the individual was resident in New Brunswick for a period that commenced before the first day of the month and that included that day.

51(4)The overpayment deemed under subsection (3) to have arisen during a month on account of the individual’s liability under this Part for a taxation year is equal to the amount determined by the formula

1/12[(A-B)+(C-D)]

where

A is the product obtained by multiplying $250 by the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month;

B is 5% (or where the individual is an eligible individual of only one qualified dependant at the beginning of the month, 2 ½%) of the amount, if any, by which the individual’s adjusted income for the year exceeds $20,000;

C is the lesser of $250 and 4% of the amount, if any, by which the individual’s adjusted earned income for the year exceeds $3,750; and

D is 5% of the amount, if any, by which the individual’s adjusted income for the year exceeds $20,921.

51(5)Notwithstanding subsections (3) and (4), subsection 122.61(2) and paragraph 122.61(3)(a) of the Federal Act apply for the purposes of this section.

51(6)Subsections 122.62(1), (2) and (4) of the Federal Act apply for the purposes of this section.

51(7)For the purposes of determining the amount deemed under this section to be an overpayment on account of an individual’s liability under this Part, subsections 122.62(6) and (7) of the Federal Act apply in the circumstances set out in those subsections.

51(8)The Minister of Finance and Treasury Board may, based on considerations of administrative efficiency, specify that a refund of an overpayment that is deemed to arise in a month be made in that month or before or after that month occurs.

51(9)A refund of an amount deemed under this section to be an overpayment on account of a person’s liability under this Part for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) Repealed: 2013, c.32, s.26

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

51(10)The Minister of Finance and Treasury Board may specify the forms that are to be used for the purposes of this section.

51(11)In applying this section to the 2000 taxation year,

(a) in subsection (1)

(i) the definition “adjusted earned income” shall be read without reference to “or common-law partner”, and

(ii) the definition “cohabiting spouse or common-law partner” shall be read without reference to “or common-law partner” wherever it appears, and

(b) paragraph (3)(a) shall be read without reference to “or common-law partner”,

unless the individual and his or her common-law partner have made an election under section 144 of the Modernization of Benefits and Obligations Act (Canada).

2013, c.32, s.26; 2019, c.29, s.101

j.01

School Supplement

2012, c.28, s.2

School supplement

2012, c.28, s.2

51.01(1)The following definitions apply in this section.

“qualified dependant” means qualified dependant as defined in section 122.6 of the Federal Act.(personne à charge admissible)

“adjusted income” means adjusted income as defined in section 122.6 of the Federal Act.(revenu modifié)

51.01(2)An overpayment on account of an individual’s liability under this Part for a taxation year is deemed to have arisen for the 2010 taxation year and for any subsequent taxation year if

(a) on July 1 of the year following the taxation year, the individual

(i) is a resident of New Brunswick, and

(ii) has a qualified dependant who is at least five years of age and has not attained 18 years of age,

(b) the individual is eligible for a refund under section 51 for the taxation year, and

(c) the adjusted income of the individual for the taxation year is $20,000 or less.

51.01(3)Paragraph 122.61(3)(a) of the Federal Act applies for the purposes of paragraph (2)(c).

51.01(4)The overpayment deemed under subsection (2) to have arisen is equal to an amount of $100 per qualified dependant who, on July 1 of the year following the taxation year, is at least five years of age and has not attained 18 years of age.

51.01(5)Despite subsection (4), if two individuals are eligible for a refund under subsection (2) with respect to the same qualified dependant, each individual is eligible for one-half of the refund.

51.01(6)A refund of an amount deemed to be an overpayment under this section

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

51.01(7)The Minister of Finance and Treasury Board may specify the forms that are to be used for the purposes of this section.

2012, c.28, s.2; 2019, c.29, s.101

j.1

First-time University Student Tax Benefit

Repealed: 2009, c.16, s.6

2007, c.46, s.1; 2009, c.16, s.6

First-time university student tax benefit

Repealed: 2009, c.16, s.6

2007, c.46, s.1; 2009, c.16, s.6

51.1Repealed: 2009, c.16, s.6

2007, c.46, s.1; 2009, c.16, s.6

k

Seniors’ Benefits

2015, c.25, s.5

Seniors’ tax benefit

52(1)An overpayment of $300 on account of an individual’s liability under this Act for a taxation year is deemed to have arisen in the taxation year if the individual

(a) resided in New Brunswick on the last day of the preceding taxation year,

(b) was in receipt of a spouse’s allowance or an allowance, as the case may be, or a guaranteed income supplement under the Old Age Security Act (Canada) in the preceding taxation year, and

(c) has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance and Treasury Board of New Brunswick for a refund of such amount and provided all of the information required by the form before the date required by that Minister.

52(1.1)Effective January 1, 2010, the reference to “$300” in subsection (1) shall be read as a reference to “$400”.

52(2)The Minister of Finance and Treasury Board of New Brunswick may, in his or her discretion, refund to an individual the amount deemed to be an overpayment under this section.

52(3)A refund of the amount deemed to be an overpayment under this section

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

52(4)Notwithstanding subsection (1), where both an individual and his or her spouse or common-law partner are eligible to apply for a refund under that subsection for a taxation year, only one of them may apply under that subsection for that year, except where otherwise provided by regulation.

52(5)For the purpose of applying this section to the 2000 taxation year, in this section

“spouse” means spouse as defined in the Federal Act, but, for the purposes of a void or voidable marriage, does not include a reference to any provision of that Act contained in that definition.

52(6)In applying this section to the 2000 taxation year, subsection (4) shall be read without reference to “or common-law partner”.

2007, c.65, s.5; 2009, c.16, s.7; 2019, c.29, s.101

Seniors’ home renovation tax credit

2015, c.25, s.6

52.01(1)The following definitions apply in this section.

“eligible individual” means an individual, other than a trust, who meets the following requirements: (particulier admissible)

(a) the individual resided in New Brunswick on the last day of the taxation year; and

(b) the individual

(i) was a senior at the end of the taxation year in which a qualifying expenditure was paid in respect of a qualifying renovation to the individual’s qualifying principal residence, or

(ii) was a qualifying relation of a senior at the end of the taxation year in which a qualifying expenditure was paid in respect of a qualifying renovation to the individual’s qualifying principal residence.

“principal residence” , in respect of an eligible individual, means premises, including a non-seasonal mobile home, that are occupied by the individual as the individual’s primary place of residence.(résidence principale)

“qualifying expenditure” , of an eligible individual for a taxation year, means an outlay or expense made or incurred by, or on behalf of, the individual in the taxation year that is directly attributable to a qualifying renovation by the individual and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense(dépense admissible)

(a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation of the individual, for any purpose before they were acquired by the individual or the qualifying relation of the individual,

(b) made or incurred under the terms of an agreement entered into before January 1, 2015,

(c) to acquire a property that can be used independently of the qualifying renovation,

(d) that is the cost of annual, recurring or routine repair, maintenance or service,

(e) to acquire a household appliance,

(f) to acquire an electronic home-entertainment device,

(g) for financing costs in respect of the qualifying renovation,

(h) made or incurred for the purpose of gaining or producing income from a business or property, or

(i) in respect of goods or services provided by a person not dealing at arm’s length with the individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act (Canada).

“qualifying principal residence” , of an eligible individual for a taxation year, means a residence located in New Brunswick that is(résidence principale admissible)

(a) if the individual is a senior at the end of the taxation year, the principal residence of the individual at any time during the taxation year or a residence that is reasonably expected to become the principal residence of the individual within 24 months after the end of the taxation year, or

(b) if the individual is not a senior at the end of the taxation year, the principal residence of the individual at any time during the taxation year and that is, at the same time, also the principal residence of a qualifying relation of the individual who is a senior at the end of the taxation year, or a residence that is reasonably expected to become such a shared principal residence within 24 months after the end of the taxation year.

“qualifying relation” , of an eligible individual, means a person who is connected or related to the individual in any manner described in subsection 251(6) or 252(2) of the Federal Act.(proche admissible)

“qualifying renovation” means an improvement prescribed by regulation or an improvement(rénovation admissible)

(a) that is part of a renovation or alteration of a qualifying principal residence of a senior or of the land on which the residence is situated, or that is part of the construction of the residence, that can reasonably be considered to be undertaken

(i) to enable the senior to gain access to, or to be mobile or functional within, the residence or the land, or

(ii) to reduce the risk of harm to the senior within the residence or the land, or in gaining access to the residence or the land,

(b) that

(i) is of an enduring nature and that is integral to the residence or the land on which the residence is situated, or

(ii) relates to the purchase and installation of a modular or removable version of an item of a type that can otherwise be installed as a permanent fixture to the residence or the land, including modular ramps and non-fixed bath lifts,

(c) whose primary purpose is not to increase the value of the residence or the land,

(d) that would ordinarily be undertaken by, or on behalf of, a person who has an impairment to enable the person to gain access to, or to be mobile or functional within, the person’s residence or land, and

(e) that is not an improvement excluded by regulation.

“senior” means an individual who is at least 65 years of age.(personne âgée)

52.01(2)Subject to subsections (3) to (10), if an eligible individual applies on a form provided by the Minister for a tax credit under this section in respect of a taxation year and files the application and any other records required by the Minister with the individual’s return of income for the taxation year, the individual may claim a tax credit for the taxation year in the amount determined by the following formula:

A × B

2where

2Ais 10%, and

2Bis the lesser of $10,000 and the amount determined by the following formula:

C - D

where

Cis the total of all amounts each of which is a qualifying expenditure of the individual that was paid by or on behalf of the individual during the taxation year and that has not been used by another individual in the calculation of a credit claimed by that other individual under this section, and

Dis the total of all amounts each of which is received or receivable by a person, or that can reasonably be expected to be received by a person, in respect of a qualifying expenditure of the individual referred to in “C” and that is

(a)provided under a program financed by a municipal, provincial or federal government, except the home accessibility tax credit under section 118.041 of the Federal Act, and that is designed to provide assistance with the cost of the construction, alteration or renovation of a residence or land on which the residence is situated,

(b)provided as a forgivable loan by a municipal, provincial or federal government and that is designed to provide permanent or temporary assistance with, or financing for, the cost of the construction, alteration or renovation of a residence or land on which the residence is situated, but only to the extent that the loan, or a portion of it, has not been repaid under a legal obligation to do so, or

(c)provided under a program prescribed by regulation for the purposes of this subsection.

52.01(3)Subject to subsection (4), for the purposes of this section, a qualifying expenditure shall be deemed to have been paid on the earlier of the date on which the expenditure was paid and the date the expenditure became payable.

52.01(4)If a qualifying expenditure in respect of a qualifying renovation is paid by or on behalf of the eligible individual in two or more instalments, the total of all instalments with respect to the qualifying expenditure shall be deemed to have been paid on the earlier of the date on which the last instalment was paid and the date the last instalment became payable.

52.01(5)A qualifying expenditure of an eligible individual includes an outlay or expense made or incurred by a cooperative housing corporation, a condominium corporation or a similar entity, in this subsection referred to as the “corporation”, in respect of a property that is owned, administered or managed by the corporation and that includes the qualifying principal residence of the individual, to the extent of the individual’s share of that outlay or expense, if

(a) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were the principal residence of that natural person, and

(b) the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense.

52.01(6)A qualifying expenditure of an eligible individual includes an outlay or expense made or incurred by a trust, in respect of a property that is owned by the trust and that includes the qualifying principal residence of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the principal residence of the individual including, for this purpose, common areas relevant to more than one principal residence, if

(a) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were the principal residence of that natural person, and

(b) the trust has notified the individual, in writing, of the individual’s share of the outlay or expense.

52.01(7)For the purposes of this section, the following rules apply with respect to qualifying expenditures:

(a) if more than one individual is entitled to claim a tax credit under this section for a taxation year in respect of a single residence that is the qualifying principal residence of all of the individuals at the same time during the taxation year, the total amount of qualifying expenditures that may be claimed by all of the individuals in respect of the residence cannot exceed $10,000; and

(b) subject to subsection (9), if an eligible individual and the individual’s spouse or common-law partner on December 31 of a taxation year are both entitled to claim a tax credit under this section, the total amount of qualifying expenditures that may be claimed by the two individuals for the taxation year cannot exceed $10,000.

52.01(8)If the eligible individuals cannot agree as to what portion of the amount each can claim under paragraph (7)(a) or (b), the Minister may fix the portions.

52.01(9)Paragraph (7)(b) does not apply if, on December 31 of the taxation year, the eligible individual and the individual’s spouse or common-law partner

(a) have been living separate and apart for a period of at least 90 days because of a breakdown of their marriage or common-law partnership, or

(b) are living separate and apart because of medical necessity.

52.01(10)An outlay or expense is not a qualifying expenditure unless the work to implement the qualifying renovation to which that outlay or expense is directly attributable begins within a reasonable time after the outlay or expense is made or incurred.

52.01(11)Subject to subsection (12), an eligible individual who is resident in Canada for only part of a taxation year is entitled to claim for the year only the amount the individual would be entitled to claim for the year under this section that can reasonably be considered wholly applicable to any period in the year throughout which the individual was resident in Canada, computed as though that period were the whole taxation year.

52.01(12)The amount that may be claimed under this section shall not exceed the amount that the eligible individual would have been entitled to claim under this section if the individual had been resident in Canada throughout the year.

52.01(13)Subject to subsection (14), an eligible individual who becomes bankrupt in a calendar year is entitled to claim, for each taxation year that ends in the calendar year, only those amounts that the individual is entitled to claim for the taxation year under this section as can reasonably be considered wholly applicable to the taxation year.

52.01(14)The sum of all amounts that may be claimed under this section for all taxation years of the eligible individual ending in a calendar year shall not exceed the total amount that the individual would have been entitled to claim under this section in respect of the calendar year if the individual had not become bankrupt.

52.01(15)If an eligible individual becomes bankrupt in a calendar year and, when the bankruptcy occurs, he or she is not a senior but becomes a senior by the end of the calendar year, the bankrupt individual is eligible to claim a tax credit under this section for the taxation year that ends at the time of the bankruptcy.

52.01(16)If an eligible individual becomes bankrupt in a calendar year and, when the bankruptcy occurs, he or she is a qualifying relation of another individual who is not a senior at that time but becomes a senior by the end of the calendar year, the bankrupt individual is eligible to claim a tax credit under this section for the taxation year that ends at the time of the bankruptcy.

52.01(17)If, when an individual dies, he or she is not a senior but would have become a senior by the end of the calendar year in which he or she dies, the individual is eligible to claim a tax credit under this section for the taxation year that ends on the date of death.

52.01(18)If, when an individual dies, he or she is a qualifying relation of another individual who is not a senior at that time but becomes a senior by the end of the calendar year in which the death occurs, the deceased individual is eligible to claim a tax credit under this section for the taxation year that ends on the date of death.

52.01(19)If an individual is a qualifying relation of another individual who, immediately before death, is not a senior but who would have become a senior by the end of the calendar year in which he or she dies, the individual who is the qualifying relation is eligible to claim a tax credit under this section for a taxation year that ends in the calendar year as if the other individual had not died.

52.01(20)Subsection 248(28) of the Federal Act applies for the purposes of this section.

52.01(21)Despite paragraph 248(28)(b) of the Federal Act, an eligible individual may include the same qualifying expenditure for the purpose of his or her tax credit under this section and for the purpose of determining his or her entitlement to the tax credit under subsection 26(1).

52.01(22)An individual who has claimed and is eligible for a tax credit under this section for a taxation year is deemed to have paid, at the time referred to in subsection 156.1(4) of the Federal Act, as that section relates to the taxation year, the amount of the credit on account of the individual’s tax payable under this Act.

2015, c.25, s.6

k.01

Harmonized Sales Tax Credit

2016, c.30, s.4

Harmonized sales tax credit

2016, c.30, s.4

52.02(1)The following definitions apply in this section.

“adjusted income” , in respect of an individual for a taxation year, means the individual’s adjusted income as defined in subsection 122.5(1) of the Federal Act.(revenu rajusté)

“cohabiting spouse or common-law partner” means a cohabiting spouse or common-law partner as defined in subsection 122.5(1) of the Federal Act.(époux ou conjoint de fait)

“eligible individual” , in relation to a month specified for a taxation year, means an individual who is resident in New Brunswick before the specified month, is an eligible individual as defined in subsection 122.5(1) of the Federal Act and is not excluded from that definition by subsection 122.5(2) of the Federal Act.(particulier admissible)

“Minister” means the Minister of National Revenue for Canada.(ministre)

“qualified dependant” means a qualified dependant as defined in subsection 122.5(1) of the Federal Act who is not excluded from that definition by subsection 122.5(2) of the Federal Act.(personne à charge admissible)

“qualified relation” , of an individual, means a qualified relation as defined in subsection 122.5(1) of the Federal Act who is not excluded from that definition by subsection 122.5(2) of the Federal Act.(proche admissible)

“return of income” , in respect of a person for a taxation year, means(déclaration de revenu)

(a) for a person who is resident in New Brunswick at the end of the taxation year, the person’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of the Federal Act) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under the Federal Act for the taxation year; and

(b) in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister.

“shared-custody parent” means a shared-custody parent as defined in section 122.6 of the Federal Act, but with “qualified dependant” in that section having the meaning assigned by subsection 122.5(1) of the Federal Act.(parent ayant la garde partagée)

“specified month” means a month specified in subsection (5).(mois déterminé)

52.02(2)If an eligible individual in relation to a month specified for a taxation year has filed a return of income for the taxation year, the eligible individual for the taxation year is deemed to have paid during the specified month on account of his or her tax payable under this Act for the taxation year an amount equal to ¼ of the amount, if any, determined by the formula

A - B

2where

2A is the total of

(a) $300,

(b) $300 for the qualified relation, if any, of the individual in relation to the specified month,

(c) $300 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) of the Federal Act 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, and

(d) $100 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;

2B is 2% of the amount, if any, by which the eligible individual’s adjusted income for the taxation year in relation to the specified month exceeds $35,000.

52.02(3)If an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month specified for a taxation year, the amount deemed by subsection (2) to have been paid during the specified month is equal to the amount determined by the formula

½ × (A + B)

3where

3A is the amount determined by the formula in subsection (2), calculated without reference to this subsection; and

3B is the amount determined by the formula in subsection (2), calculated without reference to this subsection and subparagraph (b)(ii) of the definition of “eligible individual” in section 122.6 of the Federal Act.

52.02(4)Subsections 122.5(3.1) and (3.2) of the Federal Act apply for the purposes of this section.

52.02(5)For the purpose of this section, the months specified for a taxation year are July and October of the immediately following taxation year and January and April of the second immediately following taxation year.

52.02(6)If an individual is a qualified relation of another individual in relation to a month specified for a taxation year and both those individuals would be, but for this subsection, eligible individuals in relation to the specified month, only the individual that the Minister designates is the eligible individual in relation to the specified month.

52.02(7)An individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

(a) the individual ceases to be an eligible individual;

(b) a person becomes or ceases to be the individual’s qualified relation; and

(c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.

52.02(8)For the purpose of this section, if in a taxation year an individual becomes bankrupt, the individual’s income for the taxation year shall include the individual’s income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

2016, c.30, s.4

k.1

Home Energy Benefits

2005, c.31, s.1; 2007, c.28, s.1

Home energy benefits

2005, c.31, s.1; 2007, c.28, s.2

52.1(1)The following definitions apply in this section.

“home heating oil” means the refined petroleum products commonly known as stove oil and furnace oil.(mazout de chauffage domestique)

“Minister of Finance” (ministre des Finances)

(a) before April 1, 2019, means

(i) where no collection agreement is in effect, the Minister of Finance of New Brunswick, or

(ii) where a collection agreement is in effect,

(A) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General, and

(B) in relation to any other matter, the Minister of National Revenue for Canada;

(b) on and after April 1, 2019, means

(i) where no collection agreement is in effect, the Minister of Finance and Treasury Board of New Brunswick, or

(ii) where a collection agreement is in effect,

(A) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General, and

(B) in relation to any other matter, the Minister of National Revenue for Canada.

“principal place of residence” , in respect of an individual, means the principal place where the individual maintains a self-contained domestic establishment.(lieu principal de résidence)

“total family income” , in respect of an individual, means

(a) if the individual lives with his or her spouse or common-law partner in the same principal place of residence, the sum of the individual’s total income and the total income of his or her spouse or common-law partner, or

(b) if the individual does not live with his or her spouse or common-law partner in the same principal place of residence, the individual’s total income.(revenu familial total)

52.1(2)An overpayment of $200 on account of an individual’s liability under this Act for the 2004 taxation year is deemed to have arisen in the 2004 taxation year if

(a) the individual resided in New Brunswick on December 31, 2004, and has filed a return of income for the 2004 taxation year,

(b) the individual’s total family income for the 2004 taxation year was less than $25,000,

(c) at the time the application referred to in paragraph (f) is made, the individual is not receiving basic assistance under the Family Income Security Act nor is his or her spouse or common-law partner receiving such assistance where the individual and his or her spouse or common-law partner live in the same principal place of residence,

(d) the place where the individual lives is his or her principal place of residence and that place is heated with home heating oil,

(e) the home heating oil is purchased after July 30, 2005, and before May 1, 2006, and, if the individual leases his or her principal place of residence, the lessor is not directly responsible for paying for the home heating oil,

(f) on or before June 30, 2006, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(g) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(3)An overpayment of $150 on account of an individual’s liability under this Act for the 2004 taxation year is deemed to have arisen in the 2004 taxation year if

(a) the individual resided in New Brunswick on December 31, 2004, and has filed a return of income for the 2004 taxation year,

(b) the individual’s total family income for the 2004 taxation year was $25,000 or more but less than $30,000,

(c) at the time the application referred to in paragraph (f) is made, the individual is not receiving basic assistance under the Family Income Security Act nor is his or her spouse or common-law partner receiving such assistance where the individual and his or her spouse or common-law partner live in the same principal place of residence,

(d) the place where the individual lives is his or her principal place of residence and that place is heated with home heating oil,

(e) the home heating oil is purchased after July 30, 2005, and before May 1, 2006, and, if the individual leases his or her principal place of residence, the lessor is not directly responsible for paying for the home heating oil,

(f) on or before June 30, 2006, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(g) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(4)An overpayment of $100 on account of an individual’s liability under this Act for the 2004 taxation year is deemed to have arisen in the 2004 taxation year if

(a) the individual resided in New Brunswick on December 31, 2004, and has filed a return of income for the 2004 taxation year,

(b) the individual’s total family income for the 2004 taxation year was $30,000 or more but less than $45,000,

(c) at the time the application referred to in paragraph (f) is made, the individual is not receiving basic assistance under the Family Income Security Act nor is his or her spouse or common-law partner receiving such assistance where the individual and his or her spouse or common-law partner live in the same principal place of residence,

(d) the place where the individual lives is his or her principal place of residence and that place is heated with home heating oil,

(e) the home heating oil is purchased after July 30, 2005, and before May 1, 2006, and, if the individual leases his or her principal place of residence, the lessor is not directly responsible for paying for the home heating oil,

(f) on or before June 30, 2006, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(g) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(5)If an individual’s total family income for the 2004 taxation year was $45,000 or more, if the individual’s total family income for the 2005 taxation year complies with paragraph (2)(b), (3)(b) or (4)(b), as the case may be, and if the individual meets the criteria referred to in paragraphs (2)(a) and (c) to (g), (3)(a) and (c) to (g) or (4)(a) and (c) to (g), as the case may be,

(a) an overpayment on account of the individual’s liability under this Act for the 2004 taxation year is deemed to have arisen in the 2004 taxation year, and

(b) subsection (2), (3) or (4), as the case may be, applies except that the reference to “2004 taxation year” in paragraph (2)(b), (3)(b) or (4)(b) shall be read as a reference to “2005 taxation year”.

52.1(5.1)An overpayment of $100 on account of an individual’s liability under this Act for the 2005 taxation year is deemed to have arisen in the 2005 taxation year if

(a) the individual resided in New Brunswick on December 31, 2005, and has filed a return of income for the 2005 taxation year,

(b) the individual’s total family income for the 2005 taxation year was $25,000 or less,

(c) the place where the individual lives is his or her principal place of residence,

(d) on or before June 30, 2007, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(e) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(5.2)If an individual’s total family income for the 2005 taxation year was more than $25,000, if the individual’s total family income for the 2006 taxation year was $25,000 or less and if the individual meets the criteria referred to in paragraphs (5.1)(a) and (c) to (e),

(a) an overpayment on account of the individual’s liability under this Act for the 2005 taxation year is deemed to have arisen in the 2005 taxation year, and

(b) subsection (5.1) applies except that the reference to “2005 taxation year” in paragraph (5.1)(b) shall be read as a reference to “2006 taxation year”.

52.1(5.3)An overpayment of $100 on account of an individual’s liability under this Act for the 2006 taxation year is deemed to have arisen in the 2006 taxation year if

(a) the individual resided in New Brunswick on December 31, 2006, and has filed a return of income for the 2006 taxation year,

(b) the individual’s total family income for the 2006 taxation year was $28,000 or less,

(c) the place where the individual lives is his or her principal place of residence,

(d) on or before June 30, 2008, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(e) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(5.4)If an individual’s total family income for the 2006 taxation year was more than $28,000, if the individual’s total family income for the 2007 taxation year was $28,000 or less and if the individual meets the criteria referred to in paragraphs (5.3)(a) and (c) to (e),

(a) an overpayment on account of the individual’s liability under this Act for the 2006 taxation year is deemed to have arisen in the 2006 taxation year, and

(b) subsection (5.3) applies except that the reference to “2006 taxation year” in paragraph (5.3)(b) shall be read as a reference to “2007 taxation year”.

52.1(5.5)An overpayment of $100 on account of an individual’s liability under this Act for the 2009 taxation year is deemed to have arisen in the 2009 taxation year if

(a) the individual resided in New Brunswick on December 31, 2009, and has filed a return of income for the 2009 taxation year,

(b) the individual’s total family income for the 2009 taxation year was $28,000 or less,

(c) the place where the individual lives is his or her principal place of residence,

(d) on or before June 30, 2011, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(e) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(5.6)If an individual’s total family income for the 2009 taxation year was more than $28,000, if the individual’s total family income for the 2010 taxation year was $28,000 or less and if the individual meets the criteria referred to in paragraphs (5.5)(a) and (c) to (e),

(a) an overpayment on account of the individual’s liability under this Act for the 2009 taxation year is deemed to have arisen in the 2009 taxation year, and

(b) subsection (5.5) applies except that the reference to “2009 taxation year” in paragraph (5.5)(b) shall be read as a reference to “2010 taxation year”.

52.1(5.7)An overpayment of the prescribed amount on account of an individual’s liability under this Act for the 2010 taxation year is deemed to have arisen in the 2010 taxation year if

(a) the individual resided in New Brunswick on December 31, 2010, and has filed a return of income for the 2010 taxation year,

(b) the individual’s total family income for the 2010 taxation year

(i) was the prescribed amount or less, or

(ii) was greater than the prescribed amount but the individual’s total family income for the 2011 taxation year was the prescribed amount for the 2010 taxation year or less,

(c) the place where the individual lives is his or her principal place of residence,

(d) on or before June 30, 2012, the individual has, either on his or her own behalf or through a representative, filed an application on the form provided by the Minister of Finance of New Brunswick for a refund of the overpayment, and

(e) the individual has, either on his or her own behalf or through a representative, provided all of the information required by the application form or the Minister of Finance of New Brunswick before the date required by that Minister.

52.1(5.8)Subsection (5.7) applies with the necessary modifications to the 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018 and 2019 taxation years.

52.1(6)The Minister of Finance of New Brunswick may, in his or her discretion, refund to an individual the amount deemed to be an overpayment under this section.

52.1(7)Despite subsections (2) to (6), an individual is entitled to receive only one refund under subsections (2) to (5), only one refund under subsections (5.1) and (5.2), only one refund under subsections (5.3) and (5.4) and only one refund under subsections (5.5) and (5.6).

52.1(7.1)Despite subsections (2) to (6), an individual is entitled to receive only one refund per taxation year under subsections (5.7) and (5.8).

52.1(8)Notwithstanding subsections (2) to (6), if more than one individual lives in the same principal place of residence, only one of them may apply for and receive a refund under this section.

52.1(9)A refund of an amount deemed to be an overpayment under this section

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

52.1(10)For the purpose of ensuring compliance with this section and any regulations pertaining to this section, sections 29, 29.1 and 29.2 of the Revenue Administration Act and any regulations under that Act pertaining to those sections apply with the necessary modifications in respect of any premises where records or other documents are kept with respect to information provided by an individual on his or her application or as required by a person acting under this subsection.

52.1(11)Notwithstanding subsection (10), a person acting under subsection (10) shall not enter a private dwelling unless the person

(a) has the consent of the occupier, or

(b) has obtained an entry warrant under the Entry Warrants Act.

52.1(12)If an individual is paid a refund and the individual is not entitled to the refund under this section, the individual shall immediately remit the amount of the refund to the Minister of Finance of New Brunswick.

52.1(13)If an individual does not remit the amount of a refund under subsection (12), then sections 22 and 23 of the Revenue Administration Act and any regulations under that Act pertaining to those sections apply with the necessary modifications to the recovery of the amount.

52.1(14)A person who makes or assists in making a statement in any document or information required to be furnished under this section or the regulations pertaining to this section that, at the time and in the light of the circumstances under which the statement is made, is false or misleading with respect to a material fact or that omits to state a material fact, the omission of which makes that statement false or misleading, commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.

52.1(15)A person does not commit an offence under subsection (14) in relation to a statement made if the person did not know that the statement was false or misleading and, in the exercise of reasonable diligence, could not have known that the statement was false or misleading.

2005, c.31, s.1; 2006, c.7, s.1, 2, 3; 2007, c.28, s.3; 2007, c.70, s.1; 2010, c.32, s.1; 2011, c.40, s.2; 2016, c.43, s.1; 2019, c.29, s.101

l

Capital Gains Refund to Mutual Fund Trust

Capital gains refund to mutual fund trust

53(1)Where an amount is to be refunded to a trust in respect of a taxation year under section 132 of the Federal Act, the Minister shall, subject to subsection (2), 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 specific percentage for the year times the percentage referred to in paragraph 117(2)(e) of the Federal Act for the year,

is of

(b) the percentage referred to in the formula in the definition “refundable capital gains tax on hand” in subsection 132(4) of the Federal Act for the year.

53(2)For the purpose of computing the capital gains refund under subsection (1) 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 (1), that the trust’s income earned in the taxation year in New Brunswick is of its income for the year.

53(3)Instead of making a refund that might otherwise be made under subsection (1), 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.

2015, c.25, s.7; 2021, c.9, s.8

C

Corporation Income Tax

a

Computation of Tax

Definitions

54In this Division

“taxable income earned in the year in New Brunswick” means the taxable income earned in the year in New Brunswick by a corporation as determined in accordance with the Federal Regulations made for the purposes of the definition “taxable income earned in the year in a province” in subsection 124(4) of the Federal Act. (revenu imposable gagné dans l’année au Nouveau-Brunswick)

Amount of tax payable

55(1)Effective July 1, 2002, the tax payable by a corporation under this Part for a taxation year is 14.5% of the corporation’s taxable income earned in the year in New Brunswick.

55(2)Effective January 1, 2003, the tax payable by a corporation under this Part for a taxation year is 13% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.1)Effective July 1, 2009, the tax payable by a corporation under this Part for a taxation year is 12% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.2)Effective July 1, 2010, the tax payable by a corporation under this Part for a taxation year is 11% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.3)Effective July 1, 2011, the tax payable by a corporation under this Part for a taxation year is 10% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.31)Effective July 1, 2013, the tax payable by a corporation under this Part for a taxation year is 12% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.32)Effective April 1, 2016, the tax payable by a corporation under this Part for a taxation year is 14% of the corporation’s taxable income earned in the year in New Brunswick.

55(2.4)Repealed: 2011, c.40, s.3

55(3)Repealed: 2007, c.65, s.6

2001, c.25, s.15; 2002, c.36, s.7; 2006, c.29, s.3; 2007, c.65, s.6; 2009, c.16, s.8; 2011, c.40, s.3; 2013, c.18, s.4; 2016, c.12, s.2

Corporate straddle provision

2002, c.36, s.8

55.1(1)In this section

“tax calculation change” means

(a) in relation to a corporation to which section 57 applies,

(i) the enactment of subsection 57(1.1),

(ii) any amendment to this Act that effects a change to any amount expressed in dollars that is referred to in section 57, or

(iii) any amendment to this Act that effects a change to any rate referred to in section 57, or

(b) in relation to any other corporation, any amendment to this Act that effects a change to any rate referred to in section 55.

55.1(2)If, during the taxation year of a corporation, there are one or more tax calculation changes, the corporation must compute its tax payable for that taxation year in accordance with the following:

(a) the corporation must divide its taxation year into notional taxation years as follows:

(i) the first of those notional taxation years begins on the first day of the corporation’s taxation year and ends on the day before the day on which the first tax calculation change that occurs in its taxation year takes effect;

(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation’s taxation year on which a tax calculation change takes effect and will end on the day before the day in its taxation year on which the next tax calculation change takes effect; and

(iii) the last notional taxation year begins on the day on which the last tax calculation change that occurs in the corporation’s taxation year takes effect and ends on the last day of its taxation year;

(b) the corporation must, for each notional taxation year within the corporation’s taxation year, calculate, in accordance with section 55 or 57, as the case may be, as that section read on the first day of that notional taxation year, the tax the corporation would be obliged to pay under section 55 or 57, as the case may be, if that tax were calculated

(i) on the corporation’s taxable income for the whole of its taxation year, and

(ii) as if that wording of section 55 or 57 applied throughout the whole of its taxation year;

(c) the corporation must, for each notional taxation year within the corporation’s taxation year, multiply the amount determined for that notional taxation year under paragraph (b) by the fraction obtained by dividing the number of days in that notional taxation year by the number of days in the corporation’s taxation year;

(d) the corporation must add to the amount determined under paragraph (c) for the first notional taxation year within the corporation’s taxation year the amounts determined under paragraph (c) for each of the other notional taxation years within its taxation year; and

(e) the total amount determined under paragraph (d) is the tax payable by the corporation in respect of the corporation’s taxation year.

2002, c.36, s.8; 2004, c.29, s.16; 2005, c.23, s.2

b

Foreign Tax Deduction

Foreign tax deduction

56(1)Where the income for a taxation year of a corporation that maintained a permanent establishment in New Brunswick at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the Federal Act from sources in a country other than Canada, in this section referred to as “foreign investment income”, and where the corporation has claimed a deduction under subsection 126(1) of the Federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of

(a) 14.5% of the product of

(i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) the corporation’s taxable income earned in the year in New Brunswick; and

(b) that proportion of the amount by which such part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the Federal Act that

(i) the corporation’s taxable income earned in the year in New Brunswick,

is of

(ii) the aggregate of the taxable income earned in the year in each province by the corporation as determined in accordance with the Federal Regulations made for the purposes of the definition “taxable income earned in the year in a province” in subsection 124(4) of the Federal Act.

56(2)Where the income of a corporation for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.

56(3)For the purposes of paragraph (1)(b), the non-business-income tax paid by a corporation to the government of a country other than Canada in respect of the corporation’s income for a taxation year is the non-business-income tax paid by the corporation to the government of that country in respect of that year as determined under the definition “non-business-income tax” in subsection 126(7) of the Federal Act.

56(4)Effective January 1, 2003, the reference to “14.5%” in subsection (1) shall be read as a reference to “13%”.

56(4.1)Effective July 1, 2009, the reference to “14.5%” in subsection (1) shall be read as a reference to “12%”.

56(4.2)Effective July 1, 2010, the reference to “14.5%” in subsection (1) shall be read as a reference to “11%”.

56(4.3)Effective July 1, 2011, the reference to “14.5%” in subsection (1) shall be read as a reference to “10%”.

56(4.31)Effective July 1, 2013, the reference to “14.5%” in subsection (1) shall be read as a reference to “12%”.

56(4.32)Effective April 1, 2016, the reference to “14.5%” in subsection (1) shall be read as a reference to “14%”.

56(4.4)Repealed: 2011, c.40, s.4

56(5)Repealed: 2007, c.65, s.7

56(6)Repealed: 2007, c.65, s.7

2001, c.25, s.16; 2002, c.36, s.9; 2006, c.29, s.4; 2007, c.65, s.7; 2009, c.16, s.9; 2011, c.40, s.4; 2013, c.18, s.5; 2016, c.12, s.2

c

Small Business Deduction

Small business deduction

57(1)Notwithstanding section 55, for a year when a corporation has been allowed a deduction from the tax payable under the provisions of subsection 125(1) of the Federal Act, the corporation shall pay tax equal to the aggregate of

(a) 2% of the amount that is the proportion of the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year that

(i) the amount of its taxable income earned in the year in New Brunswick,

bears to

(ii) the total amount of the portions of its taxable income earned in the year in all provinces, determined in accordance with the Federal Regulations made for the purposes of the definition “taxable income earned in the year in a province” in subsection 124(4) of the Federal Act, and

(b) 13% of an amount calculated by deducting from the total taxable income earned in the year in New Brunswick the amount on which the 2% rate is applied in paragraph (a).

57(1.01)For the period commencing on July 1, 2006, and ending on December 31, 2006, the references to “2%” in subsection (1) shall be read as references to “1.5%”.

57(1.02)For the period commencing on January 1, 2007, and ending on December 31, 2011, the references to “2%” in subsection (1) shall be read as references to “5%”.

57(1.021)For the period commencing on January 1, 2012, and ending on December 31, 2014, the references to “2%” in subsection (1) shall be read as references to “4.5%”.

57(1.022)For the period commencing on January 1, 2015, and ending on March 31, 2016, the references to “2%” in subsection (1) shall be read as references to “4%”.

57(1.023)For the period commencing on April 1, 2016, and ending on March 31, 2017, the references to “2%” in subsection (1) shall be read as references to “3.5%”.

57(1.024)For the period commencing on April 1, 2017, and ending on March 31, 2018, the references to “2%” in subsection (1) shall be read as references to “3%”.

57(1.025)For the period commencing on April 1, 2018, the references to “2%” in subsection (1) shall be read as references to “2.5%”.

57(1.03)Repealed: 2007, c.65, s.8

57(1.04)For the period commencing on July 1, 2010, and ending on June 30, 2011, the reference to “13%” in paragraph (1)(b) shall be read as a reference to “11%”.

57(1.05)For the period commencing on July 1, 2011, and ending on June 30, 2013, the reference to “13%” in paragraph (1)(b) shall be read as a reference to “10%”.

57(1.06)For the period commencing on July 1, 2013, and ending on March 31, 2016, the reference to “13%” in paragraph (1)(b) shall be read as a reference to “12%”.

57(1.07)For the period commencing on April 1, 2016, the reference to “13%” in paragraph (1)(b) shall be read as a reference to “14%”.

57(1.1)For the purposes of subsection (1), where a corporation is a member of a partnership, the amount determined pursuant to paragraph 125(1)(a) of the Federal Act, in relation to a corporation for each taxation year, shall be the amount that would be the corporation’s specified partnership income within the meaning of subsection 125(7) of the Federal Act if the amounts expressed in dollars in the description of “M” in the definition of “specified partnership income” in that subsection were read as

(a) Repealed: 2004, c.29, s.17

(b) Repealed: 2004, c.29, s.17

(c) Repealed: 2005, c.23, s.3

(d) for the first amount, “$425,000” and, for the second amount, “$1,165” for the period commencing on July 1, 2004, and ending on June 30, 2005,

(e) for the first amount, “$450,000” and, for the second amount, “$1,233” for the period commencing on July 1, 2005, and ending on June 30, 2006,

(f) for the first amount, “$475,000” and, for the second amount, “$1,302” for the period commencing on July 1, 2006, and ending on December 31, 2006,

(g) for the first amount, “$400,000” and, for the second amount, “$1,096” for the period commencing on January 1, 2007, and ending on December 31, 2008, and

(h) for the first amount, “$500,000” and, for the second amount, “$1,370” for the period commencing on January 1, 2009, and ending at the end of a taxation year that begins before March 22, 2016, and ends after March 21, 2016.

57(2)Repealed: 2005, c.23, s.3

57(2.1)The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $425,000 for the period commencing on July 1, 2004, and ending on June 30, 2005.

57(2.2)The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $450,000 for the period commencing on July 1, 2005, and ending on June 30, 2006.

57(2.3)The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $475,000 for the period commencing on July 1, 2006, and ending on December 31, 2006.

57(2.4)The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purposes of subsection (1) to be $400,000 for the period commencing on January 1, 2007, and ending on December 31, 2008.

57(2.5)The first-mentioned business limit in subsection 125(2) of the Federal Act shall be deemed for the purposes of subsection (1) to be $500,000 for the period commencing on January 1, 2009.

57(2.6)For the purposes of subsection (1) and for the period commencing on January 1, 2019, the amount determined under paragraph 125(5.1)(b) of the Federal Act shall be deemed to be zero.

57(3)Repealed: 2004, c.29, s.17

57(4)Repealed: 2004, c.29, s.17

2001, c.25, s.17; 2002, c.36, s.10; 2004, c.29, s.17; 2005, c.23, s.3; 2006, c.29, s.5; 2007, c.65, s.8; 2009, c.16, s.10; 2011, c.40, s.5; 2014, c.69, s.1; 2016, c.12, s.2; 2016, c.30, s.5; 2017, c.32, s.2; 2017, c.57, s.7; 2019, c.14, s.1; 2021, c.9, s.9

d

Capital Gains Refund to Mutual Fund Corporation

Capital gains refund to mutual fund corporation

58(1)Where an amount is to be refunded to a corporation in respect of a taxation year under section 131 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation 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 131(2) of the Federal Act that

(a) the percentage referred to in section 55 for the year,

is of

(b) the percentage for the year referred to in paragraph (b) of the description of A in the formula in the definition “refundable capital gains tax on hand” in subsection 131(6) of the Federal Act.

58(2)For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where

(a) the corporation’s taxable income earned in the year in New Brunswick,

is less than

(b) the corporation’s taxable income for the year,

the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under paragraph (a) is of the amount determined under paragraph (b).

58(3)Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the corporation 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 corporation of that action.

e

Research and Development Tax Credit

Research and development tax credit

59(1)In this section

“eligible expenditure” means an expenditure made by a corporation with a permanent establishment in New Brunswick in respect of scientific research and experimental development to be carried out in New Brunswick, that is a qualified expenditure as defined in subsection 127(9) of the Federal Act; (dépense admissible)

“research and development tax credit” of a corporation at the end of a taxation year means(crédit d’impôt pour la recherche et le développement)

(a) for eligible expenditures made before January 1, 2003, the amount, if any, by which the total of

(i) an amount equal to 10% of the total of all amounts each of which is an eligible expenditure made by it in the year and before January 1, 2003, computed without reference to subsection 13(7.1) of the Federal Act,

(ii) an amount equal to 10% of the total of all amounts each of which is an eligible expenditure made by it in any of the 7 taxation years preceding the year and before January 1, 2003, or the 3 taxation years following the year and before January 1, 2003, computed without reference to subsection 13(7.1) of the Federal Act,

(iii) an amount equal to the total of all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of the year for eligible expenditures made in the year and before January 1, 2003, and

(iv) the total of all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of any of the 7 taxation years preceding the year and before January 1, 2003, for eligible expenditures made in the preceding years and before January 1, 2003, or the 3 taxation years following the year and before January 1, 2003, for eligible expenditures made in the following years and before January 1, 2003,

exceeds the total of all amounts each of which is that portion of the amount deducted under subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of an eligible expenditure made in the year or in any of the 7 taxation years preceding the year and before January 1, 2003, for eligible expenditures made in the preceding years and before January 1, 2003, or the 2 taxation years following the year and before January 1, 2003, for eligible expenditures made in the following years and before January 1, 2003, and

(b) for eligible expenditures made after December 31, 2002, the amount which is the total of

(i) an amount equal to 15% of the total of all amounts each of which is an eligible expenditure made by it in the year and after December 31, 2002, computed without reference to subsection 13(7.1) of the Federal Act, and

(ii) an amount equal to the total of all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of the year for eligible expenditures made in the year and after December 31, 2002.

59(1.1)For the purposes of the definition “eligible expenditure” in subsection (1), the reference to “government assistance” in subsections 127(18), (19) and (20) of the Federal Act does not include the research and development tax credit under this section.

59(2)A corporation may deduct from the tax otherwise payable under this Part for a taxation year an amount not exceeding the lesser of

(a) its research and development tax credit at the end of the year, and

(b) its tax otherwise payable by it under this Part for the year.

59(2.1)The amount by which the research and development tax credit referred to in paragraph (b) of the definition “research and development tax credit” in subsection (1) exceeds the corporation’s tax payable for the taxation year computed without reference to this section may be applied by the Minister of Finance and Treasury Board to pay

(a) any tax, interest or penalty owing by the corporation for that or any previous taxation year under this Act, the income tax statute of another agreeing province or the Federal Act,

(b) any contribution, penalty or interest owing by the corporation for that or any previous taxation year as a result of payments required from the corporation under the Canada Pension Plan (Canada), and

(c) any premium, interest or penalty owing by the corporation for that or any previous taxation year under the Employment Insurance Act (Canada).

59(2.2)Any part of the amount not applied under subsection (2.1) shall be paid to the corporation.

59(2.3)Subsections (2.1) and (2.2) do not apply to a corporation that is exempt from tax under section 149 of the Federal Act.

59(2.4)There shall be deemed to have been paid on account of tax payable under the Federal Act for a taxation year by a corporation, other than a corporation exempt from tax, on the balance-due day referred to in paragraph 157(1)(b) of the Federal Act on or before which the remainder of the taxes payable under this Part for the year by the corporation would be required to be paid if such a remainder were payable, the amount, if any, by which

(a) the corporation’s tax credit for the year computed under paragraph (b) of the definition “research and development tax credit” in subsection (1),

exceeds

(b) the amount deducted under subsection (2) in computing the corporation’s tax payable under this Part for the year.

59(3)Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be included, because of subparagraph (a)(i) or (b)(i) of the definition “research and development tax credit” in subsection (1), in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation’s share of that amount shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

59(4)Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be included, because of subparagraph (a)(i) or (b)(i) of the definition “research and development tax credit” in subsection (1), in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation’s share of that amount shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

59(5)Where two or more corporations amalgamate within the meaning of subsection 87(1) of the Federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Part for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.

59(6)Where a subsidiary of a parent corporation is wound up in accordance with subsection 88(1) of the Federal Act and the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Part for any taxation year, for the purposes of determining the research and development tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as and a continuation of the subsidiary.

59(7)A corporation may renounce the research and development tax credit on or before the date by which the corporation is required to file its return of income for the year under section 150 of the Federal Act and, where the corporation renounces entitlement to that credit, the corporation shall be deemed for all purposes never to have received, have been entitled to receive, or have had a reasonable expectation of receiving, that credit.

59(7.1)Subsection (7) applies to the research and development tax credit for eligible expenditures made before January 1, 2003.

59(8)Notwithstanding subsections (2) to (7.1), no corporation may deduct a research and development tax credit for a taxation year of the corporation ending before February 26, 1994.

59(9)Where

(a) a corporation acquired a particular property from a person or partnership in a taxation year of the corporation or in any of the 4 preceding taxation years,

(b) the cost of the particular property was an eligible expenditure to the corporation,

(c) the cost of the particular property is included in an amount, a percentage of which may reasonably be considered to be included in computing the corporation’s research and development tax credit at the end of the taxation year, and

(d) in the year and after December 31, 2002, the corporation converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,

there shall be added to the corporation’s tax otherwise payable under this Part for the year the lesser of the amount that may reasonably be considered to be included in computing the corporation’s research and development tax credit in respect of the particular property and the amount that is the percentage, described in paragraph (c), of

(e) where the particular property or the other property is disposed of to a person who deals at arm’s length with the corporation, the proceeds of disposition of that property, and

(f) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition.

59(10)Where a corporation is a beneficiary under a trust that has received a research and development tax credit under subsection (3) at the end of a particular fiscal period and where

(a) a particular property, the cost of which is an eligible expenditure, is acquired by the trust from a person or partnership in the particular fiscal period or in any of the 4 preceding fiscal periods of the trust,

(b) the cost of the particular property is included in an amount, a percentage of which may reasonably be considered to have been included in computing the amount determined under subsection (3) in respect of the trust at the end of a fiscal period, and

(c) in the particular fiscal period and after December 31, 2002, the trust converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,

there shall be added to the corporation’s tax otherwise payable under this Part at the end of the particular fiscal period the corporation’s share of, as a beneficiary under the trust, the lesser of

(d) the amount that may reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (3) in respect of the trust, and

(e) the percentage, described in paragraph (b), of

(i) where the particular property or the other property is disposed of to a person who deals at arm’s length with the trust, the proceeds of disposition of that property, and

(ii) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition.

59(11)Where a corporation is a member of a partnership that has received a research and development tax credit under subsection (4) at the end of a particular fiscal period and where

(a) a particular property, the cost of which is an eligible expenditure, is acquired by the partnership from a person or partnership in the particular fiscal period or in any of the 4 preceding fiscal periods of the partnership,

(b) the cost of the particular property is included in an amount, a percentage of which may reasonably be considered to have been included in computing the amount determined under subsection (4) in respect of the partnership at the end of a fiscal period, and

(c) in the particular fiscal period and after December 31, 2002, the partnership converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,

there shall be added to the corporation’s tax otherwise payable under this Part at the end of the particular fiscal period the corporation’s share of, as a member of the partnership, the lesser of

(d) the amount that may reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (4) in respect of the partnership, and

(e) the percentage, described in paragraph (b), of

(i) where the particular property or the other property is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of that property, and

(ii) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition.

59(12)Where

(a) a corporation acquired a particular property from a person or partnership in a taxation year or in any of the 4 preceding taxation years,

(b) the cost of the particular property was an eligible expenditure to the corporation,

(c) all or part of the eligible expenditure may reasonably be considered to have been the subject of an agreement made under subsection 127(13) of the Federal Act by the corporation and another corporation, in this subsection referred to as the “transferee”, and

(d) in the year and after December 31, 2002, the corporation converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,

there shall be added to the corporation’s tax otherwise payable under this Part for the year the lesser of

(e) the amount that may reasonably be considered to have been included in computing the transferee’s research and development tax credit in respect of the eligible expenditure that was the subject of the agreement, and

(f) the amount determined by the formula

A × B – C

where

A is the percentage applied by the transferee in determining its research and development tax credit in respect of the eligible expenditure that was the subject of the agreement,

B is

(i) where the particular property or the other property is disposed of to a person who deals at arm’s length with the corporation, the proceeds of disposition of that property, and

(ii) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition, and

C is the amount, if any, added to the corporation’s tax payable under subsection (9) in respect of the particular property.

59(13)For the purpose of subsections (9) to (12), “cost of the particular property” to a corporation shall not exceed the amount paid by the corporation to acquire the particular property from a transferor of the particular property and, for greater certainty, does not include amounts paid by the corporation to maintain, modify or transform the particular property.

59(14)Subsections (9) to (12) and (15) to (17) do not apply to a corporation, trust or partnership, in this subsection referred to as the “transferor”, that disposes of a property to a corporation, in this subsection and subsections (15) to (17) referred to as the “purchaser”, that does not deal at arm’s length with the transferor, if the purchaser acquired the property in circumstances described under subsection 127(33) of the Federal Act.

59(15)Where, at any particular time in a taxation year and after December 31, 2002, a purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (14) or that is another property that incorporates a property acquired in such circumstances, and

(b) that was first acquired, or that incorporates a property that was first acquired, by a corporation, in this subsection referred to as the “original user”, with which the purchaser did not deal at arm’s length at the time at which the purchaser acquired the property, in the original user’s taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user’s 4 preceding taxation years or fiscal periods,

there shall be added to the purchaser’s tax otherwise payable under this Part for the year the lesser of

(c) the amount included, in respect of the property, in the research and development tax credit of the original user, and

(d) the amount determined by applying the percentage that was applied by the corporation that was the original user in computing the research and development tax credit referred to in paragraph (c), to

(i) where the property or the other property is disposed of to a person who deals at arm’s length with the purchaser, the proceeds of disposition of that property, and

(ii) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.

59(16)Where, at any particular time in a taxation year and after December 31, 2002, a purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (14) or that is another property that incorporates a property acquired in such circumstances, and

(b) that was first acquired, or that incorporates a property that was first acquired, by a trust, in this subsection referred to as the “original user”, with which the purchaser did not deal at arm’s length at the time at which the purchaser acquired the property, in the original user’s taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user’s 4 preceding taxation years or fiscal periods,

there shall be added to the purchaser’s tax otherwise payable under this Part for the year the lesser of

(c) the amount that may reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (3) in respect of all the corporations that were beneficiaries of the original user, and

(d) the amount determined by applying the product of

(i) the percentage that was applied in computing the research and development tax credit referred to in paragraph (c), and

(ii) the proportion that the research and development tax credit referred to in paragraph (c) that was utilized by the corporations that were beneficiaries of the original user was of the total research and development tax credit calculated as if the original user was a corporation,

to

(iii) where the property or the other property is disposed of to a person who deals at arm’s length with the purchaser, the proceeds of disposition of that property, and

(iv) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.

59(17)Where, at any particular time in a taxation year and after December 31, 2002, a purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (14) or that is another property that incorporates a property acquired in such circumstances, and

(b) that was first acquired, or that incorporates a property that was first acquired, by a partnership, in this subsection referred to as the “original user”, with which the purchaser did not deal at arm’s length at the time at which the purchaser acquired the property, in the original user’s taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user’s 4 preceding taxation years or fiscal periods,

there shall be added to the purchaser’s tax otherwise payable under this Part for the year the lesser of

(c) the amount that may reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (4) in respect of all the corporations that were members of the original user, and

(d) the amount determined by applying the product of

(i) the percentage that was applied in computing the research and development tax credit referred to in paragraph (c), and

(ii) the proportion that the research and development tax credit referred to in paragraph (c) that was utilized by the corporations that were members of the original user was of the total research and development tax credit calculated as if the original user was a corporation,

to

(iii) where the property or the other property is disposed of to a person who deals at arm’s length with the purchaser, the proceeds of disposition of that property, and

(iv) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.

59(18)Subsections (9) to (17) apply to an eligible expenditure made after December 31, 2002.

2003, c.26, s.2; 2004, c.29, s.18; 2005, c.23, s.4; 2019, c.29, s.101

f

New Brunswick Film Tax Credit

New Brunswick film tax credit

60(1)In this section

“eligible corporation” means a corporation incorporated in Canada, other than a corporation that holds a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission, that has a permanent establishment in New Brunswick; (corporation admissible)

“eligible employee” , in respect of a taxation year, means an individual who was an employee of an eligible corporation in the taxation year and who was resident in New Brunswick on the last day of the immediately preceding taxation year, or, if not so resident, for whom the residency requirement is waived under subsection (5); (employé admissible)

“eligible individual” , in respect of a taxation year, means an individual who was resident in New Brunswick on the last day of the immediately preceding taxation year or, if not so resident, for whom the residency requirement is waived under subsection (5); (particulier admissible)

“eligible salaries” , of an eligible corporation for a taxation year in respect of an eligible project, means the total of the following amounts to the extent that they are reasonable in the circumstances and included in the cost or, in the case of depreciable property, the capital cost, to the corporation of the property: (traitements admissibles)

(a) the salaries or wages of eligible employees directly attributable to the eligible project that are incurred in the year, or in the preceding taxation year, by the corporation for the stages of production of the eligible project, from the final script stage to the end of the post-production stage, and paid by the corporation in the year or within 60 days after the end of the year, other than amounts incurred in the preceding year that were paid within 60 days after the end of that preceding year;

(b) that portion of the remuneration, other than salaries or wages and other than remuneration that relates to services rendered in the preceding taxation year and that was paid within 60 days after the end of that preceding year, that is directly attributable to the production of the eligible project, that relates to services rendered in the year, or in the preceding taxation year, to the corporation for the stages of production, from the final script stage to the end of the post-production stage, and that is paid by the corporation in the year or within 60 days after the end of the year to

(i) an eligible individual who is not an employee of the corporation, to the extent that the amount paid

(A) is attributable to services personally rendered by the individual for the production of the eligible project, or

(B) is attributable to and does not exceed the salaries or wages of the individual’s eligible employees for personally rendering services for the production of the eligible project,

(ii) another corporation, to the extent that the amount paid is attributable to and does not exceed the salaries or wages of the other corporation’s eligible employees for personally rendering services for the production of the eligible project,

(iii) another corporation, all the issued and outstanding shares of the capital stock of which, except directors’ qualifying shares, belong to an eligible individual and the activities of which consist principally of the provision of the individual’s services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production of the eligible project, or

(iv) a partnership that is carrying on business in Canada, to the extent that the amount paid

(A) is attributable to services personally rendered by an eligible individual who is a member of the partnership for the production of the eligible project, or

(B) is attributable to and does not exceed the salaries or wages of the partnership’s eligible employees for personally rendering services for the production of the eligible project; and

(c) where

(i) the corporation is a subsidiary wholly owned corporation of another corporation, in this paragraph referred to as the “parent”, and

(ii) the corporation and the parent have agreed that this paragraph applies in respect of the eligible project,

the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of that eligible project and that would be included in the eligible salaries of the corporation in respect of the eligible project for the particular taxation year because of paragraph (a) or (b) if

(iii) the corporation had had such a particular taxation year, and

(iv) the expenditure was incurred by the corporation for the same purpose as it was by the parent and was paid at the same time and to the same person or partnership as it was by the parent.

60(2)For the purposes of the definition “eligible salaries” in subsection (1),

(a) remuneration does not include remuneration determined by reference to profits or revenues;

(b) salaries or wages do not include an amount determined by reference to profits or revenues;

(c) where the value of remuneration, salaries or wages includes an amount determined by reference to profits or revenues, the Minister of Finance and Treasury Board of New Brunswick, or any person designated by that Minister, may deem a value for that portion of the eligible salaries; and

(d) services referred to in paragraph (b) of that definition that relate to the post-production stage of the eligible project include only the services that are rendered at that stage by a person who performs the duties of animation cameraman, assistant colourist, assistant mixer, assistant sound-effects technician, boom operator, colourist, computer graphics designer, cutter, developing technician, director of post-production, dubbing technician, encoding technician, inspection technician-clean-up, mixer, optical-effects technician, picture editor, printing technician, projectionist, recording technician, senior editor, sound editor, sound-effects technician, special-effects editor, subtitle technician, timer, video-film recorder operator or videotape operator.

60(3)Where an eligible corporation that produces an eligible project in New Brunswick files with its return of income for a taxation year, a New Brunswick film tax credit certificate issued in accordance with the regulations, the corporation is eligible for a refundable film tax credit for the taxation year which shall be determined by adding the following amounts:

(a) an amount determined by multiplying the prescribed rate by the amount of eligible salaries paid in the taxation year; and

(b) in the case of a regional project, an amount determined by multiplying the prescribed rate by the amount of eligible salaries paid in the taxation year and incurred after December 31, 2009.

60(3.1)The prescribed rate referred to in paragraph (3)(a) shall not exceed 40%.

60(3.2)The prescribed rate referred to in paragraph (3)(b) shall not exceed 10%.

60(4)The New Brunswick film tax credit is subject to the following conditions:

(a) the tax credit applies with respect to eligible salaries incurred before January 1, 2020;

(b) an eligible corporation must, for each eligible project, pay, directly or indirectly, at least 25% of its total salaries and wages to eligible employees; and

(c) the tax credit applies only with respect to that portion of eligible salaries that does not exceed 50% of the total production costs of the eligible project less the amount of production costs funded by the Province.

(d) Repealed: 2001, c.25, s.18

60(5)The Minister of Finance and Treasury Board of New Brunswick, or any person designated by that Minister, may waive the residency requirement for an eligible employee or eligible individual rendering services for an eligible corporation in respect of an eligible project.

60(6)A waiver under subsection (5) may be made in such circumstances and on such terms and conditions as are provided for in the regulations.

60(7)The amount by which the New Brunswick film tax credit exceeds the eligible corporation’s tax payable for the taxation year calculated without reference to this section may be applied by the Minister of Finance and Treasury Board to pay

(a) any tax, interest or penalty owing by the corporation for that or any previous taxation year under this Act, the income tax statute of another agreeing province or the Federal Act,

(b) any contribution, penalty or interest by the corporation for that or any previous taxation year as a result of payments required from the corporation under the Canada Pension Plan (Canada), and

(c) any premium, interest or penalty owing by the corporation for that or any previous taxation year under the Employment Insurance Act (Canada).

60(8)Any part of the amount not applied under subsection (7) shall be paid to the eligible corporation.

2001, c.25, s.18; 2007, c.4, s.1; 2007, c.78, s.1; 2008, c.52, s.1; 2009, c.56, s.1; 2019, c.29, s.101

D

Deductions Available to All Taxpayers

Political contributions

Repealed: 2017, c.57, s.8

2017, c.57, s.8

61Repealed: 2017, c.57, s.9

2003, c.12, s.1; 2003, c.S-9.05, s.40; 2014, c.20, s.16; 2017, c.57, s.9

Small business investor tax credit

2014, c.20, s.16

61.1(1)The following definitions apply in this section.

“eligible investor” means eligible investor as defined in the Small Business Investor Tax Credit Act.(investisseur admissible)

“eligible share” means eligible share as defined in the Small Business Investor Tax Credit Act.(action admissible)

“qualifying trust” means qualifying trust as defined in the Small Business Investor Tax Credit Act.(fiducie admissible)

“small business investor tax credit” means the aggregate of the tax credit amounts shown on all tax credit certificates issued to an eligible investor in respect of a taxation year under section 22 of the Small Business Investor Tax Credit Act.(crédit d’impôt pour les investisseurs dans les petites entreprises)

61.1(2)If, in respect of a taxation year, an eligible investor has been issued a tax credit certificate under section 22 of the Small Business Investor Tax Credit Act, there may be deducted from the tax otherwise payable by the eligible investor under this Act in respect of that taxation year the lesser of

(a) the total of

(i) the eligible investor’s small business investor tax credit allowed for that taxation year under subsection 20(6) or (7) of the Small Business Investor Tax Credit Act, and

(ii) the amount, if any, of the eligible investor’s unused balance applied in accordance with subsection (5), and

(b) one of the following amounts:

(i) $125,000 if the eligible investor is an individual, or

(ii) $75,000 if the eligible investor is a corporation or a trust.

61.1(3)An eligible investor who is entitled to a deduction under this section shall file, with the eligible investor’s return of income for any taxation year in respect of which a deduction is claimed under this section, a copy of the relevant tax credit certificates issued under section 22 of the Small Business Investor Tax Credit Act.

61.1(4)If an eligible investor is an individual referred to in paragraph (a) of the definition “eligible investor”, or a qualifying trust of the individual, the deduction under subsection (2) for a taxation year may be made in respect of a tax credit certificate issued in respect of eligible shares acquired and paid for by the eligible investor or a qualifying trust of the eligible investor in the taxation year or within 60 days after the end of the taxation year.

61.1(5)If, in respect of a taxation year, an eligible investor has been issued a tax credit certificate under section 22 of the Small Business Investor Tax Credit Act and the eligible investor’s small business investor tax credit that may be deducted for that taxation year in subparagraph (2)(a)(i) exceeds the eligible investor’s tax otherwise payable under this Act for that taxation year, the eligible investor may, to the extent that it was not deducted in another taxation year,

(a) deduct any of this unused balance of the small business investor tax credit from the eligible investor’s tax otherwise payable in any one or more of the three taxation years preceding that taxation year, or

(b) deduct any of this unused balance of the small business investor tax credit from the eligible investor’s tax otherwise payable in any one or more of the seven taxation years following that taxation year.

61.1(6)No deduction shall be made under paragraph (5)(a) for a taxation year preceding the 2003 taxation year if the eligible investor is an individual referred to in paragraph (a) of the definition “eligible investor”.

61.1(7)No deduction shall be made under paragraph (5)(a) for a taxation year preceding the 2014 taxation year if the eligible investor is a corporation or trust referred to in paragraph (b) or (c) of the definition “eligible investor”.

61.1(8)No deduction shall be made under paragraph (5)(a) for a taxation year preceding the 2014 taxation year if the eligible investor is an individual referred to in paragraph (a) of the definition “eligible investor” and the eligible share is purchased from a corporation or association registered under section 14 of the Small Business Investor Tax Credit Act.

2014, c.20, s.16; 2014, c.45, s.10; 2015, c.26, s.3; 2018-70

II

TAX ON LARGE CORPORATIONS

Tax payable

62(1)Every corporation that has a permanent establishment within New Brunswick in a taxation year shall pay a tax under this Part for the taxation year equal to

(a) 0.3% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are before January 1, 2006, is of the number of days in the taxation year,

(b) 0.25% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2005, but before January 1, 2007, is of the number of days in the taxation year,

(c) 0.2% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2006, but before January 1, 2008, is of the number of days in the taxation year,

(d) 0.1% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2007, but before January 1, 2009, is of the number of days in the taxation year, and

(e) effective January 1, 2009, zero.

62(2)The taxable capital employed in New Brunswick by a corporation for a taxation year is equal to

(a) where the corporation has no permanent establishment situated outside New Brunswick, the difference between its taxable capital employed in Canada for the year under subsection (4) and its capital deduction for the year under section 63, or

(b) where the corporation has a permanent establishment situated outside New Brunswick, that proportion determined under subsection (3) of the difference between its taxable capital for the year under subsection (4) and its capital deduction for the year under section 63.

62(3)The proportion referred to in paragraph (2)(b) shall be determined in accordance with Part IV of the Federal Regulations.

62(4)Sections 181, 181.2 and 181.4 of the Federal Act apply for the purposes of this Part.

62(5)Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection (1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365.

2006, c.29, s.6

Capital deduction

63(1)The capital deduction of a corporation for a taxation year is $5,000,000 unless the corporation was related to another corporation in the year, in which case, subject to subsection (4), its capital deduction for the year is nil.

63(2)A corporation that is related to any other corporation in a taxation year of the corporation ending in a calendar year may file with the Minister in prescribed form an agreement on behalf of the related group of which the corporation is a member under which an amount that does not exceed $5,000,000 is allocated among all corporations that are members of the related group for each taxation year of each such corporation ending in the calendar year and at a time when it was a member of the related group.

63(3)The Minister may request a corporation that is related to any other corporation at the end of a taxation year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount not exceeding $5,000,000 among the members of the related group of which the corporation is a member for the year.

63(4)Subsections 181.5(4) to (7) of the Federal Act apply for the purposes of this Part.

63(5)In this section, a corporation is “related” to another corporation or is a member of a “related group” within the meaning assigned to those expressions by section 251 of the Federal Act.

63(6)In this section, one corporation is “associated” with another in a taxation year within the meaning assigned to that word by section 256 of the Federal Act.

Exemption

64No tax is payable under this Part for a taxation year by a corporation included in subsection 181.1(3) of the Federal Act or by a corporation that is a financial institution.

Return

65Every corporation that is liable to pay tax under this Part for a taxation year shall file with the Minister, not later than the day on or before which the corporation is required to file its return of income under the provisions of the Federal Act that apply for the purposes of this Act because of section 68, a return of capital for the year in prescribed form containing an estimate of the tax payable under this Part by it for the year.

Application of Federal Act

66Notwithstanding any other provision of this Act, sections 152, 162, 163, 163.2 and 164 of the Federal Act apply to this Part.

Tax credits

67Notwithstanding any other provision of this Act, the amount of tax payable under this Part shall not be reduced by any tax credit provided under this Act.

III

RETURNS, ASSESSMENTS, PAYMENT AND
OBJECTIONS TO ASSESSMENT

Returns

68Paragraph 70(7)(a) and sections 150 and 150.1 of the Federal Act apply for the purposes of this Act.

Estimate of tax

69Section 151 of the Federal Act applies for the purposes of this Act.

Assessment

70Subsections 152(1), (1.11), (1.111), (1.12), (1.2) and (2) to (8) of the Federal Act apply for the purposes of this Act.

Reassessment or additional assessments

71Notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister of Finance and Treasury Board shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

2019, c.29, s.101

Reassessment respecting child tax benefit and working income supplement

72Notwithstanding that the normal reassessment period for an individual in respect of a taxation year has elapsed, the Minister of Finance and Treasury Board may redetermine the amount, if any, deemed under section 51 to be an overpayment on account of the taxpayer’s liability for tax for that year.

2019, c.29, s.101

Withholding

73Subsections 153(1) to (3) of the Federal Act apply for the purposes of this Act.

Instalments for tax by farmers and fishermen

74Section 155 of the Federal Act applies for the purposes of this Act.

Instalments for tax by other individuals

75Section 156 of the Federal Act applies for the purposes of this Act.

Payment of remainder where paying by instalment

76Subsection 156.1(4) of the Federal Act applies for the purposes of this Act.

Payment of tax by corporations

77(1)Subsections 157(1), (2), (2.1) and (4) of the Federal Act apply for the purposes of this Act.

77(2)Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the Federal Act and that is required to make payments under subsection 157(1) of the Federal Act, as it applies for the purposes of this Act, shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.

Payments, interest and special rules for trusts and estates

78(1)Subsection 70(2), subsection 104(2), paragraphs 104(23)(d) and (e), sections 158, 159 and 160, subsections 160.1(1), (2.1) and (3), sections 160.2 and 160.3 and subsections 161(1) to (7), (9) and (11) of the Federal Act apply for the purposes of this Act.

78(2)In applying subsections 160.1(1), (2.1) and (3) of the Federal Act for the purposes of this Act,

“refund” includes a refund that arises because of a provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable under this Act; or

(b) that deems an amount to have been paid by a taxpayer as or on account of the tax payable under this Act by the taxpayer.

78(3)Where a taxpayer is deemed under subsection 161(4) of the Federal Act to be liable to pay, in respect of the taxpayer’s tax payable under Part I of the Federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the Federal Act, notwithstanding subsection 161(4) of the Federal Act, as it applies for the purposes of this Act, the taxpayer shall be deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of the taxpayer’s tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

78(4)Where a taxpayer is deemed under subsection 161(4.01) of the Federal Act to be liable to pay, in respect of the taxpayer’s tax payable under Part I of the Federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the Federal Act, notwithstanding subsection 161(4.01) of the Federal Act, as it applies for the purposes of this Act, the taxpayer shall be deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of the taxpayer’s tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

Penalties

79Subsections 162(1) to (3), (5), (7) and (11) and section 235 of the Federal Act apply for the purposes of this Act.

Repeated failures to report income and gross negligence

80Subsections 163(1) and (1.1), paragraph 163(2)(a) as it would apply without the references to subsection 120(2) of the Federal Act therein, and subsections 163(2.1), (3) and (4) of the Federal Act apply for the purposes of this Act.

2017, c.57, s.10

Penalty for late or deficient instalments

81Section 163.1 of the Federal Act applies for the purposes of this Act.

Refunds

82Subsections 164(1) to (1.31), (1.5), (1.51) to (1.53), (2), (2.1), (3), (3.1), (3.2), (4), (4.1), (5), (5.1), (6) and (7) of the Federal Act apply for the purposes of this Act.

2015, c.25, s.8; 2016, c.30, s.6

Objections to assessment

83Sections 165, 166.1 and 166.2 of the Federal Act apply for the purposes of this Act.

IV

APPEALS

Appeals to The Court of King’s Bench of New Brunswick

2023, c.17, s.174

84(1)Section 169 of the Federal Act applies for the purposes of this Act.

84(2)Subject to subsection (4), an appeal from an assessment under this Act lies to the Court in respect of any question relating,

(a) in the case of an individual, to the determination of

(i) the individual’s residence for the purposes of this Act,

(ii) the individual’s income earned in the taxation year in New Brunswick as defined in section 13 and the individual’s income for the year as defined in section 13,

(iii) the amount of tax payable by the individual for a taxation year based on the individual’s taxable income under the Federal Act for that year,

(iv) an overpayment under section 51 in respect of a taxation year, or

(v) the liability of a director to pay an amount under section 227.1 of the Federal Act as that section applies for the purposes of this Act because of section 109; and

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in New Brunswick as defined in section 54, or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year.

84(3)Subject to subsection (4), an appeal lies to the Court in respect of the determination of an overpayment for the purposes of section 52.

84(4)No appeal from an assessment lies to the Court in respect of

(a) the computation of the net income or taxable income of an individual for a taxation year, or

(b) the computation of the taxable income of a corporation for a taxation year.

Notice of appeal

85(1)An appeal to the Court shall be instituted by serving upon the Minister of Finance and Treasury Board a notice of appeal in duplicate in the form prescribed by the Rules of Court and by filing a copy of the notice in the Court within the time specified in section 169 of the Federal Act.

85(2)A notice of appeal shall be served upon the Minister of Finance and Treasury Board by being sent by registered mail addressed to the deputy head.

85(3)The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the taxpayer intends to submit in support of the appeal.

85(4)The taxpayer appealing shall pay to the clerk of the Court a fee of $15 on the filing of the copy of the notice of appeal.

2019, c.29, s.101

Reply

86The Minister of Finance and Treasury Board shall, within 60 days after the day the notice of appeal is received, or within such further time as the Court or a judge of the Court may either before or after the expiration of that time allow, serve on the appellant and file in the Court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and of such statutory provisions and reasons as the Minister of Finance and Treasury Board intends to rely on.

2019, c.29, s.101

Power of Court or judge

87(1)The Court or a judge of the Court may, in the Court’s or judge’s discretion, strike out a notice of appeal or any part of a notice of appeal for failure to comply with subsection 85(3) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

87(2)The Court or a judge of the Court may, in the Court’s or judge’s discretion,

(a) strike out any part of a reply for failure to comply with section 86 or permit the amendment of a reply, and

(b) strike out a reply for failure to comply with section 86 and order a new reply to be filed within a time to be fixed by the order.

87(3)Where a notice of appeal is struck out for failure to comply with subsection 85(3) and a new notice of appeal is not filed as and when permitted by the Court or a judge of the Court, the Court or judge may, in the Court’s or judge’s discretion, dispose of the appeal by dismissing it.

87(4)Where a reply is not filed as required by section 86 or is struck out under this section and a new reply is not filed as ordered by the Court or a judge of the Court within the time ordered, the Court may dispose of the appeal ex parte or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true.

Appeal deemed action in Court

88(1)Upon the filing of the material referred to in sections 85 to 87, the matter shall be deemed to be an action in the Court.

88(2)Subject to subsection (3) and section 87, the notice of appeal and reply shall be deemed to be pleadings in an action in the Court.

88(3)Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the Court may direct.

88(4)Subject to section 87, the Rules of Court with respect to any matter that may be dealt with before trial apply with the necessary modifications to an action referred to in subsection (1).

88(5)An action referred to in subsection (1) may proceed to trial upon the filing of a trial record with the Court and the Rules of Court with respect to a trial record apply with the necessary modifications for the purposes of this subsection.

88(6)Section 171 of the Federal Act applies for the purposes of this Act.

88(7)The Court may, in delivering judgment disposing of an appeal, order payment or repayment of tax, interest and penalties or costs by the taxpayer or the Minister of Finance and Treasury Board.

2019, c.29, s.101

Application of Federal Act

89Sections 166, 167, 179 and 179.1 of the Federal Act apply for the purposes of this Act.

Appeal procedure

90(1)Except as provided in this Part or the regulations, the practice and procedure of the Court, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under section 88.

90(2)Every judgment and order given or made in every action referred to in subsection (1) may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the Court.

V

COLLECTION OF TAX

Collection agreement

91(1)The Minister of Finance and Treasury Board of New Brunswick, with the approval of the Lieutenant-Governor in Council, may, on behalf of the Government of the Province of New Brunswick, enter into a collection agreement with the Government of Canada under which the Government of Canada will administer this Act on behalf of the Government of the Province of New Brunswick and will make payments to the Government of the Province of New Brunswick in respect of the taxes collected under the collection agreement in accordance with the terms and conditions of the collection agreement.

91(2)The Minister of Finance and Treasury Board of New Brunswick, with the approval of the Lieutenant-Governor in Council, may, on behalf of the Government of the Province of New Brunswick, enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1).

91(3)An agreement under subsection (1) or (2) may be retroactive in its operation to January 1, 2000, or to any date after January 1, 2000.

91(4)Where a collection agreement is in effect, the Minister, on behalf of the Minister of Finance and Treasury Board of New Brunswick, may employ all the powers, perform all the duties, and exercise any discretion that the Minister of Finance and Treasury Board of New Brunswick or the deputy head has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in New Brunswick of any document that, in the opinion of the Minister, it is not in the interests of public policy to produce.

91(5)Where a collection agreement is in effect, the Commissioner of Customs and Revenue may

(a) employ all the powers, perform all the duties and exercise any discretion that the Minister has under subsection (4) or otherwise under this Act, and

(b) designate officers of the Canada Customs and Revenue Agency to carry out such functions, duties and powers as are similar to those that are exercised by them on the Commissioner’s behalf under the Federal Act.

2019, c.29, s.101

Application of tax payments

92(1)A collection agreement may provide that where a payment is received by the Minister of Finance and Treasury Board on account of tax payable by a taxpayer for a taxation year under this Act, the Federal Act or an income tax statute of another agreeing province, or under any two or more such Acts or statutes, the payment so received may be applied by the Minister of National Revenue for Canada towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer directed that the payment be applied in any other manner or made no direction as to its application.

92(2)A payment or part of a payment applied by the Minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay such tax to the extent of the payment or part of the payment so applied, and

(b) shall be deemed to have been applied in accordance with a direction made by the taxpayer.

2019, c.29, s.101

Remittances not recoverable

93Where a collection agreement is in effect and an amount is remitted to the Minister of Finance and Treasury Board under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of such amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

2019, c.29, s.101

Tax paid to other agreeing province

94(1)Where a collection agreement is in effect, an individual resident in New Brunswick on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual’s tax for that year under the income tax statute of another agreeing province.

94(2)Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in New Brunswick on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of section 82 apply in respect of such individual as though the excess were an overpayment under this Act.

Non-agreeing provinces

95(1)In this section

“adjusting payment” means a payment, calculated in accordance with this section, made by or on the direction of the Government of the Province of New Brunswick to a non-agreeing province; (paiement de rajustement)

“amount deducted or withheld” does not include any refund made in respect of that amount; (montant déduit ou retenu)

“non-agreeing province” means a province that is not an agreeing province. (province non participante)

95(2)Where, in respect of a taxation year, a non-agreeing province is authorized to make a payment to the Government of the Province of New Brunswick that, in the opinion of the Minister of Finance and Treasury Board of New Brunswick corresponds to an adjusting payment, the Lieutenant-Governor in Council may authorize the Minister of Finance and Treasury Board of New Brunswick to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.

95(3)Where a collection agreement is entered into, the adjusting payment that may be made under subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of the Government of the Province of New Brunswick as communicated by the Minister of Finance and Treasury Board of New Brunswick to the Minister of National Revenue for Canada.

95(4)The adjusting payment to be made under this section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, in respect of the tax payable for a taxation year by individuals who

(a) file returns under the Federal Act,

(b) are taxable under the Federal Act in respect of that year, and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

95(5)Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, on account of the tax for a taxation year of an individual who is taxable under the Federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) no action lies for the recovery of such amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

95(6)Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in New Brunswick on the last day of that taxation year is not required to remit any amount on account of tax that is payable or might have been payable by the individual under this Act for that taxation year to the extent of the amount deducted or withheld on account of the individual’s income tax for that taxation year under the law of that non-agreeing province.

95(7)Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year and the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in New Brunswick on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of section 82 apply in respect of such individual as though the excess were an overpayment under this Act.

95(8)Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the Government of the Province of New Brunswick and to make an adjusting payment on behalf of the Government of the Province of New Brunswick, the adjusting payment

(a) shall be made out of any money that has been collected on account of tax under this Act for any taxation year, and

(b) shall be the amount calculated by the Minister to be the amount required to be paid under subsection (4).

95(9)A payment of an adjusting payment under subsection (8) discharges any obligation the Government of Canada may have with respect to the payment to the Government of the Province of New Brunswick of any amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, to which subsection (5) applies.

2019, c.29, s.101

Enforcement of judgments

2004, c.29, s.19

96(1)A judgment of a superior court of another agreeing province under that province’s income tax statute, including any certificate registered in such superior court in a manner similar to that provided in subsection 223(3) of the Federal Act, as it applies for the purposes of this Act, may be enforced in the manner provided in the Canadian Judgments Act.

96(2)Repealed: 2004, c.29, s.20

2004, c.29, s.20

VI

ADMINISTRATION AND ENFORCEMENT

Administration

97Section 220 of the Federal Act applies for the purposes of this Act.

Application of interest

98Section 221.1 of the Federal Act applies for the purposes of this Act.

Enforcement

99Section 222 of the Federal Act applies for the purposes of this Act.

Certificates

100(1)Paragraph 223(1)(a) and subsections 223(2) to (4) of the Federal Act apply for the purposes of this Act.

100(2)Where a collection agreement is in effect, subsection (1) does not apply, but the Minister may proceed under section 223 of the Federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

Warrants

101The Minister of Finance and Treasury Board may issue a warrant directed to the sheriff for a judicial district in which any property of the taxpayer is located or situate, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest on such amount from the date of the issue of the warrant and the fees, costs and expenses of the sheriff, and such warrant may be executed in the same manner that an enforcement instruction may be carried out under the Enforcement of Money Judgments Act.

2013, c.32, s.26; 2019, c.29, s.101

Garnishment

102Section 224 of the Federal Act applies for the purposes of this Act.

Acquisition of debtor’s property

103Section 224.2 of the Federal Act applies for the purposes of this Act.

Payment of money seized from tax debtor

104Section 224.3 of the Federal Act applies for the purposes of this Act.

Direction to seize chattels

105Section 225 of the Federal Act applies for the purposes of this Act.

Restrictions on collection

106Sections 225.1 and 225.2 of the Federal Act apply for the purposes of this Act.

Demand for payment

107Section 226 of the Federal Act applies for the purposes of this Act.

Money withheld

108(1)Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10), (10.2) and (11) to (13) of the Federal Act apply for the purposes of this Act.

108(2)The Minister of Finance and Treasury Board may assess

(a) any person for any amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, and

(b) any person for any amount payable by that person under subsection 224(4) or (4.1) or section 227.1 or 235 of the Federal Act, as they apply for the purposes of this Act, or under section 115.

108(3)Where the Minister of Finance and Treasury Board sends a notice of assessment to a person referred in paragraph (2)(a) or (b), sections 68 and 78 to 90 apply with the necessary modifications.

108(4)Notwithstanding any other provision of this Act or any other Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the Federal Regulations made for the purposes of subsection 153(1) of the Federal Act, as both those Federal Regulations and that subsection apply for the purposes of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds $500.

2019, c.29, s.101

Liability of directors

109Section 227.1 of the Federal Act applies for the purposes of this Act.

Books and records

110Section 230 of the Federal Act applies for the purposes of this Act.

Inspections

111Sections 231 to 231.5 of the Federal Act apply for the purposes of this Act.

Privilege

112Section 232 of the Federal Act applies for the purposes of this Act.

Information return

113Section 233 of the Federal Act applies for the purposes of this Act.

Execution of documents by corporations

114Section 236 of the Federal Act applies for the purposes of this Act.

Offence respecting regulations

115(1)Every person who fails to comply with a regulation made under subsection 124(1) commits an offence and is liable on conviction to a fine of $10 per day for each day the offence is committed, but the fine is not to exceed $2,500 in total.

115(2)Every person who fails to comply with the Federal Regulations made under subsection 221(1) of the Federal Act, as they apply for the purposes of this Act because of subsection 124(3), commits an offence and is liable on conviction to a fine of $10 per day for each day the offence is committed, but the fine is not to exceed $2,500 in total.

Offence respecting returns and records

116(1)Every person who fails to file a return as and when required by or under this Act or a regulation, or by or under a provision of the Federal Act or of the Federal Regulations, as the provision applies for the purposes of this Act, or who fails to comply with any of subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the Federal Act, as it applies for the purposes of this Act, commits an offence and, in addition to any penalty otherwise provided, is liable on conviction to

(a) a fine of not less than $1,000 and not exceeding $25,000; or

(b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months.

116(2)Subsection 238(2) of the Federal Act applies for the purposes of this Act.

116(3)Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, that person is not liable to a penalty under subsection 227(8), (9) or (9.5) of the Federal Act, as those subsections apply for the purposes of this Act, a penalty under the provisions of the Federal Act that apply for the purposes of this Act because of section 79, or a penalty under section 115 for the same failure, unless that person was assessed for that penalty or that penalty was demanded from that person before the information or complaint giving rise to the conviction was laid or made.

Other offences and penalties

117Subsections 239(1) and (1.1) of the Federal Act apply for the purposes of this Act.

Action under section 116 or 117

118Where a collection agreement is entered into and proceedings under section 238 or subsection 239(1) or (1.1) of the Federal Act are taken against any person, the Minister may take or refrain from any action against such person contemplated by section 116 or 117 of this Act, as the case may be.

Offence respecting disclosure of tax information

119(1)Every person who, while employed in the administration of this Act,

(a) knowingly communicates or knowingly allows to be communicated to any person not legally entitled thereto any information obtained by or on behalf of the Minister of Finance and Treasury Board for the purposes of this Act,

(b) knowingly allows any person not legally entitled thereto to inspect or to have access to any book, record, writing, return or other document obtained by or on behalf of the Minister of Finance and Treasury Board for the purposes of this Act, or

(c) knowingly uses, other than in the course of that person’s duties in connection with the administration or enforcement of this Act, any information obtained by or on behalf of the Minister of Finance and Treasury Board for the purposes of this Act,

commits an offence and is liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment.

119(2)Subsection (1) does not apply to the communication of information between

(a) the Minister of Finance and Treasury Board of New Brunswick and the Minister of National Revenue for Canada; or

(b) the Minister of Finance and Treasury Board of New Brunswick or the Minister of National Revenue for Canada and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of

(i) another agreeing province, or

(ii) a non-agreeing province to which an adjusting payment may be made under subsection 95(2).

119(2.1)Subsection (1) does not apply to the communication of information that is necessary for carrying out the purposes of section 52.1.

119(3)Section 241 of the Federal Act applies for the purposes of this Act.

2005, c.31, s.2; 2007, c.46, s.2; 2009, c.16, s.11; 2019, c.29, s.101

Officers, directors and agents of corporations

120Section 242 of the Federal Act applies for the purposes of this Act.

Power to decrease punishment

121Section 243 of the Federal Act applies for the purposes of this Act.

Procedure and evidence

122(1)Subsections 244(1) to (5), (7) to (11), (13) to (22) of the Federal Act apply for the purposes of this Act.

122(2)Judicial notice shall be taken of

(a) all orders or regulations made under this Act, and

(b) a collection agreement or any agreement for the collection by Canada of the tax imposed under the income tax statute of another agreeing province,

without such orders, regulations or agreements being specially pleaded or proven.

122(3)For the purposes of this Act, anything sent by first class mail or its equivalent shall be deemed to have been received by the person to whom it is sent on the day that it was mailed, except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act, shall be deemed to have been remitted on the day it is received by the Minister of Finance and Treasury Board.

122(4)A document purporting to be a collection agreement that is

(a) published in the Canada Gazette, or

(b) certified as such by or on behalf of

(i) the Minister of National Revenue for Canada, or

(ii) the Minister of Finance and Treasury Board of New Brunswick,

is admissible in evidence and is, in the absence of evidence to the contrary, proof of the contents of the collection agreement.

122(5)A document purporting to be an agreement with Canada for the collection of tax imposed under the income tax statute of another agreeing province that is

(a) published in the Canada Gazette, or

(b) certified as such by or on behalf of

(i) the Minister of National Revenue for Canada, or

(ii) the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of that agreeing province,

is admissible in evidence and is, in the absence of evidence to the contrary, proof of the contents of the agreement.

122(6)Every certificate of the Minister of Finance and Treasury Board as to

(a) a taxpayer’s tax payable under the Federal Act as defined in section 13,

(b) a taxpayer’s income for the year as defined in section 13, or

(c) the taxable income of a corporation,

is admissible in evidence and is, in the absence of evidence to the contrary, proof that a taxpayer’s tax payable under the Federal Act, the taxpayer’s income for the year or the taxable income of a corporation, as the case may be, is in the amount set out in the certificate.

122(7)Where a collection agreement is entered into, any document or certificate that is executed or issued by the Minister, the Commissioner of Customs and Revenue, or an official of the Canada Customs and Revenue Agency on behalf or in place of the Minister of Finance and Treasury Board, the Minister of Finance and Treasury Board’s deputy or an officer of the department under the Minister of Finance and Treasury Board, shall be deemed, for the purposes of this Act, to be executed or issued by the Minister of Finance and Treasury Board, the deputy or the officer, as the case may be.

122(8)Where no collection agreement is entered into, a reference to the Royal Canadian Mounted Police in the provisions of the Federal Act that apply for the purposes of this Act because of subsection (1) shall be construed as a reference to the police force carrying out the duties of a provincial police force in New Brunswick.

2019, c.29, s.101

General anti-avoidance rule and benefit conferred on a person

123Sections 245 and 246 of the Federal Act apply for the purposes of this Act.

VII

REGULATIONS

Regulations

124(1)The Lieutenant-Governor in Council may make regulations

(a) for the purposes of paragraph (d) of the definition “prescribed” in section 1, prescribing anything that is to be prescribed under this Act;

(b) respecting anything that, by this Act, is to be provided for, determined or regulated by regulation;

(b.01) respecting the penalty referred to in subsection 50(2.6), including the amount of the penalty, the time limit for paying the penalty, interest on the penalty and a refund of the penalty;

(b.1) Repealed: 2009, c.16, s.12

(c) respecting the circumstances under which both an individual and his or her spouse or common-law partner may apply under section 52;

(c.01) excluding improvements for the purpose of paragraph (e) of the definition “qualifying renovation” in subsection 52.01(1);

(c.1) respecting any matter that, in the opinion of the Lieutenant-Governor in Council, is necessary for carrying out the purposes of section 52.1;

(d) respecting New Brunswick film tax credit certificates under section 60, including applications for the certificates, issuance of the certificates, revocation of the certificates and form of the certificates;

(e) respecting eligible projects for the purposes of section 60;

(e.1) prescribing the rate for the purposes of paragraph 60(3)(a);

(e.2) prescribing the rate for the purposes of paragraph 60(3)(b);

(f) respecting the circumstances and terms and conditions under which a waiver may be made under subsection 60(5);

(g) respecting the enforcement in New Brunswick of judgments in respect of taxes in other agreeing provinces;

(h) respecting the deduction or withholding of amounts from payments described in subsection 153(1) of the Federal Act, as that subsection applies for the purposes of this Act because of section 73, and the remittance of such amounts to the Receiver General;

(i) respecting the determination of amounts referred to in paragraph (h);

(j) requiring persons making payments referred to in paragraph (h) to deduct, withhold or remit the amounts determined under paragraph (i);

(k) respecting elections by persons in respect of amounts deducted or withheld from payments referred to in paragraph (h) made to such persons;

(l) respecting the filing of forms with persons deducting or withholding payments referred to in paragraph (h);

(m) respecting the practice and procedure on appeals under Part IV;

(n) defining any word or expression used in but not defined in this Act;

(o) respecting the circumstances in which and the extent to which a provision of the Federal Regulations applies.

124(2)A regulation made under subsection (1) may be retroactive in its operation to January 1, 2000, or to any date after January 1, 2000.

124(3)Except to the extent that the Federal Regulations are inconsistent with a regulation made under subsection (1) or are expressed by a regulation made under subsection (1) to be inapplicable, the Federal Regulations made under subsection 221(1) of the Federal Act apply with the necessary modifications for the purposes of this Act with respect to all matters enumerated in subsection 221(1) of the Federal Act.

124(4)In applying paragraph (1)(c) to the 2000 taxation year, paragraph (1)(c) shall be read without reference to “or common-law partner”.

2001, c.25, s.19; 2005, c.31, s.3; 2007, c.46, s.3; 2009, c.16, s.12; 2009, c.56, s.2; 2015, c.25, s.9

VIII

TRANSITIONAL PROVISIONS

Tax Agreement Act, 1957

125(1)Each Act or provision of an Act that is enumerated in Appendix “A” to the Agreement, appended as a schedule to the Tax Agreement Act, 1957, and that is repealed, suspended or nullified shall continue to be repealed, suspended or nullified unless the Lieutenant-Governor in Council by proclamation declares that the Act or provision is operative.

125(2)Where the Lieutenant-Governor in Council makes a declaration under subsection (1), the Act or provision shall be in full force and effect.

Repealed

126Repealed: 2012, c.33, s.5

2012, c.33, s.5

Common-law partners

127Section 146 of the Modernization of Benefits and Obligations Act (Canada) applies for the purposes of this Act.

IX

CONSEQUENTIAL AMENDMENTS

Income Tax Act

128(1)The Income Tax Act, chapter I-2 of the Revised Statutes, 1973, is amended by adding before Part I the following:

0.1Notwithstanding any other provision of this Act except subsection 3(2.9), this Act does not apply to

(a) the 2000 taxation year or any subsequent taxation year of an individual, and

(b) the taxation years of a corporation that end after December 31, 1999.

128(2)Paragraph 2(3)(q) of the Act is repealed and the following is substituted:

(q) 60 per cent in respect of the 1999 taxation year.

128(3)Section 2.01 of the Act is amended by striking out “the 1991 and subsequent taxation years” and substituting “the 1991 to 1999 taxation years, inclusive,”.

128(4)Subsection 2.5(6) of the Act is repealed and the following is substituted:

2.5(6)This section applies to the 1998 and 1999 taxation years.

128(5)Section 5.1 of the Act is amended

(a) in subsection (1) in the definition “eligible expenditure” by striking out “made after February 25, 1994” and substituting “made after February 25, 1994, and before January 1, 2000,”;

(b) in subsection (5) by striking out “after February 25, 1994” and substituting “after February 25, 1994, and before January 1, 2000”;

(c) in subsection (6) by striking out “after February 25, 1994” and substituting “after February 25, 1994, and before January 1, 2000”.

128(6)Section 5.2 of the Act is amended

(a) in subsection (1) in the definition “eligible salaries”

(i) in paragraph (a) by striking out “on or after June 13, 1996” and substituting “on or after June 13, 1996, and before January 1, 2000”;

(ii) in paragraph (b) by striking out “on or after June 13, 1996” and substituting “on or after June 13, 1996, and before January 1, 2000”;

(b) by repealing paragraph (4)(a) and substituting the following:

(a) the tax credit applies with respect to eligible salaries incurred on or after June 13, 1996, and before January 1, 2000;

128(7)Subsection 27.3(1) of the Act is amended by striking out “in a taxation year ending after March 31, 1997” and substituting “in a taxation year ending after March 31, 1997, and before January 1, 2000”.

128(8)Subsection 54(9) of the Act is repealed.

Stock Savings Plan Act

129(1)The Stock Savings Plan Act, chapter S-14.2 of the Acts of New Brunswick, 1989, is repealed.

129(2)New Brunswick Regulation 90-87 under the Stock Savings Plan Act is repealed.

X

COMMENCEMENT

Commencement

130This Act shall be deemed to have come into force on January 1, 2000.

N.B. This Act is consolidated to June 16, 2023.

N-6.001 - New Brunswick Income Tax Act

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