Acts and Regulations

2017, c.57 - An Act to Amend the New Brunswick Income Tax Act

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2017, c.57
An Act to Amend the
New Brunswick Income Tax Act
Assented to December 20, 2017
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1Section 7 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended
(a) in paragraph (b) by striking out “Parts I.1 to XIV of the Federal Act” and substituting “Parts I.01 to XIV of the Federal Act”;
(b) in paragraph (e) by striking out “Parts I.1 to XIV of the Federal Act” and substituting “Parts I.01 to XIV of the Federal Act”.
2Section 25 of the Act is repealed and the following is substituted:
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.
3Section 35 of the Act is amended
(a) in subparagraph (e)(ii) of the English version by striking out “and” at the end of the subparagraph;
(b) in subparagraph (f)(ii) of the English version by striking out “and” at the end of the subparagraph;
(c) in paragraph (g)
(i) by striking out the portion preceding subparagraph (i) and substituting the following:
(g) for the 2017 taxation year,
(ii) by striking out the period at the end of the paragraph and substituting a semicolon;
(d) by adding after paragraph (g) the following:
(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%.
4Section 47 of the Act is amended by adding after subsection (2) the following:
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.
5Subsection 49.1(1) of the Act is amended in the definition “tax otherwise payable” by striking out “sections 50, 61 and 61.1” and substituting “sections 50, 50.01 and 61.1”.
6The Act is amended by adding after section 50 the following:
i.01
Political Contributions Tax Credit
Political contributions tax credit
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.
7Section 57 of the Act is amended
(a) in subsection (1.024) by striking out “For the period commencing on April 1, 2017,” and substituting “For the period commencing on April 1, 2017, and ending on March 31, 2018,”;
(b) by adding after subsection (1.024) the following:
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%”.
8The heading “Political contributions” preceding section 61 of the Act is repealed.
9Section 61 of the Act is repealed.
10Section 80 of the Act is amended by striking out “Subsection 163(1), paragraph 163(2)(a)” and substituting “Subsections 163(1) and (1.1), paragraph 163(2)(a)”.
11(1)Section 1 of this Act shall be deemed to have come into force on March 4, 2010.
11(2)Section 2 of this Act shall be deemed to have come into force on January 1, 2016.
11(3)Section 3 of this Act comes or shall be deemed to have come into force on January 1, 2018.
11(4)Section 4 of this Act shall be deemed to have come into force on January 1, 2004.
11(5)Sections 5, 6, 8 and 9 of this Act shall be deemed to have come into force on June 1, 2017.
11(6)Section 7 of this Act comes or shall be deemed to have come into force on April 1, 2018.
11(7)Section 10 of this Act shall be deemed to have come into force on January 1, 2015.