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Explanatory Notes Relating to Remaining Budget 2006 Income Tax Measures, Dividend Taxation and Canadian Vintners and Brewers
Published by
The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
October 2006
Related documents:
- Canada’s New Government to Ease the Burden of Taxpayers (News Release 2006-057)
- Notice of Ways and Means Motion to Implement Certain Provisions of the Budget Tabled in Parliament on May 2, 2006
These notes are intended for information purposes and should not be construed as an official interpretation of the provisions they describe.
Table of Contents
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| Clause in Legislation |
Section of the Act Amended |
Topic |
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| Preface | ||
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| 2 |
8 |
Apprentice mechanic’s tool costs |
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3 |
14 |
Eligible capital property |
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4 |
40(1.1) |
Reserve – property disposed of to a child |
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5 |
44(1.1) |
Reserve – former property disposed of to a child |
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6 |
56 |
Other sources of income |
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7 |
60 |
Deductions in computing income |
|
8 |
63 |
Child care expense |
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9 |
64 |
Disability supports deduction |
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10 |
70 |
Transfer of farm and fishing property to child |
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11 |
73 |
Inter vivos transfer of farm property to child |
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12 |
74.1 |
Transfers and loans to minors |
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13 |
85(5.1) |
Acquisition of certain tools |
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14 |
97(5) |
Acquisition of certain tools |
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15 |
104(21.2)(b) |
Beneficiary’s taxable capital gain |
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16 |
108(1) |
Definitions |
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17 |
110.6 |
Definitions |
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18 |
117(2) |
Tax rates applicable to individuals |
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19 |
117.1(1) |
Annual adjustment of deductions and other amounts |
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20 |
118(3) |
Pension credit |
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21 |
118.02 |
Transit pass tax credit |
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118.03 |
Child Fitness tax credit |
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22 |
118.3 |
Credit for mental or physical impairment |
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23 |
118.6 |
Textbook tax credit |
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24 |
118.61 |
Unused tuition and education tax credits |
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25 |
118.8 |
Transfer of unused credits to spouse or common-law partner |
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26 |
118.81 |
Tuition and education tax credits transferred |
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27 |
118.9 |
Transfer to parent or grandparent |
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28 |
118.91 |
Part-year residents |
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29 |
118.92 |
Ordering of credits |
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118.93 |
Credits in separate returns |
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118.94 |
Tax payable by non-resident |
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30 |
118.95 |
Credits in year of bankruptcy |
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31 |
122.51 |
Refundable medical expense supplement |
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32 |
123.4(1) |
Full rate taxable income |
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33 |
125 |
Small business deduction |
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34 |
127 |
Deductions from tax payable |
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35 |
127.531 |
Basic minimum tax credit determined |
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36 |
128(2)(e) |
Where individual bankrupt |
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37 |
137(3) |
Credit unions |
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38 |
137.1(9) |
Deposit insurance corporations |
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39 |
147.2(7) |
Registered Pension Plans – Letter of credit |
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40 to 42 |
Part VI |
Minimum tax on financial institutions |
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| Part 2 – Dividend Taxation | ||
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43 |
15(1.1) |
Consequential amendment to subsection 15(1.1) |
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44 |
82(1) |
Taxable dividends received |
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45 |
87(2) |
Consequential amendments to subsection 87(2) |
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46 |
88(1)(e.2) |
Consequential amendment to paragraph 88(1)(e.2) |
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47 |
89(1) |
Definitions |
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"eligible dividend" |
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"excessive eligible dividend designation" |
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"general rate income pool" |
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"low rate income pool" |
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| 89(4) |
GRIP addition: becoming a CCPC |
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| 89(5) |
GRIP addition: post-amalgamation |
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| 89(6) |
GRIP addition: post-winding-up |
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| 89(7) |
GRIP addition for 2006 |
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| 89(8) |
LRIP addition: ceasing to be a CCPC |
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| 89(9) |
LRIP addition: post-amalgamation |
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| 89(10) |
LRIP addition: post-winding-up |
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| 89(11) to (13) |
Election: non-CCPC |
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| 89(14) |
Dividend designation |
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| 89(15) |
Interpretation – deposit insurance corporations |
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48 |
121 |
Dividend tax credit for eligible dividends |
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49 |
125(7) |
Interpretation – "Canadian-controlled private corporation" |
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50 |
127.52(1)(f) |
Consequential amendment to paragraph 127.52(1)(f) |
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51 |
Part III.1 |
Additional tax on excessive eligible dividend designations |
| 185.1(1) |
Tax on excessive eligible dividend designations |
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| 185.1(2) to (4) |
Election |
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| 185.2 |
Rules applicable to Part III.1 |
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52 |
248 |
Interpretation |
| 248(1) |
Definitions |
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"eligible dividend" |
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"excessive eligible dividend designation" |
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"general rate income pool" |
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"low rate income pool" |
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53 |
249(4.1) |
Deemed year-end on status change |
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54 |
260 |
Eligible dividend |
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55 |
87 |
Information on container |
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56 |
134(3) |
Bulk wine - relief for 100% Canadian wine |
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57 |
135(2) |
Packaged wine - relief for 100% Canadian wine |
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58 |
2 |
Definition – person |
| 59 | 2.2 to 2.4 |
Related and associated persons |
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60 |
170(1) |
Duties |
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61 |
170.1 |
Reduced rates – Canadian beer |
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62 |
Schedule |
List of duty rate provisions |
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63 |
Schedule |
Duty on Canadian beer |
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| Last Updated: 2006-10-16 |
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