Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Modification for purposes of provincial program

122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.

SUBDIVISION A.3Climate Action Incentive

Marginal note:Definitions

• 122.8 (1) The following definitions apply in this section.

  cohabiting spouse or common-law partner

  cohabiting spouse or common-law partner, of an individual at any time, has the same meaning as in section 122.6. (époux ou conjoint de fait visé)

  eligible individual

  eligible individual, for a taxation year, means an individual (other than a trust) who is, at the end of the taxation year,

  • (a) 18 years of age or older;

  • (b) a parent who resides with their child; or

  • (c) married or in a common-law partnership. (particulier admissible)

  qualified dependant

  qualified dependant, of an individual for a taxation year, means a person who, at the end of the taxation year,

  • (a) is the individual’s child or is dependent for support on the individual or on the individual’s cohabiting spouse or common-law partner;

  • (b) resides with the individual;

  • (c) is under the age of 18 years;

  • (d) is not an eligible individual for the taxation year; and

  • (e) is not a qualified relation of any individual for the taxation year. (personne à charge admissible)

  qualified relation

  qualified relation, of an individual for a taxation year, means the person, if any, who, at the end of the taxation year, is the individual’s cohabiting spouse or common-law partner. (proche admissible)

  return of income

  return of income, in respect of a person for a taxation year, means 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)) 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 this Part for the taxation year. (déclaration de revenu)

• Marginal note:Persons not eligible individuals, qualified relations or qualified dependants

  (2) Notwithstanding subsection (1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, for a taxation year, if the person

  • (a) died before April of the year following the taxation year;

  • (b) is confined to a prison or similar institution for a period of at least 90 days during the taxation year;

  • (c) is a non-resident person at any time in the taxation year;

  • (d) is a person described in paragraph 149(1)(a) or (b) at any time in the taxation year; or

  • (e) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable at any time in the taxation year.

• Marginal note:Residence

  (3) For the purposes of this section, an individual is considered to reside at any time only at their principal place of residence.

• Marginal note:Deemed overpayment

  (4) An eligible individual who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount determined by the formula

  (A + B + C × D) × E

  where

  A

  is the amount specified by the Minister of Finance for an eligible individual for the taxation year for the province (in this subsection and subsection (6) referred to as the “relevant province”) in which the eligible individual resides at the end of the taxation year;

  B

  is

  • (a) the amount specified by the Minister of Finance for a qualified relation for the taxation year for the relevant province, if

    • (i) the eligible individual has a qualified relation at the end of the taxation year, or

    • (ii) subparagraph (i) does not apply and the eligible individual has a qualified dependant at the end of the taxation year, and

  • (b) in any other case, nil;

  C

  is the amount specified by the Minister of Finance for a qualified dependant for the taxation year for the relevant province;

  D

  is the number of qualified dependants of the eligible individual at the end of the taxation year, other than a qualified dependant in respect of whom an amount is included because of subparagraph (a)(ii) of the description of B for the taxation year; and

  E

  is

  • (a) 1.1, if there is a census metropolitan area, as determined in the last census published by Statistics Canada before the taxation year, in the relevant province and the individual does not reside in a census metropolitan area at the end of the taxation year, and

  • (b) 1, in any other case.

• Marginal note:Authority to specify amounts

  (5) The Minister of Finance may specify amounts for a province for a taxation year for the purposes of this section. If the Minister of Finance does not specify a particular amount that is relevant for the purposes of this section, that particular amount is deemed to be nil for the purpose of applying this section.

• Marginal note:Deemed rebate in respect of fuel charges

  (6) The amount deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid in the year following the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the relevant province.

• Marginal note:Only one eligible individual

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

• Marginal note:Exception — qualified dependant

  (8) If a person would, if this Act were read without reference to this subsection, be the qualified dependant of two or more individuals, for a taxation year,

  • (a) the person is deemed to be a qualified dependant, for the taxation year, of the one of those individuals on whom those individuals agree; and

  • (b) in any other case, the person is deemed to be, for the taxation year, a qualified dependant only of the individual that the Minister designates.

• Marginal note:Effect of bankruptcy

  (9) For the purposes of this section, if an individual becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year.

SUBDIVISION A.4School Supplies Tax Credit

Marginal note:Definitions

• 122.9 (1) The following definitions apply in this section.

  eligible educator

  eligible educator, in respect of a taxation year, means an individual who, at any time during the taxation year,

  • (a) is employed in Canada as a teacher or an early childhood educator at

    • (i) an elementary or secondary school, or

    • (ii) a regulated child care facility; and

  • (b) holds a valid and recognized (in the province or territory in which the individual is employed)

    • (i) teaching certificate, licence, permit or diploma, or

    • (ii) certificate or diploma in early childhood education. (éducateur admissible)

  eligible supplies expense

  eligible supplies expense, of an eligible educator for a taxation year, means an amount (other than any amount deducted in computing any person’s income for any taxation year or any amount otherwise included in computing a deduction from any person’s tax payable under this Act for any taxation year) paid by the eligible educator in the taxation year for teaching supplies to the extent that

  • (a) the teaching supplies were

    • (i) purchased by the eligible educator for the purpose of teaching or facilitating students’ learning, and

    • (ii) directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the duties of the eligible educator’s employment; and

  • (b) the eligible educator is not entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the eligible educator and that is not deductible in computing the taxable income of the eligible educator) in respect of the amount paid. (dépense admissible)

  return of income

  return of income filed by an eligible educator for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the year or that would be required to be filed if the eligible educator had tax payable under this Part for the year. (déclaration de revenu)

  teaching supplies

  teaching supplies means

  • (a) consumable supplies; and

  • (b) prescribed durable goods. (fournitures scolaires)

• Marginal note:Deemed overpayment

  (2) An eligible educator who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the year; and

  B

  is the least of

  • (a) $1,000,

  • (b) the total of all amounts each of which is an eligible supplies expense of the eligible educator for the year, and

  • (c) if the eligible educator fails to provide the certificate referred to in subsection (3) in respect of the year, as and when requested by the Minister, nil.

• Marginal note:Certificate

  (3) If the Minister so demands, an eligible educator making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from their employer, or a delegated official of the employer, attesting to the eligible supplies expenses of the eligible educator for the year.

• Marginal note:Effect of bankruptcy

  (4) For the purposes of this Subdivision, if an eligible educator becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the eligible educator (other than in this subsection) is deemed to be a reference to the particular calendar year.

• Marginal note:Part-year residents

  (5) If an eligible educator is resident in Canada throughout part of a taxation year and is non-resident throughout another part of the year, the total of the amounts that are deemed to be paid by the eligible educator under subsection (2) for the year cannot exceed the lesser of

  • (a) the total of

    • (i) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is not resident in Canada, computed as though that period or those periods were the whole taxation year, and

    • (ii) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is resident in Canada, computed as though that period or those periods were the whole taxation year; and

  • (b) the total of the amounts that would have been deemed to have been paid under subsection (2) for the year had the eligible educator been resident in Canada throughout the year.

• Marginal note:Non-residents

  (6) Subsection (2) does not apply in respect of a taxation year of an eligible educator if the eligible educator is, at no time in the year, resident in Canada, unless all or substantially all the eligible educator’s income for the year is included in computing the eligible educator’s taxable income earned in Canada for the year.

SUBDIVISION A.5Canada Training Credit

Marginal note:Claimed amount

• 122.91 (1) An individual who is resident in Canada throughout a taxation year, files a return of income for the taxation year and makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount claimed by the individual that does not exceed the lesser of

  • (a) the training amount limit of the individual for the taxation year, and

  • (b) 50% of the amount that would be deductible under paragraph 118.5(1)(a) or (d) in computing the individual’s tax payable under this Part for the taxation year if

    • (i) this Act were read without reference to subsections 118.5(1.2) and (2), and

    • (ii) the appropriate percentage for the taxation year were 100%.

• Marginal note:Training amount limit

  (2) For the purposes of this section, the training amount limit of an individual for a taxation year is

  • (a) if the taxation year is after 2019 and the individual has attained the age of 26 years, and has not attained the age of 66 years, before the end of the taxation year, the lesser of

    • (i) the amount determined by the formula

      A + B − C

      where

      A

      is the individual’s training amount limit for the preceding taxation year,

      B

      is

      • (A) $250, if

        • (I) the individual has filed a return of income for the preceding taxation year,

        • (II) the individual was resident in Canada throughout the preceding taxation year,

        • (III) the total of the following amounts is greater than or equal to $10,000:

          • 1 the amount that would be the individual’s working income (as defined in subsection 122.7(1)) for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a) and subsection 81(4),

          • 2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 23(1), 152.04(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and

          • 3 the amount that would be included in the individual’s income because of subparagraph 56(1)(a)(vii) in computing the individual’s income for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a), and

        • (IV) the individual’s income for the preceding taxation year under this Part does not exceed the higher dollar amount referred to in paragraph 117(2)(c), as adjusted under this Act for the preceding taxation year, and

      • (B) nil, in any other case, and

      C

      is the amount deemed to have been paid by the individual under subsection (1) in respect of the preceding taxation year, and

    • (ii) the amount determined by the formula

      $5,000 − D

      where

      D

      is the total of all amounts deemed to have been paid by the individual under subsection (1) in respect of a preceding taxation year; and

  • (b) nil, in any other case.

• Marginal note:Effect of bankruptcy

  (3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year,

  • (a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

  • (b) the individual’s working income and income under this Part for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and the income under this Part for the taxation year that begins on January 1 of the particular calendar year.

• Marginal note:Special rules in the event of death

  (4) For the purposes of this section, if an individual dies in a calendar year,

  • (a) the individual is deemed to be resident in Canada from the time of death until the end of the year;

  • (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; and

  • (c) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.