Budget Implementation Act, 2006 (S.C. 2006, c. 4)

Assented to 2006-06-22

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

  •  (1) Paragraph 18(1)(t) of the Income Tax Act is replaced by the following:

    • Marginal note:Payments under different acts

      (t) any amount paid or payable

  • (2) Subsection (1) applies to taxation years that begin on or after April 1, 2007.

  •  (1) Subsection 161.4(2) of the Act is replaced by the following:

    • Marginal note:Minister

      (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

  • (2) Subsection (1) applies to amounts owing on or after April 1, 2007.

  •  (1) Section 164 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Withholding of refunds

      (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act have been filed with the Minister.

  • (2) Subsection (1) comes into force on April 1, 2007.

  •  (1) Subsection 220(3) of the Act is replaced by the following:

    • Marginal note:Extensions for returns

      (3) The Minister may at any time extend the time for making a return under this Act.

  • (2) Section 220 of the Act is amended by adding the following after subsection (3.7):

    • Marginal note:Dishonoured instruments

      (3.8) For the purposes of this Act and section 155.1 of the Financial Administration Act

      • (a) any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Act is deemed to be an amount that becomes payable or remittable by the person at that time under this Act;

      • (b) sections 152, 158 and 159, subsections 161(1), (2) and (11), sections 162 to 167 and Division J of this Part are applicable to the amount deemed to become payable or remittable by this subsection with any modifications that the circumstances require;

      • (c) Part II of the Interest and Administrative Charges Regulations does not apply to the charge; and

      • (d) any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

  • (3) Subsection (1) applies in respect of extensions granted on or after April 1, 2007.

  • (4) Subsection (2) applies in respect of any instrument that is dishonoured on or after April 1, 2007.