Coming into Force

Marginal note:Newfoundland and Labrador

• 175. (1) Section 172 comes into force, or is deemed to have come into force, on April 1 of the first fiscal year in respect of which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act.

• Marginal note:Notice

  (2) The Minister of Finance shall publish in the Canada Gazette the date on which section 172 comes into force.

PART 122004, c. 26AMENDMENTS TO THE CANADA EDUCATION SAVINGS ACT

176. The Canada Education Savings Act is amended by adding the following after section 12:

177. Section 13 of the Act is amended by striking out the word “and” at the end of paragraph (j), by adding the word “and” at the end of paragraph (k) and by adding the following after paragraph (k):

PART 13PRIVATE-PUBLIC PARTNERSHIPS

Marginal note:Payments

178. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, a sum not exceeding five million dollars, to an entity designated by the Minister of Finance, to facilitate public-private partnership projects in respect of that entity’s operating and capital expenditures for each of fiscal years 2007-2008 and 2008-2009.

PART 14TAX AMENDMENTS TO IMPLEMENT THE 2007 ECONOMIC STATEMENT

Amendments Relating to Income Tax

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

• 179. (1) Paragraph 117(2)(a) of the Income Tax Act is replaced by the following:

  • (a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $36,378;

• (2) Subsection (1) applies to the 2007 and subsequent taxation years.

• 180. (1) Paragraphs 118(3.1)(c) to (f) of the Act are replaced by the following:

  • (c) for the 2007 and 2008 taxation years, to be replaced by $9,600;

  • (d) for the 2009 taxation year, to be replaced by $10,100; and

  • (e) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year.

• (2) Paragraphs 118(3.2)(c) to (f) of the Act are replaced by the following:

  • (c) for the 2007 and 2008 taxation years, to be replaced by $9,600;

  • (d) for the 2009 taxation year, to be replaced by $10,100; and

  • (e) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year.

• (3) Subsections (1) and (2) apply to the 2007 and subsequent taxation years.

• 181. (1) Paragraphs (b) to (e) of the definition “general rate reduction percent-age” in subsection 123.4(1) of the Act are replaced by the following:

  • (b) that proportion of 8.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year,

  • (c) that proportion of 9% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year,

  • (d) that proportion of 10% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year,

  • (e) that proportion of 11.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and

  • (f) that proportion of 13% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year.

• (2) Subsection (1) applies to the 2008 and subsequent taxation years.

• 182. (1) Paragraphs 125(1.1)(b) and (c) of the Act are replaced by the following:

  • (b) that proportion of 17% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year.

• (2) Subsection (1) applies to the 2008 and subsequent taxation years.

Amendments to Implement the GST/HST Rate Reduction

R.S., c. E-15Excise Tax Act

Marginal note:2006, c. 4, s. 2(1)

• 183. (1) The description of G in paragraph (a) of the definition “basic tax content” in subsection 123(1) of the Excise Tax Act is amended by striking out the word “and” at the end of clause (A) and by replacing clause (B) with the following:

  • (B) 6%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and

  • (C) 5%, in any other case,

• Marginal note:2006, c. 4, s. 2(2)

  (2) The description of P in paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act is amended by striking out the word “and” at the end of clause (A) and by replacing clause (B) with the following:

  • (B) 6%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and

  • (C) 5%, in any other case,

• (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on January 1, 2008.