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

Act current to 2017-03-20 and last amended on 2017-02-01. Previous Versions

Marginal note:Credit for interest on student loan

 For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the amount determined by the formula

A × B

where

A
is the appropriate percentage for the year; and
B
is the total of all amounts (other than any amount paid on account of or in satisfaction of a judgement) each of which is an amount of interest paid in the year (or in any of the five preceding taxation years that are after 1997, to the extent that it was not included in computing a deduction under this section for any other taxation year) by the individual or a person related to the individual on a loan made to, or other amount owing by, the individual under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act or a law of a province governing the granting of financial assistance to students at the post-secondary school level.
  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1999, c. 22, s. 38;
  • 2014, c. 39, s. 35.
Marginal note:Credit for EI and QPIP premiums and CPP contributions

 For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula

A × B

where

A
is the appropriate percentage for the year; and
B
is the total of
  • (a) the total of all amounts each of which is an amount payable by the individual as an employee’s premium or a self-employment premium for the year under the Employment Insurance Act, not exceeding the maximum amount of such premiums payable by the individual for the year under that Act,

  • (a.1) the total of all amounts each of which is an amount payable by the individual as an employee’s premium for the year under the Act respecting parental insurance, R.S.Q., c. A-29.011, not exceeding the maximum amount of such premiums payable by the individual for the year under that Act,

  • (a.2) the amount, if any, by which the total of all amounts each of which is an amount payable by the individual in respect of self-employed earnings for the year as a premium under the Act respecting parental insurance, R.S.Q., c. A-29.011, (not exceeding the maximum amount of such premiums payable by the individual for the year under that Act) exceeds the amount deductible under paragraph 60(g) in computing the individual’s income for the year,

  • (b) the total of all amounts each of which is an amount payable by the individual for the year as an employee’s contribution under the Canada Pension Plan or under a provincial pension plan defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the individual for the year under the plan, and

  • (c) the amount by which

    • (i) the total of all amounts each of which is an amount payable by the individual in respect of self-employed earnings for the year as a contribution under the Canada Pension Plan or under a provincial pension plan within the meaning assigned by section 3 of that Act (not exceeding the maximum amount of such contributions payable by the individual for the year under the plan)

    exceeds

    • (ii) the amount deductible under paragraph 60(e) in computing the individual’s income for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.7;
  • 1996, c. 23, par. 187(d);
  • 2001, c. 17, s. 100;
  • 2013, c. 34, s. 253.
Marginal note:Transfer of unused credits to spouse or common-law partner

 For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership (other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual’s spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year), there may be deducted an amount determined by the formula

A + B - C

where

A
is the tuition tax credit transferred for the year by the spouse or common-law partner to the individual;
B
is the total of all amounts each of which is deductible under subsection 118(1), because of paragraph (b.1) of the description of B in that subsection, or subsection 118(2) or (3) or 118.3(1) in computing the spouse’s or common-law partner’s tax payable under this Part for the year; and
C
is the amount, if any, by which
  • (a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.07, 118.3, 118.61 and 118.7)

exceeds

  • (b) the lesser of

    • (i) the total of all amounts that may be deducted under section 118.5 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, and

    • (ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.8;
  • 1994, c. 7, Sch. VIII, s. 58;
  • 1997, c. 25, s. 29;
  • 1998, c. 19, s. 29;
  • 1999, c. 22, s. 39;
  • 2000, c. 12, ss. 133, 142, c. 19, s. 26;
  • 2007, c. 2, s. 25, c. 29, s. 10;
  • 2009, c. 31, s. 7;
  • 2011, c. 24, s. 32;
  • 2014, c. 20, s. 13;
  • 2016, c. 7, s. 18.
Marginal note:Tuition tax credit transferred

 In this subdivision, the tuition tax credit transferred for a taxation year by a person to an individual is the lesser of

  • (a) the amount determined by the formula

    A - B

    where

    A
    is the lesser of
    • (i) the total of all amounts that may be deducted under section 118.5 in computing the person’s tax payable under this Part for the year, and

    • (ii) the amount determined by the formula

      C × D

      where

      C
      is the appropriate percentage for the taxation year, and
      D
      is $5,000.
    B
    is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7), and
  • (b) the amount for the year that the person designates in writing for the purpose of section 118.8 or 118.9.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1998, c. 19, s. 30;
  • 2001, c. 17, s. 101;
  • 2006, c. 4, s. 66;
  • 2007, c. 2, s. 26;
  • 2009, c. 31, s. 8;
  • 2011, c. 24, s. 33;
  • 2014, c. 20, s. 14;
  • 2016, c. 7, s. 19.
Marginal note:Transfer to parent or grandparent

 If for a taxation year a parent or grandparent of an individual (other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount under section 118 or 118.8 for the year) is the only person designated in writing by the individual for the year for the purpose of this section, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition tax credit transferred for the year by the individual to the parent or grandparent, as the case may be.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.9;
  • 1994, c. 7, Sch. II, s. 94, Sch. VIII, s. 59;
  • 1997, c. 25, s. 30;
  • 1998, c. 19, s. 30;
  • 2000, c. 12, s. 142;
  • 2007, c. 2, s. 27;
  • 2016, c. 7, s. 20.
Marginal note:Part-year residents

 Notwithstanding sections 118 to 118.9, where an individual is resident in Canada throughout part of a taxation year and throughout another part of the year is non-resident, for the purpose of computing the individual’s tax payable under this Part for the year,

  • (a) the amount deductible for the year under each such provision in respect of the part of the year that is not included in the period or periods referred to in paragraph 118.91(b) shall be computed as though such part were the whole taxation year; and

  • (b) the individual shall be allowed only

    • (i) such of the deductions permitted under subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.62 and 118.7 as can reasonably be considered wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and

    • (ii) such part of the deductions permitted under sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year,

except that the amount deductible for the year by the individual under each such provision shall not exceed the amount that would have been deductible under that provision had the individual been resident in Canada throughout the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.91;
  • 1994, c. 7, Sch. II, s. 95, c. 21, s. 55;
  • 1999, c. 22, s. 40;
  • 2006, c. 4, s. 67;
  • 2007, c. 2, s. 28;
  • 2009, c. 31, s. 9;
  • 2016, c. 7, s. 21.
 
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