Income Tax Act

Version of section 117.1 from 2010-12-15 to 2013-12-11:

Marginal note:Annual adjustment
  •  (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amounts of $925 and $1,680 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $16,667 and $25,700 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

    • (a) the amount that would, but for subsection (3), be the amount to be used under those provisions for the preceding taxation year, and

    • (b) the product obtained by multiplying

      • (i) the amount referred to in paragraph (a)

      by

      • (ii) the amount, adjusted in such manner as may be prescribed and rounded to the nearest one-thousandth, or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof, that is determined by the formula

        (A/B) - 1

        where

        A
        is the Consumer Price Index for the 12 month period that ended on September 30 next before that year, and
        B
        is the Consumer Price Index for the 12 month period immediately preceding the period mentioned in the description of A.
  • Marginal note:Adjustment of certain amounts

    (1.1) Notwithstanding any other provision of this section, for the purpose of making the adjustment provided under subsection (1) for the 2000 taxation year, the amounts used for the 1999 taxation year

    • (a) in respect of the amounts of $6,000, $5,000 and $500 referred to in paragraphs (a), (b) and (c) of the description of B in subsection 118(1) and the amount of $625 referred to in subparagraph 180.2(4)(a)(ii) are deemed to be $7,131, $6,055, $606 and $665, respectively; and

    • (b) in respect of the amounts of $6,456 and $4,103 referred to in paragraph (d) of the description of B in subsection 118(1) are deemed to be $7,131 and $4,778, respectively.

  • (2) [Repealed, 2000, c. 19, s. 23(2)]

  • Marginal note:Rounding

    (3) Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12 month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, adjusted in such manner as is prescribed, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph 117.1(4)(a) by twelve; and

    • (c) rounding the result obtained under paragraph 117.1(4)(b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 117.1;
  • 1994, c. 7, Sch. VII, s. 7;
  • 1996, c. 21, s. 22;
  • 1997, c. 25, s. 24;
  • 1998, c. 19, s. 21;
  • 1999, c. 22, s. 30;
  • 2000, c. 14, s. 37, c. 19, s. 23;
  • 2005, c. 19, s. 22;
  • 2006, c. 4, s. 59;
  • 2007, c. 2, s. 19, c. 16, ss. 2, 4, c. 35, s. 35;
  • 2010, c. 25, s. 22.
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