Marginal note:Next general election

72. For the first general election after the coming into force of this section, the reference to “50%” in subsection 435(1) of the Canada Elections Act, as enacted by this Act, shall be read as a reference to “60%”.

R.S., c. 1 (5th Supp.)INCOME TAX ACT

• 73. (1) Subsections 127(3) to (4.1) of the Income Tax Act are replaced by the following:

  • Marginal note:Monetary contributions — Canada Elections Act

    (3) There may be deducted from the tax otherwise payable by a taxpayer under this Part for a taxation year in respect of the total of all amounts each of which is a monetary contribution referred to in the Canada Elections Act made by the taxpayer in the year to a registered party, a provincial division of a registered party, a registered association or a candidate, as those terms are defined in that Act,

    • (a) when that total does not exceed $400, 75% of that total,

    • (b) when that total exceeds $400 and does not exceed $750, $300 plus 50% of the amount by which that total exceeds $400, and

    • (c) when that total exceeds $750, the lesser of

      • (i) $650, and

      • (ii) $475 plus 33 1/3% of the amount by which the total exceeds $750,

    if payment of each monetary contribution that is included in that total is evidenced by filing with the Minister a receipt, signed by the agent authorized under that Act to accept that monetary contribution, that contains prescribed information.

  • Marginal note:Issue of receipts

    (3.1) A receipt referred to in subsection (3) must be issued only in respect of the monetary contribution that it provides evidence for and only to the contributor who made it.

  • Marginal note:Authorization required for receipts from registered associations

    (3.2) No agent of a registered association of a registered party shall issue a receipt referred to in subsection (3) unless the leader of the registered party has, in writing, notified the financial agent, as referred to in the Canada Elections Act, of the registered association that its agents are authorized to issue those receipts.

  • Marginal note:Monetary contributions — form and content

    (4.1) For the purpose of subsections (3), (3.1) and (4.2), a monetary contribution made by a taxpayer may be in the form of cash or of a negotiable instrument issued by the taxpayer. However, it does not include

    • (a) a monetary contribution that a taxpayer who is an agent authorized under the Canada Elections Act to accept monetary contributions makes in that capacity; or

    • (b) a monetary contribution in respect of which a taxpayer has received or is entitled to receive a financial benefit of any kind (other than a prescribed financial benefit or a deduction under subsection (3)) from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan or deduction from tax or an allowance or otherwise.

• (2) Subsection (1) applies to monetary contributions made in taxation years ending after 2003.

• (3) For monetary contributions made in 2004 taxation years but before the day on which subsection 74(1) comes into force, subsection 127(3) of the Income Tax Act is to be read as enacted by subsection (1) except that the expression “to a registered party, a registered association or a candidate” is to be replaced by the expression “to a registered party or a candidate”.

• (4) If the day on which subsection 74(1) comes into force occurs during an election period, within the meaning assigned by the Canada Elections Act, subsection 127(3) of the Income Tax Act is to be read, in respect of that election, as described by subsection (3).

• 74. (1) Section 230.1 of the Act is replaced by the following:

  Marginal note:Records re monetary contributions — Canada Elections Act

  • 230.1 (1) Every agent authorized under the Canada Elections Act to accept monetary contributions referred to in that Act shall keep records, sufficient to enable each monetary contribution within the meaning assigned by subsection 127(4.1) that they receive and the expenditures that they make to be verified, (including a duplicate of the receipt referred to in subsection 127(3) for each of those monetary contributions) at

    • (a) in the case of an agent other than an official agent of a candidate, the address recorded in the registry of parties or of electoral district associations referred to in the Canada Elections Act; and

    • (b) in the case of an official agent of a candidate, the agent’s address set out in the nomination papers filed under that Act with the returning officer when the candidate was a prospective candidate or any other address that the Minister designates.

  • Marginal note:Information Return

    (2) Each agent to whom subsection (1) applies shall file with the Minister an information return in prescribed form and containing prescribed information. The return is to be filed within the period for the filing of a financial transactions return or an electoral campaign return, as the case may be, under the Canada Elections Act.

  • Marginal note:Application of subsections 230(3) to (8)

    (3) Subsections 230(3) to (8) apply, with any modifications that the circumstances require, in respect of the keeping of records by agents as required by subsection (1).

• (2) On and after the day on which this Act receives royal assent but before the day on which subsection (1) comes into force, subsection 230.1 of the Income Tax Act is to be read as enacted by subsection (1) except that paragraph 230.1(1)(a), as enacted by that subsection, is to be read without reference to the expression “or of registered associations”.

• (3) If the day on which subsection (1) comes into force occurs during an election period, within the meaning assigned by the Canada Elections Act, paragraph 230.1(1)(a) of the Income Tax Act is to be read, in respect of that election, as described by subsection (2).

COMING INTO FORCE

Marginal note:Coming into force

• 75. (1) This Act, other than section 34.1, subsections 49(1) and (2), section 73 and subsection 74(2), comes into force on January 1, 2004.

• Marginal note:Coming into force

  (2) Section 34.1 comes into force on January 1, 2005.