Income Tax Act

Marginal note:Annual adjustment

• 117.1 (1) Each specified amount 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 for the year under the provision for which the amount is relevant is the total of

  • (a) the amount that would, but for subsection (3), be the amount to be used under the relevant provision 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.

• (1.1) [Repealed, 2017, c. 20, s. 11]

• Marginal note:Annual adjustment — amounts

  (2) For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.2 for a taxation year:

  • (a) the amount of $300 referred to in subparagraph 6(1)(b)(v.1);

  • (b) the amount of $1,000 referred to in the formula in paragraph 8(1)(s);

  • (c) the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a);

  • (d) each of the amounts expressed in dollars in subsection 117(2);

  • (e) each of the amounts expressed in dollars in the description of B in subsection 118(1);

  • (f) the amount of $12,298 in the description of A in subsection 118(1.1);

  • (g) the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.1);

  • (h) each of the amounts expressed in dollars in subsection 118(2);

  • (i) the amount of $1,000 referred to in subsection 118(10);

  • (j) the amount of $15,000 referred to in subsection 118.01(2);

  • (k) each of the amounts expressed in dollars in subsection 118.2(1);

  • (l) each of the amounts expressed in dollars in subsection 118.3(1);

  • (m) each of the amounts expressed in dollars in subsection 122.5(3);

  • (n) the amount of $2,500 referred to in subsection 122.51(1);

  • (o) each of the amounts expressed in dollars in subsection 122.51(2);

  • (p) the amount of $14,000 referred to in subsection 122.7(1.3);

  • (q) the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.7(2);

  • (r) the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.7(3);

  • (s) the amount of $10,000 in the description of B in subsection 122.91(2); and

  • (t) each of the amounts expressed in dollars in Part I.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.