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

Marginal note:Claimed amount

• 122.91 (1) An individual who is resident in Canada throughout a taxation year, files a return of income for the taxation year and makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount claimed by the individual that does not exceed the lesser of

  • (a) the training amount limit of the individual for the taxation year, and

  • (b) 50% of the amount that would be deductible under paragraph 118.5(1)(a) or (d) in computing the individual’s tax payable under this Part for the taxation year if

    • (i) this Act were read without reference to subsections 118.5(1.2) and (2), and

    • (ii) the appropriate percentage for the taxation year were 100%.

• Marginal note:Training amount limit

  (2) For the purposes of this section, the training amount limit of an individual for a taxation year is

  • (a) if the taxation year is after 2019 and the individual has attained the age of 26 years, and has not attained the age of 66 years, before the end of the taxation year, the lesser of

    • (i) the amount determined by the formula

      A + B − C

      where

      A

      is the individual’s training amount limit for the preceding taxation year,

      B

      is

      • (A) $250, if

        • (I) the individual has filed a return of income for the preceding taxation year,

        • (II) the individual was resident in Canada throughout the preceding taxation year,

        • (III) the total of the following amounts is greater than or equal to $10,000:

          • 1 the amount that would be the individual’s working income (as defined in subsection 122.7(1)) for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a) and subsection 81(4),

          • 2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 23(1), 152.04(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and

          • 3 the amount that would be included in the individual’s income because of subparagraph 56(1)(a)(vii) in computing the individual’s income for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a), and

        • (IV) the individual’s income for the preceding taxation year under this Part does not exceed the higher dollar amount referred to in paragraph 117(2)(c), as adjusted under this Act for the preceding taxation year, and

      • (B) nil, in any other case, and

      C

      is the amount deemed to have been paid by the individual under subsection (1) in respect of the preceding taxation year, and

    • (ii) the amount determined by the formula

      $5,000 − D

      where

      D

      is the total of all amounts deemed to have been paid by the individual under subsection (1) in respect of a preceding taxation year; and

  • (b) nil, in any other case.

• Marginal note:Effect of bankruptcy

  (3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year,

  • (a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

  • (b) the individual’s working income and income under this Part for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and the income under this Part for the taxation year that begins on January 1 of the particular calendar year.

• Marginal note:Special rules in the event of death

  (4) For the purposes of this section, if an individual dies in a calendar year,

  • (a) the individual is deemed to be resident in Canada from the time of death until the end of the year;

  • (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; and

  • (c) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.