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Nova Scotia Affordable Living Tax Credit Regulations
made under subsection 80(1) of the
Income Tax Act
R.S.N.S. 1989, c. 217
O.I.C. 2013-106 (March 28, 2013, effective January 1, 2009), N.S. Reg. 178/2013
as amended by O.I.C. 2014-211 (June 17, 2014), N.S. Reg. 86/2014
Citation
1 These regulations may be cited as the Nova Scotia Affordable Living Tax Credit Regulations.
Definitions
2 In these regulations,
“Act” means the Income Tax Act (Canada);
“adjusted income” means, in respect of an individual for a taxation year, the individual’s adjusted income as defined in subsection 122.5(1) of the Act;
“eligible individual”, in relation to a month specified for a taxation year, means an individual (other than a trust) residing in the Province before the month specified, who
(i) has, before the month specified, attained the age of 19 years, or
(ii) was, at any time before the specified month,
(A) a parent who resided with their child, or
(B) married or in a common-law partnership;
definition of “eligible spouse” repealed: O.I.C. 2014-211, N.S. Reg. 86/2014.
“Minister” means the Minister of National Revenue for Canada;
“qualified dependant” means a qualified dependant as defined in subsection 122.5(1) of the Act;
“qualified relation” of an individual means a qualified relation as defined in subsection 122.5(1) of the Act;
definition of “qualified relation” added: O.I.C. 2014-211, N.S. Reg. 86/2014.
“return of income”, in respect of an eligible individual for a taxation year, means
(i) for an individual who is resident in the Province at the end of the taxation year, the individual’s return of income, other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of the Act, that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under the Act for the taxation year, and
(ii) in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister;
“shared-custody parent” means a shared-custody parent as defined in section 122.6 of the Act, but with “qualified dependant” in that section having the meaning assigned by subsection 122.5(1) of the Act.
definition of “shared-custody parent” added: O.I.C. 2014-211, N.S. Reg. 86/2014.
Deemed payment on account of tax
3 If an eligible individual in relation to a month specified for a taxation year has filed a return of income for the taxation year and applied under subsection 122.5(3) of the Act, the eligible individual for the taxation year is deemed to have paid during the month specified for the taxation year on account of his or her tax payable under this Act for the taxation year an amount equal to ¼ of the amount, if any, determined by the formula (A + B) - C, in which
(a) A is
(i) $240 for the 2009 taxation year,
(ii) $245.28 for the 2010 taxation year,
(iii) $255 for the 2011 and subsequent taxation years;
Subclause 3(a)(iii) amended: O.I.C. 2014-211, N.S. Reg. 86/2014.
(b) B is
(i) for the 2009 taxation year, $57 times the number of qualified dependants of the eligible individual in relation to the month specified,
(ii) for the 2010 taxation year, $58.25 times the number of qualified dependants of the eligible individual in relation to the month specified,
(iii) for the 2011 and subsequent taxation years, $60 times the number of qualified dependants of the eligible individual in relation to the month specified; and
Subclause 3(b)(iii) amended: O.I.C. 2014-211, N.S. Reg. 86/2014.
(c) C is 5% of the amount, if any, by which the eligible individual’s adjusted income for the taxation year in relation to the month specified exceeds $30,000.
Shared-custody parent
3A If an eligible individual is a shared-custody parent in respect of 1 or more qualified dependants at the beginning of a month specified for a taxation year, the amount deemed by Section 3 to have been paid during that month is equal to the amount determined by the formula 1/2 × (A+B), in which
(a) A is the amount determined by the formula in Section 3, calculated without reference to this Section; and
(b) B is the amount determined by the formula in Section 3, calculated without reference to this Section and subparagraph (b)(ii) of the definition of “eligible individual” in section 122.6 of the Act.
Section 3A added: O.I.C. 2014-211, N.S. Reg. 86/2014.
Advance payment
4 Subsections 122.5(3.1) and (3.2) of the Act apply for the purposes of this Section in respect of an overpayment deemed to arise under Section 3.
Section 4 amended: O.I.C. 2014-211, N.S. Reg. 86/2014.
Months specified
5 For the purposes of these regulations, the months specified for a taxation year are July and October of the immediately following taxation year, and January and April of the second immediately following taxation year.
Individuals not eligible
6 Despite Section 2, an individual is not an eligible individual in relation to a month specified for a taxation year, if the individual
(a) died before the month specified;
(b) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the month specified;
(c) is at the beginning of the month specified an individual described in paragraph 149(1)(a) or (b) of the Act; or
(d) is a person in respect of whom a special allowance under the Children’s Special Allowances Act (Canada) is payable for the month specified.
Payment to qualified relation
7 If an individual eligible for payment under subsection 122.5(3) of the Act dies before the month specified, and if that individual has a qualified relation who has filed a return of income for the taxation year, the qualified relation is deemed to be the eligible individual for the purposes of Section 3 for that taxation year and the amount, if any, payable for the month specified is deemed to be an amount paid on account of the individual’s qualified relation’s tax payable under the Act for the month specified.
Section 7 and heading amended: O.I.C. 2014-211, N.S. Reg. 86/2014.
Only 1 eligible individual
8 Despite Section 3, if an eligible individual had a qualified relation, in relation to a month specified for a taxation year, only 1 of them is an eligible individual in relation to that month, and if both of them claim to be eligible individuals, the individual that the Minister designates is the eligible individual in relation to that month specified.
Section 8 amended: O.I.C. 2014-211, N.S. Reg. 86/2014.
Notification to Minister
9 An eligible individual must notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:
(a) the individual ceases to be an eligible individual;
(b) a person ceases to be a qualified dependant of the eligible individual, otherwise than because of attaining the age of 19 years.
Effect of bankruptcy
10 For the purposes of these regulations, if, in a taxation year, an eligible individual becomes bankrupt, the individual’s income for that year includes his or her income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.
When regulations apply
11 These regulations apply for the 2009 and subsequent taxation years.