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New Small Business Regulations

made under Section 42 of the

Income Tax Act

R.S.N.S. 1989, c. 217

O.I.C. 2002-322 (June 28, 2002), N.S. Reg. 87/2002

amended to O.I.C. 2022-227 (effective September 13, 2022), N.S. Reg. 212/2022



Table of Contents


Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.

 

Citation

Definition

Application of regulations

Additional terms and conditions of eligibility for deduction under Section 42 of the Act

Order in which deduction to be taken under Section 42 of the Act

Time limit for application for certificate of eligibility


 


Citation

1        These regulations may be cited as the New Small Business Regulations.


Definition

2        In these regulations, “Act” means the Income Tax Act.


Application of regulations

3        These regulations apply to a taxation year of a corporation ending on or after March 30, 2001.


Additional terms and conditions of eligibility for deduction under Section 42 of the Act

4        In addition to the eligibility requirements set out in Section 42 of the Act, a corporation is not eligible for a deduction pursuant to subsection 42(4) of the Act unless the corporation employs at least 2 individuals, including 1 or more individuals who meet all of the following conditions:

 

                   (a)      they are not related to a specified shareholder of the Corporation;

 

                   (b)     their total paid hours of employment are not less than 1300 in a 12-month period, or an equivalent amount pro-rated for a short taxation year.


Order in which deduction to be taken under Section 42 of the Act

5        (1)    Where a corporation is eligible in a taxation year for a deduction pursuant to subsection 42(4) of the Act, the corporation shall not calculate the deduction or reduce its tax payable by the amount of the deduction until the corporation has made all other allowable deductions to tax payable to which it is entitled pursuant to the Act.

 

          (2)    For greater certainty, all other allowable deductions to tax payable that are referred to in subsection (1) include the deductions allowed pursuant to Sections 41, 47 and 49 of the Act.


Time limit for application for certificate of eligibility

6        For the purposes of subsection 42(12) of the Act, a corporation is not eligible for a certificate of eligibility unless the corporation applies to the Minister within the 3 years immediately following the taxation year for which the deduction is to be claimed.


 

 


Legislative History
Reference Tables

New Small Business Regulations

N.S. Reg. 87/2002

Income Tax Act

Note:  The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the New Small Business Regulations made under the Income Tax Act includes all of the following regulations:

N.S.
Regulation

In force
date*

How in force

Royal Gazette
Part II Issue

87/2002

Jun 28, 2022

date made

Jul 26, 2002

212/2022

Sep 13, 2022

date specified

Sep 23, 2022

 

 

 

 

 

 

 

 

 

 

 

 

The following regulations are not yet in force and are not included in the current consolidation:

N.S.
Regulation

In force
date*

How in force

Royal Gazette
Part II Issue

 

 

 

 

 

 

 

 

 

 

 

 

*See subsection 3(6) of the Regulations Act for rules about in force dates of regulations.

Amendments by Provision

ad. = added
am. = amended

fc. = fee change
ra. = reassigned

rep. = repealed
rs. = repealed and substituted

Provision affected

How affected

4 ........................................................

rs. 212/2022

 

 

 

 

 

 

 

 

Note that changes to headings are not included in the above table.

Editorial Notes and Corrections

 

Note

Effective
date

 

 

 

 

 

 

 

 

 

Repealed and Superseded

N.S.
Regulation

Title

In force
date

Repealed
date

 

 

 

 

Note:  Only regulations that are specifically repealed and replaced appear in this table.  It may not reflect the entire history of regulations on this subject matter.