Bill C-253: An Act to amend the Income Tax Act (deductibility of RESP contributions)

C-253 First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 HOUSE OF COMMONS OF CANADA BILL C-253 An Act to amend the Income Tax Act (deductibility of RESP contributions) Reprinted as amended by the Standing Committee on Finance as a working copy for the use of the House of Commons at Report Stage and as reported to the House on March 21, 2007 Mr. McTeague 391104 SUMMARY This enactment amends the Income Tax Act to provide that contributions to a Registered Education Savings Plan are deductible from a taxpayer’s taxable income. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 1st Session, 39th Parliament, 55-56 Elizabeth II, 2006-2007 house of commons of canada BILL C-253 An Act to amend the Income Tax Act (deductibility of RESP contributions) R.S., c. 1 (5th Supp.) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Paragraph 60(i) of the Income Tax Act is replaced by the following: Premium, contribution or payment under RRSP, RESP or RRIF (i) any amount that is deductible under section 146 or 146.1 or subsection 147.3(13.1) in computing the income of the taxpayer for the year; 2. (1) The definition “RESP annual limit” in subsection 146.1(1) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: (c) for 1997 to 2005, $4,000, (d) for 2006, $5,000, and (e) for 2007 and subsequent years, the total of the RESP annual limit for the preceding taxation year and the product obtained when the RESP annual limit is multiplied by the average percentage change in the Consumer Price Index for the year in question, published by Statistics Canada under the authority of the Statistics Act; (2) [Deleted] (3) [Deleted] (4) Section 146.1 of the Act is amended by adding the following after subsection 146.1(2): Amount of RESP contributions deductible (2.01) There may be deducted in computing a taxpayer's income for a taxation year such amount as the taxpayer claims not exceeding the lesser of (a) the total of all contributions made by the taxpayer into a registered education savings plan in the taxation year; and (b) the RESP annual limit for the taxation year. (5) Subsection 146.1(7.1) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) each refund of payments made in respect of any contribution paid by the taxpayer after 2005. (6) Subsection 146.1(7.2) of the Act is repealed. 3. [Deleted] Published under authority of the Speaker of the House of Commons