Bill C-445: An Act to amend the Income Tax Act (tax credit for loss of retirement income)

C-445 First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 HOUSE OF COMMONS OF CANADA BILL C-445 An Act to amend the Income Tax Act (tax credit for loss of retirement income) first reading, May 17, 2007 Mr. Bellavance 391535 SUMMARY This enactment amends the Income Tax Act to provide a refundable tax credit to a taxpayer in respect of whom an employer and the employees failed to make the contributions required to be made to a registered pension plan. 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-445 An Act to amend the Income Tax Act (tax credit for loss of retirement income) R.S., c.1 (5th Supp.) Her Majesty, by and with the advice and consent of the Senate and the House of Commons of Canada, enacts as follows: 1. The Income Tax Act is amended by adding the following after section 122.51: Definitions 122.52 (1) The definitions in this subsection apply in this section. “defined benefit provision”« disposition à prestations déterminées » “defined benefit provision” has the meaning assigned by subsection 147.1(1). “eligible individual”« particulier admissible » “eligible individual” for a taxation year means an individual (other than a trust) who was entitled for the year, under a registered pension plan, to (a) benefits under the defined benefit provisions of the plan; (b) benefits under the money purchase provisions of the plan if the employer had made the contributions required to be made by the employer in respect of those money purchase provisions; or (c) benefits referred to in paragraphs (a) and (b). “money purchase provision”« disposition à cotisations déterminées » “money purchase provision” has the meaning assigned by subsection 147.1(1). Deemed payment on account of tax (2) Where a return of income is filed in respect of an eligible individual for a particular taxation year that ends at the end of a calendar year, there is deemed to be paid at the end of the particular year on account of the individual's tax payable under this Part for the particular year the amount determined by the formula 22% x (A - B) where A      is the sum of (a) the total of all benefits payable to the individual in the taxation year that ends at the end of a calendar year in respect of the defined benefit provisions of a registered pension plan, and (b) the total of all benefits that would have been payable to the individual in the taxation year that ends at the end of a calendar year in respect of the money purchase provisions of a registered pension plan if the employer and the employees had made the contributions required to be made by them in respect of the money purchase provisions of the plan; and B      is the amount included in computing the income of the taxpayer for the taxation year under paragraph 56(1)(x) or (z) or subsection 70(2). Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada