Bill C-46: An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act

Short Title Short title 1 This Act may be cited as the Cost of Living Relief Act, No. 3. R.S., c. F-8; 1995, c. 17, s. 45 Federal-Provincial Fiscal Arrangements Act 2 The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 24.73: Total payment of $2 billion 24. 74 The Minister may pay an additional cash payment equal to (a) for Ontario, $776,262,000; (b) for Quebec, $447,067,000; (c) for Nova Scotia, $52,306,000; (d) for New Brunswick, $41,674,000; (e) for Manitoba, $72,450,000; (f) for British Columbia, $273,238,000; (g) for Prince Edward Island, $8,759,000; (h) for Saskatchewan, $61,385,000; (i) for Alberta, $233,120,000; (j) for Newfoundland and Labrador, $27,051,000; (k) for Yukon, $2,252,000; (l) for the Northwest Territories, $2,348,000; and (m) for Nunavut, $2,088,000. R.S., c. 1 (5th Supp.) Income Tax Act 3 (1) Section 122.5 of the Income Tax Act is amended by adding the following after subsection (3.002): Additional deemed payment – January 2023 (3.003) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula 0.25 × (A − B) − C where A is the total of (a) $918, (b) $918 for the qualified relation, if any, of the individual in relation to the specified month, (c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $918, (d) $483 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month, (e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $483, and (f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $483 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $9,919; B is 15% of the amount, if any, by which the individual’s adjusted income for the taxation year exceeds $39,826; and C is the amount that the eligible individual is deemed to have paid under subsection (3) during the specified month on account of their tax payable for the taxation year. (2) Section 122.5 of the Act is amended by adding the following after subsection (3.03): January 2023 payment – shared-custody parent (3.04) Notwithstanding subsection (3.003), if an eligible individual is a shared-custody parent (as defined in section 122.6, but with the term “qualified dependant” in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.003) to have been paid during the specified month is equal to the amount determined by the formula 0.5 × (A + B) where A is the amount determined by the formula in subsection (3.003), calculated without reference to this subsection; and B is the amount determined by the formula in subsection (3.003), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6. (3) Section 122.5 of the Act is amended by adding the following after subsection (4.2): January 2023 – month specified (4.3) Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.003) is January 2023 and the taxation year is the 2021 taxation year. 4 (1) Paragraph 152(1)(b) of the Act is replaced by the following: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (2) Paragraph 152(1.2)(d) of the Act is replaced by the following: (d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.003) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister. (3) Paragraph 152(4.2)(b) of the Act is replaced by the following: (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year. 5 Paragraph 160.1(1.1)(b) of the Act is replaced by the following: (b) the total of the amounts deemed by subsection 122.5(3), (3.002) or (3.003) to have been paid by the individual during those specified months.