Archived - Notice of Ways and Means Motion to amend the Income Tax Act

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That it is expedient to amend the Income Tax Act as follows:
1  (1)  Paragraph 60(e) of the Income Tax Act is replaced by the following:
CPP/QPP contributions on self-employed earnings
(e)  the total of
(i)  1/2 of the lesser of
(A)  the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and
(B)  the maximum amount of such contributions payable by the taxpayer for the year under the plan, and
(ii)  the lesser of
(A)  the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan, and
(B)  the maximum amount of such contributions payable by the taxpayer for the year under the plan;
Enhanced CPP contributions
(e.1)  the lesser of
(i)  the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee's contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan, and
(ii)  the maximum amount of such contributions payable by the taxpayer for the year under the plan;
(2)  Subsection (1) comes into force on January 1, 2019.
2  (1)  The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:
Annual adjustment
117.1  (1)  The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $1,192 and $2,165 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $20,844 and $32,491 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of
(2)  Subsection (1) applies to the 2019 and subsequent taxation years, except that the adjustment provided for in subsection 117.1(1) of the Act, as amended by subsection (1), does not apply for the 2019 taxation year in respect of the amounts of $1,192, $2,165, $20,844 and $32,491.
3  (1)  Paragraph (b) of the description of B in section 118.7 of the Act is replaced by the following:
(b)  the total of all amounts each of which is an amount payable by the individual for the year as an employee's contribution under subsection 8(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the individual for the year under the plan, and
(2)  Subsection (1) comes into force on January 1, 2019.
4  (1)  The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:
A is
(a)  if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $1,192 and 26% of the amount, if any, by which the individual's working income for the taxation year exceeds $3,000, or
(b)  if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $2,165 and 26% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and
B is
(a)  if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or
(b)  if the individual had an eligible spouse or an eligible dependant, for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $14,500.
(2)  The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:
C is the lesser of $462.50 and 26% of the amount, if any, by which the individual's working income for the taxation year exceeds $1,150; and
D is
(a)  if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the individual's adjusted net income for the taxation year exceeds $20,844,
(b)  if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $32,491, or
(c)  if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $32,491.
(3)  Subsections (1) and (2) come into force on January 1, 2019.