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Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
Tuition Tax Cash Back Credit Act
 
Legislature :
55
Session :
2
Bill No. :
58
Member :
Hon. Volpé
First Reading :
2005-6-2
Second Reading :
2005-6-3
Committee of the Whole :
Amended :
Third Reading :
Royal Assent :
Download PDF :
  Bill 58         
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Text of Bill :
Chapter Outline



Definitions......................................................................................................................................... 1

auditor — vérificateur

eligible individual — particulier admissible

eligible institution — établissement admissible

eligible tuition — frais de scolarité admissibles

Federal Act — loi fédérale

Minister — ministre

Provincial Act — loi provinciale

tax credit — crédit d'impôt

tax payable — impôt payable

taxation year — année d'imposition

tuition fees — frais de scolarité

Application of Act............................................................................................................................. 2

Application for tax credit.................................................................................................................. 3

Tax credit............................................................................................................................................ 4

Recovery of amount paid where no entitlement............................................................................. 5

Debt due Her Majesty....................................................................................................................... 6

Recovery of amount.......................................................................................................................... 7

Interest................................................................................................................................................ 8

Appointment of auditors................................................................................................................... 9

Audits................................................................................................................................................ 10

Removal of documents................................................................................................................... 11

Information to be provided............................................................................................................. 12

Obstruction...................................................................................................................................... 13

Offences........................................................................................................................................... 14

Application of Financial Administration Act.............................................................................. 15

Administration of Act..................................................................................................................... 16

Regulations...................................................................................................................................... 17

CONSEQUENTIAL AMENDMENTS

New Brunswick Income Tax Act.................................................................................................... 18

Commencement............................................................................................................................... 19





Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



Definitions

1                           The following definitions apply in this Act.



"auditor" means a person appointed under section 9. (vérificateur)



"eligible individual" means an individual who



(a)               is or was enrolled on a full-time or part-time basis, on or after January 1, 2005, at an educational institution referred to in paragraph 118.5(1)(a) or (c) of the Federal Act, or



(b)               is or was a student in full-time or part-time attendance, on or after January 1, 2005, at a university referred to in paragraph 118.5(1)(b) of the Federal Act. (particulier admissible)



"eligible institution" means an educational institution referred to in paragraph 118.5(1)(a) or (c) of the Federal Act or a university referred to in paragraph 118.5(1)(b) of the Federal Act. (établissement admissible)



"eligible tuition" means the tuition fees that are paid to an eligible institution in respect of an eligible individual and in respect of the 2005 calendar year or any subsequent calendar year. (frais de scolarité admissibles)



"Federal Act" means the Income Tax Act (Canada). (loi fédérale)



"Minister" means the Minister of Finance of New Brunswick and includes any person designated by the Minister to act on the Minister's behalf. (ministre)



"Provincial Act" means the New Brunswick Income Tax Act. (loi provinciale)



"tax credit" means the tuition tax cash back credit. (crédit d'impôt)



"tax payable" means the amount that is the tax payable under the Provincial Act. (impôt payable)



"taxation year" means taxation year as defined in section 1 of the Provincial Act. (année d'imposition)



"tuition fees" means the fees for an individual's tuition referred to in section 118.5 of the Federal Act. (frais de scolarité)



Application of Act

2                           This Act applies to the 2006 taxation year and subsequent taxation years.



Application for tax credit

3(1)                   An eligible individual may make an application to the Minister for a tax credit in accordance with this section.



3(2)                   The Minister may, in his or her sole discretion, approve the application and pay the amount of the tax credit to the eligible individual.



3(3)                   An application for a tax credit shall be on a form provided by the Minister.



3(4)                   An application for a tax credit for a particular taxation year shall be made within the period of time prescribed by regulation.



3(5)                   An eligible individual who makes an application for a tax credit shall provide the Minister with such information as the Minister requires and shall authorize the Minister to verify any information provided on the application or under this Act.



3(6)                   An eligible individual may make an application for his or her first tax credit with respect to any calendar year for which his or her eligible tuition was paid and shall specify that year in the application.



3(7)                   An eligible individual must make all applications for a tax credit to the Minister within 20 years after the calendar year specified in the application referred to in subsection (6).



Tax credit

4(1)                   Subject to subsection (5), where, in respect of a taxation year, the Minister approves an application for a tax credit made by an eligible individual under section 3, that individual is entitled to a tax credit applied against the tax payable by that individual for that taxation year if



(a)               the individual was resident in New Brunswick on December 31 of that taxation year or, if the individual died in that taxation year, the individual was a resident of New Brunswick on the day of death, and



(b)               the individual has filed a return of income for that taxation year under the Provincial Act.



4(2)                   The maximum amount of a tax credit to which an eligible individual is entitled for a taxation year under subsection (1) is the lesser of



(a)               the individual's tax payable for that taxation year, and



(b)               $2,000.



4(3)                   The total amount of tax credits to which an eligible individual is entitled under subsection (1) is the lesser of



(a)               50% of the individual's eligible tuition, and



(b)               $10,000.



4(4)                   Subject to subsection (5), where, in respect of a taxation year, an eligible individual's total amount referred to in subsection (3) exceeds the sum of the amount of the tax credit to which that individual may be entitled for that taxation year under subsection (2) and the amounts of the tax credits already applied against the tax payable by that individual, any of this unused balance may, to the extent that it was not applied for another taxation year, be applied against the tax payable by that individual in any one or more of the taxation years following that taxation year.



4(5)                   The tax credits to which an eligible individual is or may be entitled and the unused balance of those tax credits may not be applied under subsection (1) or (4)



(a)               after the period of time referred to in subsection 3(4), or



(b)               after the period of time referred to in subsection 3(7).



4(6)                   The tax credits to which an eligible individual is or may be entitled and the unused balance of those tax credits may not be transferred to any other person.



Recovery of amount paid where no entitlement

5                           Where a person is paid the amount of a tax credit and the person is not entitled to the amount, the person shall immediately pay the amount to the Minister.



Debt due Her Majesty

6                           An amount required to be paid to the Minister under this Act is a debt due to Her Majesty in right of the Province and may be recovered by action in her name in any court of competent jurisdiction.



Recovery of amount

7(1)                   The Minister may issue a certificate stating an amount that is due and payable under this Act, including interest, if any, and the name of the person by whom the same is due and payable.



7(2)                   A certificate referred to in subsection (1) may be issued



(a)               when directed by the Minister, or



(b)               upon the expiration of 30 days after the mailing of a registered letter demanding payment.



7(3)                   A certificate issued under subsection (1) may be filed in The Court of Queen's Bench of New Brunswick and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by Her Majesty against the person named in the certificate for a debt of the amount specified in the certificate.



7(4)                   All reasonable costs and charges attendant upon the filing, entering and recording of the certificate shall be recovered in like manner as if the amount of those costs and charges had been included in the certificate.



Interest

8                           From the date on which an amount due to Her Majesty under this Act is to be paid by a person, the amount bears interest at the rate prescribed by regulation.



Appointment of auditors

9                           The Minister may appoint one or more persons as auditors for the purposes of ensuring compliance with this Act and the regulations.



Audits

10(1)               For the purpose of ensuring compliance with this Act and the regulations, an auditor may audit the records or other documents of or pertaining to a person who is applying for or has applied for a tax credit, and make copies of them.



10(2)               For the purposes of an audit under subsection (1), an auditor may, at any reasonable time, enter any premises where records or other documents are kept with respect to information provided by that person on his or her application or as required by the Minister.



10(3)               Notwithstanding subsection (2), an auditor shall not enter a private dwelling unless the auditor



(a)               has the consent of the occupier, or



(b)               has obtained an entry warrant under the Entry Warrants Act.



10(4)               Before or after attempting to enter any premises for the purposes of this section, an auditor may apply to a judge for an entry warrant under the Entry Warrants Act.



10(5)               An auditor may request the assistance of a peace officer for the purposes of this section.



Removal of documents

11(1)               An auditor may remove records or other documents from a premises for the purposes of section 10 and may make a copy or extract of them or any part of them and shall give a receipt to the occupier for the records or documents so removed.



11(2)               Where records or other documents are removed from a premises, they shall be returned to the occupier as soon as possible after the making of the copies or extracts.



11(3)               A copy or extract of any record or other document related to an audit and purporting to be certified by an auditor is admissible in evidence in any action, proceeding or prosecution as proof, in the absence of evidence to the contrary, of the original without proof of the appointment, authority or signature of the person purporting to have certified the copy or extract.



11(4)               A certificate referred to in subsection (3) shall not be received in evidence unless the party intending to produce it has given to the person against whom it is to be produced reasonable notice of the party's intention, together with a copy of the certificate.



11(5)               A person against whom a certificate referred to in subsection (3) is produced may, with leave of the court, require the attendance of the person who signed the certificate for purposes of cross-examination.



Information to be provided

12                        Every person shall furnish an auditor with such information that the auditor reasonably requires for the purposes of section 10.



Obstruction

13(1)               No person shall obstruct or interfere with an auditor in the carrying out of an audit under this Act.



13(2)               A refusal of consent to enter a private dwelling is not and shall not be deemed to be interfering with or obstructing within the meaning of subsection (1), except where an entry warrant has been obtained.



Offences

14(1)               A person commits an offence if the person makes or assists in making a statement in an application for a tax credit or in any document or information required to be furnished under this Act or the regulations to the Minister or an auditor that, at the time and in the light of the circumstances under which the statement is made, is false or misleading with respect to a material fact or that omits to state a material fact, the omission of which makes that statement false or misleading.



14(2)               A person does not commit an offence under this section in relation to a statement made if the person did not know that the statement was false or misleading and, in the exercise of reasonable diligence, could not have known that the statement was false or misleading.



14(3)               An offence referred to in subsection (1) is punishable under Part II of the Provincial Offences Procedure Act as a category F offence.



14(4)               A person who violates or fails to comply with section 12 or subsection 13(1) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.



14(5)               A person who violates or fails to comply with any provision of the regulations commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category B offence.



Application of Financial Administration Act

15                        The amount of a tax credit cannot be retained by way of deduction or set-off under the Financial Administration Act except where a person commits an offence under subsection 14(1).



Administration of Act

16                        The Minister is responsible for the administration of this Act and may designate one or more persons to act on the Minister's behalf.



Regulations

17(1)               The Lieutenant-Governor in Council may make regulations



(a)               respecting applications for tax credits;



(b)               for the purposes of subsection 3(4), prescribing the period of time during which an application must be made;



(c)               prescribing the rate of interest for the purposes of section 8;



(d)               respecting calculations for the purposes of this Act;



(e)               requiring any person to supply information respecting any matter required in ensuring compliance with this Act;



(f)                defining any word or expression used but not defined in this Act;



(g)               respecting any other matter that, in the opinion of the Lieutenant-Governor in Council, is necessary for carrying out the purposes and provisions of this Act.



17(2)               A regulation under subsection (1) may be made retroactive to January 1, 2005, or to any date after that date.



CONSEQUENTIAL AMENDMENTS

New Brunswick Income Tax Act

18                        The New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended by adding after section 30 the following:



Additional tuition credit

30.1(1)          The following definitions apply in this section.



"eligible individual" means eligible individual as defined in section 1 of the Tuition Tax Cash Back Credit Act. (particulier admissible)



"eligible institution", for the purposes of the definition "eligible tuition", means eligible institution as defined in section 1 of the Tuition Tax Cash Back Credit Act. (établissement admissible)



"eligible tuition" means eligible tuition as defined in section 1 of the Tuition Tax Cash Back Credit Act. (frais de scolarité admissibles)



"Minister" means Minister as defined in section 1 of the Tuition Tax Cash Back Credit Act. (ministre)



"tax credit" means the tuition tax cash back credit. (crédit d'impôt)



"tax payable" means the amount that is the tax payable under this Act. (impôt payable)



"tuition fees", for the purposes of the definition "eligible tuition", means tuition fees as defined in section 1 of the Tuition Tax Cash Back Credit Act. (frais de scolarité)



30.1(2)          This section applies to the 2006 taxation year and subsequent taxation years.



30.1(3)          Subject to subsection (7), where, in respect of a taxation year, the Minister approves an application for a tax credit made by an eligible individual under section 3 of the Tuition Tax Cash Back Credit Act, that individual is entitled to a tax credit applied against the tax payable by that individual for that taxation year if



(a)               the individual was resident in New Brunswick on December 31 of that taxation year or, if the individual died in that taxation year, the individual was a resident of New Brunswick on the day of death, and



(b)               the individual has filed a return of income for that taxation year.



30.1(4)          The maximum amount of a tax credit to which an eligible individual is entitled for a taxation year under subsection (3) is the lesser of



(a)               the individual's tax payable for that taxation year, and



(b)               $2,000.



30.1(5)          The total amount of tax credits to which an eligible individual is entitled under subsection (3) is the lesser of



(a)               50% of the individual's eligible tuition, and



(b)               $10,000.



30.1(6)          Subject to subsection (7), where, in respect of a taxation year, an eligible individual's total amount referred to in subsection (5) exceeds the sum of the amount of the tax credit to which that individual may be entitled for that taxation year under subsection (4) and the amounts of the tax credits already applied against the tax payable by that individual, any of this unused balance may, to the extent that it was not applied for another taxation year, be applied against the tax payable by that individual in any one or more of the taxation years following that taxation year.



30.1(7)          The tax credits to which an eligible individual is or may be entitled and the unused balance of those tax credits may not be applied under subsection (3) or (6)



(a)               after the period of time referred to in subsection 3(4) of the Tuition Tax Cash Back Credit Act, or



(b)               after the period of time referred to in subsection 3(7) of the Tuition Tax Cash Back Credit Act.



30.1(8)          The tax credits to which an eligible individual is or may be entitled and the unused balance of those tax credits may not be transferred to any other person.



30.1(9)          Sections 30 and 33 do not apply for the purposes of this section.



Commencement

19                        This Act shall be deemed to have come into force on January 1, 2005.
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Legend
* Private Bill
** Bill referred to Standing Committee on Law Amendments
+ Private Member's Public Bill
++ Motion for second reading defeated
+++ Debate at second reading adjourned
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