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Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
An Act to Amend the New Brunswick Income Tax Act
 
Legislature :
55
Session :
3
Bill No. :
77
Member :
Hon. Volpé
First Reading :
2006-6-6
Second Reading :
2006-6-7
Committee of the Whole :
2006-6-16
Amended :
Third Reading :
2006-6-16
Royal Assent :
2006-6-22
Download PDF :
  Bill 77         
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Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                           Section 16.1 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended by adding after subsection (1.1) the following:



16.1(1.2)      This section does not apply to section 49.1 for the 2007 taxation year.



2                           Section 49.1 of the Act is amended



(a)               in subsection (2.1) by striking out "the reference to "$11,000" in subsection (2) shall be read as a reference" and substituting "the references to "$11,000" in subsection (2) shall be read as references";



(b)               by adding after subsection (2.1) the following:



49.1(2.2)      Effective January 1, 2007, the references to "$11,000" in subsection (2) shall be read as references to "$13,750".



3                           Section 55 of the Act is amended by adding after subsection (2) the following:



55(3)               Effective January 1, 2007, the tax payable by a corporation under this Part for a taxation year is 12% of the corporation's taxable income earned in the year in New Brunswick.



4                           Section 56 of the Act is amended by adding after subsection (4) the following:



56(5)               Effective January 1, 2007, the reference to "14.5%" in subsection (1) shall be read as a reference to "12%".



56(6)               Where a corporation has a taxation year part of which begins before January 1, 2007, and part of which ends after December 31, 2006, the reference to "14.5%" in subsection (1) shall be read as a reference to the total of



(a)               13% multiplied by the proportion that the number of days in the taxation year that are before January 1, 2007, is of the number of days in the taxation year, and



(b)               12% multiplied by the proportion that the number of days in the taxation year that are after December 31, 2006, is of the number of days in the taxation year.



5                           Section 57 of the Act is amended by adding after subsection (1.02) the following:



57(1.03)       For the period commencing on January 1, 2007, the reference to "13%" in paragraph (1)(b) shall be read as a reference to "12%".



6                           Subsection 62(1) of the Act is repealed and the following is substituted:



62(1)               Every corporation that has a permanent establishment within New Brunswick in a taxation year shall pay a tax under this Part for the taxation year equal to



(a)               0.3% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are before January 1, 2006, is of the number of days in the taxation year,



(b)               0.25% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2005, but before January 1, 2007, is of the number of days in the taxation year,



(c)                0.2% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2006, but before January 1, 2008, is of the number of days in the taxation year,



(d)               0.1% of its taxable capital employed in New Brunswick for the taxation year as determined under subsection (2) multiplied by the proportion that the number of days in the taxation year that are after December 31, 2007, but before January 1, 2009, is of the number of days in the taxation year, and



(e)                effective January 1, 2009, zero.



COMMENCEMENT

7                           Section 6 of this Act shall be deemed to have come into force on January 1, 2006.



EXPLANATORY NOTES



Section 1



New provision.



Section 2



(a)               The existing provision is as follows:



49.1(2.1)      Effective January 1, 2003, the reference to "$11,000" in subsection (2) shall be read as a reference to "$12,500".



(b)               New provision.



Section 3



New provision.



Section 4



New provisions.



Section 5



New provision.



Section 6



The existing provision is as follows:



62(1)               Every corporation that has a permanent establishment within New Brunswick in a taxation year shall pay a tax under this Part for the taxation year equal to 0.3% of its taxable capital employed in New Brunswick for the year as determined under subsection (2).



Section 7



Commencement provision.
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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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