VII, s. 6]
Marginal note:Annual adjustment
117.1(1)Each specified amount 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 for the year under the provision for which the amount is relevant is the total of
(a)the amount that would, but for subsection (3), be the amount to be used under the relevant provision for the preceding taxation year, and
(b)the product obtained by multiplying
(i)the amount referred to in paragraph (a)
by
(ii)the amount, adjusted in such manner as may be prescribed and rounded to the nearest one-thousandth, or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof, that is determined by the formula
(A/B) - 1
where
(1.1)[Repealed, 2017, c. 20, s. 11]
Marginal note:Annual adjustment — amounts
(2)For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.2 for a taxation year:
(a)the amount of $300 referred to in subparagraph 6(1)(b)(v.1);
(b)the amount of $1,000 referred to in the formula in paragraph 8(1)(s);
(c)the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a);
(d)each of the amounts expressed in dollars in subsection 117(2);
(e)each of the amounts expressed in dollars in the description of B in subsection 118(1);
(f)the amount of $12,298 in the description of A in subsection 118(1.1);
(g)the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.1);
(h)each of the amounts expressed in dollars in subsection 118(2);
(i)the amount of $1,000 referred to in subsection 118(10);
(j)the amount of $15,000 referred to in subsection 118.01(2);
(k)each of the amounts expressed in dollars in subsection 118.2(1);
(l)each of the amounts expressed in dollars in subsection 118.3(1);
(m)each of the amounts expressed in dollars in subsection 122.5(3);
(n)the amount of $2,500 referred to in subsection 122.51(1);
(o)each of the amounts expressed in dollars in subsection 122.51(2);
(p)the amount of $14,000 referred to in subsection 122.7(1.3);
(q)the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.7(2);
(r)the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.7(3);
(s)the amount of $10,000 in the description of B in subsection 122.91(2); and
(t)each of the amounts expressed in dollars in Part I.2.
Marginal note:Rounding
(3)Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.
Marginal note:Consumer Price Index
(4)In this section, the Consumer Price Index for any 12 month period is the result arrived at by
(a)aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of theStatistics Act, adjusted in such manner as is prescribed, for each month in that period;
(b)dividing the aggregate obtained under paragraph 117.1(4)(a) by twelve; and
(c)rounding the result obtained under paragraph 117.1(4)(b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof.
Marginal note:Personal credits
118(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula
A × B
where
Marginal note:Married or common-law partnership status
(a)in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of
(i)the basic personal amount of the individual for the year, and
(ii)the amount determined by the formula
C + C.01 − C.1
where
(A)$2,150 if the spouse or common-law partner is dependent on the individual by reason of mental or physical infirmity, and
(B)in any other case, nil,
Marginal note:Wholly dependent person
(b)in the case of an individual who does not claim a deduction for the year because of paragraph 118(1)(a) and who, at any time in the year,
(i)is
(A)a person who is unmarried and who does not live in a common-law partnership, or
(B)a person who is married or in a common-law partnership, who neither supported nor lived with their spouse or common-law partner and who is not supported by that spouse or common-law partner, and
(ii)whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment (in which the individual lives) and actually supports in that establishment a person who, at that time, is
(A)except in the case of a child of the individual, resident in Canada,
(B)wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,
(C)related to the individual, and
(D)except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent by reason of mental or physical infirmity,
an amount equal to the total of
(iii)the basic personal amount of the individual for the year, and
(iv)the amount determined by the formula
D + D.01 − D.1
where
(A)$2,150 if
(I)the dependent person is, at the end of the taxation year, 18 years of age or older and is, at any time in the year, dependent on the individual by reason of mental or physical infirmity, or
(II)the dependent person is a person, other than a child of the individual in respect of whom paragraph (b.1) applies, who, at the end of the taxation year, is under the age of 18 years and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the dependent person’s personal needs and care, when compared to persons of the same age, and is so dependent on the individual at any time in the year, and
(B)in any other case, nil,
Marginal note:Caregiver amount for infirm child
(b.1)$2,150 for each child, who is under the age of 18 years at the end of the taxation year, of the individual and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s personal needs and care, when compared to children of the same age if
(i)the child ordinarily resides throughout the taxation year with the individual together with another parent of the child, or
(ii)except if subparagraph (i) applies, the individual
(A)may deduct an amount under paragraph (b) in respect of the child, or
(B)could deduct an amount under paragraph (b) in respect of the child if
(I)paragraph (4)(a) and the reference in paragraph (4)(b) to “or the same domestic establishment” did not apply to the individual for the taxation year, and
(II)the child had no income for the year,
Marginal note:Single status
(c)except in the case of an individual entitled to a deduction because of paragraph (a) or (b), the basic personal amount of the individual for the year,
(c.1)[Repealed, 2017, c. 20, s. 12]
Marginal note:Canada caregiver credit
(d)for each person who, at any time in the year,
(i)is dependent on the individual because of mental or physical infirmity, and
(ii)either
(A)is a spouse or common-law partner of the individual, or
(B)has attained the age of 18 years and is a dependant of the individual,
the amount determined by the formula
$6,883 − E
where
Marginal note:Additional amount
(e)in the case of an individual entitled to a deduction in respect of a person because of paragraph (a) or (b) and who would also be entitled, but for paragraph (4)(c), to a deduction because of paragraph (d) in respect of the person, the amount by which the amount that would be determined under paragraph (d) exceeds the amount determined under paragraph (a) or (b), as the case may be, in respect of the person.
Marginal note:Definition ofbasic personal amount
(1.1)For the purposes of subsection (1),basic personal amount, of an individual for a taxation year, means the amount determined by the formula
A + B
where
C − D × E
where
F − G
where
(a)for the 2020 taxation year, $13,229,
(b)for the 2021 taxation year, $13,808,
(c)for the 2022 taxation year, $14,398, and
(d)for the 2023 and subsequent taxation years, $15,000, and
(a)if the individual’s income for the year is less than or equal to the first dollar amount for the year referred to in paragraph 117(2)(d), nil, and
(b)in any other case, the lesser of 1 and the amount determined by the formula
(H − I)/J
where
K − L
where
Marginal note:Age credit
(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula
A × ($6,408 – B)
where
Marginal note:Pension credit
(3)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula
A × B
where
(a)$2,000, and
(b)the total of
(i)the eligible pension income of the individual for the taxation year,
(ii)the total of all amounts received by the individual in the year on account of a retirement income security benefit under Part 2 of theVeterans Well-being Act, and
(iii)the total of all amounts received by the individual in the year on account of an income replacement benefit payable to the individual under Part 2 of theVeterans Well-being Act, if the amount is determined under subsection 19.1(1), paragraph 23(1)(b) or subsection 26.1(1) of that Act (as modified, where applicable, under Part 5 of that Act).
(3.1) and (3.2)[Repealed, 2009, c. 2, s. 34]
(3.3)[Repealed, 2007, c. 29, s. 9]
Marginal note:Limitations re s. (1)
(4)For the purposes of subsection 118(1), the following rules apply:
(a)no amount may be deducted under subsection 118(1) because of paragraphs (a) and (b) of the description of B in subsection 118(1) by an individual in a taxation year for more than one other person;
(a.1)no amount may be deducted under subsection (1) because of paragraph (b) of the description of B in subsection (1) by an individual for a taxation year for a person in respect of whom an amount is deducted because of paragraph (a) of that description by another individual for the year if, throughout the year, the person and that other individual are married to each other or in a common-law partnership with each other and are not living separate and apart because of a breakdown of their marriage or the common-law partnership, as the case may be;
(a.2)a reference to income for a year is to be read as a reference to that income determined as if, in computing that income, no amount were deductible under paragraph 20(1)(ww);
(b)not more than one individual is entitled to a deduction under subsection (1) because of paragraph (b) of the description of B in that subsection for a taxation year in respect of the same person or the same domestic establishment and where two or more individuals otherwise entitled to such a deduction fail to agree as to the individual by whom the deduction may be made, no such deduction for the year shall be allowed to either or any of them;
(b.1)not more than one individual is entitled to a deduction under subsection (1) because of paragraph (b.1) of the description of B in that subsection for a taxation year in respect of the same child and where two or more individuals otherwise entitled to such a deduction fail to agree as to the individual by whom the deduction may be made, no such deduction for the year shall be allowed to either or any of them;
(c)if an individual is entitled to a deduction under subsection (1) because of paragraph (a) or (b) of the description of B in subsection (1) for a taxation year in respect of any person, no amount may be deducted because of paragraph (d) of that description by any individual for the year in respect of the person; and
(d)if more than one individual is entitled to a deduction under subsection (1) because of paragraph (d) of the description of B in subsection (1) for a taxation year in respect of the same person,
(i)the total of all amounts so deductible for the year shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that person if that individual were the only individual entitled to deduct an amount for the year because of that paragraph for that person, and
(ii)if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(e)[Repealed, 2017, c. 20, s. 12]
Marginal note:Support
(5)No amount may be deducted under subsection (1) in computing an individual’s tax payable under this Part for a taxation year in respect of a person where the individual is required to pay a support amount (within the meaning assigned by subsection 56.1(4)) to the individual’s spouse or common-law partner or former spouse or common-law partner in respect of the person and the individual
(a)lives separate and apart from the spouse or common-law partner or former spouse or common-law partner throughout the year because of the breakdown of their marriage or common-law partnership; or
(b)claims a deduction for the year because of section 60 in respect of a support amount paid to the spouse or common-law partner or former spouse or common-law partner.
Marginal note:Where subsection (5) does not apply
(5.1)Where, if this Act were read without reference to this subsection, solely because of the application of subsection (5), no individual is entitled to a deduction under paragraph (b) or (b.1) of the description of B in subsection (1) for a taxation year in respect of a child, subsection (5) shall not apply in respect of that child for that taxation year.
Marginal note:Definition ofdependant
(6)For the purposes of paragraph (d) of the description of B in subsection (1),dependant, of an individual for a taxation year, means a person who at any time in the year is dependent on the individual for support and is
(a)the child or grandchild of the individual or of the individual’s spouse or common-law partner; or
(b)the parent, grandparent, brother, sister, uncle, aunt, niece or nephew, if resident in Canada at any time in the year, of the individual or of the individual’s spouse or common-law partner.
Marginal note:Definitions
(7)Subject to subsections (8) and (8.1), for the purposes of this subsection and subsection (3),
eligible pension incomeof an individual for a taxation year means
(a)if the individual has attained the age of 65 years before the end of the taxation year, the pension income received by the individ-ual in the taxation year, and
(b)if the individual has not attained the age of 65 years before the end of the taxation year, the qualified pension income received by the individual in the taxation year; (revenu de pension déterminé)
pension incomereceived by an individual in a taxation year means the total of
(a)the total of all amounts each of which is an amount included in computing the individual’s income for the year that is
(i)a payment in respect of a life annuity out of or under a superannuation or pension plan (other than a pooled registered pension plan) or a specified pension plan,
(ii)an annuity payment under a registered retirement savings plan, under an “amended plan” as referred to in subsection 146(12) or under an annuity in respect of which an amount is included in computing the individual’s income by reason of paragraph 56(1)(d.2),
(iii)a payment out of or under a registered retirement income fund or under an “amended fund” as referred to in subsection 146.3(11),
(iii.1)a payment (other than a payment described in subparagraph (i)) payable on a periodic basis under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of a registered pension plan,
(iii.2)an amount included under section 147.5,
(iii.3)an amount included under subsection 146.5(2),
(iv)an annuity payment under a deferred profit sharing plan or under a “revoked plan” as referred to in subsection 147(15),
(v)a payment described in subparagraph 147(2)(k)(v), or
(vi)the amount by which an annuity payment included in computing the individual’s income for the year by reason of paragraph 56(1)(d) exceeds the capital element of that payment as determined or established under paragraph 60(a), and
(b)the total of all amounts each of which is an amount included in computing the individual’s income for the year by reason of section 12.2 of this Act or paragraph 56(1)(d.1) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952; (revenu de pension)
qualified pension incomereceived by an individual in a taxation year means the total of all amounts each of which is an amount included in computing the individual’s income for the year and described in
(a)subparagraph (a)(i) of the definitionpension incomein this subsection, or
(b)any of subparagraphs 118(7) qualified pension income (a)(ii) to 118(7) qualified pension income (a)(vi) or paragraph (b) of the definitionpension incomein this subsection received by the individual as a consequence of the death of a spouse or common-law partner of the individual. (revenu de pension admissible)
Marginal note:Interpretation
(8)For the purposes of subsection (7),pension incomeandqualified pension incomereceived by an individual in a taxation year do not include any amount that is
(a)the amount of a pension or supplement under theOld Age Security Actor of any similar payment under a law of a province;
(b)the amount of a benefit under theCanada Pension Planor under a provincial pension plan as defined in section 3 of that Act;
(c)a death benefit;
(d)the amount, if any, by which
(i)an amount required to be included in computing the individual’s income for the year
exceeds
(ii)the amount, if any, by which the amount referred to in subparagraph (i) exceeds the total of all amounts deducted (other than under paragraph 60(c)) by the individual for the year in respect of that amount;
(e)a payment received out of or under a salary deferral arrangement, a retirement compensation arrangement, an employee benefit plan or an employee trust; or
(f)a payment (other than a payment under theJudges Actor theLieutenant Governors Superannuation Act) received out of or under an unfunded supplemental plan or arrangement, being a plan or arrangement where
(i)the payment was in respect of services rendered to an employer by the individual or the individual’s spouse or common-law partner or former spouse or common-law partner as an employee, and
(ii)the plan or arrangement would have been a retirement compensation arrangement or an employee benefit plan had the employer made a contribution in respect of the payment to a trust governed by the plan or arrangement.
Marginal note:Bridging benefits
(8.1)For the purposes of subsection (7), a payment in respect of a life annuity under a superannuation or pension plan is deemed to include a payment in respect of bridging benefits, being benefits payable under a registered pension plan on a periodic basis and not less frequently than annually to an individual where
(a)the individual or the individual’s spouse or common-law partner or former spouse or common-law partner was a member (as defined in subsection 147.1(1)) of the registered pension plan;
(b)the benefits are payable for a period ending no later than the end of the month following the month in which the member attains 65 years of age or would have attained that age if the member had survived to that day; and
(c)the amount (expressed on an annualized basis) of the benefits payable to the individual for a calendar year does not exceed the total of the maximum amount of benefits payable for that year under Part I of theOld Age Security Actand the maximum amount of benefits (other than disability, death or survivor benefits) payable for that year under either theCanada Pension Planor a provincial pension plan as defined in section 3 of that Act.
(9)[Repealed, 2009, c. 2, s. 34]
Marginal note:Child tax credit
(9.1)For greater certainty, in the case of a child who in a taxation year is born, adopted or dies, the reference to “throughout the taxation year” in subparagraph 118(1)(b.1)(i) is to be read as a reference to “throughout the portion of the taxation year that is after the child’s birth or adoption or before the child’s death”.
Marginal note:Canada Employment Credit
(10)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A × B
where
(a)$1,000, and
(b)the total of all amounts, each of which is an amount included in computing the individual’s income for the taxation year from an office or employment or an amount included in the taxpayer’s income for the taxation year because of subparagraph 56(1)(r)(v).
Marginal note:Definitions
118.01(1)The following definitions apply in this section.
adoption period, in respect of an eligible child of an individual, means the period that
(a)begins at the earlier of the time that an application is made for registration with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and
(b)ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child, and the time that the child first begins to reside permanently with the individual. (période d’adoption)
eligible adoption expense, in respect of an eligible child of an individual, means an amount paid for expenses incurred during the adoption period in respect of the adoption of that child, including
(a)fees paid to an adoption agency licensed by a provincial government;
(b)court costs and legal and administrative expenses related to an adoption order in respect of that child;
(c)reasonable and necessary travel and living expenses of that child and the adoptive parents;
(d)document translation fees;
(e)mandatory fees paid to a foreign institution;
(f)mandatory expenses paid in respect of the immigration of that child; and
(g)any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government. (dépense d’adoption admissible)
eligible child, of an individual, means a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual. (enfant admissible)
Marginal note:Adoption expense tax credit
(2)For the purpose of computing the tax payable under this Part by an individual for the taxation year that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined by the formula
A × B
where
(a)$15,000, and
(b)the amount determined by the formula
C - D
where
Marginal note:Apportionment of credit
(3)Where more than one individual is entitled to a deduction under this section for a taxation year in respect of the adoption of an eligible child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Marginal note:Definitions
118.02(1)The following definitions apply in this section.
digital news subscription, of an individual with a qualified Canadian journalism organization, means an agreement entered into between the individual and the qualified Canadian journalism organization, if
(a)the agreement entitles an individual to access content of the qualified Canadian journalism organization in digital form and that content is primarily written news; and
(b)the qualified Canadian journalism organization does not hold alicenceas defined in subsection 2(1) of theBroadcasting Act. (abonnement aux nouvelles numériques)
qualifying subscription expense, for a taxation year, means the amount paid in the year for a digital news subscription of an individual with a qualified Canadian journalism organization and, for this purpose, if the digital news subscription provides access to content in non-digital form or content other than content of qualified Canadian journalism organizations, the amount considered to be paid for the digital news subscription shall not exceed
(a)the cost of a comparable digital news subscription with the qualified Canadian journalism organization that solely provides access to content of qualified Canadian journalism organizations in digital form; and
(b)if there is no such comparable digital news subscription, 1/2 of the amount actually paid. (dépense pour abonnement admissible)
Marginal note:Digital news subscription tax credit
(2)For the purpose of computing the tax payable under this Part by an individual for a taxation year that is before 2025, there may be deducted the amount determined by the formula
A × B
where
(a)$500, and
(b)the total of all amounts each of which is a qualifying subscription expense of the individual for the year.
Marginal note:Apportionment of credit
(3)If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying subscription expense, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying subscription expense, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Marginal note:Ceasing to qualify
(4)For the purposes of subsection (1), if amounts paid under an agreement cease to be qualifying subscription expenses at any particular time in a calendar year and, at the particular time, the Minister has communicated or otherwise made available pursuant to paragraph 241(3.4)(b) that these amounts qualify as qualifying subscription expenses, amounts paid under that agreement are deemed to be qualifying subscription expenses — to the same extent that the amounts paid were considered to be qualifying subscription expenses immediately before the particular time — until the end of the calendar year in which the Minister communicates or otherwise makes available pursuant to paragraph 241(3.4)(b) that amounts paid under the agreement no longer qualify as qualifying subscription expenses.
Marginal note:Notice to individuals
(5)If an organization enters into a digital news subscription agreement with an individual and amounts paid under the agreement cease to be qualifying subscription expenses, the organization shall inform the individual that amounts paid under the agreement are no longer qualifying subscription expenses.
118.03[Repealed, 2014, c. 39, s. 32]
118.031[Repealed, 2016, c. 7, s. 15]
Marginal note:Definitions
118.04(1)The following definitions apply in this section.
eligible dwellingof an individual, at any time, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of such land that exceeds the greater of 1/2 hectare and the portion of such land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if
(a)the individual (or a trust under which the individual is a beneficiary) owns, whether jointly with another person or otherwise, at that time, the housing unit or a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and
(b)the housing unit is ordinarily inhabited at any time during the eligible period by the individual, by the individual’s spouse or common-law partner or former spouse or common-law partner or by a child of the individual. (logement admissible)
eligible periodmeans the period that begins on January 28, 2009 and that ends on January 31, 2010. (période d’admissibilité)
individualdoes not include a trust. (particulier)
qualifying expenditureof an individual means an outlay or expense that is made or incurred, by the individual or by a qualifying relation in respect of the individual during the eligible period, that is directly attributable to a qualifying renovation by the individual and that is the cost of goods acquired or services received during the eligible period and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense
(a)to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation in respect of the individual, for any purpose whatever before they were acquired by the individual or the qualifying relation in respect of the individual;
(b)made or incurred under the terms of an agreement entered into before the eligible period;
(c)to acquire a property that can be used independently of the qualifying renovation;
(d)that is the cost of annual, recurring or routine repair or maintenance;
(e)to acquire a household appliance;
(f)to acquire an electronic home-entertainment device;
(g)for financing costs in respect of the qualifying renovation;
(h)made or incurred for the purpose of gaining or producing income from a business or property; or
(i)in respect of goods or services provided by a person not dealing at arm’s length with the individual, unless the person is registered for the purposes of Part IX of theExcise Tax Act. (dépense admissible)
qualifying relationin respect of an individual means a person who is the individual’s spouse or common-law partner, or a child of the individual who has not attained the age of 18 years before the end of 2009 (other than a child who was, at any time during the eligible period, a married person, a person who is in a common-law partnership or a person who has a child). (proche admissible)
qualifying renovationby an individual, at any time, means a renovation or alteration, of a property that is at that time an eligible dwelling of the individual or of a qualifying relation in respect of the individual, that is of an enduring nature and that is integral to the eligible dwelling. (travaux de rénovation admissibles)
Marginal note:Rules of application
(2)For the purposes of this section,
(a)a qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation, and that includes an eligible dwelling of the individual, to the extent of the individual’s share of that outlay or expense, if
(i)the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were an eligible dwelling of that natural person, and
(ii)the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense; and
(b)a qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes an eligible dwelling of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling of the individual (including, for this purpose, common areas relevant to more than one eligible dwelling), if
(i)the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were an eligible dwelling of that natural person, and
(ii)the trust has notified the individual, in writing, of the individual’s share of the outlay or expense.
Marginal note:Home renovation tax credit
(3)For the purposes of computing the tax payable under this Part by an individual for the individual’s 2009 taxation year, there may be deducted the amount determined by the formula
A × (B – $1,000)
where
Marginal note:Interaction with medical expense credit
(4)Notwithstanding paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.
Marginal note:Apportionment of credit
(5)If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying expenditure of an individual, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying expenditure, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Marginal note:Definitions
118.041(1)The following definitions apply in this section.
eligible dwellingof an individual, at any time in a taxation year, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of that land that exceeds the greater of ½ hectare and the portion of that land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if
(a)the individual (or a trust under which the individual is a beneficiary) owns — whether jointly with another person or otherwise — at that time, the housing unit or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and
(b)the housing unit is ordinarily inhabited, or is reasonably expected to be ordinarily inhabited, at any time in the taxation year
(i)by the individual, if the individual is a qualifying individual, or
(ii)by the individual and a qualifying individual, if
(A)the individual is an eligible individual in respect of the qualifying individual, and
(B)the qualifying individual does not, throughout the taxation year, own — whether jointly with another person or otherwise — and ordinarily inhabit another housing unit in Canada. (logement admissible)
eligible individual, in respect of a qualifying individual for a taxation year, means
(a)an individual who is the qualifying individual’s spouse or common-law partner in the year;
(b)except if paragraph (c) applies, an individual who is entitled to deduct an amount under subsection 118.3(2) for the year in respect of the qualifying individual or would be if no amount was claimed for the year by the qualifying individual under subsection 118.3(1) or by the qualifying individual’s spouse or common-law partner under section 118.8; or
(c)in the case of a qualifying individual who has attained the age of 65 before the end of the year, an individual who
(i)claimed for the year a deduction under subsection 118(1) in respect of the qualifying individual because of
(A)paragraph (b) of the description of B in that subsection, or
(B)paragraph (d) of the description of B in that subsection where the qualifying individual is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or
(ii)could have claimed for the year a deduction referred to in subparagraph (i) in respect of the qualifying individual if
(A)the qualifying individual had no income for the year,
(B)in the case of a deduction referred to in clause (i)(A), the individual were not married and not in a common-law partnership, and
(C)in the case of a deduction under subsection 118(1) because of paragraph (d) of the description of B in that subsection in respect of a qualifying individual who is a dependant (within the meaning of subsection 118(6)) of the individual, the qualifying individual was dependent on the individual because of mental or physical infirmity. (particulier admissible)
individualdoes not include a trust. (particulier)
qualifying expenditureof an individual means an outlay or expense that is made or incurred, during a taxation year, that is directly attributable to a qualifying renovation — of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual — and that is the cost of goods acquired or services received during the year and includes an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include an outlay or expense
(a)to acquire a property that can be used independently of the qualifying renovation;
(b)that is the cost of annual, recurring or routine repair or maintenance;
(c)to acquire a household appliance;
(d)to acquire an electronic home-entertainment device;
(e)that is the cost of housekeeping, security monitoring, gardening, outdoor maintenance or similar services;
(f)for financing costs in respect of the qualifying renovation;
(g)made or incurred primarily for the purpose of increasing or maintaining the value of the eligible dwelling;
(h)made or incurred for the purpose of gaining or producing income from a business or property;
(i)in respect of goods or services provided by a person not dealing at arm’s length with the qualifying individual or the eligible individual, unless the person is registered for the purposes of Part IX of theExcise Tax Act; or
(j)to the extent that the outlay or expense can reasonably be considered to have been reimbursed, otherwise than as assistance from the federal or a provincial government including a grant, subsidy, forgivable loan or a deduction from tax. (dépense admissible)
qualifying individual, in respect of a taxation year, means an individual
(a)who has attained the age of 65 years before the end of the taxation year; or
(b)in respect of whom an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.3(1)(c), under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year. (particulier déterminé)
qualifying renovationmeans a renovation or alteration of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual that
(a)is of an enduring nature and integral to the eligible dwelling; and
(b)is undertaken to
(i)enable the qualifying individual to gain access to, or to be mobile or functional within, the eligible dwelling, or
(ii)reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling. (travaux de rénovation admissibles)
Marginal note:Qualifying expenditure rules
(2)For the purpose of this section,
(a)a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a cooperative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation and that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, if
(i)the outlay or expense would be a qualifying expenditure of the corporation if the corporation were an individual and the property were an eligible dwelling of that individual, and
(ii)the corporation has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling; and
(b)a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling (including, for this purpose, common areas relevant to more than one eligible dwelling), if
(i)the outlay or expense would be a qualifying expenditure of the trust if the trust were an individual and the property were an eligible dwelling of that individual, and
(ii)the trust has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling.
Marginal note:Home accessibility tax credit
(3)For the purpose of computing the tax payable under this Part by a qualifying individual or an eligible individual, in respect of an eligible dwelling for a taxation year, there may be deducted the amount determined by the formula
A × B
where
(a)$20,000, and
(b)the total of all amounts, each of which is a qualifying expenditure of the individual in respect of the eligible dwelling for the taxation year.
Marginal note:Interaction with medical expense credit
(4)Despite paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.
Marginal note:Limits
(5)For the purpose of this section,
(a)a maximum of $20,000 of qualifying expenditures for a taxation year in respect of a qualifying individual can be claimed under subsection (3) by the qualifying individual and all eligible individuals in respect of the qualifying individual;
(b)if there is more than one qualifying individual in respect of an eligible dwelling, a maximum of $20,000 of qualifying expenditures for a taxation year in respect of the eligible dwelling can be claimed under subsection (3) by the qualifying individuals and all eligible individuals in respect of the qualifying individuals; and
(c)if more than one individual is entitled to a deduction under subsection (3) for a taxation year in respect of the same qualifying individual or the same eligible dwelling and the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Marginal note:Effect of bankruptcy
(6)For the purpose of subsection (5), if an individual becomes bankrupt in a particular calendar year, despite subsection 128(2), any reference to the taxation year of the individual is deemed to be a reference to the particular calendar year.
Marginal note:In the event of death and bankruptcy
(7)For the purpose of this section,
(a)if an individual dies during a calendar year and would have attained 65 years of age if the individual were alive at the end of the year, the individual is deemed to have attained 65 years of age at the beginning of the year;
(b)if an individual becomes a qualifying individual during a calendar year and becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of that year; and
(c)if an individual becomes a qualifying individual during a calendar year and an eligible individual in respect of the qualifying individual becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of the year.
Marginal note:Definitions
118.05(1)The following definitions apply in this section.
qualifying homein respect of an individual, means aqualifying homeas defined in subsection 146.01(1) that is acquired, whether jointly or otherwise, after January 27, 2009 if
(a)the home is acquired by the individual, or by the individual’s spouse or common-law partner, and
(i)the individual intends to inhabit the home as a principal place of residence not later than one year after its acquisition,
(ii)the individual did not own, whether jointly or otherwise, a home that was occupied by the individual in the period
(A)that began at the beginning of the fourth preceding calendar year that ended before the acquisition, and
(B)that ended on the day before the acquisition, and
(iii)the individual’s spouse or common-law partner did not, in the period referred to in subparagraph (ii), own, whether jointly or otherwise, a home
(A)that was inhabited by the individual during the marriage to or common-law partnership with the individual, or
(B)that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the marriage to or common-law partnership with the individual; or
(b)the home is acquired by the individual for the benefit of a specified person in respect of the individual, and
(i)the individual intends that the home be inhabited by the specified person as a principal place of residence not later than one year after its acquisition by the individual, and
(ii)the purpose of the acquisition of the home by the individual is to enable the specified person to live in
(A)a home that is more accessible by the specified person or in which the specified person is more mobile or functional, or
(B)an environment better suited to the specified person’s personal needs and care. (habitation admissible)
specified personin respect of an individual, at any time, means a person who
(a)is the individual or is related at that time to the individual; and
(b)would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection. (personne déterminée)
Marginal note:Rules of application
(2)For the purposes of this section, an individual is considered to have acquired a qualifying home only if the individual’s interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located.
Marginal note:First-time homebuyers’ tax credit
(3)In computing the tax payable under this Part by an individual for a taxation year in which a qualifying home in respect of the individual is acquired, there may be deducted the amount determined by multiplying $10,000 by the appropriate percentage for the taxation year.
Marginal note:Apportionment of credit
(4)If more than one individual is entitled to a deduction under this section for a taxation year in respect of a particular qualifying home, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying home, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Definition ofeligible volunteer firefighting services
118.06(1)In this section and section 118.07,eligible volunteer firefighting servicesmeans services provided by an individual in the individual’s capacity as a volunteer firefighter to a fire department that consist primarily of responding to and being on call for firefighting and related emergency calls, attending meetings held by the fire department and participating in required training related to the prevention or suppression of fires, but does not include services provided to a particular fire department if the individual provides firefighting services to the department otherwise than as a volunteer.
Marginal note:Volunteer firefighter tax credit
(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the taxation year if the individual
(a)performs in the year not less than 200 hours of service each of which is an hour of
(i)eligible volunteer firefighting service for a fire department, or
(ii)eligible search and rescue volunteer service for an eligible search and rescue organization; and
(b)provides the certificates referred to in subsections (3) and 118.07(3) as and when requested by the Minister.
Marginal note:Certificate
(3)If the Minister so demands, an individual making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from the fire chief or a delegated official of each fire department to which the individual provided eligible volunteer firefighting services for the year, attesting to the number of hours of eligible volunteer firefighting services performed in the year by the individual for the particular fire department.
Marginal note:Definitions
118.07(1)The following definitions apply in this section and section 118.06.
eligible search and rescue organizationmeans a search and rescue organization
(a)that is a member of the Search and Rescue Volunteer Association of Canada, the Civil Air Search and Rescue Association or the Canadian Coast Guard Auxiliary; or
(b)whose status as a search and rescue organization is recognized by a provincial, municipal or public authority. (organisme admissible de recherche et sauvetage)
eligible search and rescue volunteer servicesmeans services, other than eligible volunteer firefighting services, provided by an individual in the individual’s capacity as a volunteer to an eligible search and rescue organization that consist primarily of responding to and being on call for search and rescue and related emergency calls, attending meetings held by the organization and participating in required training related to search and rescue services, but does not include services provided to an organization if the individual provides search and rescue services to the organization otherwise than as a volunteer. (services admissibles de volontaire en recherche et sauvetage)
Marginal note:Search and rescue volunteer tax credit
(2)For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the taxation year if the individual
(a)performs in the year not less than 200 hours of service each of which is an hour of
(i)eligible search and rescue volunteer service for an eligible search and rescue organization, or
(ii)eligible volunteer firefighting services for a fire department;
(b)provides the certificates referred to in subsections (3) and 118.06(3) as and when requested by the Minister; and
(c)has not deducted an amount under section 118.06 for the year.
Marginal note:Certificate
(3)If the Minister so demands, an individual making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from the team president, or other individual who fulfils a similar role, of each eligible search and rescue organization to which the individual provided eligible search and rescue volunteer services for the year, attesting to the number of hours of eligible search and rescue volunteer services performed in the year by the individual for the particular organization.
Marginal note:Definitions
118.1(1)In this section,
first-time donor[Repealed, 2013, c. 33, s. 10]
total charitable gifts, of an individual for a particular taxation year, means the total of all amounts each of which is the eligible amount — to the extent it is not otherwise included in determining an amount that is deducted under this section in computing any individual’s tax payable under this Part for any taxation year — of a gift (other than a gift any part of the eligible amount of which is included in the total cultural gifts or the total ecological gifts of any individual for any taxation year) that is made
(a)to a qualified donee,
(b)in a taxation year that is not a year for which an amount is deducted under subsection 110(2) in computing the individual’s taxable income, and
(c)if the individual is
(i)not a trust,
(A)by the individual, or the individual’s spouse or common-law partner, in the particular year or any of the five preceding taxation years,
(B)by the individual in the year in which the individual dies if the particular year is the taxation year that precedes the taxation year in which the individual dies, or
(C)by the individual’s estate if subsection (5.1) applies to the gift and the particular year is the taxation year in which the individual dies or the preceding taxation year, or
(ii)a trust
(A)by the trust in the particular year or any of the five preceding taxation years,
(B)by the trust if
(I)the trust is an individual’s estate,
(II)subsection (5.1) applies to the gift, and
(III)the particular year is a taxation year
1in which the estate is the individual’s graduated rate estate, and
2that precedes the taxation year in which the gift is made, or
(C)by the trust if
(I)the end of the particular year is determined by paragraph 104(13.4)(a) because of an individual’s death,
(II)the gift is made after the particular year and on or before the trust’s filing-due date for the particular year, and
(III)the subject of the gift is property that is held by the trust at the time of the individual’s death or is property that was substituted for that property; (total des dons de bienfaisance)
total Crown gifts[Repealed, 2014, c. 39, s. 34]
total cultural gifts, of an individual for a particular taxation year, means the total of all amounts each of which is the eligible amount — to the extent it is not otherwise included in determining an amount that is deducted under this section in computing any individual’s tax payable under this Part for any taxation year — of a gift
(a)of an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of theCultural Property Export and Import Act,
(b)that is made to an institution or a public authority in Canada that is, at the time the gift is made, designated under subsection 32(2) of theCultural Property Export and Import Acteither generally or for a specified purpose related to that object, and
(c)that is made
(i)if the individual is not a trust,
(A)by the individual, or the individual’s spouse or common-law partner, in the particular year or any of the five preceding taxation years,
(B)by the individual in the year in which the individual dies if the particular year is the taxation year that precedes the taxation year in which the individual dies, or
(C)by the individual’s estate if subsection (5.1) applies to the gift and the particular year is the taxation year in which the individual dies or the preceding taxation year, or
(ii)if the individual is a trust,
(A)by the trust in the particular year or any of the five preceding taxation years,
(B)by the trust if
(I)the trust is an individual’s estate,
(II)subsection (5.1) applies to the gift, and
(III)the particular year is a taxation year
1in which the estate is the individual’s graduated rate estate, and
2that precedes the taxation year in which the gift is made, or
(C)by the trust if
(I)the end of the particular year is determined by paragraph 104(13.4)(a) because of an individual’s death,
(II)the gift is made after the particular year and on or before the trust’s filing-due date for the particular year, and
(III)the subject of the gift is property that is held by the trust at the time of the individual’s death or is property that was substituted for that property; (total des dons de biens culturels)
total ecological gifts, of an individual for a particular taxation year, means the total of all amounts each of which is the eligible amount — to the extent it is not otherwise included in determining an amount that is deducted under this section in computing any individual’s tax payable under this Part for any taxation year — of a gift (other than a gift any part of the eligible amount of which is included in the total cultural gifts of any individual for any taxation year)
(a)of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a personal servitude (the rights to which the land is subject and which has a term of not less than 100 years) or a real servitude)
(i)the fair market value of which is certified by the Minister of the Environment, and
(ii)that is certified by that Minister, or by a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is, in the opinion of that Minister or the designated person, important to the preservation of Canada’s environmental heritage,
(b)that is made to a qualified donee that is
(i)Her Majesty in right of Canada or of a province,
(i.1)a municipality in Canada, or a municipal or public body performing a function of government in Canada, that is approved by that Minister or the designated person in respect of the gift, or
(ii)a registered charity (other than a private foundation) one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift, and
(c)that is made
(i)if the individual is not a trust,
(A)by the individual, or the individual’s spouse or common-law partner, in the particular year or any of the 10 preceding taxation years,
(B)by the individual in the year in which the individual dies if the particular year is the taxation year that precedes the taxation year in which the individual dies, or
(C)by the individual’s estate if subsection (5.1) applies to the gift and the particular year is the taxation year in which the individual dies or the preceding taxation year, or
(ii)if the individual is a trust,
(A)by the trust in the particular year or any of the 10 preceding taxation years,
(B)by the trust if
(I)the trust is an individual’s estate,
(II)subsection (5.1) applies to the gift, and
(III)the particular year is a taxation year
1in which the estate is the individual’s graduated rate estate, and
2that precedes the taxation year in which the gift is made, or
(C)by the trust if
(I)the end of the particular year is determined by paragraph 104(13.4)(a) because of an individual’s death,
(II)the gift is made after the particular year and on or before the trust’s filing-due date for the particular year, and
(III)the subject of the gift is property that is held by the trust at the time of the individual’s death or is property that was substituted for that property; (total des dons de biens écosensibles)
total giftsof an individual for a taxation year means the total of
(a)the least of
(i)the individual’s total charitable gifts for the year,
(ii)the individual’s income for the year where the individual dies in the year or in the following taxation year, and
(iii)in any other case, the lesser of the individual’s income for the year and the amount determined by the formula
0.75A + 0.25 (B + C + D - E)
where
(A)the amount included under subsection 13(1) in respect of the class in computing the individual’s income for the year, and
(B)the total of all amounts each of which is determined in respect of a disposition that is the making of a gift of property of the class made by the individual in the year (in respect of which gift an eligible amount is included in the individual’s total charitable gifts for the taxation year) equal to the lesser of
(I)that proportion, of the amount by which the proceeds of disposition of the property exceed any outlays and expenses, to the extent that they were made or incurred by the individual for the purpose of making the disposition, that the eligible amount of the gift is of the individual’s proceeds of disposition in respect of the gift, and
(II)that proportion, of the capital cost to the individual of the property, that the eligible amount of the gift is of the individual’s proceeds of disposition in respect of the gift, and
(b)[Repealed, 2014, c. 39, s. 34]
(c)the individual’s total cultural gifts for the year, and
(d)the individual’s total ecological gifts for the year. (total des dons)
Marginal note:Proof of gift
(2)An eligible amount of a gift is not to be included in the total charitable gifts, total cultural gifts or total ecological gifts of an individual unless the making of the gift is evidenced by filing with the Minister
(a)a receipt for the gift that contains prescribed information;
(b)in the case of a gift described in the definitiontotal cultural giftsin subsection (1), the certificate issued under subsection 33(1) of theCultural Property Export and Import Act; and
(c)in the case of a gift described in the definitiontotal ecological giftsin subsection (1), both certificates referred to in that definition.
Marginal note:Ordering of gifts
(2.1)For the purpose of determining an individual’s total charitable gifts, total cultural gifts and total ecological gifts for a taxation year, no amount in respect of a gift described in any of the definitions of those expressions and made in a particular taxation year is to be considered to have been included in determining an amount that was deducted under this section in computing the individual’s tax payable under this Part for a taxation year until amounts in respect of such gifts made in taxation years preceding the particular year that can be so considered are so considered.
Marginal note:Deduction by individuals for gifts
(3)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula
A × B + C × D + E × F
where
(a)in the case of a trust (other than a graduated rate estate or aqualified disability trustas defined in subsection 122(3)), the amount, if any, by which its total gifts for the year exceeds $200, and
(b)in any other case, the lesser of
(i)the amount, if any, by which the individual’s total gifts for the year exceeds $200, and
(ii)the amount, if any, by which the individual’s amount taxable for the year for the purposes of subsection 117(2) exceeds the first dollar amount for the year referred to in paragraph 117(2)(e);
(3.1) and (3.2)[Repealed, 2013, c. 33, s. 10]
Marginal note:Gifts — deaths before 2016
(4)If an individual dies before 2016 and any of this subsection and subsections (5), (5.2), (5.3), (7) and (7.1) (as they read for the taxation year in which the death occurred) applied to deem the individual to have made a gift at a time before the death, then for the purposes of this section the gift is deemed not to have been made by any other taxpayer or at any other time.
Marginal note:Gifts — deaths after 2015
(4.1)Subsection (5) applies to a gift if an estate arises on and as a consequence of the death after 2015 of an individual and the gift is
(a)made by the individual by the individual’s will;
(b)deemed by subsection (5.2) to have been made in respect of the death; or
(c)made by the estate.
Marginal note:Gifts — deaths after 2015
(5)If this subsection applies to a gift, then for the purposes of the Act (other than subsections (4.1) and (5.2)) the gift is deemed to be made
(a)by the estate referred to in subsection (4.1) and not by any other taxpayer; and
(b)subject to subsection (13), at the time that the property that is the subject of the gift is transferred to the donee and not at any other time.
Marginal note:Gifts by graduated rate estate
(5.1)This subsection applies to a gift made by an individual’s graduated rate estate (determined without reference to paragraph (a) of the definitiongraduated rate estatein subsection 248(1)) if the gift is made no more than 60 months after the individual’s death, the death occurs after 2015 and either
(a)the gift is deemed by subsection (5.2) to have been made in respect of the death, or
(b)the subject of the gift is property that was acquired by the estate on and as a consequence of the death or is property that was substituted for that property.
Marginal note:Deemed gifts — eligible transfers
(5.2)For the purposes of this section, money or a negotiable instrument transferred to a qualified donee is deemed to be property that is the subject of a gift, in respect of an individual’s death, made to the qualified donee, if the death occurs after 2015 and the transfer is
(a)a transfer — other than a transfer the amount of which is not included in computing the income of the individual or the individual’s estate for any taxation year but would have been included in computing the income of the individual or the estate for a taxation year if the transfer had been made to the individual’s legal representative for the estate’s benefit and this Act were read without reference to subsection 70(3) — made
(i)as a consequence of the death,
(ii)solely because of the obligations under a life insurance policy under which, immediately before the death, the individual’s life was insured, and the individual’s consent would have been required to change the recipient of the transfer, and
(iii)from an insurer to a person that is the qualified donee and that was, immediately before the death, neither a policyholder under the policy nor an assignee of the individual’s interest under the policy; or
(b)a transfer made
(i)as a consequence of the death,
(ii)solely because of the qualified donee’s interest or, for civil law a right, as a beneficiary under an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier)
(A)that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the death, a TFSA, and
(B)under which the individual was, immediately before the death, the annuitant or holder, and
(iii)from the arrangement to the qualified donee.
(5.3)[Repealed, 2014, c. 39, s. 34]
Marginal note:Where subsection (6) applies
(5.4)Subsection (6) applies in circumstances where
(a)an individual
(i)makes a gift at any time of capital property to a qualified donee, or
(ii)who is non-resident, makes a gift at any time of real or immovable property situated in Canada to a prescribed donee who provides an undertaking, in a form satisfactory to the Minister, to the effect that the property will be held for use in the public interest; and
(b)the fair market value of the property otherwise determined at that time exceeds
(i)in the case of depreciable property of a prescribed class, the lesser of the undepreciated capital cost of that class at the end of the taxation year of the individual that includes that time (determined without reference to proceeds of disposition designated in respect of the property under subsection (6)) and the adjusted cost base to the individual of the property immediately before that time, and
(ii)in any other case, the adjusted cost base to the individual of the property immediately before that time.
Marginal note:Gifts of capital property
(6)If this subsection applies in respect of a gift by an individual of property, and the individual or the individual’s legal representative designates an amount in respect of the gift in the individual’s return of income under section 150 for the year in which the gift is made, the amount so designated is deemed to be the individual’s proceeds of disposition of the property and, for the purpose of subsection 248(31), the fair market value of the gift, but the amount so designated may not exceed the fair market value of the property otherwise determined and may not be less than the greater of
(a)in the case of a gift made after December 20, 2002, the amount of the advantage, if any, in respect of the gift, and
(b)the amount determined under subparagraph (5.4)(b)(i) or (ii), as the case may be, in respect of the property.
Marginal note:Gift of art
(7)Subsection (7.1) applies to a gift made by an individual if the gift is described in the definitiontotal charitable giftsortotal cultural giftsin subsection (1) and the property that is the subject of the gift is a work of art that
(a)was created by the individual and is in the individual’s inventory;
(b)was acquired by the individual under circumstances where subsection 70(3) applies; or
(c)if the individual is an estate that arose on and as a consequence of the death of a particular individual who created the work of art, was in the particular individual’s inventory immediately before the death.
Marginal note:Gift of art
(7.1)If this subsection applies to a gift made by an individual, the following rules apply:
(a)in the case of a gift described in the definitiontotal cultural giftsin subsection (1),
(i)if at the time the gift is made the fair market value of the work of art that is the subject of the gift exceeds its cost amount to the individual, the individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to the greater of its cost amount to the individual at that time and the amount of the advantage, if any, in respect of the gift, and
(ii)if the individual is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift and at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual, the particular individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to the cost amount to the particular individual at that time and the estate is deemed to have acquired the work of art at a cost equal to those proceeds; and
(b)in the case of a gift described in the definitiontotal charitable giftsin subsection (1),
(i)if at the time the gift is made the fair market value of the work of art that is the subject of the gift exceeds its cost amount to the individual, then the amount designated in the individual’s return of income under section 150 for the taxation year that includes that time is deemed to be
(A)the individual’s proceeds of disposition in respect of the work of art, and
(B)the fair market value of the work of art for the purposes of subsection 248(31),
(ii)a designation under subparagraph (i) is of no effect to the extent that the amount designated
(A)exceeds the fair market value of the work of art otherwise determined, or
(B)is less than the greater of the amount of the advantage, if any, in respect of the gift, and the cost amount to the individual of the work of art,
(iii)if the individual is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift and at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual,
(A)the amount designated in the particular individual’s return of income under section 150 for the taxation year that includes that time is deemed to be the value of the work of art at the time of the death, and
(B)the estate is deemed to have acquired the work of art at a cost equal to that value, and
(iv)a designation under subparagraph (iii) is of no effect to the extent that the amount designated
(A)exceeds the fair market value of the work of art otherwise determined, or
(B)is less than the cost amount to the particular individual of the work of art.
Marginal note:Gifts made by partnership
(8)If at the end of a fiscal period of a partnership an individual is a member of the partnership, the individual’s share of any amount that would, if the partnership were a person, be the eligible amount of a gift made by the partnership to any donee is, for the purpose of this section, deemed to be the eligible amount of a gift made to that donee by the individual in the individual’s taxation year in which the fiscal period of the partnership ends.
Marginal note:Commuter’s charitable donations
(9)Where throughout a taxation year an individual resided in Canada near the boundary between Canada and the United States, if
(a)the individual commuted to the individual’s principal place of employment or business in the United States, and
(b)the individual’s chief source of income for the year was that employment or business,
a gift made by the individual in the year to a religious, charitable, scientific, literary or educational organization created or organized in or under the laws of the United States that would be allowed as a deduction under the United States Internal Revenue Code shall, for the purpose of the definitiontotal charitable giftsin subsection 118.1(1), be deemed to have been made to a registered charity.
Marginal note:Determination of fair market value
(10)For the purposes of paragraph 110.1(1)(c) and the definitiontotal cultural giftsin subsection 118.1(1), the fair market value of an object is deemed to be the fair market value determined by the Canadian Cultural Property Export Review Board.
Marginal note:Determination of fair market value
(10.1)For the purposes of this section, subparagraph 69(1)(b)(ii), subsection 70(5) and sections 110.1 and 207.31, if at any time the Canadian Cultural Property Export Review Board or the Minister of the Environment determines or redetermines an amount to be the fair market value of a property that is the subject of a gift described in paragraph 110.1(1)(a), or in the definitiontotal charitable giftsin subsection (1), made by a taxpayer within the two-year period that begins at that time, an amount equal to the last amount so determined or redetermined within the period is deemed to be the fair market value of the gift at the time the gift was made and, subject to subsections (6), (7.1) and 110.1(3), to be the taxpayer’s proceeds of disposition of the gift.
Marginal note:Request for determination by the Minister of the Environment
(10.2)Where a person disposes or proposes to dispose of a property that would, if the disposition were made and the certificates described in paragraph 110.1(1)(d) or in the definitiontotal ecological giftsin subsection (1) were issued by the Minister of the Environment, be a gift described in those provisions, the person may request, by notice in writing to that Minister, a determination of the fair market value of the property.
Marginal note:Duty of Minister of the Environment
(10.3)In response to a request made under subsection (10.2), the Minister of the Environment shall with all due dispatch make a determination in accordance with subsection (12) or 110.1(5), as the case may be, of the fair market value of the property referred to in that request and give notice of the determination in writing to the person who has disposed of, or who proposes to dispose of, the property, except that no such determination shall be made if the request is received by that Minister after three years after the end of the person’s taxation year in which the disposition occurred.
Marginal note:Ecological gifts — redetermination
(10.4)Where the Minister of the Environment has, under subsection (10.3), notified a person of the amount determined by that Minister to be the fair market value of a property in respect of its disposition or proposed disposition,
(a)that Minister shall, on receipt of a written request made by the person on or before the day that is 90 days after the day that the person was so notified of the first such determination, with all due dispatch confirm or redetermine the fair market value;
(b)that Minister may, on that Minister’s own initiative, at any time redetermine the fair market value;
(c)that Minister shall in either case notify the person in writing of that Minister’s confirmation or redetermination; and
(d)any such redetermination is deemed to replace all preceding determinations and redeterminations of the fair market value of that property from the time at which the first such determination was made.
Marginal note:Certificate of Fair Market Value
(10.5)Where the Minister of the Environment determines under subsection (10.3) the fair market value of a property, or redetermines that value under subsection (10.4), and the property has been disposed of to a qualified donee described in paragraph 110.1(1)(d) or in the definitiontotal ecological giftsin subsection (1), that Minister shall issue to the person who made the disposition a certificate that states the fair market value of the property so determined or redetermined and, where more than one certificate has been so issued, the last certificate is deemed to replace all preceding certificates from the time at which the first certificate was issued.
Marginal note:Assessments
(11)Notwithstanding subsections 152(4) to (5), such assessments or reassessments of a taxpayer’s tax, interest or penalties payable under this Act for any taxation year shall be made as are necessary to give effect
(a)to a certificate issued under subsection 33(1) of theCultural Property Export and Import Act or to a decision of a court resulting from an appeal made pursuant to section 33.1 of that Act; or
(b)to a certificate issued under subsection (10.5) or to a decision of a court resulting from an appeal made pursuant to subsection 169(1.1).
Marginal note:Ecological gifts
(12)For the purposes of applying subparagraph 69(1)(b)(ii), subsection 70(5), this section and section 207.31 in respect of a gift described in the definitiontotal ecological giftsin subsection (1) that is made by an individual, the amount that is the fair market value (or, for the purpose of subsection (6), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (6), the individual’s proceeds of disposition of the gift, is deemed to be the amount determined by the Minister of the Environment to be
(a)where the gift is land, the fair market value of the gift; or
(b)where the gift is a servitude, covenant or easement to which land is subject, the greater of
(i)the fair market value otherwise determined of the gift, and
(ii)the amount by which the fair market value of the land is reduced as a result of the making of the gift.
Marginal note:Non-qualifying securities
(13)For the purposes of this section (other than this subsection), if at any particular time an individual makes a gift (including a gift that, but for this subsection, would be deemed by subsection (5) to be made at the particular time) of a non-qualifying security of the individual and the gift is not an excepted gift,
(a)except for the purpose of applying subsection 118.1(6) to determine the individual’s proceeds of disposition of the security, the gift is deemed not to have been made;
(b)if the security ceases to be a non-qualifying security of the individual at a subsequent time that is within 60 months after the particular time and the donee has not disposed of the security at or before the subsequent time, the individual is deemed to have made a gift to the donee of property at the subsequent time and the fair market value of that property is deemed to be the lesser of the fair market value of the security at the subsequent time and the fair market value of the security at the particular time that would, if this Act were read without reference to this subsection, have been included in calculating the individual’s total charitable gifts for a taxation year;
(c)if the security is disposed of by the donee within 60 months after the particular time and paragraph (b) does not apply to the security, the individual is deemed to have made a gift to the donee of property at the time of the disposition and the fair market value of that property is deemed to be the lesser of the fair market value of any consideration (other than a non-qualifying security of any person) received by the donee for the disposition and the fair market value of the security at the particular time that would, if this Act were read without reference to this subsection, have been included in calculating the individual’s total charitable gifts for a taxation year; and
(d)a designation under subsection 118.1(6) or 110.1(3) in respect of the gift made at the particular time may be made in the individual’s return of income for the year that includes the subsequent time referred to in paragraph 118.1(13)(b) or the time of the disposition referred to in paragraph 118.1(13)(c).
Marginal note:Application of subsection (13.2)
(13.1)Subsection (13.2) applies if, as part of a series of transactions,
(a)an individual makes, at a particular time, a gift of a particular property to a qualified donee;
(b)a particular person holds a non-qualifying security of the individual; and
(c)the qualified donee acquires, directly or indirectly, a non-qualifying security of the individual or of the particular person.
Marginal note:Non-qualifying securities — third-party accommodation
(13.2)If this subsection applies,
(a)for the purposes of this section, the fair market value of the particular property is deemed to be reduced by an amount equal to the fair market value of the non-qualifying security acquired by the qualified donee; and
(b)for the purposes of subsection (13),
(i)if the non-qualifying security acquired by the qualified donee is a non-qualifying security of the particular person, it is deemed to be a non-qualifying security of the individual,
(ii)the individual is deemed to have made, at the particular time referred to in subsection (13.1), a gift of the non-qualifying security acquired by the qualified donee, the fair market value of which does not exceed the amount, if any, by which
(A)the fair market value of the particular property determined without reference to paragraph (a)
exceeds
(B)the fair market value of the particular property determined under paragraph (a), and
(iii)paragraph (13)(b) does not apply in respect of the gift.
Marginal note:Non-qualifying securities — anti-avoidance
(13.3)For the purposes of subsections (13.1) and (13.2), if, as part of a series of transactions, an individual makes a gift to a qualified donee and the qualified donee acquires a non-qualifying security of a person (other than the individual or particular person referred to in subsection (13.1)) and it may reasonably be considered, having regard to all the circumstances, that one of the purposes or results of the acquisition of the non-qualifying security by the qualified donee was to facilitate, directly or indirectly, the making of the gift by the individual, then the non-qualifying security acquired by the qualified donee is deemed to be a non-qualifying security of the individual.
Marginal note:Exchanged security
(14)Where a share (in this subsection referred to as the “new share”) that is a non-qualifying security of an individual has been acquired by a donee referred to in subsection 118.1(13) in exchange for another share (in this subsection referred to as the “original share”) that is a non-qualifying security of the individual by means of a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and 85.1(1)(a)(ii) or section 86 or 87 applies, the new share is deemed for the purposes of this subsection and subsection 118.1(13) to be the same share as the original share.
Marginal note:Exchange of beneficial interest in trust
(14.1)Where a donee disposes of a beneficial interest in a trust that is a non-qualifying security of an individual in circumstances where paragraph (13)(c) would, but for this subsection, apply in respect of the disposition, and in respect of which the donee receives no consideration other than other non-qualifying securities of the individual, for the purpose of subsection (13) the gift referred to in that subsection is to be read as a reference to a gift of those other non-qualifying securities.
Marginal note:Death of donor
(15)If, but for this subsection, an individual would be deemed by subsection 118.1(13) to have made a gift after the individual’s death, for the purpose of this section the individual is deemed to have made the gift in the taxation year in which the individual died, except that the amount of interest payable under any provision of this Act is the amount that it would be if this subsection did not apply to the gift.
Marginal note:Loanbacks
(16)For the purpose of this section, where
(a)at any particular time an individual makes a gift of property,
(b)if the property is a non-qualifying security of the individual, the gift is an excepted gift, and
(c)within 60 months after the particular time
(i)the donee holds a non-qualifying security of the individual that was acquired by the donee after the time that is 60 months before the particular time, or
(ii)the individual or any person or partnership with which the individual does not deal at arm’s length uses property of the donee under an agreement that was made or modified after the time that is 60 months before the particular time, and the property was not used in the carrying on of the donee’s charitable activities,
the fair market value of the gift is deemed to be that value otherwise determined minus the total of all amounts each of which is the fair market value of the consideration given by the donee to so acquire a non-qualifying security so held or the fair market value of such a property so used, as the case may be.
Marginal note:Ordering rule
(17)For the purpose of applying subsection (16) to determine the fair market value of a gift made at any time by a taxpayer, the fair market value of consideration given to acquire property described in subparagraph (16)(c)(i) or of property described in subparagraph (16)(c)(ii) is deemed to be that value otherwise determined minus any portion of it that has been applied under that subsection to reduce the fair market value of another gift made before that time by the taxpayer.
Marginal note:Non-qualifying security defined
(18)For the purposes of this section,non-qualifying securityof an individual at any time means
(a)an obligation (other than an obligation of a financial institution to repay an amount deposited with the institution or an obligation listed on a designated stock exchange) of the individual or the individual’s estate or of any person or partnership with which the individual or the estate does not deal at arm’s length immediately after that time;
(b)a share (other than a share listed on a designated stock exchange) of the capital stock of a corporation with which the individual or the estate or, where the individual is a trust, a person affiliated with the trust, does not deal at arm’s length immediately after that time;
(b.1)a beneficial interest of the individual or the estate in a trust that
(i)immediately after that time is affiliated with the individual or the estate, or
(ii)holds, immediately after that time, a non-qualifying security of the individual or estate, or held, at or before that time, a share described in paragraph (b) that is, after that time, held by the donee; or
(c)any other security (other than a security listed on a designated stock exchange) issued by the individual or the estate or by any person or partnership with which the individ-ual or the estate does not deal at arm’s length (or, in the case where the person is a trust, with which the individual or estate is affiliated) immediately after that time.
Marginal note:Excepted gift
(19)For the purposes of this section, a gift made by a taxpayer is an excepted gift if
(a)the security is a share;
(b)the donee is not a private foundation;
(c)either,
(i)if the taxpayer is an individual’s graduated rate estate,
(A)the individual dealt at arm’s length with the donee immediately before the individual’s death, and
(B)the graduated rate estate deals at arm’s length with the donee (determined without reference to paragraph 251(1)(b)), or
(ii)if subparagraph (i) does not apply, the taxpayer deals at arm’s length with the donee; and
(d)where the donee is a charitable organization or a public foundation, the taxpayer deals at arm’s length with each director, trustee, officer and like official of the donee.
Marginal note:Financial institution defined
(20)For the purpose of subsection 118.1(18),financial institutionmeans a corporation that is
(a)a member of the Canadian Payments Association; or
(b)a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of theCanadian Payments Act.
Marginal note:Options
(21)Subject to subsections (23) and (24), if an individual has granted an option to a qualified donee in a taxation year, no amount in respect of the option is to be included in computing the total charitable gifts, total cultural gifts or total ecological gifts in respect of any taxpayer for any taxation year.
Marginal note:Application of subsection (23)
(22)Subsection (23) applies if
(a)an option to acquire a property of an individual is granted to a qualified donee;
(b)the option is exercised so that the property is disposed of by the individual and acquired by the qualified donee at a particular time; and
(c)either
(i)the amount that is 80% of the fair market value of the property at the particular time is greater than or equal to the total of
(A)the consideration received by the individual from the qualified donee for the property, and
(B)the consideration received by the individual from the qualified donee for the option, or
(ii)the individual establishes to the satisfaction of the Minister that the granting of the option or the disposition of the property was made by the individual with the intention to make a gift to the qualified donee.
Marginal note:Granting of an option
(23)If this subsection applies, notwithstanding subsection 49(3),
(a)the individual is deemed to have received proceeds of disposition of the property equal to the property’s fair market value at the particular time; and
(b)there shall be included in the individual’s total charitable gifts, for the taxation year that includes the particular time, the amount by which the property’s fair market value exceeds the total described in subparagraph (22)(c)(i).
Marginal note:Disposition of an option
(24)If an option to acquire a particular property of an individual is granted to a qualified donee and the option is disposed of by the qualified donee (otherwise than by the exercise of the option) at a particular time
(a)the individual is deemed to have disposed of a property at the particular time
(i)the adjusted cost base of which to the individual immediately before the particular time is equal to the consideration, if any, paid by the qualified donee for the option, and
(ii)the proceeds of disposition of which are equal to the lesser of the fair market value of the particular property at the particular time and the fair market value of any consideration (other than a non-qualifying security of any person) received by the qualified donee for the option; and
(b)there shall be included in the total charitable gifts of the individual for the individual’s taxation year that includes the particular time the amount, if any, by which the proceeds of disposition as determined by paragraph (a) exceed the consideration, if any, paid by the donee for the option.
Marginal note:Returned property
(25)Subsection (26) applies if a qualified donee has issued to an individual a receipt referred to in subsection (2) in respect of a transfer of a property (in this subsection and subsection (26) referred to as the “original property”) and a particular property that is
(a)the original property is later transferred to the individual (unless that later transfer is reasonable consideration or remuneration for property acquired by or services rendered to a person); or
(b)any other property that may reasonably be considered compensation for or a substitute for, in whole or in part, the original property, is later transferred to the individual.
Marginal note:Returned property
(26)If this subsection applies, then
(a)irrespective of whether the transfer of the original property by the individual to the qualified donee referred to in subsection (25) was a gift, the individual is deemed not to have disposed of the original property at the time of that transfer nor to have made a gift;
(b)if the particular property is identical to the original property, the particular property is deemed to be the original property; and
(c)if the particular property is not the original property, then
(i)the individual is deemed to have disposed of the original property at the time that the particular property is transferred to the individual for proceeds of disposition equal to the greater of the fair market value of the particular property at that time and the fair market value of the original property at the time that it was transferred by the individual to the donee, and
(ii)if the transfer of the original property by the individual would be a gift if this section were read without reference to paragraph (a), the individual is deemed to have, at the time of that transfer, transferred to the donee a property that is the subject of a gift having a fair market value equal to the amount, if any, by which the fair market value of the original property at the time of that transfer exceeds the fair market value of the particular property at the time that it is transferred to the individual.
Marginal note:Information return
(27)If subsection (26) applies in respect of a transfer of property to an individual and that property has a fair market value greater than $50, the transferor must file an information return containing prescribed information with the Minister not later than 90 days after the day on which the property was transferred and provide a copy of the return to the individual.
Marginal note:Reassessment
(28)If subsection (26) applies in respect of a transfer of property to an individual, the Minister may reassess a return of income of any person to the extent that the reassessment can reasonably be regarded as relating to the transfer.
Marginal note:Medical expense credit
118.2(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A x [(B - C) + D]
where
(a)that are evidenced by receipts filed with the Minister,
(b)that were not included in determining an amount under this subsection, section 64 or subsection 122.51(2), for a preceding taxation year,
(c)that are not included in determining an amount under this subsection, section 64 or subsection 122.51(2), by any other taxpayer for any taxation year, and
(d)that were paid by the individual or the individual’s legal representative within any period of 12 months that ends in the taxation year or, if those expenses were in respect of a person (including the individual) who died in the taxation year, within any period of 24 months that includes the day of the person’s death;
E - F
where
(a)that are evidenced by receipts filed with the Minister,
(b)that were not included in determining an amount under this subsection, or subsection 122.51(2), in respect of the individual for a preceding taxation year,
(c)that are not included in determining an amount under this subsection, or subsection 122.51(2), by any other taxpayer for any taxation year, and
(d)that were paid by the individual or the individual’s legal representative within the period referred to in paragraph (d) of the description of B; and
Marginal note:Medical expenses
(2)For the purposes of subsection (1), a medical expense of an individual is an amount paid
(a)to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services provided to a person (in this subsection referred to as the “patient”) who is the individual, the individual’s spouse or common-law partner or a dependant of the individual (within the meaning assigned by subsection 118(6)) in the taxation year in which the expense was incurred;
(b)as remuneration for one full-time attendant (other than a person who, at the time the remuneration is paid, is the individual’s spouse or common-law partner or is under 18 years of age) on, or for the full-time care in a nursing home of, the patient in respect of whom an amount would, but for paragraph 118.3(1)(c), be deductible under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense was incurred;
(b.1)as remuneration for attendant care provided in Canada to the patient if
(i)the patient is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense was incurred,
(ii)no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.2), (c), (d) or (e) for any taxation year,
(iii)at the time the remuneration is paid, the attendant is neither the individual’s spouse or common-law partner nor under 18 years of age, and
(iv)each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number,
to the extent that the total of amounts so paid does not exceed $10,000 (or $20,000 if the individual dies in the year);
(b.2)as remuneration for the patient’s care or supervision provided in a group home in Canada maintained and operated exclusively for the benefit of individuals who have a severe and prolonged impairment, if
(i)because of the patient’s impairment, the patient is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense is incurred,
(ii)no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.1), (c), (d) or (e) for any taxation year, and
(iii)each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;
(c)as remuneration for one full-time attendant on the patient in a self-contained domestic establishment in which the patient lives, if
(i)the patient is, and has been certified in writing by a medical practitioner to be, a person who, by reason of mental or physical infirmity, is and is likely to be for a long-continued period of indefinite duration dependent on others for the patient’s personal needs and care and who, as a result, requires a full-time attendant,
(ii)at the time the remuneration is paid, the attendant is neither the individual’s spouse or common-law partner nor under 18 years of age, and
(iii)each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;
(d)for the full-time care in a nursing home of the patient, who has been certified in writing by a medical practitioner to be a person who, by reason of lack of normal mental capacity, is and in the foreseeable future will continue to be dependent on others for the patient’s personal needs and care;
(e)for the care, or the care and training, at a school, an institution or another place of the patient, who has been certified in writing by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of individuals suffering from the handicap suffered by the patient;
(f)for transportation by ambulance to or from a public or licensed private hospital for the patient;
(g)to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of
(i)the patient, and
(ii)one individual who accompanied the patient, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant
from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if
(iii)substantially equivalent medical services are not available in that locality,
(iv)the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and
(v)the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services;
(h)for reasonable travel expenses (other than expenses described in paragraph (g)) incurred in respect of the patient and, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 km from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii) to (v) apply;
(i)for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an ileostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient;
(i.1)for or in respect of diapers, disposable briefs, catheters, catheter trays, tubing or other products required by the patient by reason of incontinence caused by illness, injury or affliction;
(j)for eye glasses or other devices for the treatment or correction of a defect of vision of the patient as prescribed by a medical practitioner or optometrist;
(k)for an oxygen tent or other equipment necessary to administer oxygen or for insulin, oxygen, liver extract injectible for pernicious anaemia or vitamin B12 for pernicious anaemia, for use by the patient as prescribed by a medical practitioner;
(l)on behalf of the patient who is blind or profoundly deaf or has severe autism, severe diabetes, severe epilepsy, severe mental impairment or a severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs,
(i)for an animal that is
(A)specially trained to
(I)in the case of severe mental impairment, perform specific tasks (excluding, for greater certainty, the provision of emotional support) that assist the patient in coping with the impairment, and
(II)in all other cases, assist the patient in coping with the impairment, and
(B)provided by a person or organization one of whose main purposes is such training of animals,
(ii)for the care and maintenance of such an animal, including food and veterinary care,
(iii)for reasonable travel expenses of the patient incurred for the purpose of attending a school, institution or other facility that trains, in the handling of such animals, individuals who are so impaired, and
(iv)for reasonable board and lodging expenses of the patient incurred for the purpose of the patient’s full-time attendance at a school, institution or other facility referred to in subparagraph (iii);
(l.1)on behalf of the patient who requires a bone marrow or organ transplant,
(i)for reasonable expenses (other than expenses described in subparagraph (ii)), including legal fees and insurance premiums, to locate a compatible donor and to arrange for the transplant, and
(ii)for reasonable travel, board and lodging expenses (other than expenses described in paragraphs (g) and (h)) of the donor (and one other person who accompanies the donor) and the patient (and one other person who accompanies the patient) incurred in respect of the transplant;
(l.2)for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses
(i)are not of a type that would typically be expected to increase the value of the dwelling, and
(ii)are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;
(l.21)for reasonable expenses relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient’s principal place of residence, provided that such expenses
(i)are not of a type that would typically be expected to increase the value of the dwelling, and
(ii)are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;
(l.3)for reasonable expenses relating to rehabilitative therapy, including training in lip reading and sign language, incurred to adjust for the patient’s hearing or speech loss;
(l.4)on behalf of the patient who has a speech or hearing impairment, for sign language interpretation services or real-time captioning services, to the extent that the payment is made to a person in the business of providing such services;
(l.41)on behalf of the patient who has a mental or physical impairment, for note-taking services, if
(i)the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and
(ii)the payment is made to a person in the business of providing such services;
(l.42)on behalf of the patient who has a physical impairment, for the cost of voice recognition software, if the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software;
(l.43)on behalf of the patient who is blind or has a severe learning disability, for reading services, if
(i)the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and
(ii)the payment is made to a person in the business of providing such services;
(l.44)on behalf of the patient who is blind and profoundly deaf, for deaf-blind intervening services, if the payment is made to a person in the business of providing those services;
(l.5)for reasonable moving expenses (within the meaning of subsection 62(3), but not including any expense deducted under section 62 for any taxation year) of the patient, who lacks normal physical development or has a severe and prolonged mobility impairment, incurred for the purpose of the patient’s move to a dwelling that is more accessible by the patient or in which the patient is more mobile or functional, if the total of the expenses claimed under this paragraph by all persons in respect of the move does not exceed $2,000;
(l.6)for reasonable expenses relating to alterations to the driveway of the principal place of residence of the patient who has a severe and prolonged mobility impairment, to facilitate the patient’s access to a bus;
(l.7)for a van that, at the time of its acquisition or within 6 months after that time, has been adapted for the transportation of the patient who requires the use of a wheelchair, to the extent of the lesser of $5,000 and 20% of the amount by which
(i)the amount paid for the acquisition of the van
exceeds
(ii)the portion, if any, of the amount referred to in subparagraph (i) that is included because of paragraph (m) in computing the individual’s deduction under this section for any taxation year;
(l.8)for reasonable expenses (other than amounts paid to a person who was at the time of the payment the individual’s spouse or common-law partner or a person under 18 years of age) to train the individual, or a person related to the individual, if the training relates to the mental or physical infirmity of a person who
(i)is related to the individual, and
(ii)is a member of the individual’s household or is dependent on the individual for support;
(l.9)as remuneration for therapy provided to the patient because of the patient’s severe and prolonged impairment, if
(i)because of the patient’s impairment, an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the remuneration is paid,
(ii)the therapy is prescribed by, and administered under the general supervision of,
(A)a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, and
(B)a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,
(iii)at the time the remuneration is paid, the payee is neither the individual’s spouse or common-law partner nor under 18 years of age, and
(iv)each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;
(l.91)as remuneration for tutoring services that are rendered to, and are supplementary to the primary education of, the patient who
(i)has a learning disability or a mental impairment, and
(ii)has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services,
if the payment is made to a person ordinarily engaged in the business of providing such services to individuals who are not related to the payee;
(l.92)as remuneration for the design of an individualized therapy plan for the patient because of the patient’s severe and prolonged impairment, if
(i)because of the patient’s impairment, an amount would be, if this Act were read without reference to paragraph 118.3(1)(c), deductible under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the remuneration is paid,
(ii)the plan is required to access public funding for specialized therapy or is prescribed by
(A)a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or
(B)a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,
(iii)the therapy set out in the plan is prescribed by and, if undertaken, administered under the general supervision of
(A)a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or
(B)a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, and
(iv)the payment is made to a person ordinarily engaged in a business that includes the design of such plans for individuals who are not related to the payee;
(m)for any device or equipment for use by the patient that
(i)is of a prescribed kind,
(ii)is prescribed by a medical practitioner,
(iii)is not described in any other paragraph of this subsection, and
(iv)meets such conditions as are prescribed as to its use or the reason for its acquisition;
to the extent that the amount so paid does not exceed the amount, if any, prescribed in respect of the device or equipment;
(n)for
(i)drugs, medicaments or other preparations or substances (other than those described in paragraph (k))
(A)that are manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function,
(B)that can lawfully be acquired for use by the patient only if prescribed by a medical practitioner or dentist, and
(C)the purchase of which is recorded by a pharmacist, or
(ii)drugs, medicaments or other preparations or substances that are prescribed by regulation;
(o)for laboratory, radiological or other diagnostic procedures or services together with necessary interpretations, for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability, for the patient as prescribed by a medical practitioner or dentist;
(p)to a person authorized under the laws of a province to carry on the business of a dental mechanic, for the making or repairing of an upper or lower denture, or for the taking of impressions, bite registrations and insertions in respect of the making, producing, constructing and furnishing of an upper or lower denture, for the patient;
(q)as a premium, contribution or other consideration under a private health services plan in respect of one or more of the individual, the individual’s spouse or common-law partner and any member of the individual’s household with whom the individual is connected by blood relationship, marriage, common-law partnership or adoption, except to the extent that the premium, contribution or consideration is deducted under subsection 20.01(1) in computing an individual’s income from a business for any taxation year;
(r)on behalf of the patient who has celiac disease, the incremental cost of acquiring gluten-free food products as compared to the cost of comparable non-gluten-free food products, if the patient has been certified in writing by a medical practitioner to be a person who, because of that disease, requires a gluten-free diet;
(s)for drugs obtained under Health Canada’s Special Access Programme in accordance with sections C.08.010 and C.08.011 of theFood and Drug Regulationsand purchased for use by the patient;
(t)for medical devices obtained under Health Canada’s Special Access Programme in accordance with Part 2 of theMedical Devices Regulationsand purchased for use by the patient;
(u)on behalf of the patient who is the holder of amedical document(as defined in subsection 264(1) of theCannabis Regulations) to support their use of cannabis for medical purposes, for the cost of cannabis, cannabis oil, cannabis plant seeds or cannabis products purchased for medical purposes from a holder of alicence for sale(as defined in subsection 264(1) of theCannabis Regulations); or
(v)to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual.
Marginal note:Cosmetic purposes
(2.1)The medical expenses referred to in subsection (2) do not include amounts paid for medical or dental services, nor any related expenses, provided purely for cosmetic purposes, unless necessary for medical or reconstructive purposes.
Marginal note:Fertility expenses
(2.2)An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount
(a)is paid for the purpose of a patient (within the meaning of subsection (2)) conceiving a child; and
(b)would be a medical expense of the individual (within the meaning of subsection (2)) if the patient were incapable of conceiving a child because of a medical condition.
Marginal note:Surrogacy expenses
(2.21)An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount
(a)is paid by the individual or the individual’s spouse or common-law partner;
(b)is
(i)an expenditure described under any of sections 2 to 4 of theReimbursement Related to Assisted Human Reproduction Regulations, or
(ii)paid in respect of a surrogate mother or donor and would be an expenditure described in subparagraph (i) if it was paid to the surrogate mother or donor;
(c)would be a medical expense of the individual (within the meaning of subsection (2)) if the amount was paid in respect of a good or service provided to the individual or the individual’s spouse or common-law partner;
(d)is an expense incurred in Canada; and
(e)is paid for the purpose of the individual becoming a parent.
Marginal note:Deemed medical expense
(3)For the purposes of subsection (1),
(a)any amount included in computing an individual’s income for a taxation year from an office or employment in respect of a medical expense described in subsection (2) paid or provided by an employer at a particular time shall be deemed to be a medical expense paid by the individual at that time; and
(b)there shall not be included as a medical expense of an individual any expense to the extent that
(i)the individual,
(ii)the person referred to in subsection (2) as the patient,
(iii)any person related to a person referred to in subparagraph (i) or (ii), or
(iv)the legal representative of any person referred to in any of subparagraphs (i) to (iii)
is entitled to be reimbursed for the expense, except to the extent that the amount of the reimbursement is required to be included in computing income and is not deductible in computing taxable income.
Marginal note:Deemed payment of medical expenses
(4)Where, in circumstances in which a person engaged in the business of providing transportation services is not readily available, an individual makes use of a vehicle for a purpose described in paragraph (2)(g), the individual or the individual’s legal representative shall be deemed to have paid to a person engaged in the business of providing transportation services, in respect of the operation of the vehicle, such amount as is reasonable in the circumstances.
Marginal note:Credit for mental or physical impairment
118.3(1)Where
(a)an individual has one or more severe and prolonged impairments in physical or mental functions,
(a.1)the effects of the impairment or impairments are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted where the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a basic activity of daily living or are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted but for therapy that
(i)is essential to sustain a vital function of the individual,
(ii)is required to be administered at least two times each week for a total duration averaging not less than 14 hours a week, and
(iii)cannot reasonably be expected to be of significant benefit to persons who are not so impaired,
(a.2)in the case of an impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a single basic activity of daily living is markedly restricted or would be so restricted but for therapy referred to in paragraph (a.1), a medical practitioner has certified in prescribed form that the impairment is a severe and prolonged impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted, but for therapy referred to in paragraph (a.1), where the medical practitioner is a medical doctor, a nurse practitioner or, in the case of
(i)a sight impairment, an optometrist,
(ii)a speech impairment, a speech-language pathologist,
(iii)a hearing impairment, an audiologist,
(iv)an impairment with respect to an individual’s ability in feeding or dressing themself, an occupational therapist,
(v)an impairment with respect to an individual’s ability in walking, an occupational therapist, or after February 22, 2005, a physiotherapist, and
(vi)an impairment with respect to an individual’s ability in mental functions necessary for everyday life, a psychologist,
(a.3)in the case of one or more impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted, a medical practitioner has certified in prescribed form that the impairment or impairments are severe and prolonged impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted and that the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a single basic activity of daily living, where the medical practitioner is, in the case of
(i)an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, a medical doctor, a nurse practitioner or an occupational therapist, and
(ii)in the case of any other impairment, a medical doctor or nurse practitioner,
(b)the individual has filed for a taxation year with the Minister the certificate described in paragraph (a.2) or (a.3), and
(c)no amount in respect of remuneration for an attendant or care in a nursing home, in respect of the individual, is included in calculating a deduction under section 118.2 (otherwise than because of paragraph 118.2(2)(b.1)) for the year by the individual or by any other person,
there may be deducted in computing the individual’s tax payable under this Part for the year the amount determined by the formula
A × (B + C)
where
(a)where the individual has not attained the age of 18 years before the end of the year, the amount, if any, by which
(i)$3,500
exceeds
(ii)the amount, if any, by which
(A)the total of all amounts each of which is an amount paid in the year for the care or supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 for a taxation year
exceeds
(B)$2,050, and
(b)in any other case, zero.
Marginal note:Time spent on therapy
(1.1)For the purpose of paragraph 118.3(1)(a.1), in determining whether therapy is required to be administered at least two times each week for a total duration averaging not less than an average of 14 hours a week, the time spent on administering therapy
(a)includes only time spent on activities that require the individual to take time away from normal everyday activities in order to receive the therapy;
(b)in the case of therapy that requires
(i)a regular dosage of medication that is required to be adjusted on a daily basis, includes time spent on activities that are directly related to the determination of the dosage of the medication, and
(ii)the daily consumption of a medical food or medical formula to limit intake of a particular compound to levels required for the proper development or functioning of the body, includes the time spent on activities that are directly related to the determination of the amount of the compound that can be safely consumed;
(c)in the case of
(i)a child who is unable to perform the activities related to the administration of the therapy as a result of the child’s age, includes the time spent by another person to perform or supervise those activities for the child, and
(ii)an individual who is unable to perform the activities related to the administration of the therapy because of the effects of an impairment or impairments in physical or mental functions, includes the time required to be spent by another person to assist the individual in performing those activities; and
(d)does not include time spent on
(i)activities (other than activities described in paragraph (b)) related to dietary or exercise restrictions or regimes,
(ii)travel time,
(iii)medical appointments (other than medical appointments to receive therapy or to determine the daily dosage of medication, medical food or medical formula),
(iv)shopping for medication, or
(v)recuperation after therapy (other than medically required recuperation).
Marginal note:Deeming
(1.2)Despite subsection (1.1), an individual who is diagnosed with type 1 diabetes mellitus is deemed to require therapy to be administered at least two times each week for a total duration averaging not less than 14 hours a week.
Marginal note:Dependant having impairment
(2)Where
(a)an individual has, in respect of a person (other than a person in respect of whom the person’s spouse or common-law partner deducts for a taxation year an amount under section 118 or 118.8) who is resident in Canada at any time in the year and who is entitled to deduct an amount under subsection (1) for the year,
(i)claimed for the year a deduction under subsection 118(1) because of
(A)paragraph (b) of the description of B in that subsection, or
(B)paragraph (d) of that description where the person is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or
(ii)could have claimed for the year a deduction referred to in subparagraph (i) in respect of the person if
(A)the person had no income for the year and had attained the age of 18 years before the end of the year, and
(B)in the case of a deduction referred to in clause (i)(A), the individual were not married or not in a common-law partnership, and
(b)no amount in respect of remuneration for an attendant, or care in a nursing home, because of that person’s mental or physical impairment, is included in calculating a deduction under section 118.2 (otherwise than under paragraph 118.2(2)(b.1)) for the year by the individual or by any other person,
there may be deducted, for the purpose of computing the tax payable under this Part by the individual for the year, the amount, if any, by which
(c)the amount deductible under subsection 118.3(1) in computing that person’s tax payable under this Part for the year
exceeds
(d)the amount of that person’s tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.07 and 118.7).
Marginal note:Partial dependency
(3)Where more than one individual is entitled to deduct an amount under subsection 118.3(2) for a taxation year in respect of the same person, the total of all amounts so deductible for the year shall not exceed the maximum amount that would be deductible under that subsection for the year by an individual in respect of that person if that individual were the only individual entitled to deduct an amount under that subsection in respect of that person, and where the individuals cannot agree as to what portion of the amount each can deduct, the Minister may fix the portions.
Marginal note:Additional information
(4)Where a claim under this section or under section 118.8 is made in respect of an individual’s impairment
(a)if the Minister requests in writing information with respect to the individual’s impairment, its effects on the individual and, where applicable, the therapy referred to in paragraph (1)(a.1) that is required to be administered, from any person referred to in subsection (1) or (2) or section 118.8 in connection with such a claim, that person shall provide the information so requested to the Minister in writing; and
(b)if the information referred to in paragraph (a) is provided by a person referred to in paragraph (1)(a.2) or (a.3), the information so provided is deemed to be included in a certificate in prescribed form.
Marginal note:Nature of impairment
118.4(1)For the purposes of subsection 6(16), sections 118.2 and 118.3 and this subsection,
(a)an impairment is prolonged where it has lasted, or can reasonably be expected to last, for a continuous period of at least 12 months;
(b)an individual’s ability to perform a basic activity of daily living is markedly restricted only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual is blind or is unable (or requires an inordinate amount of time) to perform a basic activity of daily living;
(b.1)an individual is considered to have the equivalent of a marked restriction in a basic activity of daily living only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual’s ability to perform more than one basic activity of daily living (including for this purpose, the ability to see) is significantly restricted, and the cumulative effect of those restrictions is tantamount to the individual’s ability to perform a basic activity of daily living being markedly restricted;
(c)a basic activity of daily living in relation to an individual means
(i)mental functions necessary for everyday life,
(ii)feeding oneself or dressing oneself,
(iii)speaking so as to be understood, in a quiet setting, by another person familiar with the individual,
(iv)hearing so as to understand, in a quiet setting, another person familiar with the individual,
(v)eliminating (bowel or bladder functions), or
(vi)walking;
(c.1)mental functions necessary for everyday life include
(i)attention,
(ii)concentration,
(iii)memory,
(iv)judgement,
(v)perception of reality,
(vi)problem solving,
(vii)goal setting,
(viii)regulation of behaviour and emotions,
(ix)verbal and non-verbal comprehension, and
(x)adaptive functioning;
(d)for greater certainty, no other activity, including working, housekeeping or a social or recreational activity, shall be considered as a basic activity of daily living; and
(e)feeding oneself does not include
(i)any of the activities of identifying, finding, shopping for or otherwise procuring food, or
(ii)the activity of preparing food to the extent that the time associated with the activity would not have been necessary in the absence of a dietary restriction or regime; and
(f)dressing oneself does not include any of the activities of identifying, finding, shopping for or otherwise procuring clothing.
Marginal note:Reference to medical practitioners, etc.
(2)For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, nurse practitioner, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist or speech-language pathologist is a reference to a person authorized to practise as such,
(a)where the reference is used in respect of a service rendered to a taxpayer, pursuant to the laws of the jurisdiction in which the service is rendered;
(b)where the reference is used in respect of a certificate issued by the person in respect of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides or of a province; and
(c)where the reference is used in respect of a prescription issued by the person for property to be provided to or for the use of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides, of a province or of the jurisdiction in which the property is provided.
Marginal note:Tuition credit
118.5(1)Subject to subsection (1.2), for the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted,
(a)subject to subsection (1.1), where the individual was during the year a student enrolled at an educational institution in Canada that is
(i)a university, college or other educational institution providing courses at a post-secondary school level, or
(ii)certified by the Minister of Employment and Social Development to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person’s skills in, an occupation,
an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution, except to the extent that those fees
(ii.1)are paid to an educational institution described in subparagraph (i) in respect of courses that are not at the post-secondary school level, if
(A)the individual had not attained the age of 16 years before the end of the year, or
(B)the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,
(ii.2)are paid to an educational institution described in subparagraph (ii) if
(A)the individual had not attained the age of 16 years before the end of the year, or
(B)the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,
(iii)are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income,
(iii.1)are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income,
(iv)were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix), or
(v)are paid on the individual’s behalf, or are fees in respect of which the individual is or was entitled to receive a reimbursement, under a program of Her Majesty in right of Canada designed to assist athletes, where the payment or reimbursement is not included in computing the individual’s income;
(b)where the individual was during the year a student in full-time attendance at a university outside Canada in a course leading to a degree, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the university, except any such fees
(i)paid in respect of a course of less than three consecutive weeks duration,
(ii)paid on the individual’s behalf by the individual’s employer to the extent that the amount of the fees is not included in computing the individual’s income, or
(iii)paid on the individual’s behalf by the employer of the individual’s parent, to the extent that the amount of the fees is not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix);
(c)where the individual resided throughout the year in Canada near the boundary between Canada and the United States if the individual
(i)was at any time in the year a student enrolled at an educational institution in the United States that is a university, college or other educational institution providing courses at a post-secondary school level, and
(ii)commuted to that educational institution in the United States,
an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution if those fees exceeds $100, except to the extent that those fees
(iii)are paid on the individual’s behalf by the individual’s employer and are not included in computing the individual’s income, or
(iv)were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix); and
(d)subject to subsection (1.1), if the individual has taken an examination (in this section referred to as an “occupational, trade or professional examination”) in the year that is required to obtain a professional status recognized under a federal or provincial statute, or to be licensed or certified as a tradesperson, where that status, licence or certification allows the individual to practise the profession or trade in Canada, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees paid in respect of the occupational, trade or professional examination to an educational institution referred to in paragraph (a), a professional association, a provincial ministry or other similar institution, except to the extent that the occupational, trade or professional examination fees
(i)are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income, or
(ii)are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income.
Marginal note:Minimum amount
(1.1)No amount may be deducted for a taxation year by an individual under paragraph (1)(a) or (d) in respect of any fees paid to a particular institution unless the total of the fees described in those paragraphs and paid to the particular institution in the year by the individual exceeds $100.
Marginal note:Canada training credit reduction
(1.2)The amount that may be deducted for a taxation year by an individual under subsection (1) is to be reduced by the amount determined by the formula
A × B
where
Marginal note:Application to deemed residents
(2)Where an individual is deemed by section 250 to be resident in Canada throughout all or part of a taxation year, in applying subsection (1) in respect of the individual for the period when the individual is so deemed to be resident in Canada, paragraph (1)(a) shall be read without reference to the words “in Canada”.
Marginal note:Inclusion of ancillary fees and charges
(3)For the purpose of this section,fees for an individual’s tuitionincludes ancillary fees and charges that are paid
(a)to an educational institution referred to in subparagraph 118.5(1)(a)(i), and
(b)in respect of the individual’s enrolment at the institution in a program at a post-secondary school level,
but does not include
(c)any fee or charge to the extent that it is levied in respect of
(i)a student association,
(ii)property to be acquired by students,
(iii)services not ordinarily provided at educational institutions in Canada that offer courses at a post-secondary school level,
(iv)the provision of financial assistance to students, except to the extent that, if this Act were read without reference to subsection 56(3), the amount of the assistance would be required to be included in computing the income, and not be deductible in computing the taxable income, of the students to whom the assistance is provided, or
(v)the construction, renovation or maintenance of any building or facility, except to the extent that the building or facility is owned by the institution and used to provide
(A)courses at the post-secondary school level, or
(B)services for which, if fees or charges in respect of the services were required to be paid by all students of the institution, the fees or charges would be included because of this subsection in the fees for an individual’s tuition, and
(d)any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s tuition and that is not required to be paid by
(i)all of the institution’s full-time students, where the individual is a full-time student at the institution, and
(ii)all of the institution’s part-time students, where the individual is a part-time student at the institution,
to the extent that the total for the year of all such fees and charges paid in respect of the individual’s enrolment at the institution exceeds $250.
Marginal note:Ancillary fees and charges for examinations
(4)For the purpose of this section,fees paid in respect of the occupational, trade or professional examinationof an individual includes ancillary fees and charges, other than fees and charges included in subsection (3), that are paid to an educational institution referred to in subparagraph (1)(a)(i), a professional association, a provincial ministry or other similar institution, in respect of an occupation, trade or professional examination taken by the individual, but does not include any fee or charge to the extent that it is levied in respect of
(a)property to be acquired by an individual;
(b)the provision of financial assistance to an individual, except to the extent that, if this Act were read without reference to subsection 56(3), the financial assistance would be required to be included in computing the income, and would not be deductible in computing the taxable income, of the individual;
(c)the construction, renovation or maintenance of any building or facility; or
(d)any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s occupational, trade or professional examination and that is not required to be paid by all the individuals taking the occupational, trade or professional examination to the extent that the total for the year of all such fees and charges paid in respect of the individual’s fees for the occupational, trade or professional examination exceeds $250.
Marginal note:Definitions
118.6(1)For the purposes of sections 63 and 64 and this Subdivision,
designated educational institutionmeans
(a)an educational institution in Canada that is
(i)a university, college or other educational institution designated by the lieutenant governor in council of a province as a specified educational institution under theCanada Student Loans Act, designated by an appropriate authority under theCanada Student Financial Assistance Act, or designated, for the purposes ofAn Act respecting financial assistance for education expenses, R.S.Q, c