BILL NO. 20
1st Session, 63rd General Assembly
66 Elizabeth II, 2017
Private Member's Bill
Small Business Tax Protection Act
The Honourable Jamie Baillie
First Reading: October 3, 2017
This Bill authorizes the Governor in Council to limit, for the purpose of calculating the tax payable under the Nova Scotia Income Tax Act, the application of anticipated changes to the federal Income Tax Act respecting "income sprinkling", the holding of passive investments inside a private corporation and the conversion of income into capital gains. If so limited, the result would be that taxpayers affected by the anticipated changes would not be subject to the changes in relation to the provincial portion of the taxes payable by them.
An Act to Amend Chapter 217
of the Revised Statutes, 1989,
the Income Tax Act,
to Prevent an Increase in Provincial Income Taxes
Payable by Small Businesses
as a Result of a Federal Tax Initiative
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Small Business Tax Protection Act.
2 (1) Section 3 of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, as enacted by Chapter 4 of the Acts of 2000, is further amended by adding immediately after subsection (2) the following subsections:
(2B) Where a federal provision or federal amendment referred to in subsection (2A) is prescribed by the regulations, the Federal Act and the Federal Regulations shall, subject to the regulations, be applied for the purposes of this Act as if the prescribed federal provision or prescribed federal amendment had not been enacted.
(9) The money required for the purpose of subsection (2A) must be paid out of money appropriated for that purpose by the Legislature and, for greater certainty, subsection (2A) is of no application until the money is appropriated by the Legislature.
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