C-3014470-71Elizabeth II – 1 Charles III2021-2022An Act to amend the Income Tax Act (temporary enhancement to the Goods and Services Tax/Harmonized Sales Tax credit)Cost of Living Relief Act, No. 1 (Targeted Tax Relief)Cost of Living Relief Act, No. 1 (Targeted Tax Relief)202210

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91123RECOMMENDATIONHer Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Income Tax Act (temporary enhancement to the Goods and Services Tax/Harmonized Sales Tax credit)”.

SUMMARYThis enactment amends the Income Tax Act in order to double the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit for six months, effectively increasing the maximum annual GST/HST credit amounts by 50% for the 2022-2023 benefit year.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:Short Title

Short title1This Act may be cited as the Cost of Living Relief Act, No. 1 (Targeted Tax Relief).

R.S., c. 1 (5th Supp.)Income Tax Act

2(1)Section 122.5 of the Income Tax Act is amended by adding the following after subsection (3.001):Additional deemed payment(3.002)An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula0.25 × (A – B) – CwhereAis the total of(a)$918,(b)$918 for the qualified relation, if any, of the individual in relation to the specified month,(c)if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $918,(d)$483 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,(e)if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $483, and(f)if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $483 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $9,919;Bis 15% of the amount, if any, by which the individual’s adjusted income for the taxation year exceeds $39,826; andCis the amount that the eligible individual is deemed to have paid under subsection (3) during the specified month on account of their tax payable for the taxation year.(2)Section 122.5 of the Act is amended by adding the following after subsection (3.02):Additional deemed payment — shared-custody parent(3.03)Notwithstanding subsection (3.002), if an eligible individual is a shared-custody parent (within the meaning assigned by section 122.6, but with the words qualified dependant in that section having the meaning assigned by subsection (1) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.002) to have been paid during the specified month is equal to the amount determined by the following formula:0.5 × (A + B)whereAis the amount determined by the formula in subsection (3.002), calculated without reference to this subsection; andBis the amount determined by the formula in subsection (3.002), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.(3)Section 122.5 of the Act is amended by adding the following after subsection (4.1):Month specified(4.2)Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.002) is October 2022 and the taxation year is the 2021 taxation year.

3(1)Paragraph 152(1)(b) of the Act is replaced by the following:(b)the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.(2)Paragraph 152(1.2)(d) of the Act is replaced by the following:(d)the Minister determines the amount deemed by subsection 122.5(3), (3.001) or (3.002) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.(3)Paragraph 152(4.2)(b) of the Act is replaced by the following:(b)redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

4Paragraph 160.1(1.1)(b) of the Act is replaced by the following:(b)the total of the amounts deemed by subsection 122.5(3) or (3.002) to have been paid by the individual during those specified months.