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Bill C-338

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2nd Session, 36th Parliament,
48 Elizabeth II, 1999

The House of Commons of Canada

BILL C-338

An Act to amend the Income Tax Act (deductibility of expense of tools provided as a requirement of employment)

R.S., cc. 1, 2 (5th Supp.); 1994, cc. 7, 8, 13, 21, 28, 29, 38, 41; 1995, cc. 1, 3, 11, 18, 21, 38, 46; 1996, cc. 11, 21, 23; 1997, cc. 10, 12, 25, 26; 1998, cc. 19, 21, 34; 1999, cc. 10, 17, 22, 26, 31

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

1. Subsection 8(1) of the Income Tax Act is amended by deleting the word ``and'' at the end of paragraph (p), by adding the word ``and'' at the end of paragraph (q) and by adding the following after paragraph (q):

    (r) where the taxpayer was employed in the year and, as a term of the employment, was required to provide any of the tools needed in the course of the employment for a period in the year, an amount (not exceeding the taxpayer's income for the year from the employment computed without reference to this paragraph) equal to the total of

      (i) amounts expended by the taxpayer before the end of the year for rental, maintenance and insurance of the tools, except to the extent that the amounts are otherwise deducted in computing the taxpayer's income for any taxation year, and

      (ii) the allowance in respect of the capital cost to the taxpayer of the tools provided for by regulation.