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Nova Scotia Child Benefit Regulations

made under Section 80 of the

Income Tax Act

R.S.N.S. 1989, c. 217

O.I.C. 1998-430 (August 28, 1998), N.S. Reg. 62/98

as amended up to O.I.C. 2012-229 (July 24, 2012, effective July 1, 2012), N.S. Reg. 148/2012

 

1     These regulations may be cited as the Nova Scotia Child Benefit Regulations.

 

2     In these regulations,

 

                (a)    “Act” means the Income Tax Act (Nova Scotia), unless otherwise specified;

 

                (b)    “adjusted income” of an individual for a taxation year means the combined total income for the year of the individual and of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year, calculated as if

 

                         (i)     no amount were included under subsection 56(6) of the Federal Act,

 

                         (ii)    no amount were included in respect of a gain from a disposition of property to which Section 79 of the Federal Act applies, and

 

                         (iii)   no amount were deductible under paragraph 60(y) of the Federal Act;

Clause 2(b) replaced: O.I.C. 2007-6, N.S. Reg. 3/2007.

 

                (c)    “base taxation year”, in relation to a month, means

 

                         (i)     where the month is any of the first 6 months of a calendar year, the taxation year that ended on December 31 of the second preceding calendar year;

 

                         (ii)    where the month is any of the last 6 months of a calendar year, the taxation year that ended on December 31 of the preceding calendar year;

 

                (d)    “cohabiting spouse” of an individual means the person who at that time is the individual's spouse or common-law partner and who is not living separate and apart from the individual and, for the purpose of this definition, a person shall not be considered to be living separate and apart from an individual at any time unless they were living separate and apart at that time, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes that time;

Clause 2(d) replaced: O.I.C. 2001-279, N.S. Reg. 70/2001.

 

                (e)    “eligible individual” in respect of a qualified dependant means a person who at that time was resident in the Province for a period that commenced before the first day of the month and that includes that day, and, for the purposes of this definition, means an individual who is an eligible individual as defined in section 122.6 of the Federal Act;

Clause 2(e) amended: O.I.C. 2001-279, N.S. Reg. 70/2001.

 

                (f)    “Federal Act” means the Income Tax Act (Canada), unless otherwise specified;

 

                (g)    “Minister” means the Minister of National Revenue for Canada, unless otherwise specified;

 

                (h)    qualified dependant” means a person who at that time,

 

                         (i)     has not attained the age of 18 years,

 

                         (ii)    is not a person in respect of whom an amount was deducted under paragraph (a) of the description of B in subsection 118(1) of the Federal Act in computing the tax payable under Part I of the Federal Act by the person's spouse or common-law partner for the base taxation year in relation to the month that includes that time; and

 

                         (iii)   is not a person in respect of whom a special allowance under the Children's Special Allowances Act is payable for the month that includes that time;

Clause 2(h) replaced: O.I.C. 2001-279, N.S. Reg. 70/2001.

 

                (i)     “return of income” filed by an individual for a taxation year means

 

                         (i)     where the individual was resident in Canada throughout the year, the individual’s return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of the Federal Act) that is filed or required to be filed under Part I of the Federal Act for the year, and

 

                         (ii)    in any other case, a prescribed form containing prescribed information that is filed with the Minister.

 

3     Where a person and, where the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of the taxation year, have filed a return of income for the year, an overpayment on account of the person’s liability under Part II of the Act for the year shall be deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the following formula:


NSCB = [1/12 (A + B + C)] - D

where

 

A is $624.96 for the first qualified dependant in respect of whom the person was an eligible individual at the beginning of the month,

 

B is $825 for the second qualified dependant, if any, in respect of whom the person was an eligible individual at the beginning of the month,

 

C is the amount calculated in accordance with the following formula:


C = $900 x E

 

where E is the number of qualified dependents in excess of two in respect of whom the person was an eligible individual at the beginning of the month; and

 

D is the benefit reduction applicable to the eligible individual which is calculated in accordance with Section 4.

Section 3 amended: O.I.C. 1999-357, N.S. Reg. 75/99; O.I.C. 2001-220, N.S. Reg. 50/2001; O.I.C. 2001-279, N.S. Reg. 70/2001; O.I.C. 2012-229, N.S. Reg. 148/2012.

 

4     (1)    Where the adjusted income of the eligible individual for the base taxation year in relation to the month is less than $18 001, D equals zero.

Subsection 4(1) amended: O.I.C. 2009-390, N.S. Reg. 280/2009.

 

       (2)    Where the adjusted income of the eligible individual for the base taxation year in relation to the month is $18 001 or greater, D is equal to the lower of

Subsection 4(1) amended: O.I.C. 2009-390, N.S. Reg. 280/2009.

 

                (a)    the amount determined by the following formula:

D = 1/12 (A + B + C)

where A, B and C are as defined in Section 3; or

                (b)    the amount calculated by the following formula:

D = 1/12 [(F + G + H)]

where, if

                         (i)     there is only 1 qualified dependant in respect of whom the person was an eligible individual at the beginning of the month, F is 8.93% of the amount, if any, by which the person’s adjusted income for the year exceeds $18 000, and G and H are nil,

Subclause 4(2)(b)(i) amended: O.I.C. 2001-220, N.S. Reg. 50/2001; O.I.C. 2009-390, N.S. Reg. 280/2009; O.I.C. 2012-229, N.S. Reg. 148/2012.

 

                         (ii)    there are only 2 qualified dependants in respect of whom the person was an eligible individual at the beginning of the month, F is nil, G is 20.71% of the amount, if any, by which the person’s adjusted income for the year exceeds $18 000, and H is nil, or

Subclause 4(2)(b)(ii) amended: O.I.C. 2001-220, N.S. Reg. 50/2001; O.I.C. 2009-390, N.S. Reg. 280/2009; O.I.C. 2012-229, N.S. Reg. 148/2012.

 

                         (iii)   there are more than 2 qualified dependants in respect of whom the person was an eligible individual at the beginning of the month, F is nil, G is 20.71% of the amount, if any, by which the person’s adjusted income for the year exceeds $18 000, and H is equal to the amount calculated by the following formula:


H = [(I x J) x K]

where

I is the number of qualified dependants greater than two, and J is 12.86%, and

 

K is the amount, if any, by which the person’s adjusted income for the year exceeds $18 000.

Subclause 4(2)(b)(iii) amended: O.I.C. 2001-220, N.S. Reg. 50/2001; O.I.C. 2009-390, N.S. Reg. 280/2009; O.I.C. 2012-229, N.S. Reg. 148/2012.

Subsection 4(2) replaced: O.I.C. 1999-357, N.S. Reg. 75/99.

 

5     (1)    Despite Section 3, where a particular month is the first month during which an overpayment that is less than $10, or such other prescribed amount, is deemed under that Section to have arisen on account of a person’s liability under Part II of the Act for the base taxation year in relation to the particular month, any such overpayment that would, but for this subsection reasonably be expected at the end of the particular month to arise during another month in relation to which the year is the base taxation year shall be deemed to arise under that Section during the particular month and not during the other month.

Subsection 5(1) amended: O.I.C. 2001-220, N.S. Reg. 50/2001.

 

       (2)    Subsections 122.61(3) and (3.1) and 122.62(1) and (2) of the Federal Act apply for the purposes of these regulations.

 

       (3)    Where during a particular month a person ceases to be an eligible individual in respect of a particular qualified dependant, other than because of the qualified dependant attaining the age of 18 years, the person shall notify the Minister of that fact before the end of the first month following the particular month.

 

       (4)    Where,

 

                (a)    before the end of a particular month an eligible individual in respect of a qualified dependant begins to live separate and apart from the individual's cohabiting spouse or common-law partner, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days which includes a day in the particular month; and

Clause 5(4)(a) replaced: O.I.C. 2001-279, N.S. Reg. 70/2001.

 

                (b)    the individual elects, in a form satisfactory to the Minister, before the end of the eleventh month after the particular month,

 

for the purpose of determining the amount deemed under Section 3 to be an overpayment arising in any month after the particular month on account of the individual’s liability under Part II of the Act for the base taxation year in relation to the particular month, subject to any subsequent election under subsection (5),

Subsection 5(4) amended: O.I.C. 2001-220, N.S. Reg. 50/2001.

 

                (c)    the individual’s adjusted income for the year is deemed to be equal to the individual’s income for the year.

 

       (5)    Where,

 

                (a)    before the end of a particular month the cohabiting spouse or common-law partner of an eligible individual in respect of a qualified dependent dies, and

Clause 5(5)(a) amended: O.I.C. 2001-279, N.S. Reg. 70/2001.

 

                (b)    the individual so elects, before the end of the eleventh month after the particular month, in a form that is acceptable to the Minister,

 

for the purpose of determining the amount deemed under Section 3 to be an overpayment arising in any month after the particular month on account of the individual’s liability under Part II of the Act for the base taxation year in relation to the particular month, subject to any subsequent election under subsection (4),

 

                (c)    the individual’s adjusted income for the year is deemed to be equal to the individual’s income for the year.

Subsection 5(5) amended: O.I.C. 2001-220, N.S. Reg. 50/2001.

 

6     Subsections 152(1) to (8) of the Federal Act apply for the purposes of these regulations.

 

7     (1)    Where a collection agreement is in effect, notwithstanding that more than three years have elapsed since the day of mailing a notice of an original assessment of tax, interest or penalties payable by a taxpayer for a taxation year or of a notification that no tax is payable by the taxpayer for the year, if the tax payable pursuant to Part II of the Act by the taxpayer for the year is reassessed, the Minister of Finance shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

Subsection 7(1) amended: O.I.C. 2001-220, N.S. Reg. 50/2001.

 

       (2)    Notwithstanding that the normal reassessment period for a taxpayer has elapsed with respect to a taxation year, the Minister of Finance may redetermine the amount, if any, deemed under Section 3 to be an overpayment on account of the taxpayer’s liability under Part II of the Act for that taxation year.

Subsection 7(2) amended: O.I.C. 1999-357, N.S. Reg. 75/99; O.I.C. 2001-220, N.S. Reg. 50/2001.

 

8     Subsections 160.1(1), (2.1), (3) and (4) of the Federal Act apply for the purposes of these regulations.

 

9     Subsections 164(1) to (1.31) and (1.5), (2), (2.2), (2.3) and (3) to (7) of the Federal Act apply for the purposes of these regulations.

Section 9 amended: O.I.C. 1999-357, N.S. Reg. 75/99.

 

10   Sections 165, 166.1 and 166.2 of the Federal Act apply for the purposes of these regulations.

 

11   (1)    Section 169 of the Federal Act applies for the purposes of these regulations.

 

       (2)    An appeal from a determination under these regulations may be taken in respect of any question relating to the determination of:

 

                (a)    the individual’s residence for the purposes of these regulations; or

 

                (b)    the amount that, pursuant to subsection 5(4) or (5) as it applies for the purposes of Section 3 is the individual’s adjusted income.

 

12   A refund of an amount deemed under Section 3 to be an overpayment on account of a person’s liability under Part II of the Act for a taxation year:

 

                (a)    cannot be charged or given as security;

 

                (b)    cannot be assigned;

 

                (c)    cannot be garnished or attached;

 

                (d)    is exempt from execution and seizure; and

 

                (e)    cannot be retained by way of deduction or set-off pursuant to the Finance Act (Nova Scotia).

[Note: the reference to the Provincial Finance Act has been updated in accordance with Section 82 of the Finance Act, S.N.S. 2010, c. 2.]

Subsection 12 amended: O.I.C. 2001-220, N.S. Reg. 50/2001.

 

13   These regulations come into force on October 1, 1998 and apply from July 1 in the 1998 taxation year and in subsequent taxation years.