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Tax Refund for Seniors Receiving the Guaranteed Income Supplement Regulations
made under Section 35A and subsection 80(3) of the
Income Tax Act
R.S.N.S. 1989, c. 217
O.I.C. 2011-321 (August 16, 2011, effective January 1, 2010), N.S. Reg. 263/2011
1 These regulations may be cited as the Tax Refund for Seniors Receiving the Guaranteed Income Supplement Regulations.
Application of regulations
2 These regulations apply for the 2010 and subsequent taxation years.
3 In these regulations,
“Act” means the Income Tax Act;
“eligible individual” means an individual who meets the eligibility criteria in Section 4;
“Minister” means the Minister of Finance;
[Note: Effective October 22, 2013, the reference to the Minister of Finance should be read as a reference to the Minister of Finance and Treasury Board in accordance with Order in Council 2013-348 under the Public Service Act, R.S.N.S. 1989, c. 376.]
“tax refund” means an amount calculated in accordance with Section 6.
Eligibility for tax refund
4 (1) Except as provided in subsection (2), an individual who resides in the Province and is not a trust is eligible to receive a tax refund if, in relation to a taxation year, the individual meets all of the following criteria:
(a) the individual attained the age of 65 years before December 31 of the taxation year;
(b) the individual received the Guaranteed Income Supplement under the Old Age Security Act (Canada) at any time during the taxation year;
(c) the individual filed a return of income for the taxation year and reported the Guaranteed Income Supplement amounts received during the taxation year on that return;
(d) the individual has a tax liability under Part II of the Act for the taxation year as shown on the individual’s notice of assessment or reassessment for the taxation year.
(2) An individual is not an eligible individual for a taxation year if the individual
(a) died during the taxation year;
(b) was confined to a prison or similar institution for a period of at least 90 days during the taxation year; or
(c) is an individual described in paragraph 149(1)(a) or (b) of the Income Tax Act (Canada).
Deemed overpayment of tax
5 An eligible individual is deemed to have made an overpayment of tax under the Act for a taxation year in an amount equal to the lesser of $10 000.00 and his or her tax liability under Part II of the Act for the taxation year.
Payment of tax refund
6 (1) Subject to Section 9, the Minister may grant a tax refund in the form of a money payment by cheque.
(2) Regardless of when the payment is actually made, an annual payment of a tax refund is for the 12-month period beginning on January 1 in the taxation year and ending on December 31 in that year.
(3) If an eligible individual’s tax liability under Part II of the Act for the taxation year is greater than $0.00 and less than $50.00, the Minister may make a tax refund payment in the amount of $50.00.
(4) If an eligible individual’s tax liability under Part II of the Act for the taxation year is greater than or equal to $50.00 and less than $10 000.00, the Minister may make a tax refund payment in an amount equal to the tax liability under Part II of the Act for the taxation year.
(5) If an eligible individual’s tax liability under Part II of the Act for the taxation year is greater than or equal to $10 000.00, the Minister may make a tax refund payment in the amount of $10 000.00.
Application to Minister if tax liability greater than $10 000
7 (1) An eligible individual whose tax liability under Part II of the Act for the taxation year is greater than $10 000.00 may, within 24 months after the end of the taxation year, apply in writing to the Minister requesting an additional tax refund for that portion of tax liability in excess of $10 000.00.
(2) The Minister has sole discretion in determining whether to make an additional tax refund.
(3) The amount of an additional tax refund made under this Section is deemed to be an overpayment of tax under the Act for the taxation year.
Recovering payment of tax refund
8 If it is determined that an individual received a tax refund to which he or she is not entitled, or received an amount greater than the amount to which he or she is entitled, the individual, or the estate of the individual, must immediately repay the amount or the excess amount to the Minister.
Tax refund payment may be applied to amount owing
9 If an individual owes an amount as described in Section 8, the Minister may apply all or a portion of the tax refund that would otherwise be paid to the individual under Sections 6 and 7 to the individual’s liability to the Minister and, if so, must notify the individual of that action.
Exemption from recovery of tax refund payment
10 If the Minister determines that recovering a tax refund as described in Section 8 from an individual or the estate of an individual would cause hardship to the individual or his or her family, the Minister may accept any lesser amount that the Minister considers reasonable in the circumstances and, if so, must notify the individual or the individual’s estate of that determination.
Tax refund exempt from seizure and not assignable
11 Subject to Sections 8 and 9, a tax refund is not assignable or subject to seizure or garnishment.
Effect of death
12 If an individual who was an eligible individual for a taxation year dies before payment of a tax refund for the taxation year is made, the Minister must make the payment to the estate of the individual.
Effect of bankruptcy
13 For the purpose of these regulations, if an eligible individual becomes bankrupt in a taxation year, the tax liability under Part II of the Act for the taxation year is the amount determined for the period that starts on the day the individual becomes bankrupt and ends on December 31 in that taxation year.