Bill 205 2011

An Act to provide a tax credit to informal caregivers

Note: This Act amends the Taxation Act, 2007.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Section 9 of the Taxation Act, 2007 is amended by adding the following subsections:

Tax credit for care of a relative in relative's home

   (5.1)  An individual is entitled to a tax credit for the year in respect of care provided by the individual to a relative calculated using the formula in subsection (5.2) if the following conditions are satisfied:

    1.  The individual ordinarily cohabits with the relative during the year in a residence that the relative or the relative's spouse or common-law partner owns, leases or subleases.

    2.  A physician attests that the relative is unable to live alone because of a severe and prolonged mental or physical impairment.

Same

   (5.2)  For the purposes of subsection (5.1), the formula is,

in which,

  "A"  is the lowest tax rate for the year, and

  "D"  is the greater of the relative's income for the year and $14,321.

Definition

   (5.3)  In subsections (5.1) and (5.2),

"relative" means, in relation to the individual or his or her spouse, the individual's or spouse's child, grandchild, sibling, niece, nephew, mother, father, aunt, uncle, grandparent, great-aunt or great-uncle.

Tax credit for care of an elderly spouse or common-law partner

   (5.4)  An individual is entitled to a tax credit for the year in respect of care provided by the individual to his or her spouse or common-law partner calculated using the formula in subsection (5.5) if the following conditions are satisfied:

    1.  The individual ordinarily cohabits with the spouse or common-law partner during the year in a residence that the individual or his or her spouse or common-law partner owns, leases or subleases.

    2.  The spouse or common-law partner is 70 years of age or more at the end of the year, or on the date he or she died if he or she died in the year.

    3.  A physician attests that the spouse or common-law partner is unable to live alone because of a severe and prolonged mental or physical impairment.

Same

   (5.5)  For the purposes of subsection (5.4), the formula is,

in which,

  "A"  is the lowest tax rate for the year, and

  "D"  is the greater of the spouse or common-law partner's income for the year and $14,321.

Commencement

   2.  This Act comes into force on the day it receives Royal Assent.

Short title

   3.  The short title of this Act is the Taxation Amendment Act (Informal Caregivers), 2011.

EXPLANATORY NOTE

The Bill amends the Taxation Act, 2007 to provide a tax credit to individuals who act as caregivers for a relative in the relative's home and to individuals who act as caregivers for an elderly spouse.