17 January 1990 External T.I. 90M01095 F - Amendments to Provincial Income Tax Acts (Bill C-28)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

January 17, 1990

Dear Ms Park:

Re: Bill C-28 (H of C - 20.12-89) Amendments to Provincial Income Tax Acts

We have had the opportunity to review the above-noted bill to determine what its impact would appear to be on the Provincial Income Tax Acts. This was done using the Nova Scotia Income Tax Act as an example. The Nova Scotia Act is less complex than some and they appear to have effected the amendments which had been requested previously. Those amendments provided for reference to the federal Act in many cases, which has a considerable impact on the need to amend because of Bill C-28.

There are a number of changes in C-28 which affect Nova Scotia but it would appear that only the following need be considered:

1)     Section 38 amends section 152 of the federal Act to add subsection 3.1. Reference to 3.1 should be made in section 8 of the Nova Scotia Act.

2)     Section 248(11) on compound interest is amended and consideration should be given to adding the last four lines to section 56(7).

On the assumption that the other provinces have amended, or will be doing so, to reflect the previous amendments, and do so in a fashion so as to incorporate by reference, similar amendments to the ones Suggested will be required. Saskatchewan indicated to us that it was revising its Income Tax so that on the previous amendments, it only wished to enact those that were considered to be essential.

You may feel that there are other amendments required. In any event you might advise us of the action proposed.

Yours sincerely,

C. SavageA/DirectorProvincial and International Relations Division

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