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ARCHIVED - 5014-N Completing your Nunavut Form

Table of Contents

• Completing your Nunavut Form
• Form NU428, Nunavut Tax and Credits
• Step 1 - Nunavut tax on taxable income
• Step 2 - Nunavut non-refundable tax credits
• Step 3 - Nunavut tax
• Step 4 - Nunavut credits
• Risk capital investment tax credits

The information in this section will help you complete Form NU428, Nunavut Tax and Credits.

The terms spouse and common-law partner are defined on page 12 in the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2001, the date you left Canada if you emigrated in 2001, or the date of death for a person who died in 2001.

Form NU428, Nunavut Tax and Credits

Complete this form if you were a resident of Nunavut at the end of the year.

If you had income from a business with a permanent establishment outside Nunavut, complete Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions, before you complete Form NU428.

You also have to complete Form NU428 if you were a non-resident of Canada in 2001 and you earned income from employment in Nunavut or received income from a business with a permanent establishment only in Nunavut.

Step 1 - Nunavut tax on taxable income

Enter, on line 1, your taxable income from line 260 of your return. Use this amount to determine which one of the four columns you have to complete. Enter this amount on line 2 of the applicable column and complete the calculation.

Step 2 - Nunavut non-refundable tax credits

Nunavut non-refundable tax credits reduce the amount of territorial tax you owe in the same way that federal non-refundable tax credits reduce the amount of federal tax you pay. However, if the total of these credits is more than the territorial tax you owe, you will not get a refund for the difference.

Step 3 - Nunavut tax

Line 14 - Nunavut tax on split income

If you have to pay federal tax on split income at line 424 of your Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the territorial tax that applies to this income. Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. You can find more information on tax on split income on page 14 in the General Income Tax and Benefit Guide.

Line 23 - Nunavut additional tax for minimum tax purposes

If you have to pay minimum tax as calculated on Form T691, Alternative Minimum Tax, you will have to determine your Nunavut additional tax for minimum tax purposes. To do this, complete Form T1219, Provincial Alternative Minimum Tax and enter the calculated amount on line 23 of Form NU428. You can find information about minimum tax on page 30 in the General Income Tax and Benefit Guide.

Step 4 - Nunavut credits

Lines 27 to 32 - Cost of living tax credit

If you were a resident of Nunavut at the end of the year, you can claim the cost-of-living tax credit. If your credit is more than the tax you owe, you will receive a refund for the difference.

As a resident of Nunavut, you may have income from a business with a permanent establishment outside Nunavut. If so, enter on line 27 the net income allocated to Nunavut from column 4 on Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions

Your cost-of-living tax credit is a percentage of your adjusted net income (line 31), to a maximum of $645.

How to claim

If your adjusted net income is more than $66,000, enter $645 on line 32.

Otherwise, if your adjusted net income is:

• $12,000 or less, complete Column 1; or
• more than $12,000 but not more than $48,000, complete Column 2; or
• more than $48,000 but not more than $66,000, complete Column 3.

Lines 33 to 38 - Political contribution tax credit

You can deduct part of the contributions you made in 2001 to a candidate seeking election to the Nunavut Legislative Assembly.

How to Claim

Enter your total contributions on line 33, and determine the amount to enter on line 34 as follows:

• For contributions of $100 or less, enter the amount of your contributions on line 34.
• For contributions of more than $100 but not more than $900, complete the following chart.
• For contributions of more than $900, enter $500 on line 34.

Receipts - Attach to your paper return official receipts signed by an official agent of the political party or candidate. If you are filing electronically, keep them in case we ask to see them.

Risk capital investment tax credits

As an eligible investor, you can claim a credit against Nunavut tax of up to $30,000, or 30% of investments made in eligible shares, to a maximum of $100,000 annually.

• can choose from the following investment vehicles in the Northwest Territories and Nunavut:
• labour-sponsored venture capital corporations;
• employee venture capital corporations;
• community endorsed venture capital corporations; and
• direct investment in territorial business corporations.

Lines 39 and 40 - Labour-sponsored venture capital corporation tax credit

You can claim a credit equal to 15% of the first $5,000 and 30% of the next $95,000 you invested in eligible shares acquired in 2001 (and did not claim on your 2000 return) or in the first 60 days of 2002.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, beside box 6393 on Form NU428. Calculate your credit on lines 39 and 40.

Attach Form T2C(NWT) to your paper return. If you are filing electronically, keep them in case we ask to see them.

If you have invested in a labour-sponsored venture capital corporation, you are also eligible for a federal tax credit. For details, see lines 413 and 414 in the General Income Tax and Benefit Guide.

Lines 41 - Employee venture capital corporation, community endorsed venture capital corporation, and territorial business corporation direct investment tax credits

You can claim a credit of up to 30% of investments made, to a maximum of $100,000 of amounts that you invested in 2001 (and did not claim on your 2000 return) or in the first 60 days of 2002.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, beside box 6395 on Form NU428, and calculate your credit on line 41.

Attach Form T2C(NU) to your paper return. If you are filing electronically, keep it in case we ask to see it.

Note
The amount of risk capital investment tax credits is subject to an annual limit. Complete the calculation on line 43 of Form NU428.

Unused credits

You can carry forward unused credits for seven years, or back three years.

Any unused credit is shown on your most recent Notice of Assessment or Notice of Reassessment. Enter any unused credit from previous years on line 45 of Form NU428 to reduce your Nunavut tax.

Use the chart below to calculate any unused credit available to carry back to previous years.

Enter, on line 54 on Form NU428, any part of this amount you want to carry back to reduce your 1998 Northwest Territories tax. Enter, on line 53, any amount you want to carry back to 1999, and on line 52, any amount you want to carry back to 2000 to reduce your Nunavut Tax.

Date modified:

2002-07-25