Bill Detail
An Act to amend the Income Tax Act (northern residents deduction)
This enactment amends the Income Tax Act to increase the daily deduction that can be claimed for residing in a certain northern zone, to tie that amount to the Consumer Price Index and to remove the distinction between the intermediate zone and the northern zone by merging those two zones into one northern zone.
Bill C-401 proposes changes to the northern residents deduction for income tax purposes. It aims to increase the daily amount that individuals can deduct for living in designated northern zones. The bill also seeks to simplify the deduction by merging the 'intermediate zone' and 'northern zone' into a single 'northern zone'.
These changes would affect individuals who reside in these northern or intermediate areas and are eligible for the deduction. The intention is to make the deduction more accessible and potentially increase the financial relief for those living in more remote parts of Canada, with the new rules applying to taxation years beginning in 2025.