C-487
First Session, Forty-first Parliament,
60-61-62 Elizabeth II, 2011-2012-2013
HOUSE OF COMMONS OF CANADA
BILL C-487
An Act to amend the Employment Insurance Act and the Income Tax Act (support for grandparents)
first reading, March 26, 2013
Mr. Gravelle
411575
SUMMARY
This enactment amends the Employment Insurance Act to allow a claimant to receive employment insurance benefits for parental leave in the case where a grandchild of the claimant under five years of age resides with the claimant on a full-time basis and the claimant is the primary source of financial support for the grandchild.
It also amends the Income Tax Act to provide that, in the case where grandparents are the primary source of financial support for a grandchild, the child care expense deduction may be applied against any and all taxable income of the lower-income spouse and, where the amount of the deduction exceeds the total amount of the taxable income of the lower-income spouse, the remaining portion of the deduction may be applied against any and all taxable income of the higher-income spouse.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
1st Session, 41st Parliament,
60-61-62 Elizabeth II, 2011-2012-2013
house of commons of canada
BILL C-487
An Act to amend the Employment Insurance Act and the Income Tax Act (support for grandparents)
Whereas Canadian grandparents are more involved in the lives of their grandchildren than ever before;
Whereas many Canadian grandparents have assumed the dual responsibility of being the primary caregiver and the primary source of financial support for their grandchildren;
And whereas the Parliament of Canada recognizes that it is necessary to make amendments to the Employment Insurance Act and the Income Tax Act in order to alleviate the financial burden on these grandparents;
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the Providing Support to Grandparents Act.
1996, c. 23
EMPLOYMENT INSURANCE ACT
2. Subsection 12(3) of the Employment Insurance Act is amended by adding the following after paragraph (b):
(b.1) because the claimant is caring for one or more grandchildren of the claimant under five years of age who resides with the claimant on a full-time basis and for whom the claimant is the primary source of financial support is 35;
3. (1) Subsection 23(1) of the Act is replaced by the following:
Parental benefits
23. (1) Notwithstanding section 18, but subject to this section, benefits are payable to a major attachment claimant to care for
(a) one or more new-born children of the claimant;
(b) one or more children placed with the claimant for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or
(c) one or more grandchildren of the claim-ant under five years of age who reside with the claimant on a full-time basis and for whom the claimant is the primary source of financial support.
(2) Paragraphs 23(2)(a) and (b) of the Act are replaced by the following:
(a) that begins with the week in which
(i) the child or children of the claimant are born,
(ii) the child or children are actually placed with the claimant for the purpose of adoption, or
(iii) the grandchild or grandchildren begin residing with the claimant on a full-time basis; and
(b) that ends 52 weeks after the applicable week referred to in paragraph (a).
4. (1) Subsection 152.05(1) of the Act is replaced by the following:
Parental benefits
152.05 (1) Subject to this Part, benefits are payable to a self-employed person to care for 
(a) one or more new-born children of the person;
(b) one or more children placed with the person for the purpose of adoption under the laws governing adoption in the province in which the person resides; or
(c) one or more grandchildren of the person under five years of age who reside with the person on a full-time basis and for whom the person is the primary source of financial support.
(2) Paragraphs 152.05(2)(a) and (b) of the Act are replaced by the following:
(a) that begins with the week in which
(i) the child or children of the self-employed person are born,
(ii) the child or children are actually placed with the self-employed person for the purpose of adoption, or
(iii) the grandchild or grandchildren begin residing with the self-employed person on a full-time basis; and
(b) that ends 52 weeks after the applicable week referred to in paragraph (a).
R.S., c.1 (5th Supp.)
INCOME TAX ACT
5. The Income Tax Act is amended by adding the following after section 63:
Exception
63.1 (1) Section 63 does not apply to a taxpayer who claims a deduction in respect of child care expenses incurred by the taxpayer on behalf of an eligible grandchild of the taxpayer.
Grandchild care expenses
(2) Where a prescribed form containing prescribed information is filed with a taxpayer’s return of income (other than a return filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) under this Part for a taxation year, there may be deducted in computing the taxpayer’s income for the year such amount as the taxpayer claims — to a maximum of the total of all amounts, each of which is an amount paid by the taxpayer or a supporting person of the grandchild for the year as or on account of child care expenses incurred for services rendered in the year in respect of an eligible grandchild of the taxpayer — to the extent that the amount is not an amount (other than an amount that is included in computing a taxpayer’s income and that is not deductible in computing the taxpayer’s taxable income) in respect of which any taxpayer is or was entitled to a reimbursement or any other form of assistance — and the payment of which is proven by filing with the Minister one or more receipts, each of which was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number —but not exceeding the amount that is the lesser of
(a) 2/3 of the taxpayer’s taxable income for the year, and
(b) the total of all amounts, each of which is the annual child care expense amount in respect of an eligible grandchild of the taxpayer for the year.
Transfer of portion of deduction
(3) Where two taxpayers who are spouses or common-law partners are grandparents of the same eligible grandchild, the taxpayer with the lower taxable income for a taxation year may transfer a portion of their deduction under this section to the taxpayer with the higher taxable income for the taxation year in accordance with the formula
A-B
where
A      is the total eligible child care expense deduction, and
B      is the taxable income of the taxpayer with the lower taxable income for the taxation year.
Application of other provisions
(4) Subsections 63(2.1), (2.2), (2.3) and (4) apply, with the necessary modifications, to a claim made by a taxpayer under this section.
Definitions
(5) The definitions set out in subsection 63(3) apply, with the necessary modifications, in this section, except for the definitions “earned income” and “eligible child”.
Definition of “eligible grandchild”
(6) In this section, “eligible grandchild” of a taxpayer for a taxation year means a grandchild of the taxpayer or of the taxpayer’s spouse or common-law partner if at any time during the year, the grandchild
(a) is under 16 years of age, or
(b) is dependent on the taxpayer or on the taxpayer’s spouse or common-law partner and has a mental or physical infirmity.
Published under authority of the Speaker of the House of Commons