Bill C-641 (Historical)

An Act to amend the Income Tax Act (death benefit)

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Anita Neville  Liberal

Introduced as a private member’s bill. (These don’t often become law.)

Status

Outside the Order of Precedence (a private member's bill that hasn't yet won the draw that determines which private member's bills can be debated), as of March 21, 2011
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Income Tax Act to eliminate any income tax payable on a death benefit received under the Canada Pension Plan or a provincial pension plan.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Income Tax ActRoutine Proceedings

March 21st, 2011 / 3:10 p.m.


See context

Liberal

Anita Neville Liberal Winnipeg South Centre, MB

moved for leave to introduce Bill C-641, An Act to amend the Income Tax Act (death benefit).

Mr. Speaker, I am pleased to introduce this bill today in the House and I thank my colleague from Cape Breton—Canso for seconding it.

The bill would eliminate income tax payable on a death benefit received under the Canada pension plan. I have heard from many constituents of the heavy burden that funeral costs place on their families and of their surprise when they find out that they must pay income tax on the $2,500 Canada pension plan death benefit.

In some cases, receiving this benefit can have disastrous financial implications, not only reducing the amount available to help with the funeral costs but pushing a beneficiary's income into a higher tax bracket or reducing eligibility for social assistance or the GST/HST tax credit. Making the CPP death benefit tax free is the right thing to do and the fair thing to do to support families as they mourn the loss of a loved one, and ensure that there is no financial penalty for receiving this payment.

(Motions deemed adopted, bill read the first time and printed)