Canada To Implement 2011 Budget

by Mike Godfrey, Tax-News.com Washington

05 October 2011

Canadian Minister for Finance, Jim Flaherty on October 3 tabled in the House of Commons a motion to implement Budget 2011 tax measures.

The Notice of Ways and Means Motion also includes provisions referenced in Budget 2011 to implement previously announced tax measures.

“In our June 6 budget, we promised to maintain our commitment to supporting job creation, helping families and communities, investing in innovation, education and training, and preserving Canada’s fiscal advantage in order to create the right conditions for long-term economic prosperity,” said Flaherty. “Today, we are taking the next step to deliver on our commitment.”

According to Flaherty, the Notice includes tax measures from Budget 2011 that:

• Improve the fairness of the system for tax-assisted retirement savings;
• Introduce a new CAD2,000 Family Caregiver Tax Credit amount to provide tax relief to caregivers of infirm dependent relatives;
• Make qualifying occupational, trade and professional examination fees eligible for tax relief under the Tuition Tax Credit;
• Extend to the end of 2013 the temporary accelerated capital cost allowance treatment for investment in manufacturing or processing machinery and equipment;
• Introduce rules to strengthen the tax regime for charitable donations (including the “exclusivity of purpose and function” test for registered Canadian amateur athletic associations); and,
• Introduce rules to limit tax deferral opportunities for corporations with significant interests in partnerships.

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