Canada's Job And Economic Growth Act Passed

by Mike Godfrey, Tax-News.com, Washington

16 July 2010

Canada’s Minister for Finance, Jim Flaherty has welcomed the completion of all necessary ratification procedures necessary to bring the Jobs and Economic Growth Act into force, legislation, he said, that would "secure Canada’s economic recovery, growth, and tackle employment." The Act was given Royal Assent following the text’s passage in the Senate on July 12.

“The Act allows for the implementation of important elements of budget 2010. Key elements of the legislation include measures that restrain and focus spending, create a more competitive environment for business and help ensure tax fairness for Canadians,” Flaherty stated.

“Canada’s Economic Action Plan has worked well and is continuing to stimulate the Canadian economy to the end of the fiscal year," he stated, adding: “At that point, we have an exit strategy and a plan to return to budget balance over the medium term by restraining the growth of program spending.”

The key measures included in the Jobs and Economic Growth Act will:

• Eliminate tariffs on manufacturing inputs and machinery and equipment;
• Eliminate the need for tax reporting under section 116 of the Income Tax Act for many investments by narrowing the definition of taxable Canadian property;
• Implement important changes to strengthen federally regulated private pension plans;
• Implement the one-time transfer protection payment to Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Saskatchewan announced in December 2009;
• Regulate national payment card networks and their operators, if necessary;
• Enable credit unions to incorporate federally and operate as banks;
• Streamline environmental assessments for infrastructure projects;
• Increase competition in telecommunications by removing existing restrictions on foreign ownership of Canadian satellites;
• Extend the Mineral Exploration Tax Credit for one year;
• Create greater tax fairness between single- and two-parent families with respect to the Universal Child Care Benefit;
• Implement an enhanced stamping regime for tobacco products to deter contraband; and
• Close tax loopholes.

The Act also contains provisions to "restrain and focus spending" by:

• Freezing salaries for parliamentarians; and
• Reducing Governor in Council positions to federal institutions.

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