Canadian Taxpayers Urged To Claim Budget Relief

by Mike Godfrey, Tax-News.com, Washington

17 February 2009

The Canadian government has launched an advertising campaign encouraging taxpayers to claim a number of tax reliefs announced recently by Finance Minister Jim Flaherty in the 2009 budget.

Commenting on the new 'you've earned it - claim it' awareness campaign in Victoria on February 16, Jean-Pierre Blackburn, Minister of National Revenue and Minister of State for Agriculture, said: "Reducing taxes stimulates the economy and helps build a solid foundation for future economic growth. We want to ensure Canadians have the information they need to take advantage of the tax savings that can help put money back in their pockets during these difficult economic times. The advertising campaign is just one way we are able to inform Canadians of the tax credits and benefits available to them."

Also announced was the new approach the Canada Revenue Agency (CRA) is taking to communicating with Canadians about their tax relief options.

"This tax filing season, the CRA is making it even easier to access information specific to your needs," explained Blackburn. "Families, persons with disabilities, seniors, students, and even tradespersons can access information that specifically addresses their tax needs and speaks to the credits and benefits that apply to them."

"For example, seniors will want to know more about positive changes to registered retirement income fund withdrawals, or to find out how to take advantage of pension income splitting," added Blackburn. "They will want to know they can claim both the age amount and their medical expenses. It is all available for them online and in one place."

The campaign has been launched following the announcement of the government's Economic Action Plan in January, which provides for a number of new tax relief measures, including: a CAD750 non-refundable tax credit to first-time home buyers; new home renovation tax credit, which can provide a non-refundable tax credit of up to CAD1,350 in 2009; and an increase from CAD20,000 to CAD25,000 the amount that they can withdraw from a registered retirement savings plan to purchase a home.

"The proposals announced in Canada's Economic Action Plan will not just help first-time home buyers. They will also help stimulate the housing sector through increase in demand for labour, building materials, and other goods and services," concluded Blackburn.

Legislation to implement key elements of the Economic Action Plan, including those listed above, was introduced into the House of Commons by Flaherty earlier this month. The legislation also proposes to increase personal tax allowances, increase the amount of active business income eligible for the 11% small business rate of corporate tax by CAD100,000 to CAD500,000 and cut tariffs on a range of machinery and equipment to lower costs for Canadian producers.

Recommended