Flaherty Tables Key Provisions

by Mike Godfrey, Tax-News.com, Washington

30 March 2010

Canadian Minister for Finance, Jim Flaherty on March 29 introduced the Jobs and Economic Growth Act in the House of Commons, which introduces key elements of Budget 2010.

“Our government is moving to implement the remaining stimulus measures from Canada’s Economic Action Plan to help secure our country’s economic recovery, encourage growth and create jobs,” said Minister Flaherty. “This legislation contains measures that restrain and focus spending, create a more competitive environment for business, and help ensure tax fairness for Canadian families.”

According to Flaherty, the Jobs and Economic Growth Act aims to contribute to Canada’s advantage by introducing a number of tax measures that 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;
• stimulate the mining industry by extending the Mineral Exploration Tax Credit for one year;
• create greater tax fairness between single- and two-parent families with respect to claiming Universal Child Care Benefit amounts;
• implement an enhanced stamping regime for tobacco products to deter contraband; and
• ensure fairness for Canadian taxpayers by closing tax loopholes.

The Act will also:

• implement the one-time transfer protection payment to Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Manitoba 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; and lastly,
• streamline environmental assessments for infrastructure projects.

Recommended