The Conservative leadership recently announced its intension to implement the tax relief proposals from its spring 2006 budget. The government expects that these proposals will provide meaningful tax relief for pensioners, families, students and users of public transit. It will also provide relief for trades-people, apprentices and fishers. According to a press release issued by the government, small and large businesses will also benefit and “will be better positioned to compete and prosper in the global economy”.
Below is a list of a few of the changes that may affect you:
1. The new Canada Employment Credit;
2. The new Textbook Tax Credit;
3. The new tax credit for public transit passes;
4. The new deduction for trades-people’s tool expenses;
5. 100% exemption for scholarship income in specified situations;
6. The new Children’s Fitness Tax Credit;
7. The new Apprenticeship Job Creation Tax Credit;
8. Reduction of the small business tax rate to 11.5 per cent for 2008;
9. Increase Small Business Income tax exemption rate to $400,000;
10. Lower income tax rate on large corporation dividends received by Canadians
For more information on the proposed changes and/or explanatory notes, please visit the Department of Finance website or call the Department of Finance Distribution Centre at 613-995-2855 for received printed material related to these changes.