Bill C-36
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RECOMMENDATION |
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His Excellency the Governor General recommends to the House of
Commons the appropriation of public revenue under the circumstances,
in the manner and for the purposes set out in a measure entitled ``An Act
to amend the Income Tax Act, the Excise Act, the Excise Tax Act, the
Office of the Superintendent of Financial Institutions Act, the Old Age
Security Act and the Canada Shipping Act''.
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SUMMARY |
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These amendments implement certain measures announced in the
Budgets of February 27, 1995 and March 6, 1996 as well as the Income
Tax Act and Excise Tax Act amendments released on August 9, 1995
concerning the government's business number program. These
measures are summarized below.
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(1) Retirement Savings: reduces the limits on contributions to
registered retirement savings plans (RRSPs), registered pension plans
and deferred profit sharing plans and reduces the allowance for RRSP
overcontributions.
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(2) Fiscal Periods: eliminates the opportunity to defer the taxation
of business income by selecting an off-calendar fiscal period.
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(3) Family Trusts: eliminates the election to defer the 21-year
deemed realization rule and the rules allowing the allocation of income
to preferred beneficiaries.
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(4) Film Tax Credit: replaces the capital cost allowance tax shelter
incentive for certified Canadian productions with a new tax credit for
Canadian film production companies.
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(5) Charitable Donations: eliminates the 20 per cent of income
deduction limit for gifts of ecologically sensitive land.
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(6) Scientific Research and Experimental Development
(SR&ED): eliminates inflation of SR&ED tax credits through
non-arm's length contracts; introduces other measures improving the
administration of the SR&ED tax incentives.
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(7) Corporate Tax Rates: increases the refundable tax on
investment income of Canadian-controlled private corporations;
increases the rate of Part IV tax on dividends received by private
corporations; increases the capital taxes on large corporations and
financial institutions.
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(8) Joint and Several Liability: provides joint and several liability
for unremitted source deductions and similar amounts where a person
has influential control and causes taxable payments to be made without
remittance.
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(9) Old Age Security (OAS) Benefits: modifies the structure of the
recovery of OAS benefits to provide for tax to be withheld from benefits
as they are paid.
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(10) Business Number: allows Revenue Canada to exchange
business name and address information with other federal government
departments and the provinces when they adopt the Business Number.
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(11) Interest Rates: provides for different rates of interest on
amounts payable by the Crown to taxpayers and amounts payable by
taxpayers to the Crown.
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