Revised income tax information

On November 14, 2005, the Minister of Finance announced proposed income tax measures that are effective as of January 1, 2005.

The proposed measures are the following:

• The basic personal amount at line 300 would increase from $8,148 to $8,648.
• The spouse or common-law partner amount at line 303 would increase from $6,919 to $7,344.
• The amount for an eligible dependant at line 305 would increase from $6,919 to $7,344.
• The lowest personal tax rate would be reduced from 16% to 15%.

The Canada Revenue Agency (CRA) has revised relevant guides and publications to implement the new tax measures announced in the November 14, 2005, Economic and Fiscal Update.

The process to produce the tax packages to be mailed out to taxfilers begins early in the year, such that tapes containing these documents are sent to printing houses prior to November.

Some personalized tax packages to be sent to individuals who filed paper returns in previous years had already been printed and were ready for distribution at the time the tax measures were announced.

To inform these individuals, the CRA has prepared a separate mini-package with the updated information. The mini-packages were taken to Canada Post between January 11 and January 13, 2006. The individuals will receive the updated information by the end of January, in time for them to file their tax returns. This is more cost-effective and timely than reprinting complete income tax packages, in the context of the tax-filing season.

Some other personalized packages that were sent to Canadians were printed with the updated information. The non-personalized packages available in post offices contain the updated information.

Software developers, in cooperation with the CRA, will have updated tax preparation software available to clients using EFILE and NETFILE.

The electronic version of the General Income Tax and Benefit Package for 2005 available on our Web site has been updated to reflect the proposed tax measures.