![]() ![]() ![]()
|
||||||||||||||||||||||||||||||||||||||||
|
![]() |
Ottawa, July 19, 2005 Amendments to be Recommended to the Income Tax Act With Respect to the Québec Parental Insurance PlanThe Department of Finance today indicated its intention to recommend amendments to the Income Tax Act to provide for the tax treatment of benefits and premiums under the Québec Parental Insurance Plan (QPIP), which is expected to come into force on January 1, 2006. The QPIP will replace maternity and parental benefits currently provided under the employment insurance (EI) program for eligible Quebec residents. EI premiums for employers and employees in Quebec will be reduced to reflect the fact that Quebec residents will no longer receive maternity and parental benefits under EI. QPIP premiums will be collected directly by the Province of Quebec. The proposed amendments would ensure that the federal tax treatment of QPIP premiums and benefits is consistent with the federal tax treatment of EI premiums and benefits. Specifically:
These amendments would apply to benefits received and premiums paid upon the implementation of the QPIP. It is intended that legislation to implement the proposed amendments be introduced at the earliest opportunity. ___________________________________ David Gamble If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada website at www.fin.gc.ca/scripts/register_e.asp. | ||||||||||||||||||||||||||||||||||||||
|