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Ottawa, December 18, 2001
2001-122

Interim Measure Extended on Deductibility of Provincial Payroll and Capital Taxes

Finance Minister Paul Martin today announced that the interim measure that limits the deductibility of increases in provincial payroll and capital taxes will continue to apply in 2002.

Under the interim measure, any existing provincial payroll and capital taxes will remain deductible for federal income tax purposes, but any increases in these taxes by way of provincial actions to increase the rate, change the definition of the base or introduce new taxes would not be deductible.

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