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Ottawa, November 10, 2005 Department of Finance Releases Annual Tax Expenditure ReportRelated document: The Department of Finance today released its annual report on federal tax expenditures. The report, entitled Tax Expenditures and Evaluations, provides estimates and projections of all federal tax measures, such as tax deductions and credits, which are designed to meet economic, social and other goals of the Government—usually by reducing the amount of federal tax otherwise payable by individuals and businesses. These measures are generally referred to as tax expenditures. This year’s report includes an analytical paper entitled “Marginal Effective Tax Rates on Business Investment: Methodology and Estimates for Canadian and US Jurisdictions.” Compared to the more commonly used statutory corporate income tax rate, marginal effective tax rates (METRs) provide a more comprehensive indicator of the impact of the tax system on investment decisions because they reflect deductions and credits available through the corporate income tax system as well as other taxes paid by corporations, such as capital taxes. METRs are therefore a useful complement to statutory rates in assessing the international competitiveness of the Canadian corporate tax system. Estimates and projections in this year’s report reflect tax changes introduced in Budget 2005, such as:
Tax Expenditures and Evaluations may be viewed on the Department of Finance website. Printed copies are available for $16 from the Department of Finance Distribution Centre at (613) 995-2855. ___________________________________ 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. | ||||||||||||||||||||||||||||||||||||||
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