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Ottawa, March 28, 1996 Income Tax Legislation IntroducedRelated documents:
Finance Minister Paul Martin today tabled a Notice of Ways and Means Motion in the House of Commons proposing legislation to implement the income tax measures announced in the February 27, 1995 budget. These measures were previously introduced in the House in December 1995 in a detailed Notice of Ways and Means Motion. The proposed legislation includes the following measures:
A number of changes to the amendments previously tabled are proposed. As announced in the budget of March 6, the proposal to exclude information technology scientific research and experimental development (SR&ED) performed by financial institutions from the SR&ED incentive in the Income Tax Act has been dropped. There are also a number of technical changes which do not affect the policy outlined in the draft amendments. Due to these changes, the explanatory notes which accompanied the tabling of last December's Notice of Ways and Means Motion were revised in part. Consequently, only those notes which were revised are attached. The Minister also took this opportunity to reaffirm that the government intends to proceed with legislation implementing other income tax measures announced in 1995. These include the following:
In addition, he will recommend a regulation to the Income Tax Act which would add Canada Lands Company Limited to the list of Crown corporations prescribed under Part LXXI of the Income Tax Regulations. The proposed regulation would apply to the corporation's taxation year ending on March 31, 1996. This announcement is to ensure compliance with the Income Tax Act, which requires that the proposed change be announced before the corporation's taxation year ends. Mr. Martin also noted that his colleague, National Revenue Minister Jane Stewart, has confirmed that, as in the past, Revenue Canada will recommend that taxpayers complete their 1995 tax returns in accordance with the proposed amendments, a number of which will be identified in the 1995 T1 Guide. Mrs. Stewart has indicated that this practice will avoid public confusion, improve administrative efficiency and may reduce the need for subsequent adjustments to returns. She noted, however, that if Parliament were to amend these proposals, or if the legislation were not, in fact, enacted, adjustments to 1995 tax returns would, of course, be required. ___________________ For further information: Tax Legislation |
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