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Ottawa, September 16, 2004
2004-051

Minister of Finance Releases Draft Income Tax Amendments Implementing Budget 2004 Measures

Related document:

• Legislative Proposals, Draft Regulations and Explanatory Notes Relating to Income Tax.

Minister of Finance Ralph Goodale today released a package of draft amendments to the Income Tax Act and other related acts to implement income tax measures proposed in the 2004 budget. These measures include:

• introducing tax relief for Canadian forces personnel and police deployed to international high-risk operational missions—including the extension to additional missions announced on April 14, 2004;

• improving tax fairness for persons with disabilities and those who care for them;

• accelerating to 2005 the increase in the small business deduction limit to $300,000;

• extending the carry-forward period for business losses to 10 years;

• eliminating the deductibility of fines and penalties; and

• introducing a new regulatory regime for registered charities.

The Government intends to introduce, at the earliest opportunity, a bill to implement these measures. Releasing legislation in draft form at this time will give taxpayers and their advisors an opportunity to consider these changes and comment on them before they are introduced in Parliament. Comments are requested by October 15, 2004.

To facilitate this review, detailed explanatory notes relating to the proposed amendments are also being released. References to "Announcement Date" in the draft legislation and explanatory notes should be read as references to today’s date.

Not included in this package are the 2004 budget proposals to limit the investment by pension funds in business income trusts. As announced in the May 18, 2004, press release, these income trust measures have been suspended to allow for further consultation.

The draft legislation and explanatory notes may be viewed on the Department of Finance Web site. Printed copies are available for $16.00 from the Department of Finance Distribution Centre at (613) 943-8665.

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