- General Information - Taxation - Financial Services - International Relations -

Find answers to frequently asked questions about the Department of Finance Canada and other related matters.

General Information

What is the role of the Department of Finance Canada?

The Department of Finance Canada is the federal department primarily responsible for providing the Government of Canada with analysis and advice on the broad economic and financial affairs of Canada.

Its responsibilities include:

• Preparing the federal budget.
• Preparing tax and tariff legislation.
• Managing federal borrowing on financial markets.
• Administering major federal transfers to the provinces and territories.
• Developing regulatory policy for the financial sector.
• Representing Canada within international financial institutions.

For more information on the roles and responsibilities of the Department, the following links will be helpful: About Us and Structure and Role.

What is the role of the Canada Revenue Agency?

The Canada Revenue Agency, which falls under the purview of the Minister of National Revenue, is responsible for Canadian tax administration. Its responsibilities include assessing and collecting taxes and levies, and delivering social and economic benefits, such as the goods and services tax credit, through the tax system on behalf of the Government of Canada.

For more information, visit the Canada Revenue Agency website.

What is the budget?

The budget, which is usually presented annually, is the statement by the Minister of Finance setting out the federal government’s projected revenues and expenditures—sometimes called fiscal projections—and the resulting surplus or deficit. It also contains an overview of the Government's economic projections and sets out fiscal policy for the period ahead. To read recent federal budget publications, visit http://www.fin.gc.ca/access/budinfoe.html.

How can I find out when the next federal budget will be tabled?

Budget dates are announced on the News Releases page on the Department of Finance Canada website. If you would like to receive automatic e-mail notification of news releases or of the posting of a new budget, please visit the E-Mail Alert Registration webpage.

What is the Economic and Fiscal Update?

The Economic and Fiscal Update provides an annual update on the national economic and federal fiscal situation leading to the budget-planning process. It can be the base document for pre-budget consultations.

How can I contact the Minister of Finance?

Click on the following link: http://www.fin.gc.ca/comment/minfine.html.

Where can I find a list of Ministers of Finance of Canada?

This information is available at http://www.fin.gc.ca/activty/minfinlist_e.html.

How can I find a telephone number for a Department of Finance Canada employee?

The Government Electronic Directory Services provides a directory of federal public servants for all regions across Canada, including the Department of Finance Canada (FIN-FIN,GC,CA).

Where can I get information about employment with the Department of Finance Canada?

Every year, the Department of Finance Canada conducts a university recruitment campaign. To find out more, visit the Careers section of our website. Other employment opportunities in the Government of Canada are available on the Public Service Commission of Canada website.

How can I sign up for the electronic mailing list of your publications?

You may sign up for electronic e-mail alerts at http://www.fin.gc.ca/scripts/register_e.asp.

Where can I get more information about Canada Savings Bonds?

For information about Canada Savings Bonds and Canada Premium Bonds, you can contact Canada Investment and Savings by telephone at 1 800 575-5151, TTY (teletypewriter) only 1 800 354-2222; by fax at (613) 782-8096; or by e-mail at csb@csb.gc.ca. You can also visit their website at www.csb.gc.ca.

How can I get information about my own personal income tax situation or change my address for my tax returns or refunds?

Department of Finance Canada officials do not have access to taxpayers’ files. These are the responsibility of the Canada Revenue Agency (CRA), which administers the tax system and falls under the purview of the Minister of National Revenue. To find out more about your personal income tax situation or to make changes to your income tax file, a good place to start is the CRA’s website located at www.cra-arc.gc.ca.

There you will find:

• General information, forms and publications.
• The CRA’s office addresses and phone numbers.
• A new secure electronic service, My Account (www.cra.gc.ca/myaccount), which allows you to view some of your personalized information.

Does the Department of Finance Canada provide financial assistance to businesses or organizations?

The Department of Finance Canada is a policy department and, as such, does not administer assistance programs for businesses or organizations. The Government of Canada department that may be able to provide information about financial assistance depends on the nature of your request. These links may be helpful: http://canada.gc.ca/comments/form_e.html or the Canada Business. You can also call 1 800 O-Canada (1 800 622-6232) or 1 800 926-9105 (TTY).

I would like to register my business and/or obtain licences for my business.

The Department of Finance Canada is a policy department and, as such, does not administer programs for businesses. Please visit the Industry Canada website at http://www.ic.gc.ca/ for information on federal programs for businesses.

You may also visit the Canada Revenue Agency website at http://www.cra-arc.gc.ca/tax/business/topics/bn/bro/menu-e.html or contact your provincial government.

I am looking for the status of a parliamentary bill.

This information is available at http://www.parl.gc.ca/legisinfo/index.asp?Lang=E.

Is the Department of Finance Canada the same institution as the Ministry of Finance?

No. The Department of Finance Canada is a federal government department whereas the Ministry of Finance is a department in several provinces. A list of provincial and territorial departments responsible for finances is provided below.

• Alberta: Ministry of Finance
• British Columbia: Ministry of Finance and Corporate Relations
• Manitoba: Department of Finance
• New Brunswick: Department of Finance
• Newfoundland and Labrador: Department of Finance
• Northwest Territories: Department of Finance
• Nova Scotia: Department of Finance
• Nunavut: Department of Finance
• Ontario: Ministry of Finance
• Prince Edward Island: Provincial Treasury
• Quebec: Department of Finance
• Saskatchewan: Department of Finance
• Yukon: Department of Finance

What is this year’s employment insurance rate?

You can obtain that information by reviewing the following news release:
http://www.fin.gc.ca/news07/07-084e.html.

I am having a problem with my employment insurance benefits. Can the Department of Finance Canada help me?

The administration of the employment insurance (EI) benefit system is the responsibility of Human Resources and Social Development. Information on EI is available at http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/ei.shtml.

How can I obtain a copy of the Income Tax Act?

Neither the Canada Revenue Agency nor the Department of Finance Canada publishes the Income Tax Act in print or electronically. Technically, it is "published" by Parliament in the form of bills that are enacted. In practice, however, it is a major task to keep the Act current because it is amended frequently. Therefore, it is left to commercial publishers such as Carswell, Commerce Clearing House, the Canadian Institute of Chartered Accountants and Ernst & Young to consolidate the Act (about 2,000 pages).

Should you wish to obtain a copy of the Act, you may consider contacting one of those publishers directly or you can check with a bookstore. As well, most public libraries carry the publication in their collections. The Department of Justice Canada also has a version on its website at http://laws.justice.gc.ca/en/I-3.3/index.html.

Can the Department of Finance Canada help me with my Canada Pension Plan benefits?

The administration of the Canada Pension Plan (CPP) benefit system is the responsibility of Human Resources and Social Development. Information on the CPP is available through the following link: http://www.sdc.gc.ca/en/gateways/topics/cpr-gxr.shtml.

Can the Department of Finance Canada help me with my student loan?

The administration of the federal student loans system is the responsibility of Human Resources and Social Development. You can obtain more information at Canada Student Loans Program.

You may also be interested in a related FAQ on this site: What tax measures are available to help students?

E-Mail Fraud Warnings

In December 2006 many Canadians began receiving a fraudulent e-mail claiming to have been sent by the Department of Finance and offering a tax refund if confidential personal information were provided.  When these were brought to the Department’s attention, we immediately notified appropriate law enforcement authorities and posted a fraud warning on the Main page of the Finance Canada website. Although the source of the fraudulent e-mails was shut down quickly, our alert remained on our website’s Main page for more than a month to ensure that as many Canadians as possible were warned that the e-mail did not come from Finance Canada and told they should not provide the personal information sought in the e-mails. Click here to increase your awareness of such scams by reading the previous alert and reviewing an example of the fraudulent e-mail. If such an incident occurs again, we will post a warning immediately.

Taxation

How do Canada’s tax levels compare to those of other countries?

In 2004, the most recent year for which there are comparable statistics, Canada’s total tax burden was 33.5 per cent of its gross domestic product—placing us in the middle of the Group of Seven (G7) industrialized countries, which include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Among the G7, France has the highest total tax burden at 43.4 per cent and the United States has the lowest at 25.5 per cent.

What is the goods and services tax credit?

The goods and services tax (GST) credit is a cash payment to low- and modest-income people to help them offset the cost of paying GST on things they buy. The GST credit is paid in quarterly instalments.

Effective July 1, 2007, the basic annual amounts are $237 per adult and $125 per child. There is also a supplement of up to $125 for single individuals, including single parents.

How much tax is there on cigarettes?

Federal excise duties on tobacco are $16.41 per carton of 200 cigarettes. The federal government also charges the 6-per-cent GST on the final retail price of tobacco products.

Provincial and territorial governments also charge taxes ranging from just over $20 per carton to more than $40 per carton.

How much tax is there on alcohol?

Different rates of federal excise duty apply to different types of beverage alcohol:

• For beer, duty is imposed at $2.56 per case of 24 bottles.

• For wine, the rate is 46.5 cents per 750 mL bottle.

• For spirits, the excise rate is $3.51 per 750 mL bottle with an alcohol content by volume of 40 per cent.

The federal government also charges the 6-per-cent GST on the final retail price of alcohol products. Provincial and territorial governments also charge various levies, markups and sales taxes on alcohol.

How much tax is there on gasoline and diesel fuel?

Federal excise tax is 10 cents per litre on gasoline and 4 cents per litre on diesel fuel. The federal government also charges the 6-per-cent GST on the final retail price of gasoline and diesel fuel.

All provinces and territories also impose product taxes on gasoline and diesel fuel. In addition, some provinces charge provincial sales tax on these products.

What is the Canada Child Tax Benefit?

The Canada Child Tax Benefit (CCTB) is one of the federal government’s most important ways of providing financial assistance for families with children. It is a non-taxable benefit delivered through the tax system for eligible families with children under age 18. The CCTB has three components:

• The base benefit, which is targeted to low- and middle-income families.

• The National Child Benefit supplement, which provides additional assistance to low-income families.

• The Child Disability Benefit (CDB), which provides additional assistance to virtually all families caring for a child eligible for the disability tax credit (DTC).

As of July 2007, the maximum annual benefit for a first child is $3,271, plus the CDB for families with a DTC-eligible child. The CCTB is paid in monthly instalments. About 3 million families receive the CCTB.

For further information on the CCTB, click on the following weblink: http://www.cra-arc.gc.ca/benefits/cctb/menu-e.html.

What is the Universal Child Care Benefit?

In addition to the CCTB, the new Universal Child Care Benefit (UCCB) provides all families with $100 per month for each child under the age of 6. The UCCB helps parents to choose the child care option that best suits their families’ needs—whether that means formal child care, informal care through neighbours or relatives, or a parent staying at home.

Amounts received under the UCCB are taxable in the hands of the lower-income spouse, but do not reduce federal income-tested benefits such as the CCTB and the GST credit.

For further information on the UCCB, click on the following weblink: http://www.cra-arc.gc.ca/benefits/uccb/menu-e.html.

What tax measures are available to help families with children?

Most recently, Budget 2007 proposed several measures to help Canadian families. These measures include:

• A new $2,000 child tax credit effective in 2007 that will provide parents with up to $310 in tax relief for each child under 18. More than 3 million Canadian families will benefit from this credit, and 90 per cent of those families will receive the maximum amount of relief.

• Increases to the tax credits for taxpayers with a low-income spouse, and for single earners who support dependants such as a child or an elderly parent. Budget 2007 increases the amount on which these credits are based to the same level as the basic personal amount—that is, $8,929 in 2007. This measure will provide up to $209 of tax relief per year.

To promote physical fitness among children, Budget 2006 introduced a children's fitness tax credit, effective January 1, 2007. The credit will be provided on up to $500 of eligible fees for the enrolment of a child under age 16 in an eligible program of physical activity. A supplementary amount is also available for children eligible for the disability tax credit. The Canada Revenue Agency will monitor the application of the tax credit and provide guidance on the programs of physical activity and the expenditures that would be eligible for the credit. For further information click on the following weblink. http://www.cra-arc.gc.ca/whatsnew/fitness-e.html.

The child care expense deduction allows eligible child care expenses incurred to earn business or employment income, pursue education or perform research to be deducted from income for income tax purposes. The maximum amount that can be deducted is $7,000 for each child under age 7, $4,000 for each child between 7 and 16 years of age, and $10,000 for each child with a disability.

For adoptions completed in 2005 or later, the adoption expense tax credit recognizes specified adoption expenses, up to a maximum of $10,220 per child in 2006.

Low-income families may be entitled to the GST credit. Effective July 1, 2007, the basic annual amounts are $237 per adult and $125 per child. There is also a supplement of up to $125 for single individuals including single parents.

Further information on tax support for families is provided in the following sections on saving for post-secondary education, and support for persons with disabilities and those who care for them.

What is the Working Income Tax Benefit?

Budget 2007 proposes a $550-million Working Income Tax Benefit (WITB). The WITB is a refundable tax credit that will supplement the earnings of low-income workers to encourage labour force participation. It will be generally available to individuals 19 and older who do not attend full-time school.

Effective in the 2007 taxation year, the WITB will provide up to $1,000 for couples and single parents and up to $500 for single individuals. In addition, a supplement of up to $250 per year will be available for low-income working Canadians with disabilities who are eligible for the disability tax credit. For the 2008 and future tax years, families will be able to apply for advance payment of one-half of their estimated annual entitlements.

Overall, more than 1.2 million low-income Canadians are expected to benefit.

What tax measures are available to help students?

Several tax measures support students and relatives who support them.

• The tuition tax credit gives post-secondary students a tax credit (15.5 per cent for 2007) for their full tuition costs. On a tuition bill of $3,000, for example, the federal credit provides tax relief of $465.

• The education tax credit recognizes the non-tuition costs of post-secondary education and training, such as the cost of school supplies. The amount used for calculating the credit is $400 per month for full-time students and $120 per month for part-time students.

• Budget 2006 introduced a tax credit to provide better recognition for the cost of textbooks for post-secondary students. For each month of full-time study, the textbook tax credit amount is $65, and for each part-time month, the amount is $20. No receipts are required.

• Up to $5,000 of unused tuition, textbook and education amounts can be transferred to a supporting parent and certain other relatives. Moreover, amounts that the student cannot use in the year and that are not transferred can be carried forward and used by the student to reduce tax liability in future years.

• A tax credit (15.5 per cent for 2007) is available for the interest paid on student loans under the Canada Student Loans Program and similar provincial programs.

• Budget 2006 introduced a full exemption for post-secondary scholarships and bursaries for programs in respect of which the student can claim the education tax credit. Budget 2007 proposes to extend the full exemption to scholarships received by elementary and secondary school students.

• Under the Lifelong Learning Plan (LLP), Canadians can access their registered retirement savings plans to pursue full-time post-secondary training or education, without immediate tax consequences. Up to $20,000 can be withdrawn tax-free over four years. Amounts withdrawn must be repaid in equal instalments over 10 years. Amounts that are not repaid must be included in income. For more information on the LLP, click on the following weblink: http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/llp/menu-e.html.

What tax measures are available to help people save for post-secondary education?

Families may take advantage of registered education savings plans (RESPs) to help save for post-secondary education for their children or grandchildren. For each child, families can save up to $4,000 per year, up to a lifetime maximum of $42,000. Although contributions are not tax-deductible, the income generated by these contributions can grow tax-free until it is withdrawn for the child’s education.

• Budget 2007 proposes to eliminate the annual contribution limit, and to raise the lifetime contribution limit to $50,000. The budget also proposes to improve access to RESP assistance for part-time post-secondary students.

Since 1998, the Government of Canada has supplemented the first $2,000 saved in a year for each child with a Canada Education Savings Grant (CESG) of up to $400. As of 2005, these so-called "matching rates" are enhanced for low- and middle-income families. Specifically, the CESG on the first $500 of saving is 40 per cent for families with incomes below $37,178 and 30 per cent for families with incomes between $37,178 and $74,357 in 2007. For children born in 2004 or later, the Canada Learning Bond provides up to $2,000 of education savings by age 16 for children in families entitled to the National Child Benefit supplement. The Canada Learning Bond is also added to the child’s RESP.

• Budget 2007 proposes to increase the maximum annual amount of CESG that can be paid in any year to $500 from $400 (and to $1,000 from $800 if there is unused grant room from low contributions made in previous years).

Both the Canada Learning Bond and CESG programs are administered by Human Resources and Social Development Canada. For more information on both programs, click on the following weblink: http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/cesg.shtml.

You may also be interested in a related FAQ on this site: Can the Department of Finance Canada help me with my student loan? 

What tax measures are available for persons with disabilities and those who care for them?

Significant personal income tax relief is available for persons with disabilities and for individuals who care for them, as well as for persons with above-average medical expenses.

The main measures are:

• The disability tax credit (DTC), which provides up to about $1,000 in federal tax relief to individuals with severe and prolonged impairments in mental or physical functions, recognizes the impact of general disability-related costs on an individual’s ability to pay tax. This credit can be transferred to a supporting spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual.

• The DTC supplement for children provides up to about $600 of additional tax relief to families caring for children who are eligible for the DTC.

• The medical expense tax credit recognizes the effect of specific above-average medical or disability-related expenses on an individual’s ability to pay tax.

• The disability supports deduction ensures that income used to pay for disability supports incurred for employment or education is not taxed and does not affect income-tested benefits.

• The caregiver credit and the infirm dependant credit, which offer tax relief to individuals providing care to a dependent relative, recognize the impact of general caregiving-related expenses. Each of these credits is worth up to about $600.

• The refundable medical expense supplement (RMES) improves work incentives for Canadians with disabilities and others with above-average medical expenses by helping to offset the loss of coverage for medical and disability-related expenses under social assistance when they enter the paid labour force.

• Budget 2006 increased the maximum amount of the RMES to $1,000 from $767 for the 2006 taxation year (the maximum amount is indexed to $1,022 for 2007).

• The Child Disability Benefit (CDB), which is a supplement of the Canada Child Tax Benefit (CCTB), provides direct federal support to families with a DTC-eligible child. Budget 2006 enhanced the CDB by:

• Increasing the maximum annual CDB to $2,300 from $2,044 effective July 2006 (the maximum amount will be indexed to $2,351 for the benefit year starting in July 2007).

• Extending eligibility for the CDB to middle- and higher-income families caring for a DTC-eligible child, including virtually all families that are currently eligible for the CCTB base benefit, effective July 2006.

• In addition, the Expert Panel on Financial Security for Children with Severe Disabilities was appointed in July 2006. The Panel submitted its report, A New Beginning, in December 2006. In Budget 2007, the Government acted on the recommendations of the Panel by announcing the introduction of a new registered disability savings plan.

What are the personal income tax changes for January 1, 2007?

Please refer to our news release at http://www.fin.gc.ca/news06/06-088e.html.

What are the 2007 automobile deduction rates?

You may refer to our news release at http://www.fin.gc.ca/news06/06-089e.html.

Why are the 2007 automobile rates under the 2006 listing of news releases?

The news releases are listed according to the year of the announcement and not according to the year to which the content refers.

Financial Services

Where can I get information about bank regulations?

You can get this information from the Office of the Superintendent of Financial Institutions (OSFI). OSFI regulates financial institutions and employer-employee pension plans under federal jurisdiction, contributes to public confidence in the Canadian financial system and protects depositors, policyholders, pension plan beneficiaries and creditors from undue loss. It maintains a comprehensive supervisory framework aimed at determining whether financial institutions and pension plans are in sound financial condition and in compliance with statutory requirements. For more information, visit the OSFI website at http://www.osfi-bsif.gc.ca/.

What is Canada doing about money laundering?

Money laundering is the process by which "dirty money" generated by criminal activities is converted into assets that cannot be easily traced back to their illegal origins. A significant proportion is linked to profits from the illicit drug trade, but proceeds from other crimes, including burglaries and cigarette smuggling, are also involved. Money laundering, when carried out through financial institutions, could have an adverse effect on their reputations. It is a serious criminal offence.

Money laundering is global in scope, making international co-operation and co-ordination essential to its deterrence and detection. Canada is an active member of the Financial Action Task Force (FATF), created by G-7 leaders in 1989 to develop standards for combatting money laundering and to promote their implementation worldwide. In 2001, the mandate of the FATF was broadened to include the fight against terrorist financing.

Consistent with FATF standards, Canada implemented the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The PCMLTFA provides law enforcement with additional tools to help in their investigations into organized crime, money laundering and terrorist financing.

The PCMLTFA requires financial institutions and intermediaries to report terrorist property and suspicious transactions—where there are reasonable grounds to suspect that they are related to money laundering or terrorist financing—to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The PCMLTFA also requires them to report large cash transactions, large international electronic funds transfers, and the movement of large amounts of currency and monetary instruments (traveller’s cheques, money orders, etc.) across Canada’s borders, and to meet record-keeping and client identification obligations. Once FINTRAC has analyzed information and is satisfied that there are reasonable grounds to suspect that it would be relevant to a criminal investigation, FINTRAC discloses the information to law enforcement.

The PCMLTFA is currently under review to ensure consistency with the revised international standards that have been developed by the FATF and with legislation already in place in most industrialized countries around the world.

I want to verify the legitimacy of a financial institution.

You may visit the website of the Office of the Superintendent of Financial Institutions at http://www.osfi-bsif.gc.ca or contact them by telephone at (613) 943-3950, TTY: (613) 943-3980 (toll-free: 1 800 385-8647).

I am having problems with a Canadian financial institution. Who should I contact?

For consumer-related questions, visit the website of the Financial Consumer Agency of Canada (FCAC) at http://www.fcac-acfc.gc.ca/. The FCAC provides consumer information and oversees financial institutions to ensure that they comply with federal consumer protection measures.

International Relations

What is the G-20 and how is Canada involved?

The purpose of the G-20 is to ensure broader participation in discussions on international financial affairs among countries that play a particularly crucial role in the global economy.

The G-20 consists of finance ministers and central bank governors from 19 industrialized and emerging market countries. The members are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union. The G-20 also includes representatives from the European Central Bank and the Bretton Woods institutions (the World Bank and the International Monetary Fund) and their policy committees. The G-20 was created in September 1999, at which time the Minister of Finance for Canada was chosen to serve as chair for the first two years.

For the latest information about the G-20, consult the official G-20 website located at http://www.g20.org/Public/index.jsp.