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- News Release 2006-061 - Previous version - Notice of Ways and Means Motion to Amend the Income Tax ActThat it is expedient to amend the Income Tax Act, in accordance with proposals announced by the Minister of Finance on October 31, 2006, to uphold the value of fairness for Canadians by:
and that the amendments made to the Act to these ends provide among other things: 1. That a Distribution Tax (at a rate of 21% for 2007, 20.5% for 2008, 20% for 2009, 19% for 2010 and 18.5% for the 2011 and subsequent calendar years, plus 13% on account of provincial income tax for each of those calendar years, prorated for taxation years that include days in more than one of those calendar years) apply to certain distributions from publicly-traded trusts (other than real estate investment trusts) and publicly-traded partnerships, with effect (a) for any trust or partnership in which investments are publicly traded before November 2006, for taxation years that end in or after 2011, and (b) for any trust or partnership in which investments are first publicly traded after October 2006, for the first taxation year of the trust or partnership that ends after 2006 (or its first taxation year in which investments in it are publicly traded, if later) and subsequent taxation years, 2. That the general corporate income tax rate applicable under section 123 of the Act be reduced by one-half of one percentage point for taxation years that end on or after January 1, 2011, prorated for taxation years that include that date, 3. That tax relief be provided to low- and middle-income seniors by increasing the amount on which the age credit is computed to $5,066 from $4,066 effective January 1, 2006, and 4. That targeted assistance be provided to pensioners and seniors by allowing an individual resident in Canada to allocate to the individual’s resident spouse or common-law partner up to one half of the individual’s pension income that qualifies for the pension income tax credit, and that such other measures be introduced as may be required to give effect to the measures described above. |
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