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FOR RELEASE     #06-234
November 27, 2006

Yukon Matches Federal Income Tax Measures

WHITEHORSE - Yukoners can look forward to reductions in income tax for the 2006 taxation year, Premier and Minister of Finance Dennis Fentie announced today.

"Amendments to Yukon's Income Tax Act demonstrate our belief that recently announced federal tax measures should be matched in the Yukon to maximize benefits to the individual tax payer," Fentie said.

For the most part, the benefits will result from increases to several of the non-refundable tax credits: 

  • The basic personal amount an individual can earn, without paying Yukon personal income tax, will increase to $8,839 from $8,328, increasing the credit to $622 from $586.
  • The eligible dependant amount will now be $7,505, up from $7,071, increasing the credit to $528 from $498.
  • The maximum pension income deduction amount will double to $2,000, from $1,000, increasing the credit to $140, up from $70.

There will also be additional tax credits for adoption expenses, public transit passes and a Canada Employment amount, which are all new initiatives. Other amendments will be introduced to ensure the Universal Child Care Benefit does not reduce the Yukon Low Income Family Tax Credit.  The Yukon Dividend Tax Credit will also be amended to accommodate federal changes to the dividend gross-up.

"These tax amendments will put approximately $4.3 million back in the pockets of Yukoners over the next two years, and  will simplify the process for everyone," Fentie said. "Wherever possible, the rules will be the same as the federal rules. Most importantly, our goal is to leave more money where it belongs - in the pockets of Yukoners."

"I want all Yukoners to know that they will find relief from income tax, effective for 2006, with these amendments being tabled today," Fentie added.

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Attachment: Backgrounder on Changes to Non-refundable Tax Credit Block

 Contact:  
 Albert Petersen  Bill Curtis
 Cabinet Communications  Finance, Director
 (867) 633-7961  (867) 667-5276
 albert.petersen@gov.yk.ca  bill.curtis@gov.yk.ca