starting April 2023, with full implementation
by January 2029
will not affect anyone who is 54 years or older
as of March 31, 2012
Allow Canadians the option of deferring take-up of
their OAS benefits for up to 5 years and receiving higher annual
benefits, starting on July 1, 2013. The annual OAS would be
increased by 7.2% for each full year that it is deferred.
Implement proactive enrolment in a phased-in
approach from 2013 to 2015, eliminating the need for many seniors to
apply for OAS and GIS.
Canada Pension Plan
A review of the CPP confirmed the financial
sustainability of the Plan for at least the next 75 years at the current
contribution rate of 9.9% of pensionable earnings. Thus, there will
be no change to the contribution rate.
Public Pensions and Pooled Registered
Pension Plans
Ensure that pension plans for public servants and
Parliamentarians are sustainable, fair, and financially responsible.
Support the retirement income system with Pooled
Registered Pension Plans (PRPPs)
Other Budget Measures
Employee Taxable Benefit - Group Sickness or Accident
Insurance (AD&D) Plan
An employer's contributions to a group sickness (including critical
illness ) or accident insurance
plan will be included in an employee's income for the year in which the
contributions are made, to the extent that the contributions are not
in respect of a wage-loss replacement benefit payable on a
periodic basis. This will apply to employer contributions made on or
after Budget Day to the extent that the contributions relate to coverage after
2012, except that such contributions made in 2012 will be included
in the employee's income for 2013.
Canadian Travellers
increase value of goods that may be imported duty- and tax-free by
Canadian residents returning from abroad, effective June 1, 2012:
after a 24-hour absence, from $50 to $200
after a 48-hour absence, from $400 to $800
after a 7-day absence, from $750 to $800
eliminate or reduce taxes on foreign-based rental vehicles
temporarily imported by Canadian residents
Employment Insurance Program
limiting EI premium rate increases to 5 cents each year until the EI
Operating Account is balanced
ensure that EI claimants benefit from accepting work
align the calculation of EI benefit amounts with local labour market
conditions
Health-Related Tax Measures Effective March 30, 2012
exempting pharmacists' professional services from the GST/HST
expanding the list of health care professionals who can order
certain medical and assistive devices zero-rated under the GST/HST
expanding the list of GST/HST zero-rated medical and assistive
devices and the list of expenses an individual may claim for income
tax purposes under the Medical Expense Tax Credit (METC) to include
blood coagulation monitors for use by individuals who require
anti-coagulation therapy
Scientific Research & Experimental Development
(SR&ED) Tax Credits
reduce the general SR&ED investment tax credit rate from 20% to
15%, effective January 1, 2014
remove capital expenditures from the base of eligible expenditures,
effective for expenditures incurred in 2014 and subsequent years
gradually reduce the "prescribed proxy amount" for
computing overhead expenditures, from 65% to 55% of direct labour
costs. The 55% rate will be fully phased in as of January 1,
2014.
allow only 80% of arm's length contract payments to be used for
calculating the SR&ED tax credits, effective January 1, 2013
Canada Revenue Agency (CRA) will conduct a pilot project to
determine the feasibility of a formal pre-approval process.
administrative improvements to the SR&ED tax incentive program
Other Business Tax Measures
doubling of the GST/HST streamlined accounting thresholds
extending the Hiring Credit for Small Business for one year,
providing a credit of up to $1,000 against a small employer's increase
in its 2012 EI premiums over those paid in 2011. Available to
employers whose total EI premiums were at or below $10,000 in 2011.
improvements to the rules for paying eligible dividends
as of April 16, 2012 using My Business Account:
allowing businesses to submit questions and receive answers to
their specific business enquiries electronically
option to input an address change online
automatic display of non-capital losses and refundable dividend
tax on hand (RDTOH) balances
expansion of web forms for information returns
graduated penalties for late filing of certain information returns,
such as T4s, depending on the number of returns
phasing out tax preferences for resource industries
continuing to reduce regulatory burden (red tape) faced by
businesses
continuing to explore whether new rules for the taxation of
corporate groups could improve the functioning of the corporate tax
system
expand the eligibility for accelerated capital cost allowance (CCA)
under Class 43.2
tightening the rules applicable to Employees Profit Sharing Plans (EPSPs)
to discourage excessive contributions for employees with a close tie
to their employer
tightening the rules applicable to Retirement Compensation
Arrangements (RCAs) to prevent certain schemes designed to
inappropriately reduce tax liabilities
preventing the avoidance of corporate income tax through the use of
partnerships to convert income gains into capital gains