Canada Plan announced November 23, 2006
This plan is a set of goals which includes
eliminating the federal net debt
using the interest savings to reduce
personal income taxes
establishing the lowest tax rates on new
business investment in the G7
Tax Fairness Plan announced October 31,
age credit increased by $1,000 to $5,066
effective January 1, 2006 - see the 2006
table of non-refundable tax credits
this means that the age credit will
not be completely phased out until net income
reaches $64,043 for 2006 (was $57,377 previously)
splitting - beginning with the 2007 tax year, up to
1/2 of certain pension income may be transferred to a
trusts will be subject to corporate income tax rates
on certain distributions.
corporate tax rate will be reduced by an
additional 1/2% in 2011.
For more information, see the
of Finance news release.
The Federal government tabled
their budget on May 2, 2006. See the
Federal Budget documents on the Department of Finance
Bill C-13 was tabled in the House of
Commons on May 11, 2006 to implement budget measures set
out in the May 9th Notice of Ways and Means motion, as
well as certain other measures. The Bill includes
some tax measures that were originally introduced in the
2005 Budget. Bill C-28 was tabled to
implement remaining tax measures not included in Bill
C-13. For more detail, see:
job creation tax credit and apprenticeship grants.
personal amounts - will be $8,839 (average) for
2006. November 2005 budget had proposed $9,039 for
student loans program - expanded eligibility.
tax - eliminated as of January 1, 2006 instead of
Child care - Universal
Child Care Plan
disability benefits enhanced.
fitness tax credit - starting in 2007,
non-refundable tax credit for up to $500 of eligible
expenses for children under 16.
tax rate reduction and surtax elimination starting
tax credit revised for dividends paid by large
of publicly-traded securities and ecologically sensitive
lands to charities - elimination of capital gains
taxes, effective for donations made on or after May 2,
credit - on up to $250 of employment income for 2006 (x
15.25%), and up to $1,000 for 2007 (x 15.5%).
- capital gains - including lifetime capital gains
exemption on qualified fishing property.
reduced to 6% effective July 1, 2006.
tax credit carry-forward period increased to 20
years for credits earned in taxation years ending after
loss carry-forward period increased to 20 years from
10 years for losses incurred in taxation years ending
income credit - effective for 2006, increased to
$2,000 from $1,000.
Personal tax rates - lowest rate will be
15.25% for 2006. November 2005 budget had proposed
15% for 2006.
transit tax credit
medical expense supplement - maximum will be
increased from $750 in 2005 to $1,000 in 2006, with
income threshold increasing to $22,140 for 2006.
Both amounts will be indexed thereafter.
bursary and fellowship income will be fully exempt
from tax when the income is received in connection with
a program for which the student will get an education
business income tax rate reduction and threshold
tax credit - effective for 2006 - non-refundable tax
credit in addition to the education tax credit, based on
$65/month for full-time attendance or $20/month for
tool expenses - for eligible new tool costs in
excess of $1,000 (on or after May 2, 2006), a deduction
of up to $500 will be allowed for employed tradespeople.
Revised: April 13, 2014