Ottawa, January 2, 2009
Archived - Department of Finance Releases Annual Tax Expenditure Report
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The Department of Finance today released its annual Tax Expenditures and Evaluations report. The report provides estimates and projections of the revenue impacts of all special federal tax measures designed to support the economic and social priorities of the Government. The revenue estimates and projections in the report reflect the tax changes announced in Budget 2008 and the 2008 Economic and Fiscal Statement, including:
- Reducing the required minimum withdrawal amount for Registered Retirement Income Funds by 25 per cent for 2008;
- Introducing a new Tax-Free Savings Account that allows individuals to earn tax-free investment income;
- Making Registered Education Savings Plans (RESPs) more responsive to the changing needs of families and students by increasing both the contribution period and the number of years RESPs may remain open;
- Increasing the northern residents deduction by 10 per cent;
- Enriching the medical expense tax credit by expanding the list of eligible expenses; and
- Enhancing the availability and accessibility of the Scientific Research and Experimental Development Tax Incentive Program for small and medium-sized businesses.
This year's edition includes an evaluation report which discusses some of the considerations that are relevant in determining Canada's statutory rate of corporate income tax. It concludes that with a 25 per cent statutory rate of corporate income tax, Canada would be well placed to encourage domestic investment, attract foreign direct investment and protect its tax base. However, analysis is required on an ongoing basis since foreign tax rates, among other things, could change.
Tax Expenditures and Evaluations may be viewed on the Department of Finance website.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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