Ottawa, December 23, 2009

Archived - Department of Finance Releases Annual Tax Expenditures and Evaluations Report

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The Department of Finance today released the 2009 Tax Expenditures and Evaluations report. This 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 2009, including:

  • Personal income tax relief, particularly for low- and middle-income Canadians, through increases in the amount of income that all Canadians can earn without paying federal taxes or before being subject to higher tax rates, and an increase in the Age Credit amount.
  • The effective doubling of the Working Income Tax Benefit, which will make work more rewarding for about 1.5 million low-income Canadians and encourage them to find and retain a job. 
  • The temporary Home Renovation Tax Credit, the First-Time Home Buyers' Tax Credit and an enhancement to the Home Buyers' Plan, which provide tax relief to help Canadians purchase a home and make improvements to their property.
  • Additional tax relief for small businesses through an increase to $500,000 from $400,000 in the amount of small business income eligible for the reduced federal income tax rate of 11 per cent, along with a corresponding increase in the taxable income phase-out range for spending eligible for the enhanced Scientific Research and Experimental Development Investment Tax Credit.

This year's edition includes an evaluation report that compares tax assistance for investment in research and development (R&D) in the 30 member countries of the Organisation for Economic Co-operation and Development and 6 key emerging and transition economies. All countries in the comparison group provide tax assistance for investment in R&D in the form of generous tax depreciation allowances, which in many cases exceed the amount invested, and a third of the countries provide investment tax credits (ITCs). Eight countries, including Canada, provide enhanced assistance to small firms for investment in R&D, primarily through higher ITC rates. Taking into consideration both large and small firms, Canada has the third most generous R&D tax regime in the comparison group, after France and Spain.

Tax Expenditures and Evaluations may be viewed on the Department of Finance website.

For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance

Jack Aubry
Media Relations
Department of Finance

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