Ottawa, April 23, 2012
2012-049

Archived - Minister Flaherty Tables Notice of Ways and Means Motion to Implement Tax Provisions in Economic Action Plan 2012 and Other Tax Measures

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The Honourable Jim Flaherty, Minister of Finance, today tabled in the House of Commons a detailed Notice of Ways and Means Motion to implement certain tax provisions in Economic Action Plan 2012, as well as certain previously announced tax measures.

The Notice of Ways and Means Motion includes the following tax measures:

Supporting Families and Communities

  • Expanding the list of Goods and Services Tax (GST)/Harmonized Sales Tax (HST) zero-rated medical and assistive devices and the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases.
  • Exempting certain pharmacists’ professional services from the GST/HST, other than prescription drug dispensing services that are already zero-rated under the GST/HST.
  • Expanding the list of eligible expenses under the Medical Expense Tax Credit.
  • Allowing certain literacy organizations to claim a rebate of the GST and the federal component of the HST paid on the acquisition of books that they give away for free.
  • Introducing a temporary measure to allow certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract.

Enhancing Accountability

  • Amending the penalty applicable to promoters of charitable donation tax shelters who file false registration information or who fail to register a tax shelter prior to selling interests in the tax shelter.
  • Introducing a new penalty applicable to tax shelter promoters who fail to respond to a demand to file an information return or who file an information return that contains false or misleading sales information.
  • Limiting the period for which a tax shelter identification number is valid to one calendar year.
  • Requiring gifts made by a charity to support the political activities of a qualified donee to be considered an expenditure by the charity on political activities.
  • Providing the Minister of National Revenue with the authority to suspend the tax-receipting privileges of a registered charity or a registered Canadian amateur athletic association, if the charity or association fails to report information that is required to be filed annually in an information return or devotes resources to political activities in excess of the limits set out in the Income Tax Act.

Improving Conditions for Business Investment

  • Extending for one year the temporary Mineral Exploration Tax Credit for flow-through share investors.
  • Allowing corporations to make split and late eligible dividend designations.
  • Allowing a designated partner of a partnership to provide a waiver on behalf of all partners to extend the time limit for issuing a determination in respect of the partnership.
  • Increasing the value of goods that may be imported duty- and tax-free by Canadian residents returning after 24-hour and 48-hour absences to $200 and $800, respectively.

Enhancing Services to Canadians

  • Providing authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return.

More details on these measures can be found in the attached Notice of Ways and Means Motion and detailed explanatory notes for the income, sales and excise tax measures.

For further information, media may contact:

Mary Ann Dewey-Plante
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

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