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TAX BULLETIN - ARCHIVES 2008
  • Extract from  Canada Revenue Agency web site in connection with interest rates for the first calendar quarter of 2009:
    • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 2%.
     
  • Economic Statement - Proposed Measure for Annuitants of Registered Retirement Income Funds (update)
     
  • Extract from Economic and Fiscal Statement of the Minister of Finance:
    • To help seniors cope, today I am proposing a one-time change that will allow RRIF holders to reduce their required minimum withdrawal by 25 per cent for this tax year. For example, for an individual otherwise required to withdraw $10,000 from their RRIF in 2008, the required withdrawal will be reduced to $7,500. If the individual has already withdrawn more than $7,500, they will be permitted to re-contribute the excess up to $2,500, and claim an offsetting deduction for the 2008 taxation year.
       
  • Extract from  Canada Revenue Agency web site in connection with maximum pensionable earnings for 2009:
    • The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2009 will be $46,300—up from $44,900 in 2008.
     
  • Extract from The National Do Not Call List (DNCL):
    • The National Do Not Call List (DNCL) gives consumers a choice about whether to receive telemarketing calls. The National DNCL Rules introduce new responsibilities for Canada’s telemarketers.

      If you are a consumer you can choose to reduce the number of telemarketing calls you receive by registering your residential, wireless, fax or VoIP telephone number on the National DNCL.

       
  • Extract from  Canada Revenue Agency web site in connection with interest rates for the fourth calendar quarter of 2008:
    • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 3%.
     
  • Extract from  Canada Revenue Agency web site in connection with interest rates for the third calendar quarter of 2008:
    • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 3%.
     
  • Extracts from The Budget at a Glance published by the Minister of Finance of Quebec:
    • The tax on capital (...) is being eliminated immediately for all businesses in the manufacturing sector. By the end of 2010, the tax on capital will also be eliminated for businesses as a whole.
    • In addition, the accelerated depreciation for manufacturing and processing equipment is being extended for three years.
    • An investment tax credit of 5% for the purchase of manufacturing and processing equipment is being introduced. It will be accessible to all businesses in Québec.
       
  • Extract from  Canada Revenue Agency web site in connection with interest rates for the second calendar quarter of 2008:
    • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 4%.
     
  • Extracts from the document Budget in Brief published by Department of Finance Canada:
    • Helping Canadians save with a new Tax-Free Savings Account, a flexible savings vehicle that allows Canadians to contribute up to $5,000 a year to the account. Investment income, including capital gains, earned within the account will not be taxed and withdrawals will be tax-free.
    • Providing further assistance for Canada’s manufacturing and processing sector by extending accelerated capital cost allowance (CCA) treatment for investment in machinery and equipment for three years. Specifically, the 50-per-cent straight-line accelerated CCA treatment will apply for one additional year, and the accelerated treatment will then be provided on a declining basis over a two-year period.
       
  • Extracts of document General Information Concerning the QST and the GST/HST annotated to account for the new GST rate effective January 1, 2008:
    • ALLOWANCE: Employers may claim an ITC to recover the GST paid on expenses that would have been recoverable in the form of an ITC had the expenses been incurred directly by them. The ITC is equal to 7/107 1 of the allowance paid (…) Likewise, QST registrants may claim an ITR equal to 7.5/107.5 of the allowance paid (…)
    • REIMBURSEMENTS: They may choose either of the following methods to determine the ITC and ITR to which they are entitled with respect to a reimbursement of expenses incurred in Canada (or in Québec, for QST purposes):
      • First method. They may claim an ITC equal to 6/106 2 of the total amount reimbursed and an ITR equal to 7/107 of this amount, provided at least 90% of the expenses reimbursed are taxable (excluding zero-rated expenses) and the expenses were incurred in Canada (or in Québec, for QST purposes). It should be noted that, under the QST system, the rate applicable to large businesses is 4.1% of total expenses reimbursed by means of an expense account.
      • Second method. Alternatively, they may calculate the actual amount of GST and QST paid on expenses that they reimbursed
    • TAXABLE BENEFITS: The amounts of tax payable by the employer on a benefit unrelated to automobile operating costs are 6/106 3 (for GST) and 7.5/107.5 (for QST) of the total value of the benefit. Where the benefit is related to automobile operating costs, the amounts of tax payable by the employer are equal to the prescribed percentages of 5% 4 for GST and 5.7%  for QST.
     1 Changed to 6/106 from July 1st 2006 and to 5/105 from January 1st 2008.
    2 Changed to 5/105 from July 1st 2006 and to 4/104 from January 1st 2008.
    3 Changed to 5.5/105.5 from July 1st 2006, to 5/105 from January 1st 2007 and to 4/104 from January 1st 2008.
    4 Changed to 4,5% from July 1st 2006, to 4% from January 1st 2007 and to 3%  from January 1st 2008.
  • Extracts from the web site of Department of Finance of Canada in connection with 2008 Automobile Deduction Limits and Expense Benefit Rates for Business:
    • The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2007.
    • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes for 2008 will be increased by 2 cents to 52 cents per kilometre for the first 5,000 kilometres driven and 46 cents for each additional kilometre.