Tax Perspectives

Please note that these publications may not be up-to-date as taxation matters are subject to frequent changes.

PDF Format Issue Contents All Issues Supplement 2003 On February 18, 2003, the Minister of Finance released a number of proposed tax changes. We summarize the more significant ones in this commentary. Other Proposals Listed below are some other brief points of interest. RRSP limits will be increased in 2003 to $14,500 and will then increase by $1,000 per year until 2005, and increase $1,500 in 2006. There was some easing of the rules on the capital gains rollover for small business shares. These rules allow a gain on the sale of small business shares to be deferred if the proceeds are reinvested. The rules are very stringent and not applicable to most situations. For R&D investment tax credit purposes, the 35% tax credit rate is currently phased out where taxable income in the previous year exceeds $200,000. Now it will be phased out where taxable income in the previous year is between $300,000 and $500,000. This will apply to taxation years that end after 2002. This offers more flexibility to corporations and their shareholders in planning a corporation's income level, and is consequential on the increase in the small business deduction.