Please note that these publications may not be up-to-date as taxation matters are subject to frequent changes.
On February 18, 2003, the Minister of Finance released a number of proposed tax changes. We summarize the more significant ones in this commentary.
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.