The Honourable Jim Flaherty, Minister of Finance, today released explanatory notes for the provisions included in the detailed Notice of Ways and Means Motion that was tabled on November 28, 2008.
The Motion includes a number of tax initiatives outstanding from the 2008 budget as well as other tax changes, most of which were released in July 2008 in draft form for consultation (see News Release 2008-054).
As proposed in the 2008 Economic and Fiscal Statement, the Motion also includes provisions to reduce by 25 per cent the minimum amount that an individual must withdraw from his or her Registered Retirement Income Fund in 2008. Under these provisions, if more than the new reduced minimum amount has already been withdrawn, the excess (up to the original minimum amount) can be re-contributed. Similar rules will apply to variable benefit money purchase Registered Pension Plans.
The explanatory notes also include details of relieving refinements to the Department of Finance's guidelines on the "normal growth" limits that apply to specified investment flow-through entities and partnerships. References in the explanatory notes to "Announcement Date" are to be read as a reference to today's date.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance