Ottawa, December 30, 2010
2010-135
The Government of Canada today highlighted the following important tax changes taking effect in 2011:
- A reduction from 18 per cent to 16.5 per cent of the federal general corporate income tax rate. This tax reduction will encourage new business investment, which is an important driver of Canadians’ prosperity. Investment raises productivity, resulting in higher wages, more jobs and improved living standards.
- An increase from 75 per cent to 80 per cent in the deductible portion of meal expenses for long-haul truck drivers for expenses incurred after 2010.
- An improvement in the allocation of child benefits between parents who live separately and who share custody of a child. Specifically, these parents will be able to separately receive their related Canada Child Tax Benefit, Universal Child Care Benefit, and child component of the Goods and Services Tax/Harmonized Sales Tax Credit amounts in a particular month or quarter. This measure will apply to benefits payable commencing July 2011.
- Implementation of the tax-free rollover of a deceased individual’s Registered Retirement Savings Plan or Registered Retirement Income Fund proceeds to the Registered Disability Savings Plan (RDSP) of a financially dependent infirm child or grandchild. This will give parents and grandparents more flexibility in providing for the long-term financial security of a child with a disability. RDSP contributions under this measure in respect of deaths after 2007 will be permitted after June 2011.
In addition to these changes, starting January 1, 2011, Canadians can contribute an additional $5,000 to their Tax-Free Savings Account.
Further information on the Government’s tax relief for Canadians is available on the website of Canada’s Economic Action Plan at www.actionplan.gc.ca/eng/feature.asp?featureId=4.
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For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
