What's new for 1997?

We list the major changes below. For more details on these and other changes, see the areas outlined in red in this guide.

Income tax and benefit return - We have redesigned the return to make it easier for you to complete. For more details, see page 7.

Schedules - We have added three new schedules:

• Complete Schedule 9, Donations and Gifts, to calculate and claim your credit for charitable donations and government gifts, as well as cultural and ecological gifts. See line 349 for more information.
• Complete Schedule 10, Refundable Medical Expense Supplement, to calculate and claim the new credit for working individuals with low incomes and high medical expenses. See new line 452 for more information.
• Complete Schedule 11, Tuition and Education Amounts, to calculate your credits for these amounts, and to claim them, or carry them forward to another year. See line 323 for more information.

National Register of Electors - You can check a box, on page 1 of your income tax return, to allow Revenue Canada to provide your name, address, and date of birth to Elections Canada to help keep up to date your information currently on the National Register of Electors. See page 4 of this guide for details.

Goods and services tax/harmonized sales tax (GST/HST) - In Newfoundland, Nova Scotia, and New Brunswick, provincial sales taxes have been harmonized with the GST, resulting in the HST. In this guide we refer to both taxes.

Emigrants - If property you owned had a total value of more than $25,000 when you emigrated, you may have to complete and file an additional form with your return. See page 6 for details.

Child support payments (lines 128 and 220) - New rules may apply to child support payable after April 30, 1997.

Farming and the Net Income Stabilization Account (NISA) - For reporting information, see lines 135 to 143.

RRSP deduction (line 208) - We have added an example that shows how to complete Schedule 7.

Repayment of EI benefits (line 235) - The chart you use to calculate how much you have to repay is now included with your T4E slip.

Supplementary Canada Pension Plan (CPP) contribution payable (line 309) - You may have to pay a supplementary amount due to a rate increase in 1997.

Returned cheques - Starting April 1, 1998, if you make a payment with a cheque that your financial institution does not honour, we may charge you a fee. See line 485 for details.

1997 Federal Budget

This guide and return package includes the following income tax changes that have been announced, but were not law at the time of printing. If they become law as proposed, they will be effective for 1997, or as of the dates indicated.

Canada or Quebec Pension Plan benefits (line 114) - Any lump-sum benefits you received for previous years may qualify for special tax treatment.

Taxable capital gains (line 127)- The amount you have to include in your income has been reduced for certain property donated after February 18, 1997, to most charities.

Attendant care expenses (line 215)- The annual limit of $5,000 has been eliminated.

Disability amount (line 316) - Starting February 19, 1997, an audiologist can certify that a person's hearing impairment meets the requirements for this claim.

Tuition and education amounts (line 323)- We have combined these two amounts on this line. Certain fees that you could not previously claim are now allowable. The monthly education amount has been increased to $150. In addition, you may be able to carry forward part or all of your credits and claim them in a future year.

Medical expenses (line 330) - There are additional expenses that you can claim.

Donations and gifts (line 349) - The maximum amount you can claim has changed for charitable donations and for gifts made (or agreed to in writing) after February 18, 1997, to Canada, a province, or a territory. In addition, you now claim these government gifts on line 340 of Schedule 9.

Refundable medical expense supplement (line 452) - There is a new, refundable credit you may be able to claim for medical expenses.

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National Register of Electors

Please indicate "Yes" on page 1 of your income tax return to authorize Revenue Canada to give your name, address, and date of birth to Elections Canada to help keep up to date your information currently on the National Register of Electors.

The Register is an automated data base maintained by Elections Canada, containing the name, address, and date of birth of persons eligible to vote in Canada. It will be used to produce voters lists without having to conduct door-to-door enumerations, saving approximately $30 million for each federal election or referendum.

Keeping the Register up to date

Each year, voter information (including name and address and new voters turning 18) changes for almost 4 million Canadians. If you indicate "Yes" each year, you will allow us to give your name, address, and date of birth to Elections Canada. If you indicate "No," we will not give Elections Canada any information.

Indicating "Yes" on page 1 of your income tax return will not add your name to the Register if it is not already there. Indicating "No" will not delete your name if it is already there, and you will not lose your right to vote. If you recently turned 18 and you indicate "Yes," Elections Canada will send you a letter for you to confirm your voter eligibility and asking if you will allow your name to be added to the Register.

Confidentiality

If you indicate "Yes" on page 1 of your return, we will give only your name, address, and date of birth to Elections Canada to help keep up to date your information currently on the National Register of Electors. Under the Canada Elections Act, information in the Register can be used only to create voters lists for federal, provincial, territorial, municipal, and schoolboard elections, and to provide the names and addresses of eligible electors to candidates, political parties, and Members of Parliament. You can write to Elections Canada to ask not to be included on these lists or the Register.

Contacting Elections Canada

You can contact Elections Canada directly at:

Telephone: 1-800-INFO-VOTE
(1-800-463-6868) toll free in Canada and the United States

Teletypewriter: 1-800-361-8935
(for individuals with a hearing impairment) toll free in Canada and the United States

Fax: (613) 954-8584

Internet: http://www.elections.ca

E-mail: eleccan@magi.com

Mail: 257 Slater Street
Ottawa ON K1A 0M6

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