March 10, 2010

Tax relief for Canadians affected by natural disasters

Canadians participating in relief efforts or affected by natural disasters such as the recent earthquakes in Haiti and Chile, and who are unable to meet their tax obligations, will be eligible for tax relief measures. Under these provisions, taxpayers can apply to the Canada Revenue Agency (CRA) to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster or other circumstances. Taxpayers should submit their requests in writing using form RC4288, Request for Taxpayer Relief. The CRA will consider these requests on a case-by-case basis. In addition, taxpayers who, as a result of a natural disaster, were unable to make their RRSP contributions before the yearly deadline, may request in writing that the CRA grant relief to allow contributions made during that specific year to be considered to have been made on time. For more information, read the CRA news release.

Treaty election with respect to Canadian departure tax

On March 8, 2010, the Internal Revenue Service (IRS) released guidance for individuals who emigrate from Canada and wish to make an election for U.S. federal income tax purposes under Article XIII(7) of the Canada-U.S. income tax treaty with respect to property that is subject to departure tax under Canada’s deemed disposition rules. For more information, read Revenue Procedure 2010-19.

Speech from the throne launches Open Ontario Plan

On March 8, 2010, the government's five-year Open Ontario Plan was unveiled in a Speech from the Throne delivered by Mr. David C. Onley, Ontario's Lieutenant Governor. In his speech, Mr. Onley stated that “[t]he Open Ontario Plan begins with creating a climate where business can thrive, create jobs and build innovative new products to sell to the world”. Mr. Onley also noted that this has begun through a package of tax reforms that was launched as part of the 2009 Ontario budget that included the harmonized sales tax (HST) and a number of personal and business income tax cuts, credits and benefits. Deloitte’s tax specialists will carefully review and prepare a summary of the tax measures in the upcoming 2010 Ontario budget, the date of which has not yet been announced.

Nunavut 2010 budget

Nunavut’s Finance Minister, Mr. Keith Peterson, tabled the budget in the Legislative Assembly on March 8, 2010. The budget included no new tax measures. For more information, please refer to the Department of Finance’s website.

Tax rate tables

Deloitte has compiled and updated to January 31, 2010 a series of tax rate tables for individuals and corporations, taking into account current federal, provincial and territorial tax legislation. To access these tables or to download a PDF file, please link to our Canadian tax rates page.

Budget dates

The federal government and the following provinces/territories have announced their 2010–2011 budget dates:

Upcoming:

Manitoba                            March 23, 2010

Saskatchewan                     March 24, 2010

Tabled:

Federal                              March 4, 2010

New Brunswick                   December 1, 2009

Northwest Territories           January 28, 2010

Alberta                              February 9, 2010

British Columbia                  March 2, 2010

Nunavut                             March 8, 2010

 

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This publication is produced by Deloitte & Touche LLP as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Your use of this document is at your own risk.