Notice of Ways and Means Tabled For Budget 2010 Tax Measures

The Honourable Jim Flaherty, Minister of Finance, tabled a Notice of Ways and Means Motion to implement Budget 2010 tax measures, and provisions referenced in the Budget, on March 22. The Notice also includes provisions referenced in Budget 2010 to implement tax measures that were previously announced, including changes to:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com🏢office" />

• The claiming of Universal Child Care Benefit amounts by single parents;
• The elimination of tax reporting for many investments under the definition of taxable Canadian property;
• The removal of expenses incurred for purely cosmetic procedures from the Medical Expense Tax Credit;
• A reduction in the rate of interest payable to corporations by CRA on tax overpayments

The Notice also contains measures relating to federally regulated private pension plans.  These include:

• Increased protection for plan members as solvency deficits are dealt with and upon plan terminations companies will be required to fully fund the pension benefits. Disclosure requirements within plans will be enhanced and annual member statements will include expanded information, which will provide important details for plan members.

• Minimum funding requirements using average solvency ratios to determine the market value of the plans. Pension surplus thresholds will be increased to 25 percent under the Income Tax Act, an increase from the current 10%.

• Funding arrangements will be made for pension plans that are in distress and the plan sponsor would be provided with a period of time where payments are not required. Changes would be negotiated to the pension arrangements and representation would be provided all plan members.

• A framework for defined contribution plans that would implement measures to provide explicit information on responsibilities and accountabilities to employers, members and administrators.