Last updated: September 20 2016
Finance Canada proposed changes to the $2000 Pension Income Amount in the September 20 release of sixty-four changes to the Income Tax Act and Regulations.
The far-reaching document also describes new rules relating to life insurance policies and exempt policies and a retroactive provision relating to the deductibility of medical marihuana.
Specifically relating to the pension income credit, a Retirement Income Security Benefit (RISB), payable to Canadian forces members and veterans will qualify for the credit and for pension income splitting back to the 2015 and subsequent tax years.
For those claiming medical marihuana as an eligible medical expense the rules have been tightened retroactively to June 19, 2013. Taxpayers who made such a claim will want to ensure the product was purchased first of all for a patient authorized to possess it for medical purposes. Second, it must be proven that it was purchased from:
Amongst some of the other changes in these proposals are the following corporate and partnership tax changes:
For investment and retirement planning:
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For foreign transactions:
Many of these provisions will be covered in more depth in the Knowledge Bureau’s Year End Investment and Business Planning Workshop.