First Bill to Implement Budget 2014 Becomes Law

Bill C31, an Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, received Royal Assent on June 19.

This bill brings into law the following personal tax changes announced in the budget:

• Elimination of the need to apply for the Goods and Services Tax Credit on the tax return.
• The Amount for Search and Rescue Volunteers, which will be found on a new line on the 2014 tax return.
• Carry forward of tax credit for ecological gifts in 2014 and subsequent years increased to ten years.
• The following changes to medical expense claims:
  • Guide Dogs. An extension of the medical claim for guide dogs after 2013 to those who suffer from severe diabetes.
  • Therapy Plans. Addition of the cost of designing an individual therapy plan for certain patients with a severe and prolonged impairment
• Extension of the flow-through of exploration and development expenses for agreements made before April 2015.
• Provisions for the revocation of registered charity status for charities (or amateur athletic associations) who accept donations from foreign states that support terrorism.
• The authority for CRA officials to provide information to law enforcement officers information that may relate to serious offences.

Other Financial News: Also passed in this bill, the following law:

• Reporting to CRA – Electronic funds transfers.  With certain exceptions, as of January 1, 2015, financial institutions must now report to the government all electronic funds transfers of $10,000 or more (including multiple transfers within 24 hours if they total $10,000 or more) if they are made to or from a foreign country.
• International Tax Exchanges. Updates were made to the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act.
• Veterans. Changes were made to payments to be made to veterans.
• EI Sick Benefits. Changes to the Canada Labour Code and Employment Insurance Act regarding access to sickness benefits, particularly for caregivers who become sick themselves.

Included in the Bill, But Not in Budget: In addition to these announced changes, the Bill includes the following changes not announced in the budget:

• Several consequential changes in regard to the new Tax Informant program, including a requirement that a non-resident must file a Canadian income tax return if they receive payment under the program.
• Changes to the Ensuring Safe Vehicles Imported From Mexico For Canadians Act.
• Changes to the Immigration and Refugee Protection Act.
• Changes to the Budget Implementation Act, 2009.
• Changes to the Protection of Residential Mortgage or Hypothecary Insurance Act.

To stay up to date on the details of legislation and how to apply these and future rules to your studies and your practice, please be sure to stay subscribed to this publication. Provide express consent to Knowledge Bureau Report now, to continue receiving updates to personal and corporate tax issues and what they mean to professional advisors and their clients.