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  • CRA issues updated guide on students and income tax

    The Canada Revenue Agency (CRA) publishes a comprehensive guide for post-secondary students on their income tax obligations and benefits.  The guide, which outlines both tax measures specific to students and others of more general application, was recently updated by the CRA, and the updated version can be found on the CRA Web site at http://www.cra-arc.gc.ca/E/pub/tg/p105/p105-10e.pdf.

  • Prescribed interest rates for 2011

    The Canada Revenue Agency (CRA) has announced the interest rates that will apply to amounts owed to and by the federal government for the first quarter of 2011, as well as the rates that will apply for the purpose of calculating employee and shareholder taxable benefits. Debit rate            Credit Rate             Benefits January 1 – March 31, 2010                5%                      […]

  • 2011 automobile deduction limits

    The Department of Finance has released the automobile deduction limits and expense benefit rates which will apply for the 2011 taxation year. The rates, which are unchanged from 2010, are as follows:   the ceiling on the cost of passenger vehicles for capital cost allowance purposes remains at $30,000:   the maximum allowable interest deduction […]

  • Bank of Canada leaves interest rate unchanged

    In its regularly scheduled January 18th announcement, the Bank of Canada chose to leave the current bank rate of 1.25% unchanged. The Bank indicated in a press release, which is available on its Web site at http://www.bankofcanada.ca/en/fixed-dates/2011/rate_180111.html, that while the economic recovery in Canada is proceeding broadly as expected, the pace of both consumption growth […]

  • New mortgage rules announced by Finance Canada

    The federal Department of Finance has moved once again to tighten mortgage lending rules for Canada Mortgage and Housing Corporation-insured mortgages – generally those where the mortgage amount exceeds 80% of the cost of the home.   The new measures: Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured […]

  • Federal individual tax rates and brackets for 2011

    The indexing factor for federal tax credits and brackets for 2011 is 1.4%. Consequently, the following federal tax rates and brackets are in effect for individuals for the 2011 tax year: Income level Federal tax rate $10,527- $41,544 15.0% $41,545 – $83,088 22.0% $83,089 – $128,800 26.0% Above $128,800 29.0% There is no change in […]

  • Federal individual tax credits for 2011

    Dollar amounts on which individual non-refundable federal tax credits for 2011 are based, and the actual tax credit claimable, are as follows:   Credit amount                        Tax credit Basic personal amount                                          10,527                               1,579   Spouse or common-law partner amount                                                               10,527*                             1,579   Child amount                                                           2,131                                320   Eligible dependant amount                                    10,527*                               1,579   Age amount                                                           6,537                                   981 Net income threshold for erosion of […]

  • Federal corporate tax rates for 2011

    The general federal corporate tax rate and the rate applied to income from manufacturing and processing is reduced from 18.00% to 16.50%, effective January 1, 2011.   The small business tax rate remains at 11.0% and the federal small business limit is unchanged at $500,000.   The general corporate tax rate change will be pro-rated […]