• 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, 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 […]

  • Canada Pension Plan Contributions for 2011

    The Canada Pension Plan contribution rate for 2011 is 4.95% of pensionable earnings for the year.   The maximum pensionable earnings for the year are $ 48,300, and the basic exemption is unchanged at $3,500.   The maximum employer and employee contribution for 2011 is therefore $2,217.60, and the maximum self-employed contribution is $4,435.20.

  • Employment Insurance Premiums for 2011

    The Employment Insurance premium rate for 2011 is 1.78%.   Yearly maximum insurable earnings are set at $44,200, making the maximum employee premium $786.76.   As in previous years, employer premiums are 1.4 times the employee contribution. The maximum employer premium for 2011 is therefore $1101.46.

  • January employment figures show jump in job creation

    The latest issue of Statistics Canada’s Labour Force Survey shows that 69,000 jobs were created during the month of January, with that job growth split evenly between part-time and full-time positions.   Notwithstanding the unexpectedly large number of new jobs, the overall unemployment rate rose by 0.2% on a year-over-year basis, to 7.8%.  StatsCan attributed […]

  • NETFILE and TELEFILE services for 2010 returns

    TELEFILE and NETFILE services for filing of individual tax returns for the 2010 taxation year will be available on Monday February 14, 2011. Taxpayers who are eligible to file by either method will have received an access code as part of their 2010 tax return package.   Taxpayers who believe that they are eligible to […]

  • Preparing and filing T4 slips using the CRA Web site

    By the end of February 2011, employers are required to issue T4s slips for their employees summarizing employment income earned and deductions taken from that income during the 2010 tax year. The Canada Revenue Agency (CRA) has issued a Tax tip for small business employers reminding them that, as of this year, it’s possible to […]