On March 29, 2012, the federal government tabled its 2012 Budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity. As widely anticipated, the Budget alters the retirement landscape for many Canadians and announces cost-cutting measures and reform of the federal public service. It also proposes certain tax reform measures, and…
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Federal Government Tables Budget 2012
On March 29, 2012, the federal government tabled its 2012 Budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity. Among other things, the Budget includes the following proposals: a requirement that federally regulated private sector employers insure the long-term disability plans they offer to employees; tax changes in respect of…
Federal Pooled Registered Pension Plan (“PRPP”) Legislation Referred to Committee
On February 1, 2012, Bill C-25, An Act relating to pooled registered pension plans and making related amendments to other Acts passed at Second Reading in the House of Commons, and was referred to the Standing Committee on Finance. As previously reported, Bill C-25 is new legislation implementing the framework for federally regulated PRPPs, and…
Federal Court of Appeal Interprets Term “Fixed or Ascertainable” for CPP Purposes
On November 16, 2011, the Federal Court of Appeal (“FCA”) released its decision in Minister of National Revenue v. Her Majesty the Queen in Right of Ontario (“HMQ”). The FCAs decision overturns the January 17, 2011 decision of the Tax Court of Canada (“Tax Court”) in which it had held that per diem amounts paid…
2012 Car Expense Benefit Rates, Deduction Limits Set
On December 29, 2011, the federal government announced automobile expense deduction limits and the prescribed rates for the automobile operating expense benefits that will apply in 2012. A number of deduction limits will remain the same, including: the existing, $30,000 capital cost allowance (“CCA”) ceiling with respect to passenger vehicles used for business purposes; the…
Mandatory Reporting of Internet Child Pornography Bill, Regulations Come Into Force (C-22)
On December 8, 2011, Bill C-22, an Act respecting the mandatory reporting of Internet child pornography by persons who provide an Internet service, came into force, along with supporting regulations. The Internet Child Pornography Reporting Regulations provide the enabling framework for the legislation. It names the designated organization (Canadian Centre for Child Protection) for the…
CPP Post-Retirement Benefit Elections Established
The federal government filed a regulatory amendment to the Canada Pension Plan Regulations which prescribes the manner of employee elections (or revocations) regarding the new Post-Retirement Benefit (“PRB”), which will be available under the Canada Pension Plan (“CPP”), effective January 1, 2012. The amendment was first proposed in October of 2011, as previously reported.
Changes to the Canada Pension Plan (CPP): Important Information For Employers
Changes to required employer deductions for CPP contributions are coming into effect on January 1, 2012. This FTR Now reviews these changes to the CPP. NO WORK INTERRUPTION As of January 1, 2012, employees will no longer be required to either stop working or reduce their earnings in order to receive their CPP pension. As…
Federal Budget Implementation Bill Receives Royal Assent (C-13)
On December 15, 2011, Bill C-13, Keeping Canada’s Economy and Jobs Growing Act received Royal Assent. Bill C-13 is omnibus legislation designed to implement a number of measures proposed in its 2011 Budget, as outlined in our FTR Now of March 24, 2011, “Federal Budget 2011.”
Federal Pooled Registered Pension Plan (“PRPP”) Income Tax Amendments Proposed
On December 14, 2011, the federal government released draft legislative proposals outlining proposed amendments to the Income Tax Act (“ITA”) and the Income Tax Regulations to facilitate the implementation of Pooled Registered Pension Plans (“PRPPs”) for public commentary. The proposed amendments would incorporate PRPPs into the existing ITA regime for registered retirement savings vehicles and…