On Tuesday, 17 January 2017 07:37:21 UTC-5, Alan Baggett  wrote:   
   > Canadians face some tax changes in the new year after a busy 2016 :CRA SOTW   
   >     
   > Ross Marowits, The Canadian Press    
   >    
   > MONTREAL -- Canadians will ring in the new year with a number of tax changes   
   that will affect the bottom line of federal and provincial governments. Here's   
   a look at some of them:   
   >    
   > Nationally:   
   >    
   > The federal government is ending four child tax credits this year: arts,   
   fitness, education and textbooks in 2017. Parents of children under the age of   
   16 can pre-pay 2017 arts and fitness programs to claim them on 2016 tax   
   returns as long as total    
   spending for 2016 does not exceed $250 and $500 limits, respectively.   
   >    
   > It is also cancelling income splitting for families, a tax reduction measure   
   that allowed someone to transfer up to $50,000 of income to a spouse with   
   lower income if they had a child under 18 years of age. The tax credit for   
   income splitting was    
   capped at $2,000.   
   >    
   > Offsetting those changes are the Canada Child Benefit and changes to   
   Employment Insurance benefits introduced in 2016.   
   >    
   > "High income earners in most provinces will pay more but for the majority of   
   Canadians, these two changes will mean more money in their pockets," Canadian   
   Taxpayers Federation federal director Aaron Wudrick said Wednesday in a news   
   release.   
   >    
   > Several other changes at the federal level will affect life insurance,   
   business owners selling their companies and some mutual funds.   
   >    
   > Under changes enacted by the previous government, the tax treatment of   
   universal life insurance policies will be less favourable starting Jan. 1. New   
   policy holders will see a decrease in their ability to build up investment   
   gains above death benefit    
   premiums on a tax-free basis.   
   >    
   > The new formula for calculating insurance will make policies a little more   
   expensive or reduce death benefits, says Jason Safar, a PricewaterhouseCoopers   
   partner specializing in personal taxes.   
   >    
   > Business owners, large and small, will gain less from the sale of their   
   operations as assets such as goodwill and trademarks will become fully taxable   
   as investment income. Currently, half of the proceeds can be distributed   
   tax-free as a dividend.   
   >    
   > Investors will also no longer be able to rebalance their non-registered   
   mutual fund investments in corporations structured as "switch funds" on a   
   tax-deferred basis. As of the new year, capital gains from such moves will be   
   taxed in the same way as    
   equities.   
   >    
   > ------   
   > Provincially:   
   >    
   > Cash-strapped Newfoundland and Labrador is the only province hiking its   
   income tax rates next year, the second time it's doing so in six months. Rates   
   in all tax brackets will rise, with those earning between about $35,000 and   
   $70,300 paying 14.5 per    
   cent, up one percentage point from July and two points from 2015. The province   
   is also raising entry fees into provincial parks and campsites.   
   > Quebec is bidding adieu two years early to controversial health premiums   
   introduced in mid 2010.   
   >    
   > Ontarians will get an eight-per-cent rebate on rising hydro bills and see   
   the maximum total cost of borrowing for a payday loan lowered to $18 per $100   
   borrowed from $21 per $100.   
   >    
   > The province is also doubling the first-time homebuyers' maximum land   
   transfer tax refund to $4,000 and is introducing its carbon cap and trade   
   system.   
   > British Columbia is scrapping medical services plan premiums for children   
   and young adults attending school.   
   >    
   > Alberta is reducing its small business corporate income tax rate from three   
   per cent to two per cent. It is also introducing a carbon tax on the purchase   
   of fossil fuels, offset with a rebate for low- and middle-income earners.   
   > ------   
   >    
   > The federal government and provinces have already mostly implemented tax   
   changes announced in their 2016 budgets.   
   >    
   > "There are a few changes that are unique for 2017 but the average Canadian   
   is not going to see much difference between 2016 and 2017," said Jamie   
   Golombek, managing director of tax and estate planning for CIBC Wealth   
   Advisory Services.   
   >    
   > Jason Safar, of PricewaterhouseCoopers, said more changes are possible in   
   2017. He said the federal government could eliminate more tax credits and   
   could feel pressure from possible personal and corporate tax cuts in the   
   United States.   
   >    
   > "I do find it interesting to consider that given (Donald) Trump's election   
   in the U.S. and the promise of lower tax rates in the U.S., what is going to   
   happen with Canadian tax rates?" Safar said.   
   >    
   > Finally, various tax amounts -- including maximum RRSP contributions, tax   
   brackets and maximum amounts of various credits -- will increase in 2017 to   
   reflect inflation but the tax-free savings account limit remains at $5,500.   
   >    
   >    
   > ----------------------------------------------------------    
   > Miss a Tax Tale Miss a lot!    
   > Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com    
   > ------------------------------------------------------------    
   > Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)