Canadian Payroll Reporter

News Published 12 times a year by Thomson Reuters Canada Ltd. Subscription rate: $179 per year Customer Service Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5106 E-mail: carswell.customerrelations @thomsonreuters.com Website: www.carswell.com One Corporate Plaz 2075 Kennedy Road Toronto, Ontario, Canada M1T 3V4 Director, Carswell Media Karen Lorimer Publisher John Hobel Associate Publisher/Managing Editor Todd Humber Editor Sheila Brawn sbrawn@rogers.com Lead Editor Sarah Dobson Assistant Editor Mallory Hendry (on leave) Assistant Editor Anastasiya Jogal Marketing Manager Mohammad Ali mm.ali@thomsonreuters.com (416) 609-5866 Circulation Co-ordinator Keith Fulford keith.fulford@thomsonreuters.com (416) 649-9585 Payroll Reporter Can R Can R adian adian a www.payroll-reporter.com ©2015 Thomson Reuters Canada Ltd ISBN/ISSN: 978-0-7798-2810-4 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, photocopying, recording or otherwise without the written permission of the publisher (Carswell, a Thomson Reuters business). Return Mail Registration # 1522825 | Return Postage Guaranteed Paid News Revenue Toronto Canadian Payroll Reporter is part of the Canadian HR Reporter group of publications: • Canadian HR Reporter — www.hrreporter.com • Canadian Occupational Safety magazine — www.cos-mag.com • Canadian Payroll Reporter — www.payroll-reporter.com • Canadian Employment Law Today — www.employmentlawtoday.com • Canadian Labour Reporter — www.labour-reporter.com See carswell.com for information May 2015 | CPR Yukon looks to income alter tax structure projects of $75 million or more in certain designated regions. Leitão says the budget proposal builds on an enhancement to the tax holiday that he announced earlier this year. In February, Leitão said the government would lower the minimum capi- tal investment threshold for eli- gibility for the tax holiday from $200 million to $100 million and extend the holiday from 10 years to 15 years. • Eligibility threshold for age tax credit to rise: The budget proposes to gradually increase the age at which individuals can claim an age amount tax credit from 65 years to 70 years, begin- ning next year. Individuals claim the non-refundable tax credit on a Source Deductions Return. The budget proposes that the age of eligibility would go up by one year every year from 2016 to 2020. • Changes to tax credit for old- er workers proposed: The bud- get proposes to gradually reduce the eligibility age for a tax credit for older workers that eliminates income tax payable on the first $4,000 of employment income over $5,000. Employees 65 and older can claim the tax credit on a Source Deductions Return. The government is proposing to low- er the age to 63 over the next two years. It also plans to gradually increase the maximum amount of eligible work income on which the tax credit is calculated from $4,000 to $6,000 for workers who are 63 years old, $8,000 for those who are 64 and $10,000 for those 65 and older. • QST ITR restrictions for large businesses to be phased out: The budget proposes to phase out restrictions under the Quebec Sales Tax (QST) system for large businesses claiming in- put tax refunds (ITRs) on certain property or services, beginning in 2018. The phase-out would take place over three years. Currently, large businesses cannot claim an ITR when they acquire certain property or ser- vices, including road vehicles under 3,000 kilograms, gas for these vehicles, telephone and telecommunications services (excluding Internet-access ser- vices and 1-800-type services) and food, beverages and enter- tainment that are only 50 per cent deductible under the Que- bec Taxation Act. The budget proposes to allow large businesses to claim an ITR for these items and services at a rate of 25 per cent in 2018, 50 per cent in 2019, 75 per cent in 2020 and 100 per cent in 2021. • Fondaction rate to change: The budget proposes to tempo- rarily set the rate of the tax credit for buying Fondaction shares at 20 per cent for shares acquired after May 31, 2015 and before June 1, 2016. The tax credit rate has been 25 per cent since 2009 when the government tempo- rarily increased it from 15 per cent. Until this year's budget announcement, the rate was ex- pected to return to 15 per cent after May 31, 2015. • Government bodies to be consolidated: The budget pro- poses to consolidate the Com- mission de la santé et de la sé- curité du travail (CSST), the Commission des normes du tra- vail (CNT) and the Commission de l'équité salariale. It also pro- poses to consolidate the Com- mission des relations du travail and the Commission des lésions professionnelles. Leitão says the government will announce other consolidations soon. Yukon: The Yukon government is pro- posing changes to the territory's income tax structure that will af- fect payroll deductions this year. The government included the proposals in its Apr. 2 budget, al- though Premier Darrell Pasloski announced the changes just be- fore releasing the budget. The changes include elimi- nating a five per cent surtax that applies to territorial tax payable over $6,000, revising all personal income tax rates and increas- ing the number of tax brackets from four to five to add a new tax rate of 15 per cent for indi- viduals with taxable income over $500,000. Although Pasloski announced the changes in Apr., they are ret- roactive to Jan. 1. It is expected that the CRA will implement them on Jul. 1 for source deduc- tion purposes. Note: We will provide federal budget coverage in an upcoming issue. from QUEBEC on page 2 Taxable Income Current 2015 Taxable Income Proposed 2015 Tax Rate Tax Rate (per cent) (per cent) $0.01 – 7.04 $0.01 – 6.4 $44,701.00 $44,701.00 $44,701.01 – 9.68 $44,701.01 – 9.0 $89,401.00 $89,401.00 $89,401.01 – 11.44 $89,401.01 – 10.9 $138,586.00 $138,586.00 $138,586.01 12.76 $138,586.01 0 12.8 and over – $500,000.0 15.0 $500,000.01 and over

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