February 05, 2008

OTTAWA – Canadians as individuals and as business owners are beginning to feel the impact of new tax cuts introduced in the Government’s October Economic Statement. Minister of National Revenue Gordon O'Connor assured Canadians that the Canada Revenue Agency (CRA) is ready to support taxpayers to ensure that they understand the new tax measures passed by Parliament and are able to take full advantage of them.

“The CRA is taking action to ensure all businesses have the information they need to implement the rate reductions so that Canadians can start benefiting from the GST/HST tax cut...” said Minister O’Connor.

Local MP, Brian Jean, expressed his support for the tax relief.

“This is truly an historic legacy of tax relief that we can be proud of. It will leave more money in the pockets of Albertans and further help job creation and investment.”

Some of the federal tax changes include:

• Reducing the GST to 5%;
• Reducing the general corporate income tax rate to 19.5%;
• Reducing the small business income tax rate to 11%;
• Reducing the lowest personal income tax rate to 15%; and
• Increasing the basic personal amount to $9,600.
  

In addition, the CRA has set up a toll-free GST/HST rate reduction line for businesses and consumers at 1-866-959-7797 (1-866-959-7798 in French), which is available from 8:15 a.m. to 8:00 p.m. (local time), Monday to Friday, across Canada as well as on two Saturdays, February 16, and 23, 2008, from 10:00 a.m. to 4:00 p.m.

These tax measures have also been updated in tax packages and in tax filing software. Taxpayers can find more information about tax credits and services for individuals and businesses that will be posted regularly on the CRA Tax Tips Web page at www.cra-arc.gc.ca/taxtips. Other sources of information include the CRA Web site at www.cra-arc.gc.ca/economic and on the Government's GST/HST Web site at www.gst.gc.ca.