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D

Debt Servicing and Reduction Account (Compte de service et de réduction de la dette).

The Account was terminated in 2003 following legislation which was introduced in Budget 2003. This Account enabled Canadians to make direct contributions to reduce the federal debt. Deposits to the Account were used to pay the interest and principal on the federal debt. In addition to contributions from individuals or businesses, the Account was credited with net revenues from the goods and services tax (GST) and net proceeds from the sale of Crown corporations. All donations were eligible for a charitable receipt at the same level as other registered charities.

debt-to-GDP ratio (rapport de la dette au PIB).

Measurement of the federal debt as a percentage of Canada's gross domestic product. It is a measure of the debt in relation to the economy and of our capacity to carry and repay debt.

deferred profit-sharing plan (DPSP) (régime de participation différée aux bénéfices (RPDB)).

Plan registered under the Income Tax Act into which an employer may make tax-deductible contributions, determined by reference to profits, on behalf of their employees. Payments from the plan received by employees are taxable.

deficit (déficit).

The amount by which government budgetary spending exceeds revenues in any given year.

defined benefit pension plan (régime à prestations déterminées).

Plan that provides a pension that is generally calculated on the basis of final average or best average earnings and years of service. The amount of defined benefit pension that can be provided under a plan registered under the Income Tax Act is limited, in general terms, to the lesser of 2 per cent of the employee's best average earnings and $1,722 per year of service. The $1,722 limit will be indexed to increases in the average wage starting in 2005.

deflation (déflation).

demutualization (démutualisation).

The process of converting from a mutual company to a stock company. A mutual company is owned by its voting policyholders while a stock company is owned by its shareholders. For more information, visit the Canada Revenue Agency Demutualization - Questions and Answers page.

Department of Finance (ministère des Finances).

The federal department primarily responsible for providing the government with analysis and advice on the broad economic and financial affairs of Canada. Its responsibilities include preparing the federal budget, preparing tax and tariff legislation, managing federal borrowing on financial markets and representing Canada within international financial institutions. To fulfill the department's role, Finance officials monitor and research the performance of the Canadian economy in all important aspects: output and growth, employment and income, price stability and monetary policy, and long-term structural change. The department is also vitally concerned with trade, monetary affairs and other aspects of the global economy that bear on Canada's domestic performance. 

deposit-taking institution (institution de dépôt).

disability tax credit (crédit d'impôt pour personnes handicapées).

A credit that reduces federal income tax by up to $960 for taxpayers with a severe and prolonged physical or mental disability. It is one of the key existing tax mechanisms for recognizing the costs of disability.

discount note (bon à prime).

Short-term debt security where the yield is provided through a discounted selling price relative to the face value of the note.

dissaving (désépargne).

The amount by which consumer spending exceeds disposable income over a given period. It means that an individual, or all individuals, are either using accumulated wealth to make purchases or are taking out loans.

drawback (remboursement).

Refund, in whole or in part, of import duties and/or taxes paid on imported goods that are subsequently exported in essentially the same condition or used in the manufacture of exported goods.

dumping (dumping).

Dumping occurs when foreign exporters sell their goods in international markets at prices lower than the price in their home market (referred to as "normal value"), or at prices below the cost of production. Countries are allowed to impose anti-dumping duties equivalent to the margin of dumping if it is determined, through a process of investigation, that the dumped imports are causing, or threatening to cause, material injury to domestic producers of the same product.

duty remission (remise de droits).

Conditional or unconditional waiver, in whole or in part, of import duties or taxes on imported goods. It is generally introduced only in exceptional circumstances where a genuine need for tariff relief has been clearly demonstrated. Duty remissions are sometimes used to rectify short-term anomalies or inequities in the tariff structure.