Ottawa, November 17, 2005
2005-081

Archived - Minister of Finance Tables Notice of Ways and Means Motion for Remaining Budget 2005 Income Tax Measures

Related documents:

• Backgrounder
• Notice of Ways and Means Motion to Implement Certain Provisions of the Budget Tabled in Parliament on February 23, 2005

Minister of Finance Ralph Goodale today tabled in the House of Commons a detailed Notice of Ways and Means Motion to amend the Income Tax Act to implement measures proposed in Budget 2005. These measures include:

• Introducing a new tax credit for adoption expenses such as adoption agency and legal fees.
• Improving the disability tax credit and making it more widely available.
• Further changes to improve the tax treatment of persons with disabilities and those who care for them, for example, by doubling the amount of disability-related and medical expenses that can be claimed by a caregiver, and expanding the list of expenses eligible for the medical expense tax credit and the disability supports deduction.
• Helping agricultural cooperative corporations through a new tax deferral in respect of certain patronage dividends.

The legislative proposals, together with detailed explanatory notes, were released in draft form on August 15, 2005. The Motion tabled today contains minor changes to those proposals. Reference may be made to the explanatory notes released in August, with the amendments highlighted in the attached backgrounder.

The Notice tabled today may be viewed free of charge on the Department of Finance website. Printed copies may be purchased for $10 from the Department of Finance Distribution Centre at (613) 995-2855. Budget 2005, which was tabled on February 23, 2005, is also available on the Department's website.

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Backgrounder 

Summary of Changes to Explanatory Notes Since August 15, 2005

Disability Supports Deduction

ITA 64

The reference to "Bliss symbol boards used by individuals who have a speech impairment to help them communicate by motioning at the symbols or by spelling out words" should be read as:

Bliss symbol boards, or similar devices, used by individuals who have a speech impairment to help them communicate by selecting symbols or by spelling out words.

Expenses for Food, Etc.

ITA 67.1(1)

Subsection 67.1(1) of the Act provides a general limitation on the amount that may be deducted in respect of the human consumption of food or beverages. This limitation does not apply to food and beverage expenses incurred as moving expenses, child care expenses or medical expenses.

This section is amended to add a reference to new section 118.01, the adoption expense tax credit.

This amendment is applicable to the 2005 and subsequent taxation years.

Medical Expenses

ITA 118.2(2)

The reference to "New paragraphs 118.2(2)(r) and (s) add to the list of eligible medical expenses amounts paid for drugs or devices purchased under Health Canada's Special Access Programme on behalf of the patient. This programme allows access to drugs or medical devices that have not yet been approved for sale in Canada. Special access can be requested in emergency cases or when conventional therapies have failed, are unsuitable or are unavailable." under this heading should be read as:

New paragraphs 118.2(2)(s) and (t) add to the list of eligible medical expenses amounts paid for drugs or devices purchased under Health Canada's Special Access Programme on behalf of the patient. This programme allows access to drugs or medical devices that have not yet been approved for sale in Canada. Special access can be requested in emergency cases or when conventional therapies have failed, are unsuitable or are unavailable

Part-Year Residents

ITA 118.91

Section 118.91 of the Act provides rules with respect to non-refundable tax credits allowed to individuals residing in Canada for only part of a taxation year.

This section is amended to add a reference to new section 118.01, the adoption expense tax credit.

This amendment is applicable to the 2005 and subsequent taxation years.