The Harper Government today highlighted the following important tax changes taking effect in 2012:
- The final stage of the tax reduction plan introduced by the Harper Government in 2007 comes into force on January 1, 2012, when the federal general corporate income tax rate is reduced to 15 per cent. This type of broad-based tax reduction plays a well-recognized role in improving productivity and economic growth rates, thereby creating more and better-paying jobs for Canadians and raising their standard of living. As other nations face the prospect of tax increases due to unsustainable budget deficits and spending commitments, Canadians are benefiting from permanent tax relief that is broad-based and structurally sound.
- Effective January 1, 2012, the Family Caregiver Tax Credit will provide new tax support for caregivers of infirm dependent family members. Announced in Budget 2011, this new 15-per-cent non-refundable tax credit on an amount of $2,000 will provide tax relief for caregivers of all types of infirm dependent relatives, including, for the first time, spouses, common-law partners and minor children.
- The temporary 50-per-cent straight-line accelerated capital cost allowance rate for investments in manufacturing or processing machinery and equipment was extended to include investments undertaken in 2012 and 2013. This extension was announced in Budget 2011 to help businesses in manufacturing and processing industries restructure and retool to position themselves for long-term success.