Tax legislation enacted

Legislation introduced in May's Taxation (Annual Rates, GST and Miscellaneous Provisions) Bill has been enacted. Signed by the Governor General yesterday, the three resulting Acts effect a variety of changes, including:

• Wide-ranging changes to GST arising from the Government review
• An income attribution rule to counter avoidance of the top personal tax rate
• Anti-avoidance measures relating to foreign tax credits
• Further tax simplification for salary and wage earners
• Extension of the deadline for claiming tax rebates
• Reduction of incremental late payment penalty and extension of relief provisions to all taxes
• Clarification of law as it pertains to tax deductions for Dairy Board rebates
• Remedial amendments improving existing legislation
• Confirmation of income tax rates for 2000-2001 year.