ARCHIVED CD 2008-014
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June 4, 2008
SUBJECT: Tax Changes -- Effective July 1, 2008
1. Purpose
1.1 The purpose of this directive is to provide clients with information relative to the tax legislation changes that are effective July 1, 2008.
1.2 A notice of information to employees concerning the above subject has been included with this Compensation Directive.
2. BACKGROUND
2.1 The following provincial and territorial budgets contained changes to the respective tax legislation which will be effective July 1, 2008.
2.2 The explanations in this directive will help compensation advisors provide information to individuals concerning the factors that may cause changes to their pay cheques.
3. POLICY
3.1. Provincial and Territorial Tax Brackets, Rates and Tax Credits Effective July 1, 2008
British Columbia
The following table provides the changes to the British Columbia tax rates effective July 1, 2008.
British Columbia Tax Brackets and Rates | |||
---|---|---|---|
Tax brackets and rates effective January 1, 2008 | Tax brackets and rates effective July 1, 2008 |
||
Tax brackets | Tax rates | Tax brackets | Tax rates |
More than - Not more than | More than - Not more than | ||
$0 to $35,016 | 5.35% | $0 to $35,016 | 5.13% |
$35,016 to $70,033 | 8.15% | $35,016 to $70,033 | 7.81% |
$70,033 to $80,406 | 10.5% | $70,033 to $80,406 | 10.5% |
$80,406 to $97,636 | 12.29% | $80,406 to $97,636 | 12.29% |
Over $97,636 | 14.7% | Over $97,636 | 14.7% |
The current tax rate of 5.35% that is used to calculate the provincial non-refundable tax credits amounts will decrease to 5.13% effective July 1, 2008.
Newfoundland and Labrador
The following table provides the changes to the Newfoundland and Labrador tax rates effective July 1, 2008.
Newfoundland and Labrador Tax Brackets and Rates | |||
---|---|---|---|
Tax brackets and rates effective January 1, 2008 | Tax brackets and rates effective July 1, 2008 |
||
Tax Brackets | Tax rates | Tax Brackets | Tax rates |
More than - Not more than | More than - Not more than | ||
$0 to $30,215 | 8.7% | $ 0 to $30,215 | 7.7% |
$30,215 to $60,429 | 13.8% | $30,215 to $60,429 | 12.8% |
Over $60,429 | 16.5% | Over $60,429 | 15.5% |
The current tax rate of 8.7% that is used to calculate the provincial non-refundable tax credits amounts will decrease to 7.7% effective July 1, 2008.
Alberta
The following table provides the changes to the Alberta tax credit amounts effective July 1, 2008.
Alberta Personal Tax Credit amounts | ||
---|---|---|
Current amount | Amount effective July 1, 2008 |
|
Disability amount | Maximum of $7,466 | Maximum of $12,466 |
Caregiver amount | Maximum of $4,355 | Maximum of $9,355 |
Amount for infirm dependants age 18 or older | Maximum of $4,355 | Maximum of $9,355 |
The Alberta Personal Tax Credits Return (TD1AB) form will be revised to include these changes.
Saskatchewan
The following table provides the changes to the Saskatchewan tax credit amounts effective July 1, 2008.
Saskatchewan Personal Tax Credit amounts | ||
---|---|---|
Current amount | Amount effective July 1, 2008 |
|
Disability amount | Maximum of $7,021 | Maximum of $8,190 |
Caregiver amount | Maximum of $4,095 | Maximum of $8,190 |
Amount for infirm dependants age 18 or older | Maximum of $4,095 | Maximum of $8,190 |
The Saskatchewan Personal Tax Credits Return (TD1SK) form will be revised to include these changes.
Nunavut
The following table provides the changes to the Nunavut tax credit amounts effective July 1, 2008.
Nunavut Personal Tax Credit amounts | ||
---|---|---|
Current amount | Amount effective July 1, 2008 |
|
Pension income amount | $1,000 | $2,000 |
Tuition, education and textbook amounts (full-time) | $400 | $465 |
Tuition, education and textbook amounts (part-time) | $120 | $140 |
The Nunavut Personal Tax Credits Return (TD1NU) form will be revised to include these changes.
4. PROCEDURES/INSTRUCTIONS
4.1 All pay systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2008.
Employees who wish to change any of their personal tax credit amounts at source that are not automatically programmed as mentioned herein must complete a federal and/or provincial TD1 form. These forms are available at District Taxation Offices or on the Internet at the following address:
Federal and provincial (other than Quebec) TD1 forms
TD-e
To change personal tax credit amounts at source for the province of Quebec, employees are to complete a Source Deductions Return (TP1015.3-V) form. This form is available from the
ministère du Revenu du Québec
(MRQ) and on the Internet at the following address:
TP-1015.3-V
5. INQUIRIES
5.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
B. Fortin
Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA 9007-11-15 and 9007-11-1
- Date modified: