CD 2008-014: Information Notice to Employees

Tax Changes -- Effective July 1, 2008

The purpose of this Information Notice to Employees is to provide you with information relative to the tax legislation changes that are effective July 1, 2008.

The following provincial and territorial budgets contained changes to the respective tax legislation which will be effective July 1, 2008.

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.

All pay systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2008.

If you wish to change any of your personal tax credit amounts at source that are not automatically programmed as mentioned herein, you 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
Forms listed by form number

To change personal tax credit amounts at source for the province of Quebec, you 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

Any request for information regarding the foregoing should be addressed to your compensation advisor.