CD 2012-008
Subject: Tax Changes - Effective July 1, 2012
June 8, 2012
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, 2012.
1.2. A notice of information to employees concerning the above has been included with this compensation directive and will also be posted on the "Public Service Employee" page of the Compensation Sector Web site.
2. Background
2.1. The provincial budgets for Nova Scotia and Ontario contained changes to their respective tax legislation which will be effective July 1, 2012.
2.2. The explanations in this directive will assist compensation advisors in providing information to employees concerning the factors that may cause changes to their pay cheques.
3. Policy
3.1. Provincial Tax Credits, Tax Brackets and Rates Effective July 1, 2012.
3.1.1. Nova Scotia
The Nova Scotia budget introduced changes to three non-refundable tax credit amounts. The following table provides the changes to the Nova Scotia tax credit amounts, effective July 1, 2012.
Current Amount | Amount Effective July 1, 2012 | |
---|---|---|
Disability amount | maximum of $5,035 | maximum of $9,647 |
Spouse or common-law partner amount | maximum of $7,201 | maximum of $9,761 |
Amount for an eligible dependant | maximum of $7,201 | maximum of $9,761 |
The "2012 Nova Scotia Personal Tax Credits Return" (TD1NS) form has been revised to include these changes.
3.1.2. Ontario
The Government of Ontario has announced that the province will add a new tax bracket for personal taxable income in excess of $500,000. The following table provides the changes to the Ontario tax brackets, effective July 1, 2012.
Tax brackets | Tax rates |
---|---|
$0 to $39,020 | 5.05% |
$39,020 to $78,043 | 9.15% |
Over $78,043 | 11.16% |
Tax brackets | Tax rates |
---|---|
$0 to $39,020 | 5.05% |
$39,020 to $78,043 | 9.15% |
$78,043 to $500,000 | 11.16% |
Over $500,000 | 13.16% |
4. Procedures and Instructions
4.1. Compensation systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2012.
4.2. Effective July 1, 2012, employees who wish to obtain the additional tax credit for the Nova Scotia disability amount, the spouse or common-law partner amount or amount for an eligible dependant must file a revised TD1NS form. This form is available at District Taxation Offices (DTO) or from the Canada Revenue Agency (CRA) Web site: Forms listed by form number.
5. Inquiries
5.1. Any inquiries on the information contained in this directive should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Jeff Marcantonio
Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s):
Information Notice to Employees
The purpose of this notice is to provide you with information relative to the tax legislation changes that are effective July 1, 2012.
The provincial budgets for Nova Scotia and Ontario contained changes to their respective tax legislation which will be effective July 1, 2012.
Nova Scotia
The Nova Scotia budget introduced changes to three non-refundable tax credit amounts. The following table provides the changes to the Nova Scotia tax credit amounts effective July 1, 2012.
Current Amount | Amount Effective July 1, 2012 | |
---|---|---|
Disability amount | maximum of $5,035 | maximum of $9,647 |
Spouse or common-law partner amount | maximum of $7,201 | maximum of $9,761 |
Amount for an eligible dependant | maximum of $7,201 | maximum of $9,761 |
The "2012 Nova Scotia Personal Tax Credits Return" (TD1NS) form has been revised to include these changes.
If you wish to obtain the additional tax credit for the Nova Scotia disability amount, the spouse or common-law partner amount or amount for an eligible dependant, you must file a revised TD1NS form. This form is available at District Taxation Office (DTO) or from the Canada Revenue Agency (CRA) Web site: Forms listed by forms number.
Ontario
The Government of Ontario has announced that the province will add a new tax bracket for personal taxable income in excess of $500,000. The following table provides the changes to the Ontario tax brackets, effective July 1, 2012.
Tax brackets | Tax rates |
---|---|
$0 to $39,020 | 5.05% |
$39,020 to $78,043 | 9.15% |
Over $78,043 | 11.16% |
Tax brackets | Tax rates |
---|---|
$0 to $39,020 | 5.05% |
$39,020 to $78,043 | 9.15% |
$78,043 to $500,000 | 11.16% |
Over $500,000 | 13.16% |
Compensation systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2012.
Any request for information regarding the foregoing should be addressed to your compensation advisor.
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