2015 Gen Canadian Known Tax Rates / Credits / Limits Update. Functional Change Specification. Present ed by Advicent Solut ions

Transcription

1 2015 Gen Canadian Known s / Credits / Limits Update Present ed by Advicent Solut ions Revision 1.4 Created: January 30, 2015

2 Revision Hist ory Date Revision Author(s) Description January 30, Advicent: CJS Creation of initial document budget update June 10, Advicent: CJS Amendments to Average/ s for Alberta, Manitoba, Newfoundland, Northwest Territories, Ontario, and the Yukon. July 15, Advicent: CJS Correction to Canadian Fixed Income [ Canadian Bonds (Mid-Term)] 2014 historical rate. July 21, Advicent: CJS Added- Alberta Health Care Levy, Federal Family Income Splitting Credit and Alberta Charitable Tax Credit. Modified- Provincial s: Alberta, New Brunswick. Dividend Tax Credit Rates: Newfoundland, Nova Scotia, and Labrador. TFSA Contribution Limits, Dividend Gross up Rates, RRIF Minimums, Child Care Expense Credits December 4, Advicent: KL Updating this document to match current provincial tax rates

3 TABLE OF CONTENTS 2015 Gen Canadian Known s / Credits / Limits Update 1 1 Presented by 1 Advicent Solutions 1 Revision History 2 Table of Contents 3 Part A Glossary 7 1. Glossary of Terms 7 Part B Executive Summary 8 2. Introduction 8 3. Out of scope 8 4. Related Documents N/A 8 5. Application Version Number Pinning Application types: 9 Part C Functional Design Functionality Federal Personal Income s/s Provincial Personal Income s/s Federal Non-Refundable Credits Provincial Non-Refundable Credits Average / s Detailed Tax Method Provincial Average / s Average / s Non Resident General Factor Indexing Factor 30

4 6.9. Federal Benefit Premiums Federal Benefit Program Payment Rates OAS Benefit Payment Rates RRSP Contribution Limit Defined Benefit/RPP Maximum Pension Benefit Limit Defined Contribution/Money Purchase Plan Contribution Limit TFSA Contribution Limit Home Buyers Plan (HBP) Limits RRIF Minimum Canada Education Savings Grant (CESG) Qualifying Net Family Income Threshold Amounts Dividend Tax Credit Federal & Provincial NPE & NPS NPE Dividend Tax Credit Rates & NPSE v11.8, v12.2 Detailed Tax Method NPE Existing Federal Dividend Tax Credit Calculation Revised NPS Dividend Tax Credit Rates NPS Existing Federal Dividend Tax Credit Calculation Revised Ontario Charitable Donation Tax Credit Alberta Charitable Donation Tax Credit LIF Payouts Maximum CANSIM Rate/Reference Rate Life Expectancy Asset Class Average Return Rates / Historical Returns Concept/Calculator Year GIC CDN Interest Rates (Guaranteed Investment Certificates): Canadian Fixed Income [Canadian Bonds (Mid-Term)] Canadian Long Bonds Canadian Equity US Equity International Equity CDN Real Estate International Bonds 42

5 6.15. Average Inflation / Consumer Price Index (CPI) Concepts Inflation Historical Returns Volatility Holding Companies Corporate Taxation Federal Holding Companies Corporate Taxation Provincial AB BC MB NB NL NT NS NU ON PE QC SK YT Migration 43 Part D Tax Calculations 44 Part E Federal / Provincial Taxation Tax Credits Supported in NaviPlan (excluding Québec) Non-refundable Tax Credits Refundable Tax Credits Indexing Factor Federal Family Income Splitting Credit Child Care Expense Credit Québec Taxation Québec Health Services Fund Contribution (tax, from line 446) 48

6 Québec Health Contribution (tax, from line 448) Québec Deductions used to transform Federal income into Québec Taxable Income Quebec Pension Income Split Québec Tax Credits Supported in NaviPlan Québec Tax Credits Not Supported in NaviPlan 49 Part f Tax Terminology 50 Average s 50 s 50 Effective and Estimated 51 Tax Deduction 51 Tax Credit 51 Taxable Benefits 52

7 PART A GLOSSARY 1. Glossary of Terms The following is an explanation of the terms used in this document. Term / Acronym NPS NPE NPSE Description NaviPlan Standard NaviPlan Extended NaviPlan Select NS1 NaviPlan Standard Level 1 NS2 NaviPlan Standard Level 2 NS3 NaviPlan Standard Level 3 NE1 NaviPlan Extended Level 1 NE2 NaviPlan Extended Level 2 FAS FAE NPC Online/Offline Financial Assessment - NPS Financial Assessment NPE NaviPlan Central Browser-based application

8 PART B EXECUTIVE SUMMARY 2. Introduction The purpose of this document is to identify the annual rates or known rates for 2015 concerning: A. Federal and provincial personal income tax rates and income brackets B. Federal and provincial average and marginal tax rates C. Federal and provincial non-refundable tax credits, as well as D. Federal premiums paid by employed individuals E. Federal benefit programs paid out to retired individuals F. The annual Consumers Price Index/Inflation rate, as well as G. The annual contribution limits for registered Retirement Savings Plans: These rates are hard-coded values that the application requires for calculations. H. The annual contribution limit for TFSAs Other rates included in this document are: A. CANSIM Rate / Reference Rate (LIF Maximum Payout calculations) B. Average Return Rates (Historical Returns Calculator/Concept) C. General Factor percentages used to calculate credits D. Canada Education Savings Grant (CESG) net family income thresholds (Education Goal, Education Calculator/Concept) 3. Out of scope Any federal or provincial legislation changes passed into law in the 1Q/2Q of 2014, as well as any measures announced in any federal or provincial budget during 1Q/2Q of 2014 are not included in this phase of the tax release. 4. Related Documents N/A 5. Application 5.1. Version Number V14.0 (and v14.0 Proj) V12.2 (and v12.2 Proj.) V11.8 (and v11.8 LTD) NPE and NPS V8.3M (desktop) 5.2. Pinning GEN CDN NaviPlan Select GEN CDN NaviPlan Extended GEN CDN NaviPlan Standard Calculators/Concepts

9 5.3. Application types: Check all that apply Calculators FA - NPS FA - NPE AA - NPS NPS NPS-Level 1 NPS-Level 2 NPS-Level 3 NPE NPE-Level 1 NPE-Level 2 NPSE NPSE-Level 1 NPSE-Level 2 Online Offline USA CDN R R R R R R R R R R R R R

10 PART C FUNCTIONAL DESIGN 6. Functionality 6.1. Federal Personal Income Tax Rat es/ s Rate 2013 Amount 15% On the First $43, % More than $43, but nor exceeding $87, % More than $87, but not exceeding $135, % More than $135, Rate 2014 Amount 15% On the First $43, % More than $43, but not exceeding $87, % More than $87, but not exceeding $136, % More than $136, Rate 2015 Amount 15% On the First $44, % More than $44, but not exceeding $89, % More than $89, but not exceeding $138, % More than $138, Provincial Personal Income Tax Rat es/ s These rates can be verified by taking the previous year s rates multiplied by the Indexing Factor where applicable. NOTE: Some areas round up while others do not. Also note that MB, NS, and PE do not index their tax rates, brackets, or credit amounts. Change the following income tax bracket percentages and/or income thresholds as outlined in the following sections Alberta Alberta currently applies a flat provincial tax rate of 10% across all taxable incomes The budget introduces two new tax brackets starting October 1, 2015.

11 Rate 2015 Amount 10.00% On the First $125, % More than $125, but not exceeding $150, % More than $150, but not exceeding $200, % More than $200, but not exceeding $300, % More than $300, Rate 2016 Amount 10.00% On the First $125, % More than $125, but not exceeding $150, % More than $150, but not exceeding $200, % More than $200, but not exceeding $300, % More than $300,000.00

12 British Columbia Rate 2014 Amount 5.06% On the First $37, % More than $37, but not exceeding $75, % More than $75, but not exceeding $86, % More than $86, but not exceeding $104, % More than $104, Rate 2015 Amount 5.06% On the First $37, % More than $37, but not exceeding $75, % More than $75, but not exceeding $86, % More than $86, but not exceeding $105, % More than $105, but not exceeding $151, % More than $151, British Columbia added an additional bracket for only 2014 and 2015, increasing the rate from 14.70% to 16.80% and then reverting back to 2013 rates for Dollar ranges are still tied to inflation and were updated for The tax rates for British Columbia remain the same, but the bracket amounts have been updated Manitoba Rate 2014 Amount 10.80% On the First $31, % More than $31, but not exceeding $67, % More than $67, Rate 2015 Amount 10.80% On the First $31, % More than $31, but not exceeding $67, % More than $67, Maintain all existing tax bracket percentages and income thresholds as noted above. i. Manitoba does not index its income thresholds or credit amounts.

13 New Brunswick Rate 2014 Amount 9.68% On the First $39, % More than $39, but not exceeding $78, % More than $78, but not exceeding $127, % More than $127, Rate 2015 Amount 9.68% On the First $39, % More than $39, but not exceeding $79, % More than $79, but not exceeding $129, % More than $129, but not exceeding $150, % More than $150, but not exceeding $250, % More than $250, The new 2015 tax rates have been implemented and bracket amounts should be updated for inflation Newfoundland & Labrador Rate 2014 Amount 7.70% On the First $34, % More than $34, but not exceeding $68, % More than $68, Rate 2015 Amount 7.70% On the First $35, % More than $35, but not exceeding $70, % More than $70, but not exceeding $125, % More than $125, but not exceeding $175, % More than $175,000.00

14 Northwest Territories Rate 2014 Amount 5.90% On the First $39, % More than $39, but not exceeding $79, % More than $79, but not exceeding $129, % More than $129, Rate 2015 Amount 5.90% On the First $40, % More than $40, but not exceeding $80, % More than $80, but not exceeding $131, % More than $131, The tax rates for the Northwest Territories remain the same, but the bracket dollar amounts have been updated Nova Scotia Rate 2014 Amount 8.79% On the First $29, % More than $29, but not exceeding $59, % More than $59, but not exceeding $93, % More than $93, but not exceeding $150, % More than $150, Rate 2015 Amount 8.79% On the First $29, % More than $29, but not exceeding $59, % More than $59, but not exceeding $93, % More than $93, but not exceeding $150, % More than $150, Maintain all existing bracket percentages and income thresholds. A. Nova Scotia does not index its income thresholds or credit amounts.

15 Nunavut Rate 2014 Amount 4.0% On the First $41, % More than $41, but not exceeding $83, % More than $83, but not exceeding $136, % More than $136, Rate 2015 Amount 4.0% On the First $42, % More than $42, but not exceeding $85, % More than $85, but not exceeding $138, % More than $138, Nunavut taxation was implemented in NaviPlan in 2012 and is indexed for inflation. Tax rates remain the same, but bracket amounts amounts have been updated Ontario Rate 2014 Amount Surtax 5.05% On the First $40, % on tax exceeding $4, % More than $40, with only basic personal amount $70, but not exceeding $80, % on tax exceeding $5, % More than $80, with only basic personal amount $83, but not exceeding $150, % More than $150, but not exceeding $220, % More than $220, Rate 2015 Amount Surtax 5.05% On the First $40, % on tax exceeding $4, % More than $40, with only basic personal amount $72, but not exceeding $81, % on tax exceeding $5, % More than $81, with only basic personal amount $84, but not exceeding $150, % More than $150, but not exceeding $220, % More than $220, *The 36.00% surtax is in addition to the 20% surtax, for a total tax of 56% Ontario has new bracket and surtax amounts.

16 Prince Edward Island Rate 2013 Amount Surtax 9.80% On the First $31, % on tax exceeding $ % More than $31, with only basic personal amount $98, but not exceeding $63, % More than $63, Rate 2014 & 2015 (No Changes) Amount Surtax 9.80% On the First $31, % on tax exceeding $ % More than $31, with only basic personal amount $98, but not exceeding $63, % More than $63, PEI does not index its income thresholds or credit amounts Québec Rate 2014 Amount 16.00% On the First $41, % More than $41, but not exceeding $82, % More than $82, but not exceeding $100, % More than $100, Rate 2015 Amount 16.00% On the First $41, % More than $41, but not exceeding $83, % More than $83, but not exceeding $102, % More than $102, Québec tax rates remain the same, but the bracket amounts are updated. Québec added one tax bracket for Saskatchewan Rate 2014 Amount 11.00% On the First $43, % More than $43, but not exceeding $123, % More than $123, Rate 2015 Amount 11.00% On the First $44, % More than $44, but not exceeding $125, % More than $125, Saskatchewan tax rates for remain the same, but the bracket amounts are updated.

17 Yukon Territory Rate 2014 Amount Surtax 7.04% On the First $43, %surtax rate 9.68% More than $43, surtax is on YT tax greater $6, but not exceeding $87, With only basic personal amount $82, % More than $87, but not exceeding $136, % More than $136,270,00 Rate 2015 Amount Surtax 6.40% On the First $44, Pour 2015, les taux d'imposition du Yukon ont changé. 9.00% More than $44, La surtaxe de 5% est éliminé et le Yukon a maintenant une tranche but not exceeding $89, d'imposition 5ème % More than $89, but not exceeding $138, % More than $138, but not exceeding $500, % More than $500, Federal Non-Refundable Credit s Basic Personal Amount NOTE: A change to the Basic Personal Amount, federal or provincial, will impact the Average / Tax Rates. Basic Personal Credit & Basic Married Credit value: these values are the same, but have slightly different uses (see 2014 Personal Tax Credits return line 1 for basic amount, line 7 for spouse of common-law partner amount). 2014: $11, $11, Child Tax Credit Amount Child Tax Credit Amount maximum value 2013: $2, : $2, : $0 - This number has been removed The calculation for this credit is as follows: A. $2,255 X 15% = $ rounded is $338 per child under the age of 18 years Age Amount/Credit Age Credit value 2013: $6, : $6, : $7,033

18 Pension Income Amount The allowable Pension Credit is the lesser of $2,000 or annual pension income Disability Credit Amount Disability Credit value 2013: $7, : $7, : $7, Amount for Infirm Dependents age 18 or older Amounts for dependent children 2013: $6, : $6, : $6,700 The amounts above include the federal Family Caregiver Amount tax credit of $2,000, effective as of Jan 1, This credit is eliminated when the dependent income exceeds $13,196 which also includes the new federal Family Caregiver Amount tax credit of $2,000; otherwise the amount would be $11, Canada Employment Credit Canada Employment Credit value 2013: $1, : $1, : $1,146 This credit is applied at the federal level. This is not applicable at the provincial level EXCEPT for the Yukon Territory, which applies this credit at the provincial level Medical Expenses & Allowable Amount for other Dependents Medical Expense Credit value 2013: $2, : $2, : $2,208

19 6.4. Provincial Non-Refundable Credit s Credit rates are per individual Provincial CRA TD Personal Tax Credits Return forms A. Note that only the provincial Basic Personal Amount Credit rate has been noted in this specification for each province. Other provincial credits may also have been updated Basic Personal Credit Amount for Each Province Basic Personal Amount Credit Federal $11,038 $11,138 $11,327 AB $17,593 $17,787 $18,214 BC $10,276 $9,869 $9,938 MB $8,884 $9,134 $9,134 NB $9,388 $9,472 $9,633 NL $8,451 $8,578 $8,767 NS $8,481 $8,481 $8,481 NT $13,546 $13,668 $13,900 NU $12,455 $12,567 $12,781 ON $9,574 $9,670 $9,863 PE $7,708 $7,708 $7,708 QC $11,195 $11,305 $11,425 SK $15,241 $15,378 $15,639 YT $11,038 $11,138 $11,327 *The Yukon Territory values should match the Federal rates, starting in NOTE: See Statutory Rate update spreadsheet for full list of provincial non-refundable credits.

20 6.5. Average / s Detailed Tax Method Blended Rate of Tax There are no blended rates of tax in place for any province at this time. A. A blended rate of tax is used whenever a province changes tax bracket percentages mid-year, i.e. effective July 1st. As a result of this mid-year change, the previous tax rate percentages were added to the new tax rate percentages, and divided in half to produce a blended rate of tax for the entire taxation year. The following year, the new percentages become effective Jan 1 st. B. This blended rate is applied to the tax bracket percentage rates, not the income bracket thresholds. C. New rates may be announced/indicated for some or all tax brackets. D. Example: E. Basic Personal Amount credits may also make use of blended rate if the province starts the year with a Basic Personal Amount, then releases a provincial budget stating that a new Basic Personal Amount is effective per a particular date Surtax Rates Surtax rates apply to the provincial tax rates where surtax is assessed: Ontario (20% and 36%), Prince Edward Island (10%), and the Yukon (5%).

21 Ontario Health Premium Beginning with version 11.8 of NaviPlan, the user can select to use Average Tax or Detailed Tax calculations: A. If the Average Tax method is selected: i. This method applies user selected tax rates to income. a. ATR = Total Income Tax/Total Income ii. Within the tax rate schedule for Ontario (Plan Management - Assumptions General s), the factors in the Ontario Health Premium (OHP) which contributes an additional 0.76% to the marginal tax rates including the highest tax rate, i.e % % = 50.29%. An additional 0.76% is added in average tax for all brackets to account for the Ontario Health Premium. This is an assumption based on the average OHP incurred across all brackets. a. For income $200,600 and over, the maximum OHP is $900.00/yr. B. If the Detailed Tax method is selected: i) This method utilizes the calculation prescribed by Ontario legislation: Taxable Income Less Multiplied By Plus this amount, yields OHP Tax Not more than $20,000 n/a n/a $0 $20,000 - $25,000 $20,000 6% $0 $25,000 - $36,000 n/a n/a Tax is $300 $36,000 - $38,500 $36,000 6% $300 $38,500 - $48,000 n/a n/a Tax is $450 $48,000 - $48,600 $48,000 25% $450 $48,600 - $72,000 n/a n/a Tax is $600 $72,000 - $72,600 $72,000 25% $600 $72,600 - $200,000 n/a n/a Tax is $750 $200,000 - $206,000 $200,000 25% $750 More than $206,000 n/a n/a Tax is $ Refundable Quebec Abatement Credit A. The Quebec Abatement credit is supported at the federal level, and reduces the amount of tax payable. i. The Quebec Abatement is considered when calculating tax rates. ii. The Quebec Abatement is 16.5%, as indicated on Line 440 of the CRA T1 General Tax Return which is retrieved from Line 48 of Schedule Alberta Health Care Levy Effective January 1, 2016, the Charitable Donations Tax Credit rate on total donations over $200 will be reduced from 21% to 12.75% (its 2006 level).

22 Provincial Average / Tax Rat es The Average Rate as indicated in the fifth column, and the Rate as indicated in the eighth column in each of the tables below were added for each province for A. Negative rates will be identified as 0.00% Average / s Alberta (AB) Taxable Income Range Federal AB Fed AB Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 0.89% 7.39% 15.00% 10.00% 25.00% $20,000 $30, % 3.93% 13.27% 15.00% 10.00% 25.00% $30,000 $40, % 5.45% 15.38% 15.00% 10.00% 25.00% $40,000 $50, % 6.36% 18.70% 22.00% 10.00% 32.00% $50,000 $60, % 6.96% 20.92% 22.00% 10.00% 32.00% $60,000 $70, % 7.40% 21.39% 22.00% 10.00% 32.00% $70,000 $80, % 7.72% 23.22% 22.00% 10.00% 32.00% $80,000 $90, % 7.98% 24.64% 26.00% 10.00% 36.00% $90,000 $100, % 8.18% 25.77% 26.00% 10.00% 36.00% $100,000 $110, % 8.34% 25.92% 26.00% 10.00% 36.00% $110,000 $120, % 8.48% 27.01% 26.00% 10.00% 36.00% $120,000 $130, % 8.60% 27.94% 26.00% 10.00% 36.00% $130,000 $140, % 8.70% 29.32% 29.00% 10.00% 39.00% $140,000 $150, % 8.79% 31.51% 29.00% 10.50% 39.50% $150,000 $200, % 9.09% 31.81% 29.00% 10.75% 39.75% $200,000 $300, % 9.39% 34.20% 29.00% 11.00% 40.00% $300,000 $400, % 9.54% 35.40% 29.00% 11.25% 40.25% $400,000 $500, % 9.64% 36.13% 29.00% 11.25% 40.25% $500,000 $1,000, % 9.82% 37.56% 29.00% 11.25% 40.25%

23 Average / s British Columbia (BC) Taxable Income Range Federal BC Fed BC Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.03% 0.03% 15.00% 5.06% 20.06% $10,000 $20, % 2.55% 9.05% 15.00% 5.06% 20.06% $20,000 $30, % 3.38% 12.72% 15.00% 5.06% 20.06% $30,000 $40, % 3.94% 13.87% 15.00% 7.70% 22.70% $40,000 $50, % 4.69% 17.04% 22.00% 7.70% 29.70% $50,000 $60, % 5.20% 19.15% 22.00% 7.70% 29.70% $60,000 $70, % 5.55% 19.55% 22.00% 7.70% 29.70% $70,000 $80, % 5.97% 21.46% 22.00% 10.50% 32.50% $80,000 $90, % 6.53% 23.20% 26.00% 12.29% 38.29% $90,000 $100, % 7.11% 24.71% 26.00% 12.29% 38.29% $100,000 $110, % 7.68% 25.26% 26.00% 14.70% 40.70% $110,000 $120, % 8.26% 26.79% 26.00% 14.70% 40.70% $120,000 $130, % 8.76% % 26.00% 14.70% 40.70% $130,000 and over 20.03% 12.61% 32.64% 29.00% 16.80% 45.80% Average / s Manitoba (MB) Taxable Income Range Federal MB Fed MB Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.94% 0.94% 15.00% 10.80% 25.80% $10,000 $20, % 5.87% 12.37% 15.00% 10.80% 25.80% $20,000 $30, % 7.51% 16.85% 15.00% 10.80% 25.80% $30,000 $40, % 8.77% 18.70% 15.00% 12.75% 27.75% $40,000 $50, % 9.57% 21.91% 22.00% 12.75% 34.75% $50,000 $60, % 10.10% 24.05% 22.00% 12.75% 34.75% $60,000 $70, % 10.68% 24.67% 22.00% 17.40% 39.40% $70,000 $80, % 11.52% 27.01% 22.00% 17.40% 39.40% $80,000 $90, % 12.17% 28.83% 26.00% 17.40% 43.40% $90,000 $100, % 12.69% 30.29% 26.00% 17.40% 43.40% $100,000 $110, % 13.12% 30.70% 26.00% 17.40% 43.40% $110,000 $120, % 13.48% 32.02% 26.00% 17.40% 43.40% $120,000 $130, % 13.78% 33.12% 26.00% 17.40% 43.40% $130,000 and over 20.18% 15.59% 35.62% 29.00% 17.40% 46.40%

24 Average / s New Brunswick (NB) Taxable Income Range Federal NB Fed NB Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.36% 0.36% 15.00% 9.68% 24.68% $10,000 $20, % 5.02% 11.52% 15.00% 9.68% 24.68% $20,000 $30, % 6.57% 15.91% 15.00% 9.68% 24.68% $30,000 $40, % 7.35% 17.28% 15.00% 14.82% 29.82% $40,000 $50, % 8.85% 21.19% 22.00% 14.82% 36.82% $50,000 $60, % 9.84% 23.79% 22.00% 14.82% 36.82% $60,000 $70, % 10.55% 24.55% 22.00% 14.82% 36.82% $70,000 $80, % 11.09% 26.58% 22.00% 16.52% 38.52% $80,000 $90, % 11.69% 28.35% 26.00% 16.52% 42.52% $90,000 $100, % 12.17% 29.77% 26.00% 16.52% 42.52% $100,000 $110, % 12.57% 30.15% 26.00% 16.52% 42.52% $110,000 $120, % 12.90% 31.43% 26.00% 16.52% 42.52% $120,000 $130, % 13.18% 32.51% 26.00% 17.84% 43.84% $130,000 and over 20.03% 15.51% 35.54% 29.00% 17.84% 46.84% Average / s Newfoundland and Labrador (NFLD) Taxable Income Range Federal NFLD Fed NFLD Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.95% 0.95% 15.00% 7.70% 22.70% $10,000 $20, % 4.32% 10.83% 15.00% 7.70% 22.70% $20,000 $30, % 5.45% 14.79% 15.00% 7.70% 22.70% $30,000 $40, % 6.61% 16.54% 15.00% 12.50% 27.50% $40,000 $50, % 7.79% 20.13% 22.00% 12.50% 34.50% $50,000 $60, % 8.57% 22.53% 22.00% 12.50% 34.50% $60,000 $70, % 9.14% 23.13% 22.00% 12.50% 34.50% $70,000 $80, % 9.66% 25.15% 22.00% 13.30% 35.30% $80,000 $90, % 10.06% 26.72% 26.00% 13.30% 39.30% $90,000 $100, % 10.38% 27.98% 26.00% 13.30% 39.30% $100,000 $110, % 10.65% 28.23% 26.00% 13.30% 39.30% $110,000 $120, % 10.87% 29.40% 26.00% 13.30% 39.30% $120,000 $130, % 11.06% 30.39% 26.00% 13.80% 39.80% $130,000 $260, % 11.22% 31.24% 29.00% 13.80% 42.80%

25 Average / s Northwest Territories (NWT) Taxable Income Range Federal NWT Fed NWT Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 1.80% 8.30% 15.00% 5.90% 20.90% $20,000 $30, % 3.17% 12.50% 15.00% 5.90% 20.90% $30,000 $40, % 3.85% 13.78% 15.00% 8.60% 20.90% $40,000 $50, % 4.77% 17.12% 22.00% 8.60% 30.60% $50,000 $60, % 5.41% 19.36% 22.00% 8.60% 30.60% $60,000 $70, % 5.87% 19.86% 22.00% 8.60% 30.60% $70,000 $80, % 6.21% 21.70% 22.00% 12.20% 30.60% $80,000 $90, % 6.84% 23.50% 26.00% 12.20% 38.20% $90,000 $100, % 7.37% 24.97% 26.00% 12.20% 38.20% $100,000 $110, % 7.81% 25.39% 26.00% 12.20% 38.20% $110,000 $120, % 8.18% 26.71% 26.00% 12.20% 38.20% $120,000 $130, % 8.49% 27.82% 26.00% 14.05% 40.05% $130,000 and over 20.03% 11.26% 31.28% 29.00% 14.05% 43.05% Average / s Nova Scotia (NS) Taxable Income Range Federal NS Fed NS Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 1.34% 1.34% 15.00% 8.79% 23.79% $10,000 $20, % 5.06% 11.57% 15.00% 8.79% 23.79% $20,000 $30, % 6.39% 15.73% 15.00% 14.95% 29.95% $30,000 $40, % 8.53% 18.46% 15.00% 14.95% 29.95% $40,000 $50, % 9.81% 22.16% 22.00% 14.95% 36.95% $50,000 $60, % 10.69% 24.65% 22.00% 16.67% 38.67% $60,000 $70, % 11.55% 25.54% 22.00% 16.67% 38.67% $70,000 $80, % 12.19% 27.68% 22.00% 16.67% 38.67% $80,000 $90, % 12.69% 29.35% 26.00% 16.67% 42.67% $90,000 $100, % 13.14% 30.74% 26.00% 17.50% 43.50% $100,000 $110, % 13.54% 31.12% 26.00% 17.50% 43.50% $110,000 $120, % 13.87% 32.40% 26.00% 17.50% 43.50% $120,000 $130, % 14.15% 33.48% 26.00% 17.50% 43.50% $130,000 and over 20.03% 17.30% 37.33% 29.00% 21.00% 50.00%

26 Average / s Nunavut (NU) Tax support for Nunavut began in Proper testing was not completed for 2012, so full testing will need to be complete on both 2012 and 2013 information. Taxable Income Range Federal NU Fed NU Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 1.44% 7.95% 15.00% 4.00% 19.00% $20,000 $30, % 2.30% 11.63% 15.00% 4.00% 19.00% $30,000 $40, % 2.72% 12.65% 15.00% 4.00% 19.00% $40,000 $50, % 3.42% 15.76% 22.00% 7.00% 29.00% $50,000 $60, % 4.02% 17.97% 22.00% 7.00% 29.00% $60,000 $70, % 4.44% 18.44% 22.00% 7.00% 29.00% $70,000 $80, % 4.76% 20.26% 22.00% 7.00% 29.00% $80,000 $90, % 5.12% 21.78% 26.00% 9.00% 35.00% $90,000 $100, % 5.51% 23.10% 26.00% 9.00% 35.00% $100,000 $110, % 5.82% 23.40% 26.00% 9.00% 35.00% $110,000 $120, % 6.09% 24.62% 26.00% 9.00% 35.00% $120,000 $130, % 6.31% 25.65% 26.00% 9.00% 35.00% $130,000 and over 20.03% 8.82% 28.85% 29.00% 11.50% 40.50%

27 Average / s Ontario (ON) Taxable Income Range Federal ON Fed ON Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.07% 0.07% 15.00% 5.05% 20.05% $10,000 $20, % 2.56% 9.06% 15.00% 5.05% 20.05% $20,000 $30, % 4.39% 13.73% 15.00% 5.81% 20.81% $30,000 $40, % 4.93% 14.86% 15.00% 5.81% 20.81% $40,000 $50, % 6.00% 18.34% 22.00% 9.91% 31.91% $50,000 $60, % 6.52% 20.48% 22.00% 9.91% 31.91% $60,000 $70, % 6.90% 20.89% 22.00% 9.91% 31.91% $70,000 $80, % 7.55% 23.04% 22.00% 11.74% 33.74% $80,000 $90, % 8.38% 25.04% 26.00% 18.17% 44.17% $90,000 $100, % 9.28% 26.88% 26.00% 18.17% 44.17% $100,000 $110, % 10.02% 27.60% 26.00% 18.17% 44.17% $110,000 $120, % 10.63% 29.17% 26.00% 18.17% 44.17% $120,000 $130, % 11.16% 30.49% 26.00% 18.17% 44.17% $130,000 $150, % 11.99% 32.61% 29.00% 18.17% 48.73% $150,000 $200, % 13.73% 36.45% 29.00% 18.17% 48.73% $200,000 $300, % 15.90% 40.71% 29.00% 18.17% 50.29% $300,000 $400, % 17.09% 42.95% 29.00% 18.17% 50.29% $400,000 $500, % 17.78% 44.27% 29.00% 18.17% 50.29% $500,000 and over 27.74% 19.15% 46.90% 29.00% 21.29% 50.29% Refer to Section Ontario Health Premium for additional details. The OHP is considered a third surtax as incomes $21,000 and over must pay this premium.

28 Average / s Prince Edward Island (PEI) Taxable Income Range Federal PEI Fed PEI Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 2.25% 2.25% 15.00% 9.80% 24.80% $10,000 $20, % 6.02% 12.53% 15.00% 9.80% 24.80% $20,000 $30, % 7.28% 16.62% 15.00% 9.80% 24.80% $30,000 $40, % 8.71% 18.64% 15.00% 13.80% 28.80% $40,000 $50, % 9.73% 22.07% 22.00% 13.80% 35.80% $50,000 $60, % 10.41% 24.36% 22.00% 13.80% 35.80% $60,000 $70, % 11.14% 25.14% 22.00% 16.70% 38.70% $70,000 $80, % 11.84% 27.33% 22.00% 16.70% 38.70% $80,000 $90, % 12.38% 29.04% 26.00% 16.70% 42.70% $90,000 $100, % 12.84% 30.44% 26.00% 18.37% 44.37% $100,000 $110, % 13.34% 30.92% 26.00% 18.37% 44.37% $110,000 $120, % 13.76% 32.29% 26.00% 18.37% 44.37% $120,000 $130, % 14.12% 33.45% 26.00% 18.37% 44.37% $130,000 and over 20.03% 16.24% 36.27% 29.00% 18.37% 47.37% Average / s Québec (QC) Taxable Income Range Federal QC Fed QC Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 12.53% 16.00% 28.53% $10,000 $20, % 4.58% 10.01% 12.53% 16.00% 28.53% $20,000 $30, % 8.38% 16.18% 12.53% 16.00% 28.53% $30,000 $40, % 10.29% 18.58% 12.53% 16.00% 28.53% $40,000 $50, % 11.43% 21.74% 18.37% 20.00% 38.37% $50,000 $60, % 12.19% 23.84% 18.37% 20.00% 38.37% $60,000 $70, % 12.74% 24.42% 18.37% 20.00% 38.37% $70,000 $80, % 13.14% 26.08% 18.37% 20.00% 38.37% $80,000 $90, % 13.46% 27.37% 21.71% 24.00% 45.71% $90,000 $100, % 13.72% 28.41% 21.71% 24.00% 45.71% $100,000 $110, % 13.92% 28.60% 21.71% 25.75% 47.46% $110,000 $120, % 14.10% 29.57% 21.71% 25.75% 47.46% $120,000 $130, % 14.24% 30.39% 21.71% 25.75% 47.46% $130,000 and over 18.45% 15.12% 33.57% 24.22% 25.75% 49.97%

29 Average / s Saskatchewan (SK) Taxable Income Range Federal SK Fed SK Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 2.40% 8.90% 15.00% 11.00% 26.00% $20,000 $30, % 5.27% 14.60% 15.00% 11.00% 26.00% $30,000 $40, % 6.70% 16.63% 15.00% 11.00% 26.00% $40,000 $50, % 7.80% 20.14% 22.00% 13.00% 35.00% $50,000 $60, % 8.67% 22.62% 22.00% 13.00% 35.00% $60,000 $70, % 9.28% 23.28% 22.00% 13.00% 35.00% $70,000 $80, % 9.75% 25.24% 22.00% 13.00% 35.00% $80,000 $90, % 10.11% 26.77% 26.00% 13.00% 39.00% $90,000 $100, % 10.40% 27.99% 26.00% 13.00% 39.00% $100,000 $110, % 10.64% 28.22% 26.00% 13.00% 39.00% $110,000 $120, % 10.83% 29.36% 26.00% 13.00% 39.00% $120,000 $130, % 11.06% 30.40% 26.00% 15.00% 41.00% $130,000 and over 20.03% 13.03% 33.06% 29.00% 15.00% 44.00% Average / s Yukon Territory (YT) Taxable Income Range Federal YK Fed YK Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 2.78% 9.28% 15.00% 6.40% 21.40% $20,000 $30, % 3.98% 13.32% 15.00% 6.40% 21.40% $30,000 $40, % 4.59% 14.52% 15.00% 6.40% 21.40% $40,000 $50, % 5.23% 17.57% 22.00% 9.00% 31.00% $50,000 $60, % 5.86% 19.81% 22.00% 9.00% 31.00% $60,000 $70, % 6.31% 20.30% 22.00% 9.00% 31.00% $70,000 $80, % 6.65% 22.14% 22.00% 9.00% 31.00% $80,000 $90, % 6.92% 23.58% 26.00% 10.90% 36.90% $90,000 $100, % 7.31% 24.91% 26.00% 10.90% 36.90% $100,000 $110, % 7.64% 25.22% 26.00% 10.90% 36.90% $110,000 $120, % 7.91% 26.44% 26.00% 10.90% 36.90% $120,000 $130, % 8.14% 27.48% 26.00% 10.90% 36.90% $130,000 $260, % 11.55% 31.58% 29.00% 12.80% 41.80% In Nov 2006, Yukon updated their tax brackets to match the federal brackets. While the dollar amounts are the same, the tax rate percentages are not. A. A change to the credit amount also changes the Average / Rates.

30 6.6. Average / s Non Resident Taxable Income Range Federal NonRes Fed NonRes Start of Tax End of Tax Avg (using Avg (using Average Rate Rate $0 $10, % 0.00% 0.00% 15.00% 0.00% 15.00% $10,000 $20, % 3.12% 9.63% 15.00% 7.20% 22.20% $20,000 $30, % 4.48% 13.82% 15.00% 7.20% 22.20% $30,000 $40, % 5.16% 15.09% 15.00% 7.20% 22.20% $40,000 $50, % 5.93% 18.27% 22.00% 10.56% 32.56% $50,000 $60, % 6.70% 20.65% 22.00% 10.56% 32.56% $60,000 $70, % 7.25% 21.24% 22.00% 10.56% 32.56% $70,000 $80, % 7.66% 23.16% 22.00% 10.56% 32.56% $80,000 $90, % 8.00% 24.66% 26.00% 12.48% 38.48% $90,000 $100, % 8.45% 26.04% 26.00% 12.48% 38.48% $100,000 $110, % 8.81% 26.39% 26.00% 12.48% 38.48% $110,000 $120, % 9.12% 27.65% 26.00% 12.48% 38.48% $120,000 $130, % 9.38% 28.71% 26.00% 12.48% 38.48% $130,000 $260, % 11.60% 31.63% 29.00% 13.92% 42.92% 6.7. General Fact or Maintain the General Factor percentages for federal and all other provinces. A. Quebec uses the second tax bracket percentage as its General Factor percentage Indexing Fact or The federal/provincial Indexing Factor is currently not used in the NaviPlan. The Federal Indexing Factor was 1,020 for 2013, 1,009 (0.90%) for 2014, and 1,017 for This number can be used to check the validity of the Federal credits Federal Benefit Premiums CPP / QPP Contribution CPP Yearly Maximum Pensionable Earnings (YMPE) amount 2013: $51, : $52, : $53,600 The YMPE is also used for the Defined Benefit Pension formula calculation. CPP Employee/Employer maximum annual contribution amount 2013: $2, : $2, : $2,479.95

31 Self-employed maximum annual contribution amount 2013: $4, : $4, : $4, Yearly Basic Exemption (YBE): $3,500 CPP Employee percentage of premium rate: 4.95% A. Employers are responsible for deducting the CPP premium if the employee is 18 to 69 years of age, unless the employee is collecting/receiving a CPP retirement pension or disability benefits. CPP Self-Employed percentage of premium rate: 9.90% Employment Insurance Premium Annual Federal EI Maximum Insurable Earnings (MIE) 2013: $47, : $48, : $49,500 Annual Federal EI Employee Maximum Premium 2014: $ : $ Federal EI Employee Premium Rate 2013: 1.88% 2014: 1.88% 2015: 1.88% The Canada Employment Insurance Financing Board (CEIFB) is required to set the rate by Nov 14 of each year. However, the Government of Canada has the authority to substitute a different rate no later than Nov 30 th. Each year the Report of the Chief Actuary to the Employment Insurance Commission indicates the employment insurance premium rate and maximum insurable earnings for the upcoming year, as well as the break-even premium rate for the upcoming year based on the principle that the rate should generate enough revenue to cover expected payments. Quebec Parental Insurance Plan (QPIP) The QPIP is not currently supported in NaviPlan. The QPIP premium results in a lower Employee Premium Rate of 1.54% (from 1.58% in 2014) with an Employee annual maximum premium of $ (from $768 in 2014). Self-employed individuals may elect to opt-in by registering for the EI program and paying EI premiums (effective Jan 1, 2010). A. Premiums are paid on the self-employment income for the entire year regardless of the date of registration. EI Claw Back The EI Claw Back is not currently supported in NaviPlan.

32 Employers are responsible for deducting the EI premium from all employees regardless of age, i.e. from the time the individual becomes employed, as well as individuals 65 years of age or older who are still employed in some capacity must pay the EI premium. A. Employee and employer EI contributions are based on all eligible earnings beginning with the first pay each January. Contributions cease during the calendar year once the annual maximum contribution is reached Federal Benefit Program Payment Rat es CPP / QPP Pension Benefit Payment Rates *These values have not been updated for 2015* TYPE OF BENEFIT Max monthly benefit 2014 Max monthly benefit 2013 AVERAGE monthly benefit 2013 Disability benefit $1, $1, $ Retirement benefit (at age 65) $1, $1, $ Survivors benefit (under age 65) $ $ $ Survivors benefit (age 65 and over) $ $ $ Children of disabled contributors benefit $ $ $ Children of deceased contributors benefit $ $ $ survivors & retirement benefit (pension at age 65) $1, $1, $ survivors & disability benefit $1, $1, $ Death Benefit (Maximum lump sum) NOT INDEXED $2, $2, $2, FLAT RATE Earnings Related Portion CPP Disability benefit $ $ $ CPP Survivor benefit - younger than 65 $ $ $ Change the rates for all Retirement, Disability, and Survivor Benefits as indicated above. A. The average monthly CPP Retirement benefit for 2013 was $594.19/month (or annual benefit of $7,130.28), while the maximum monthly CPP Retirement benefit for 2013 was $1,012.50/month (or annual benefit of $12,150.00). B. NaviPlan uses the max monthly benefits, $1,012.50/month or annual benefit of $12, CPP Disability Benefit flat rate 2013: $ : $ CPP Survivor Benefit younger than 65 flat rate 2013: $ : $178.54

33 OAS Benefit Payment Rat es OAS BENEFIT Quarter 2014 Max Monthly Benefit 2013 Max Monthly Benefit 2012 Max Monthly Benefit All recipients Jan-Mar $ $ $ All recipients Apr-Jun $ $ $ All recipients Jul-Sep $ $ $ All recipients Oct-Dec $ $ $ Clawback Threshold $71,593 $70,954 $69,562 Clawback Rate 15% 15% 15% Eliminated when net income is equal to or greater than Update the existing OAS (quarterly) Monthly Benefit rate 2013: $ : $ : $ $116,103 $114,640 $112, HRDC review the Old Age Security benefit rates in Jan, Apr, Jul, and Oct and adjust rates accordingly to reflect increases in the cost of living as measured by the Consumer Price Index. A. The CDN NaviPlan applications use the quarterly rate noted above and multiplies this value by 12 months to determine the OAS annual maximum pension amount. As a result of this calculation the OAS annual maximum pension amount may be understated Change the OAS Clawback Income Threshold amount 2013: $70, : $71, : $72, The OAS Clawback Threshold is indexed to inflation Change the OAS Benefit Elimination net income amount 2013: $114,640 or greater 2014: $115,716 or greater 2015: $116,163 or greater OAS benefits are eliminated when an individual s net income is $116,103 or greater. A. Note that the HRSDC may adjust the OAS Benefit Elimination value with each quarter.

34 Individuals with net income over $72,809 must repay part or the entire maximum OAS pension amount. The OAS clawback applies to net income. Net income in excess of the clawback threshold is clawed back at 15%. A. For example using the 2013 threshold of $70,954 and a net income of $75,000 the clawback will be $ The formula is as follows: i. Individual s net income minus the OAS Threshold amount for the year equals the Difference between the individual s income amount and the OAS threshold amount ii. Difference multiplied by 15% = the amount of OAS Repayment iii. OAS Repayment amounts are deducted on a monthly basis from the following year OAS payments $75,000 - $70,954 = $4,046 * 15% = $ TOTAL OAS Repayment for the year RRSP Cont ribut ion Limit Update the RRSP Contribution Limit, the maximum amount: 2013: $23, : $24, : $24, : $25, The Income Required amount in order to make this maximum contribution is indexed to increases in the Average Industrial Wage beginning in 2010 and following years Defined Benefit/ RPP Maximum Pension Benefit Limit Change the Defined Benefit Maximum Pension Benefit limit amount 2013: $2, : $2, : $2, Note that the Defined Benefit RPP maximum pension benefit limit is 1/9 th of the Money Purchase RPP / RRSP annual contribution limit. A. Source for both RRSP Contribution limit and Defined Benefit limits: Defined Cont ribut ion/ Money Purchase Plan Cont ribut ion Limit Change the Defined Contribution Pension Plan contribution limit amount 2013: $24, : $24, : $25, The contribution limit for these plans is similar to the RRSP contribution limit, i.e. 18% of earned income TFSA Cont ribut ion Limit From , the TFSA Contribution Limit amount was kept at $5,000. In 2013, this amount started being indexed for inflation (2013 index amount is 2.0%, 0.9% for 2014). A. Starting in 2015, the annual TFSA contribution limit will increase from $5,500 to $10,000 and will remain at this level for subsequent years. The limit will no longer be indexed to inflation. B. Source: Home Buyers Plan (HBP) Limit s For 2014, maintain the existing Home Buyers Plan withdrawal limit of $25,000 and 15 years for the number of years

35 for repayment RRIF Minimum As of 2015, Canadians who are 71 will now only have to withdraw 5.28% from their RRIF, down from the current 7.38% Canada Educat ion Savings Grant (CESG) Qualifying Net Family Income Threshold Amount s Child's family has qualifying net income Child's family has qualifying net income More Than 1 2 Year for the year of less than (bracket 1) for the year of less than (bracket 2) (bracket 3) $44, $89, $89, % 30.0% 20.0% 2014 $43, $87, $87, % 30.0% 20.0% 2013 $43, $87, $87, % 30.0% 20.0% 2012 $42, $85, $85, % 30.0% 20.0% 2011 $41, $83, $83, % 30.0% 20.0% Change the CESG family net income thresholds as noted above in both the Planning levels and the Education Savings Calculator. A. The CESG income brackets are indexed yearly based on inflation and are the same as the Federal 15% and 22% tax bracket income thresholds Maintain all other rates/values associated with the RESP and CESG plans Dividend Tax Credit Federal & Provincial NPE & NPS The Dividend Tax Credit is a federal/provincial non-refundable tax credit Canadian source dividends are either: A. Eligible dividends, i.e. Enhanced, or B. Other than eligible dividends, i.e. Existing (or non-eligible) NPE Dividend Tax Credit Rates & NPSE v11.8, v12.2 Detailed Tax Method Update the Dividend Tax Credit rates, both Eligible and Other than eligible for those jurisdictions as necessary. Dividend Tax Credits - NPE (Public Corp - Eligible, Enhanced Tax Credit) Province Alberta 10.00% 10.00% 10.00% 10.00% 10.00% British Columbia 10.00% 10.00% 10.00% 9.76% 10.31% Manitoba 8.00% 8.00% 8.00% 8.00% 11.00% New Brunswick 12.00% 12.00% 12.00% 12.00% 12.00% Newfoundland/Labrador 5.40% 11.00% 11.00% 11.00% 11.00% Northwest Territories 11.50% 11.50% 11.50% 11.50% 11.50% Nova Scotia 8.85% 8.85% 8.85% 8.85% 8.85% Nunavut 5.51% 5.51% 5.51% 5.51% 5.82% Ontario 10.00% 10.00% 6.40% 6.40% 6.40% Prince Edward Island 10.50% 10.50% 10.50% 10.50% 10.50% Quebec 11.90% 11.90% 11.90% 11.90% 11.90% Saskatchewan 11.00% 11.00% 11.00% 11.00% 11.00%

36 Yukon 15.00% 15.08% 15.08% 15.08% 15.08% Federal 15.02% 15.02% 15.02% 15.02% 16.4% Dividend Tax Credits - NPE (CCPC*, other than eligible dividends) Province Alberta 3.1% 3.1% 3.48% 3.48% 3.48% British Columbia 2.59% 2.59% 3.40% 3.40% 3.40% Manitoba 0.83% 0.83% 1.75% 1.75% 1.75% New Brunswick 4.00% 5.30% 5.30% 5.30% 5.30% Newfoundland/Labrador 4.10% 4.10% 5.00% 5.00% 5.00% Northwest Territories 6.00% 6.00% 6.00% 6.00% 6.00% Nova Scotia 3.50% 5.87% 7.70% 7.70% 7.70% Nunavut 3.05% 3.05% 4.00% 4.00% 4.00% Ontario 4.50% 4.50% 4.50% 4.50% 4.50% Prince Edward Island 3.20% 3.2% 1.00% 1.00% 1.00% Quebec 7.05% 7.05% 8.00% 8.00% 8.00% Saskatchewan 3.05% 3.05% 4.00% 4.00% 5.00% Yukon 3.17% 4.03% 4.51% 4.51% 4.51% Federal 11.02% 11.02% 13.33% 13.3% 13.3% Year Enhanced Rate Gross Up (all provinces) Existing General Gross-Up (all provinces) % 18% % 25% % 25% % 25% % 25%

37 The taxable amount of Federal Eligible / Enhanced dividends gross up rate is as follows: 2013: 138% 2014: 138% The taxable amount of Federal dividend tax credit on the total Eligible / Enhanced grossed up amount is unchanged for : 15.02% 2014: 15.02% The Federal dividend tax credit rate factor for Eligible / Enhanced dividends is already implemented for : 2/3 2014: 13/ Other than eligible dividend gross-up rate already implemented for 2015: Year Other than eligible dividend gross up Other than eligible dividend tax credit % 13.33% % 11.02% % % % % % % % % After % 9.030% NPE Exist ing Federal Dividend Tax Credit Calculat ion Revised Eligible / Enhanced dividends calculation: ELIGIBLE DIVIDENDS Gross Up Rate 138% Federal Dividend Tax Credit Rate % Federal 29.00% Provincial Dividend Tax Credit Rate - ON 10.00% Provincial - ON 13.16% Calculation of tax as follows based on $100 of Dividend Amount of Dividend received = $100 Taxable dividend amount = $100 x 138% = $138 GROSS Federal Income Tax = $138 x 29% = $40.02 MINUS Federal Dividend Tax Credit = $138 x % = $20.73 Net Federal Tax Payable on $100 Dividend = $19.29 $19.29 GROSS Provincial Income Tax = $138 x 13.16% = $18.16 MINUS Provincial Dividend Tax Credit = $138 x 10.00% = $13.80

38 Net Provincial Tax Payable on $100 Dividend = $4.36 $4.36 TOTAL TAX PAYABLE (Federal & Provincial) = $ Other than eligible / Existing dividends calculation: OTHER THAN ELIGIBLE (Non-eligible dividends) Gross Up Rate 118% Federal Dividend Tax Credit Rate % Federal 29.00% Provincial Dividend Tax Credit Rate - ON 4.50% Provincial - ON 13.16% Calculation of tax as follows based on $100 of Dividend Amount of Dividend received = $100 Taxable dividend amount = $100 x 118% = $118 GROSS Federal Income Tax = $118 x 29% = $34.22 MINUS Federal Dividend Tax Credit = $118 x % = $13.00 Net Federal Tax Payable on $100 Dividend = $21.22 $21.22 GROSS Provincial Income Tax = $118 x 13.16% = $15.53 MINUS Provincial Dividend Tax Credit = $118 x 4.50% = $5.31 Net Provincial Tax Payable on $100 Dividend = $10.22 $10.22 TOTAL TAX PAYABLE (Federal & Provincial) = $ NPS Dividend Tax Credit Rates Refer to revised rates in Section See " Update the Dividend Tax Credit rates, both Eligible and Other than eligible for those jurisdictions as necessary." on page 35, See " The taxable amount of Federal Eligible / Enhanced dividends gross up rate is as follows:" on page 37, See " The taxable amount of Federal dividend tax credit on the total Eligible / Enhanced grossed up amount is unchanged for 2013." on page 37, and See " The Federal dividend tax credit rate factor for Eligible / Enhanced dividends is already implemented for 2014." on page Maintain the NPS Provincial Modifier Rounded Percentage value 2013: : NPS Exist ing Federal Dividend Tax Credit Calculat ion Revised The calculation is the same for both eligible and other than eligible dividends; however the rates used are different Eligible calculation:

39 A. Calculation used when the Eligible checkbox is selected in the Cash Flow Income Details Income Details dialog box: B. (Original dividend income amount * 138%)( (15.02% * 1.30%))/100 C. Example: ($100 dividends * 138%) * (.01 * (33.74 (15.02 *1.3))) = $19.62 tax payable Other than eligible calculation: A. Calculation used when the Eligible checkbox is not selected, i.e. Other than eligible dividends, in the Cash Flow Income Details Income Details dialog box: B. (Original dividend income amount * 118%) * ( ( % * 1.30%))/100 C. Example: $100 dividends * 118% * (.01 * (33.74 (13.33 * 1.3))) = $19.36 tax payable Ont ario Charit able Donat ion Tax Credit : For donations and gifts between $0 and $200, the credit rate is 5.05%. For donations exceeding $200, the credit is 11.16%. This has been the same since (Added September 6, 2013) Albert a Charit able Donat ion Tax Credit Effective January 1, 2016, the Charitable Donations Tax Credit rate on total donations over $200 will be reduced from 21% to 12.75% (its 2006 level). The 10% credit on the first $200 remains Effective October 2015, the credit is maintained at 21% LIF Payouts Maximum CANSIM Rate/Reference Rate Source: The CANSIM Rate is the Government of Canada marketable bonds, average yield +10 year released on Nov 30 th by the Bank of Canada, Series V Change the CANSIM Rate used for 2014 payouts 2012: 2.61% 2013: 2.20% 2014: 3.01% 2015:2.36% Maintain the existing Reference Rate value of 6.00%. A. Depending on the Governing Jurisdiction or Origin of Plan either the CANSIM or Reference Rate will be used when calculating the LIF Maximum payout. i. Note that Alberta is an exception to this as Alberta has a different percentage payout than all other jurisdictions. Alberta rules state that if the investment return in the previous year exceeds the normal LIF maximum, than the last year's investment return is the maximum Life Expectancy Maintain the existing Life Tables data there is no update to the Government of Canada Life Table data at this time. i. Per the most recent data from Statistics Canada, the life expectancy for males is 78.8 years, while the life expectancy for females is 83.3 years. Overall life expectancy is Asset Class Average Return Rates / Historical Returns Concept/Calculator Year GIC CDN Interest Rates (Guaranteed Investment Certificates): Change the 5-year GIC rate:

40 2011: 1.87% 2012: 1.65% 2013: 1.63% 2014: 1.92% This rate is the average of 12 month rates for Bank of Canada Chartered Bank Administered GIC - 5 year Interest Rates Canadian Fixed Income [Canadian Bonds (Mid-Term)] Change the Canadian Fixed Income [Canadian Bonds (Mid-Term)] rate: 2012: 3.60% 2013: -1.02% 2014: 8.46% This is the DEX Universe Bond Index, Total Return % YTD Canadian Long Bonds Change the Canadian Long Bond rate: 2012: 2.43% 2013: 2.84% 2014: 2.75%

41 Canadian Equit y Update the Canadian Equity returns: US Equity Update the US Equity returns. Year Return % % % % % % % Year S&P 500 in $US S&P 500 in $CDN % 7.13% % 6.91% % 10.94% % 2.25% % 6.73% % 6.53% Int ernat ional Equit y Update the performance % for international equity as follows: International equity return rates Year %Return in $USD %Return in $CDN % 2.59% % 27.67% % 11.09% % % % -0.72% % 10.23% The MSCI EAFE Standard Core index is reported in USD and therefore, we will calculate returns by converting $US $CDN to calculated Canadian performance of the International equity asset class CDN Real Estate Change the Canadian Real Estate rate: 2011: +0.88% 2012: +1.64% 2013: % 2014: +7.32% This is the latest average price across Canada for a 12 month period; Source: Canadian Real Estate Association.

42 Int ernat ional Bonds Update international bond performance with data as follows. RPIBX performance - adjusted close Year Open Close % Change % % % % % % The return rate is based on the performance of the T Rowe Price International Bond Fund (RPIBX) Average Inflation / Consumer Price Index (CPI) This information is used by the: Plan Assumptions General Inflation Inflation Rate Graph Historical Returns Calculator/Concept Inflation History Calculator/Concept Average Annual CPI Rate 2011: 2.30% 2012: 1.50% 2013: 0.90% 2014: 2.00% Concepts Inflation Historical Returns Volatility Add to the Table the Year 2014 Inflation and Annualized Inflation (to date) results Change the references to Year and year ranges in the popups and in the window to show Update the Start Year to ensure the historic number of year range is accounted for Holding Companies Corporate Taxation Federal Year PART I - Basic Rate Basic Rate of Part I after federal tax abatement FEDERAL CORPORATE TAX RATES PART IV Tax Amount /3 PART I Refundable Tax Amount - 6 2/3 Refundable Portion of PART I Tax Amount / % 28.00% 33.33% 6.67% 28.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67% % 28.00% 33.33% 6.67% 26.67%

43 Maintain all existing corporate taxation rates Holding Companies Corporate Taxation Provincial AB As of July 1, 2015 this is 12% BC The holding co tax rate changed starting Q from 10.00% to 11.00%. Therefore, we will use a blended rate of 10.75% for The holding co tax rate for is 11.00% MB Maintain the existing rate of 12.00% NB As of July 1, 2013, New Brunswick increased the corporate tax rate to 12.00%. This means that the blended rate for 2013 is 11.00% and will be 12.00% for NL Maintain the existing rate of 14.00% NT Maintain the existing rate of 11.50% NS Maintain the existing rate of 16.00% NU was the first year for Nunavut in the Canadian app. NU has a corporate tax rate of 12.0% for both 2012 and ON Change the existing blended rate 2013: 11.50% (currently non-blended) 2014: 11.50% PE Maintain the existing rate of 16.00% QC Maintain the existing rate of 11.90% SK Maintain the existing rate of 12.00% YT Maintain the existing rate of 15.00%. 7. Migration Existing plans will simply migrate to the new version and the rates will be automatically applied. No significant new legislation means no meaningful migration is necessary.

44 PART D TAX CALCULATIONS NaviPlan offers a choice of 2 Income Tax methods: Average Tax, and Detailed Tax. Average Tax uses user-selected or user-entered tax rates to compute tax payable. Detailed Tax uses the bracketed federal and applicable provincial Tax rates to compute tax payable. Average Tax is the ratio of income tax payable to gross income for the year, which is generally lower than the marginal tax rate. Average tax rate can be calculated by dividing total tax due by gross income. Average Tax is applied to the following: salary, selfemployed, defined benefit pension, government benefits (CPP/QPP & OAS), and other taxable. The Average Tax rate is used in NPS v8.3, v11.0, and NPSE v11.8, v12.2, and v14.0 when in Average Tax mode. Tax is the rate of tax applied to the next dollar earned. Income within a given bracket or range (low end to high end of the income range) is taxed at a stated rate. Tax is applied to income types such as Royalty and Alimony, as well as investment income i.e. interest, dividends, capital gains, and deferred growth. The Tax rate is used in NPE v8.3, and NPSE v11.8, v12.2, and v14.0 when in Detailed Tax mode. NOTE: For the year 2014, there are 3 provinces that assess Surtax on these tax rates: Ontario, Prince Edward Island, and the Yukon. These surtax rates are included in the tax rates. Using the raw data provided by the federal and provincial budgets (i.e. the start/end of brackets) the basic personal amount, the income tax rates, and the marginal rate for each of the brackets, a calculation is performed to determine: 1. The base tax for this bracket. 2. Tax with and without the basic personal amount (using the base tax figure and the marginal tax rate for the bracket). 3. Average tax rate with and without the basic personal amoun 4. Provincial average tax rates are added to the federal average tax rates for each progressive tax bracket range, which is then applied and used in the application. Raw data from the budgets that are input for all jurisdictions are: Start of Tax End of Tax Basic Personal Amount Additional Surcharges Details calculated are: Base Tax Tax (without using the Tax (using the Average (without the Average (using the

45 EXAMPLE 1 - FEDERAL: For the Federal Average tax rate the following is used in the calculations: Start of 1 st tax bracket (SB1) = $0 End of 1 st tax bracket (EB1) = $43,953 Basic Personal Amount (BPA) = $11,138 Rate for this bracket (MR) = 15% for this bracket Base Tax (BT) = $0 BASE TAX IS CALCULATED AS: The Tax without using the Basic Personal Amount for the previous tax bracket. TAX WITHOUT USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: ((EB1 - SB1) * MR) + BT: (($43,953 - $0) * 15%) +$0 = $6,593 TAX USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: ((((EB1 - SB1) * MR) + BT) - (BPA * MR)): (((($43,953 - $0) * 15%) + $0) - ($11,138 * 15%)) = $4,922 AVERAGE TAX RATE WITHOUT THE BASIC PERSONAL AMOUNT IS CALCULATED AS: Tax without Basic Personal Amount / EB1 OR $6,593/$43,953 = 15.00% AVERAGE TAX RATE USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: Tax using Basic Personal Amount / EB1 OR $4,922/$43,953 = 11.20% The Average s used in the application include the Basic Personal Amount. The federal average tax rates are added to the provincial average tax rates to determine the combined average tax rates used in the application.

46 EXAMPLE 2 PROVINCIAL - ONTARIO: Surtax 1 (S1): 20% over $4,331 Surtax 2 (S2): 36% over $5,543 Start of second tax bracket (SB2) = $40,121 End of second tax bracket (EB2) = $80,242 Basic Personal Amount (BPA) = $9,670 Rate for the second tax bracket (MR) = 9.15% Base Tax (BT) = $2,026 BASE TAX CALCULATION: ((EB1 - SB2) * MR) + BT (($40,120 - $0) * 5.05%) +$0 = $2,026 TAX WITHOUT USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: ((((EB2 - SB2) * MR) + BT) + ((((((EB2 - SB2) * MR) + BT) - S1 Amount) * S1 Percentage) + ((((((EB2 - SB2) * MR) + BT) - S2 Amount) * S2 Percentage)))) Normal tax: (((($80,242 - $40,121 * 9.15%) + $2,026) + First surtax: (((((($80,242 - $40,121) * 9.15%) + $2,026) - $4,331) * 20%) + Second surtax: (((((($80,242 - $40,121) * 9.15%) + $2,026) - $5,531) * 36%)))) = Total tax: $6,030 TAX USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: ((((EB2 - SB2) * MR) + BT) - (BPA * MR) + ((((EB2 - SB2) * MR) + BT) - (BPA * MR)) - S1 * S1 Percentage) (((((((EB2 - SB2) * MR) + BT) - S1 Amount) * S1 Percentage) + ((((((EB2 - SB2) * MR) + BT) - S2 Amount) * S2 Percentage)))) Normal tax: (((($80,242 40,121) * 9.15%) + 2,026) - (9,670 * 5.05%) + First surtax: ((((($80,242 40,121) * 9.15%) + 2,026) - (9,670 * 5.05%)) - 4,331) * 20%) + No second surtax (not met when including the basic personal amount) = Total tax: $5,384 AVERAGE TAX RATE WITHOUT THE BASIC PERSONAL AMOUNT IS CALCULATED AS: Tax without Basic Personal Amount / EB2 $6,030/$80,242 = 7.51% AVERAGE TAX RATE USING THE BASIC PERSONAL AMOUNT IS CALCULATED AS: Tax with Basic Personal Amount / EB2 $5,384/$80,242 = 6.71% The Average s used in the application include the Basic Personal Amount. Ontario also has the Ontario Health Premium, OHP which also adds 0.76% to the Ontario rate. All of these items are considered and factored in when determining the Average and s. The tax rates indicated on the Assumptions page of NaviPlan are federal rates plus the appropriate provincial rates calculated on a progressive basis for the jurisdiction and level of income to which they apply. These various inputs and formulas combine the federal and provincial (or territorial) income taxes payable, including surtaxes, and assume only the Basic Personal Amount is claimed, and that all income is either interest or ordinary income such as salary.

47 PART E FEDERAL / PROVINCIAL TAXATION 7.2. Tax Credits Supported in NaviPlan (excluding Québec) Non-refundable Tax Credit s The following non-refundable tax credits are supported in NaviPlan Detailed Tax Method: A. Basic Personal Amount B. Spousal/Equivalent to spouse amount / Dependant amount C. Age Credit / Age 65 Credit D. Disability Amount E. Amount for Infirm Dependants age 18 or older F. Child Tax Credit Amount for each dependent child under 18 years of age, children born in 1993 or later G. Pension Income Amount H. Canada Employment Amount I. Medical Expenses J. General Factor Refundable Tax Credit s Refundable tax credits are currently not supported in NaviPlan Indexing Fact or Income tax thresholds and many non-refundable credits, both federal and provincial, are indexed. Indexing means that these values are adjusted based on changes to the Consumer Price Index, CPI factor. To prove out the rates, calculate the indexed income thresholds and personal amounts for the upcoming year, multiply the existing amount by the indexing factor, i.e. Federal $43,561 * = $43,954 (off by $1); Ontario $39,723 * 1.01 = $40,120 A. MB, NS, and PE do not apply an indexing amount. B. The government has the discretion to override this calculated value Federal Family Income Split t ing Credit The Family Income Splitting Credit allows income of the high-earner spouse to be taxable in the hands of his or her lowearner spouse, so that their combined tax payable is reduced. 1. An annual tax credit equal to the federal tax reduction that would result on the transfer of up to $50,000 of taxable income from one spouse to the other, to a maximum credit of $2, To benefit, you must have a child who: is under 18 at the end of the year, and ordinarily resides with you or your spouse or common-law partner throughout the year. 3. The combined federal tax reduction is equal to what you would save if you were to transfer to your lower-income spouse the lesser of: $50,000, and ½ x (your taxable income your spouse s taxable income). 4. The resulting saving can be claimed by either spouse in the form of a federal non-refundable tax credit, to a maximum of $2,000. As a result, this measure can reduce your federal taxes only not your provincial or territorial income tax. 5. Quebec's maximum is $1,670 instead of $2, Child Care Expense Credit The maximum annual amounts that can be claimed for child care expenses will increase by $1,000. As a result, starting 2015, the following per child maximums will apply:

48 Under Age 6 (at the end of the year) - $8,000 Age 7 to 16-5,000 Children eligible for the disability tax credit - $11, Québec Taxation Québec Health Services Fund Contribution (tax, from line 446) The Québec Health Services Fund Contribution has been supported in NaviPlan since Québec taxes income other than employment income. Explicitly, all of the individual s income is subject to the contribution except: A. Employment income B. Taxable support payments received C. The grossed-up portion of dividends received from taxable Canadian corporations D. OAS benefits Health Services Fund Contribution (tax) Start of Tax End of Tax Tax at top End $0 $14,000 $0 0.00% $14,001 $29,000 $ % $29,001 $48,670 $ % $48,671 $133,670 $1, % $133,671 $267,342 $1, % The brackets are indexed for inflation annually. Tax brackets are represented slightly differently on the website, but should be implemented as shown above. In text format, it is shown as follows: Québec Health Contribution (tax, from line 448) Health Contribution (line 448) Start of Tax End of Tax Tax at top End $0 $18,000 $0 0.00% $18,001 $20,000 $ % $20,001 $40,000 $ % $40,001 $42,000 $ % $42,001 $130,000 $ % $130,001 $150,000 $1, % $150,001 Over $1, % Québec Deductions used to transform Federal income into Québec Taxable Income

49 CURRENT INVESTIGATION: NaviPlan is reducing QC taxable income by both the employer and employee portion of the QPP contributions on self-employment, but should only deduct the employer portion. Employment deduction amount. This is line 201 on Quebec for TP-1 and calculated with work chart 201. For tax year 2014, the deduction is equal to 6% of your eligible work income up to $1,110. Eligible work income includes: all employment income (salary) and business income. The maximum deduction amount is indexed to inflation Quebec Pension Income Split As of the 2014 taxation year, residents of Quebec under 65 who receive pension income will no longer be able to split it with a spouse on provincial tax returns. 65 is the new eligibility age for all sources of retirement income. (Does not impact the federal pension split) Québec Tax Credits Supported in NaviPlan As a result of differences in Québec s taxation from the rest of Canada, the following is a comprehensive listing of the tax credits supported for Québec: A. Personal B. Age C. Dependants D. QPP (Self-employment) E. UIC F. Pension G. Disabled H. Transfer from Spouse/Dependant I. Dividend J. Union Dues K. Child credit L. Living Alone M. Tax reduction for families N. Québec Abatement credit (supported at the federal level) i. The Québec abatement reduces the balance owing. The abatement is provided under the federal-provincial fiscal arrangement. If the individual is a resident of Québec on Dec 31 st and does not have a business outside of Québec, the refundable Québec abatement is 16.5% of the basic federal tax payable on Line 48 of Schedule Québec Tax Credits Not Supported in NaviPlan Québec Employment Insurance Premium Please note that the actual Québec EI Employee Premium Rate/Percentage is lower than the EI percentage for Canada due to the Québec Parental Insurance Plan, QPIP. A. The QPIP is not currently supported in NaviPlan. Québec Experienced Worker Tax Credit for ages 65+ Individuals who reside in Québec and are 65 years of age or older on Dec 31 st of the taxation year. A. The amount of the credit depends upon the eligible amount of work income, i.e. salaries, wages and other remuneration including gratuities from employment.

50 Québec Deduction for Workers Québec Solidarity Tax Credit PART F TAX TERMINOLOGY Average s he Average (ATR) is the total income tax payable for a year divided by the total income for the year. A. Average s = Total Income Tax/Total Income B. A taxpayer s average tax rate is a somewhat crude measure because 2 taxpayers in the same province with the same total income can have different average tax rate. i. An individual with a total income of $75,000 and total income tax of $25,000 with no deduction for an RRSP contribution will have an average tax rate of 33.3%, calculated as (total income tax/total income) or $25,000/$75,000. ii. Same situation, but now the individual makes a $10,000 to their RRSP and claims a deduction for this contribution, the total income is still $75,000 but the total income tax would drop to about $20,000, calculating an average tax rate of 26.7%, $20,000/$75,000. Tax Rat es The (MTR) is the rate a taxpayer would pay on their next dollar of taxable income. A. = Federal Income + Provincial Income B. Various deductions can reduce total income. i. An individual with $44, of taxable income will be in a 22% federal tax bracket. This same individual will be in a provincial tax bracket of 12.75% (MB), making their 34.75%, calculated as Federal + Provincial, or 22% % = 34.75%.

51 Effective and Estimated NaviPlan also uses the effective and estimated tax rates. A. Effective provides the actual rate of tax on total income. This is calculated as: i. Taxes Payable/Total Income, or ii. Line 435 divided by Line 150 of the T1 General Tax Return iii. NaviPlan performs a complete calculation of current tax and then another complete calculation with 1 dollar more, and uses the difference to determine the rate. B. Estimated is based solely on current net income. i. NaviPlan does not perform a calculation but rather compares the current net income to the applicable tax rate table and uses this rate, i.e. the tax rate on your last dollar of earnings. Tax Deduct ion Tax deductions must not be confused with tax credits, and vice versa. A tax deduction reduces the amount of taxable income, i.e. is an amount that is deducted from total income and is effectively not subject to tax. A common tax deduction is an RRSP contribution. An RRSP contribution of $5,000 effectively excludes $5,000 of income from being taxed. The higher the taxpayer s marginal tax rate, the more a tax deduction reduces the taxpayer s income taxes. An individual making a $5,000 contribution to an RRSP reduces their taxable income to a lower federal and provincial tax bracket, thereby reducing their taxes by $1738, i.e. the deduction multiplied by the MTR, $5,000 X 34.75% = $1, Refer to Section See "An individual with $44, of taxable income will be in a 22% federal tax bracket. This same individual will be in a provincial tax bracket of 12.75% (MB), making their 34.75%, calculated as Federal + Provincial, or 22% % = 34.75%." on page 50 for additional details. Other examples of tax deductions would include : RPP contributions, professional and union dues, child care expenses, moving expenses, carrying charges and interest expenses, other deductions such as support payments, tool expenses for apprentice mechanics and tradespersons, elected split-pension amounts, exploration and development expenses, and UCCB repayments. Tax Credit Tax credits reduce the amount of tax to be paid, i.e. are used to reduce the amount of tax payable owed by the individual to the CRA aka Government of Canada Department of Finance. A tax credit is an amount that is deductible from income tax otherwise payable. A tax credit reduces the taxpayer s income tax by the same amount regardless of his/her marginal tax rate. The conversion rate for most federal and provincial tax credits is the tax rate for the lowest tax bracket. NON-REFUNDABLE TAX CREDIT Non-refundable tax credits can only be used in the current tax year to reduce the amount of income tax owing by an individual to zero. Non-refundable credits cannot be used to generate a refund. Non-refundable tax credits cannot be used by a taxpayer with no taxable liability to obtain a payment from the government. The individual must meet certain criteria in order to claim the credit. In some instances, the credit can be transferred to a spouse or parent for their use should the individual not have sufficient taxable income to use all of the credit.

52 i. Examples of credits that can be transferred are the: a. Age Credit b. Pension Credit c. Tuition, Textbook and Education Tax Credit d. Disability Tax Credit ii. Non-refundable credits are claimed on Schedule 1 of the Federal General Income Tax package REFUNDABLE TAX CREDIT Refundable tax credits are payable to the taxpayer regardless of whether they have any taxable income. The individual must meet certain criteria in order to claim the credit. A. Federal refundable tax credits are limited to the : i. Goods & Services Tax (GST) Credit, ii. WITB, Working Income Tax Benefit iii. Political contributions iv. Investments in labor sponsored funds a. Federal claimed on Page 1 of the T1 General Tax Return, and Schedule 1 B. Provincial/territorial refundable tax credits vary per province. Examples: i. MB Education Property Tax Credit ii. MB School Tax Credit a. Claimed on Line 479 of the T1 General Tax Return, per values claimed and calculated on provincial Forms and Schedules applicable to the province of residence. iii. Ontario Sales Tax Credit iv. Ontario Property Tax Credit a. The Ontario credits are new refundable credits introduced for the 2010 tax year as a result of implementing the HST. Taxable Benefit s Employers often provide taxable benefits, the value of which must be considered employment income. A taxable benefit may be paid in cash (meal allowance, reimbursement of personal cellular phone charges, etc.) or otherwise (parking space, gifts, etc.). The value of this taxable benefit must also include any GST/HST or PST. These values are added together and indicated as a taxable benefit/income on the employee s T4 slip. A listing of taxable allowances/benefits can be located in the CRA tax guide T Taxable Benefits and Allowances Copyright 2015 Advicent Solutions. The information contained herein, including its attachments, contains proprietary and confidential information. Any distribution of these materials to third parties is strictly prohibited.