There were very few income tax changes proposed in the Dec. 10, 2001 federal budget. However, on Dec. 20, 2002, the Department of Finance released a sizable quantity of draft legislation effective for the 2002 taxation year.

The following changes to Canada Customs and Revenue Agency tax policies are among the most significant affecting individual taxpayers in the 2003 filing season:

CCRA has reversed its policy that the legal expenses of obtaining a maintenance order in divorce or separation agreements are not deductible.
The Supreme Court of Canada has dismantled the CCRA
position of denying a loss where there is no reasonable expectation of profit (Stewart case).
CCRA has modified its position on residency determinations by eliminating the presumption that one became a nonresident if absent from Canada for more than two years.
Most recently, the Feb. 18, 2003 federal budget introduced some sweeping proposals:

• The RRSP dollar limit will be $14,500 for 2003, $15,500 for 2004, $16,500 for 2005 and $18,000 for 2006. For 2007 and subsequent years the RRSP dollar limit will be increased by increases in the Average Industrial Wage.
  
• A phase in of the small business income tax rate for income up to $300,000 instead of $200,000 over a period of four years.
  These and other changes have been included in CAUT's 2002 Income Tax Guide, available online at www.caut.ca/english/publications/tax or by contacting Louise D'Anjou (danjou@caut.ca).
  

CAUT's 2002 tax guide was edited by Roy Williams, senior partner of Rheaume Williams Kalbfleisch in Ottawa. Although CAUT cannot pay for individual tax counselling or tax advice, individual members with such questions can contact Mr. Williams at 613-236-4500 (online www.windfall.on.ca) and take advantage of CAUT negotiated rates.