Transfer of all non-refundable tax credits from one spouse to the other

As of 2003, all spouses will be entitled to transfer between themselves that portion of the tax credits they do not need in order to reduce their income tax payable to zero.

To ensure that the tax credits are used in full, the mechanism used to transfer non-refundable tax credits between spouses will be extended to all taxpayers, regardless of whether they file under the general or the simplified tax system.

This measure will result in a tax reduction of $94 million for 260 000 couples, broken down as follows:

• an average of $544 for 45 000 couples aged 65 or over;
• an average of $316 for 119 000 couples with children;
• an average of $343 for 93 000 couples with no children.

Moreover, the transfer of non-refundable tax credits from one spouse to another will be advantageous for 90 000 low- and middle-income couples. This transfer represents:

• a tax cut of 76% for 13 000 couples with an income below $25 000;
• a tax cut of 17% for 77 000 couples earning between $25 000 and $50 000.