Fine tuning tax reform

"The tax reform process marches on. The December 16, 1987 measures tabled by Finance Minister Michael Wilson represent one more step toward the objective of total reform of Canada's income and sales taxes. While the income tax changes are taking shape, much work still needs to be done on the sales tax side of the coin.IntroductionOn December 16, 1987 Finance Minister Michael Wilson tabled measures to implement the changes to Canada's income tax system that were proposed in the June 18, 1987 White Paper on Tax Reform. The measures were set out in a Notice of Ways and Means Motion; draft legislation relating to preferred shares, research and development expenditures; and draft regulations regarding capital cost allowance, certified films, flow-through shares, and the resource sector. The reaction of the government to the recommendations made by the Finance and Economic Affairs Committee Report on Tax Reform (the Blenkarn Committee), the Report of the Standing Senate Committee on Banking, Trade and Commerce and through consultations with interested groups and organizations, business, labour and individual Canadians is set out in a booklet of supplementary information.The basic features of the reformed income tax system set out in the White Paper remain. However, a number of significant changes have been incorporated in the Notice of Ways and Means Motion and other material. The following comments address those area s where changes have been made to the original White Paper proposals."