Flood brings tax break

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Published: May 1, 1997

Western Canadians battling floods this spring will not have to worry about the April 30 tax filing deadline, at least for now.

The federal government is offering flood victims at least a small tax break.

Revenue minister Jane Stewart said the April 30 income tax filing deadline has been suspended for those disrupted by the floods that have affected communities from British Columbia to Manitoba.

If they missed the deadline and include a letter with their eventual return citing their flood experience, there will be no late filing penalty.

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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million

“Thousands of people in Manitoba, Alberta and British Columbia are having to evacuate their homes and their communities, leaving their belongings behind, unsure of when they will be able to return,” Stewart said. “The last thing they should be worrying about now is filing their tax returns on time.”

She said the same break is being applied to affected businesses which may miss the deadlines for filing goods and service tax returns or other taxes owing.

No new deadline has been set. She said the tax department will be flexible. “We just don’t know when people will be able to return home or what they will find when they do return.”

Help available later

Stewart said when the crisis is over, Revenue Canada officials will visit affected communities to answer questions and offer advice about late tax filing requirements.

In the House of Commons April 25, Stewart noted the three levels of government are working together to offer what help they can to Manitoba. Defence minister Doug Young assigned 1,500 armed forces personnel to help in the effort. Prime minister Jean ChrŽtien changed his weekend schedule to visit Manitoba last weekend.

“Let them (affected Manitobans) all understand they have Canada in their corner,” Stewart said.

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