An Act to amend the Income Tax Act (foreign property rule)

This bill was last introduced in the 38th Parliament, 1st Session, which ended in November 2005.

Sponsor

Russ Hiebert  Conservative

Introduced as a private member’s bill. (These don’t often become law.)

Status

Not active, as of June 8, 2005
(This bill did not become law.)

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Income Tax ActRoutine Proceedings

June 8th, 2005 / 3:20 p.m.
See context

Conservative

Russ Hiebert Conservative South Surrey—White Rock—Cloverdale, BC

moved for leave to introduce Bill C-405, An Act to amend the Income Tax Act (foreign property rule).

Mr. Speaker, it gives me great pleasure to introduce in the House today my first private members' bill, an act to amend the Income Tax Act, seconded by the MP for Desnethé—Missinippi—Churchill River.

The bill would repeal the foreign property rule limiting tax free retirement savings. The bill would be of tremendous benefit to retirees and future retirees because it would remove the barrier to achieving a high rate of return on investments and reduce investment risk.

The rule is a holdover from the days following the second world war when capital for domestic investments was thought to be limited. With highly global capital markets that limitation has not existed for decades.

According to various studies by economists, the effect of removing the foreign property rule would be to give individual retirees an advantage of between a few thousand dollars and tens of thousands of dollars over a lifetime.

However even current retirees would benefit from the bill as they diversify their investments. Canadian retirees deserve this freedom and this bill would deliver it.

(Motions deemed adopted, bill read the first time and printed)