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Layton Calls On Harper To Defer Canadian CIT Cuts

Tuesday, February 23, 2010

Leader of the New Democratic Party (NDP) of Canada, Jack Layton, in a 30-minute meeting with Canadian Prime Minister Stephen Harper, urged the deferral of the Conservative government’s plans to slash the corporate income tax rate twice in quick succession, stating instead that financial support should go to the needy.

The meeting was held ahead of the release of the Conservatives’ federal Budget, scheduled for March 4. The minority Conservatives, in order for the budget to be adopted, must get at least one party on-side with its proposals.

During the meeting, Layton underscored the party’s firm belief that forging ahead with the corporate tax cuts would be inappropriate, underlining that Canadian corporations were not in need of fiscal support, but instead the jobless and the elderly were in greater need. Layton urged instead that the CAD6bn (USD5.75bn) that the government could save by deferring the cuts, would be better spent through welfare and job creation. "The banks and oil companies don't need the support; the only thing that they seem to want to do is give themselves bonuses,” Layton jibed, speaking later to reporters.

Since entering into power in 2006, Harper championed the previous Liberal government’s five-year plan to cut the corporate income tax rate, and it would appear he is unlikely to reconsider his stance. Canada’s Federal CIT is set to drop further, from 19% currently, to 16.5% in 2011 and to 15% in 2012.

Speaking on behalf of the Conservative government after the meeting, spokesman Dimitri Soudas told The Canadian Press that the government was standing steadfast by its proposals, and did not intend to perform a u-turn on the planned corporate tax cuts, stating: “We continue to believe that low taxes are a good thing for the economy; these tax cuts we've put in place are for the good of the economy.”

According to Layton, speaking after the meeting, discussions were held in a “cordial” atmosphere. With 400,000 jobs lost to the recession, and the national unemployment rate at a 12-year high with more than 8% of the population out of work, both Layton and Harper agreed on a major issue: that the budget should encourage job creation. "The proposition to the Prime Minister was simply that; we're not out of the recession until people are back at work. He said he agreed with me," Layton told reporters after the meeting.

The NDP leader voiced his support for the extension of Employment Insurance benefits, and the reintroduction of the Home Renovation Tax Credit, which was allowed to expire in January.

In his comments after the meeting, Layton said that although Harper had not provided any commitments on important matters to the NDP, he disclosed that his party would not be committing to voting down the budget before it is released on March 4.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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