Last updated: April 30 2008

Ontario Labour-Sponsored Investment Funds Tax Credits Assessment

Alan Rowell, DFA from The Accounting Place in Stoney Creek Ontario writes:

In the Ontario Economic Outlook release last November, the Ontario government raised the maximum investment in LSIF's to $7,500, creating a maximum credit of $1,125.

CRA is not processing returns with this credit. CRA is processing at the "old" $750 maximum credit stating:

"The legislation authorizing an increase to the maximum allowable tax credit is not yet law. If your return is affected by this legislation, we will review it for a possible adjustment to reflect the new maximum amount once the legislation has been enacted by the Government of Ontario"

Although this announcement has been implemented in some tax preparation software, the printed forms distributed by the CRA do not reflect this announcement.