A preview of things to come?

"The Conservative Government 's budget proposals brought forward on December 11, 1979 have been withdrawn, but they are far from dead. On the contrary, a number of those budget proposals, especially the ones which would close loopholes and result in other technical changes being made to the Income Tax Act, should be considered to be alive and well.It is not unreasonable to expect the next government, of whatever political persuasion, to reintroduce many of these technical changes in the next federal budget. For that reason, last December's budget may have offered an interesting preview of what the mining industry and other taxpayers can expect in 1980. It is quite possible that some of these changes may be effective as of the original dates announced in the withdrawn budget proposals.This month, ""Tax Notes"" reviews the main pro visions of Mr. Crosbie's December, 1979 budget, with a primary focus on the changes that would have affected the resource sector.It must be emphasized that all of the budget proposals discussed herein have been withdrawn, that none of them are law and that any actual changes in our tax rules will have to be dealt with by the new Parliament that will be assembled following the February 18 election. December 1979budget withdrawnThe federal budget proposals brought forward by Finance Minister John Crosbie on December II, 1979 were withdrawn as a result of the defeat of the Conservative Government on a motion of non-confidence in the House of Commons on December 13. However, it appears quite possible that at least some of the proposals may be introduced into Parliament at a future date, possibly with retroactive effect.In a press release issued by the Department of Finance, Finance Minister John Crosbie stated that if the Conservative Government is returned to power, it will reintroduce all of the measures contained in his December II budget.Mr. Crosbie stated that all of the income tax measures contained in the budget would be reintroduced, effective on the dates indicated in the Notice of Ways and Means Motion tabled on December II. Some of the more important measures in December II budget, and their effective dates as indicated in the Notice of Ways and Means Motion, are discussed below.The December budget had also introduced or increased excise taxes or duties on gasoline, wines, cosmetics and photofinishing. If the Conservative party is re-elected, these measures will be reintroduced with prospective effect (i.e . effective as of new dates to be announced in the new budget)."