All the information you need to calculate your Newfoundland tax and credits is included on the following pages. You will find two copies of Form NF428, Newfoundland Tax and Credits, in this book. Attach a completed copy of Form NF428 to your return.

What's new for 2001?

The way you calculate your Newfoundland tax has changed. It is no longer a percentage of federal income tax. Newfoundland tax will now be calculated by applying provincial tax rates to taxable income (line 260 of your return). Provincial non-refundable tax credits are then deducted from this amount.

The Newfoundland surtax has been reduced.

Form NF428, Newfoundland Tax and Credits, reflects these changes.

Newfoundland programs for low-income individuals and families

Newfoundland Harmonized Sales Tax Credit (NHSTC)

The NHSTC is a tax-free payment to help people with low incomes who may be affected by the harmonized sales tax (HST). Under the NHSTC, individuals or families with net income of $15,000 or less receive an annual amount of $40 per adult and $60 for each child under 19. This amount is reduced if family net income is more than $15,000.

To receive these payments, you (or your spouse or common-law partner) should apply for the GST/HST credit on your (or your spouse or common-law partner's) tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland Seniors' Benefit

The Newfoundland Seniors' Benefit (NSB) is a tax-free annual payment of $300 for individuals 65 or older with family net income of $14,000 or less. Qualifying families with family net income between $14,000 and $20,000 will get a partial benefit.

To receive these payments, you (or your spouse or common-law partner) should apply for the GST/HST credit on your (or your spouse or common-law partner's) tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland and Labrador Child Benefit

The Newfoundland and Labrador Child Benefit (NLCB) is a tax-free monthly payment to help low-income families with the cost of raising children under age 18. Benefits are combined with the Canada Child Tax Benefit (CCTB) into a single monthly payment.

Under the NLCB, you may be entitled to receive a benefit of $17 per month for the first child, $26 per month for the second child, $28 per month for the third child, and $30 per month for each additional child. Families with net income between $16,744 and $21,744 may receive part of the benefit.

There is no need to apply separately to receive the NLCB. We will use the information from your CCTB application to determine your eligibility for the NLCB. For more information about the NLCB, call 1-800-387-1193.

File your tax return - You (and your spouse or common-law partner) should file your 2001 tax return(s) as soon as possible. We will automatically calculate the amount of any payments you are entitled to receive under all three of these programs based on information you (and your spouse or common-law partner) give on your return(s).

The NHSTC, the NSB, and the NLCB are fully funded by the Province of Newfoundland and Labrador.

If you have questions…

If you have questions about Newfoundland tax and credits, contact:

Newfoundland and Labrador Tax Services Office
Canada Customs and Revenue Agency
165 Duckworth Street, P.O. Box 12075
St. John's NF A1B 4R5

Call 1-800-959-8281.
To request forms call 1-800-959-2221.

You will find other telephone numbers listed in the federal government section of your telephone book and on the Canada Customs and Revenue Agency's Web site at www.ccra.gc.ca/tso/ .