The Canadian Press - ONLINE EDITION
Governor General's salary to be taxed, but it won't cost him a dime
OTTAWA - How do you pay income tax without actually losing any salary to the Canada Revenue Agency?
Well, it helps if you're the Governor General of Canada.
Federal Budget
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In-depth coverage of the 2012 federal budget
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Penny-pinching Conservative budget sets Canada on pro-business track
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Text of Jim Flaherty's budget speech, delivered Thursday in the House of Commons
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Penny to disappear from coinage system, minting to end by fall: budget
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Budget changes old age security eligibility to age 67, hitting anyone under 54
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Conservative budget slashes CBC spending by 10 per cent over three years
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Ottawa to bear brunt of close to 19,000 civil servant jobs axed in budget
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DND cuts account for one-fifth of federal budget cuts over next three years
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Governor General's salary to be taxed, but it won't cost him a dime
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Feds move to eliminate immigration backlog by returning applications
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Taxman to eye foreign donations, political activities by charities
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Cross-border shoppers can bring back more duty-free under budget measures
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MPs' gold-plated pensions untouched by budget, no change before next election
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Federal budget passes the stimulus baton from government to business
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EI changes offer jobless more incentives including reduction of claw backs
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First Nations schools get down payment for literacy, new buildings
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Canadians feel Tories doing a 'fair' job managing the books, poll suggests
Thursday's budget announced that Gov. Gen. David Johnston's salary, traditionally exempt from income tax, will be taxable as of next year.
But there's a big catch.
His annual salary of $139,939 will be increased to ensure that he still pockets that full amount after income taxes are deducted.
Which sounds like Canadian taxpayers are picking up the tab for his taxes.
"It's a unique situation," said a sheepish Finance Department official.
The budget said the measure follows similar recent changes in Australia and New Zealand, which made their vice-regals subject to income taxes.
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