March 03, 2002 CANADA – FEDERAL BUDGET 2001 OVERVIEW   PERSONAL TAX     Starting 2002 an apprentice mechanic can deduct cost of tools.   Gain on disposal of publicly traded securities donated to registered charity is taxed at 25%. This reduction is extended indefinitely from the December 31, 2001 deadline.   Retroactive to 1997 individuals will be able to reduce taxable income by certain amounts received to assist in payment of tuition fees.   CORPORATE TAX   Changes made eliminating distance requirements from employers’ place of business for a deduction for meals provided to an employee at a semi-remote work site.   Deferral of payment of required instalments for small corporations for January, February and March 2002 for a period of at least six months without incurring interest and penalties. Similar deferral for balances owing of year end tax liability.   Starting in 2002 rules will be relaxed for foreign investors who invest in Canada through partnerships.   For more detailed information, please contact: Daniel Majewski C.A. tel: 604-662-8786 e-mail: dan@ms-co.com web: www.ms-co.com