Posted By: John Steele

Sun Nov 12, 5:20 PM ET

MONTREAL (Reuters) - Canadian Finance Minister Jim Flaherty
said on Sunday he still needs to do plenty of work to come
through with a promised change in the capital gains tax and
would not commit to the measure in the next budget.
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The minority Conservative government promised in the
election campaign to change the capital gains tax so that
Canadians could defer payment if they reinvested profits from
the sale of assets within six months.

"It's not easy to design a system that will not be quite
leaky, or that will require a great administrative burden on
either tax payers or the government or both," Flaherty told the
Canadian Institute of Mortgage Brokers and Lenders after a
speech in Montreal. "So it needs some work."

When asked by reporters whether the difficulties meant the
measure might not be in the spring 2007 budget, he said: "I
won't speculate, it's an outstanding platform commitment."

Flaherty also said he was considering requests for special
assistance to manufacturers in Quebec and Ontario, who have
been hit by a strong Canadian dollar and growing Asian
competition in the U.S. market. He said any possible measures
would be in the budget.

The finance minister said he was considering revisions to a
Goods and Service Tax (GST) rebate for new housing to make it
more in line with skyrocketing housing prices, especially in
British Columbia and Alberta. But again, he made no promises to
include this in next year's budget.

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