Highlights of the 2024 Federal Budget
The 2024 Federal Budget (“Budget 2024”) was presented on April 16, 2024 (“Budget Day”) and introduced a number of tax and non-tax measures to address the rising cost of living in Canada. Non-tax measures include the introduction of a National Pharmacare Plan, a new Canada Disability Benefit, limitations and restrictions on bank fees and measures…
2019 FEDERAL BUDGET
Finance Minister Bill Morneau delivered the Liberal Government’s fourth budget on March 19, 2019 (Budget Day) titled Investing in the Middle Class. The Budget anticipates a deficit of $14.9 billion for 2018-2019 and projects a deficit of $19.8 billion in 2019-2020. There is currently no plan to balance the budget.
The major spending announcements in the budget include amounts for indigenous services for water quality, child welfare, education and other support programs. Also included is a program in which the Canada Mortgage and Housing Corporation will co-own up to 10% of a residence acquired by a first time home buyer. Tax credits of up to $5,000 are also available for the purchase of a zero emission vehicle.
Other measures include increased funding for the Canada Revenue Agency to identify tax avoidance and evasion transactions and making Canadian corporate ownership more transparent.
Budget 2019 also discusses reviewing the tax implications of transferring Canadian businesses to other family members. Currently, it is often more beneficial for a family owned business to sell to an unrelated purchaser than to a family member. Hopefully this inequality is addressed.
The tax changes announced in Budget 2019 include an increase in the amount of money that can be withdrawn from an RRSP under the Home Buyers’ Plan, limiting the stock option deduction for certain employers, fast write-offs for zero emission vehicles and increasing access to the Scientific Research and Experimental Development tax credits.
See all details of the key tax highlights of the budget in the document below.
US TAX REFORM - POTENTIAL FOR A HUGE US TAX BILL IN APRIL 2018
It seems like everyone is against the Canadian business owner these days. First, the Canadian government imposes the new private company income splitting and passive income rules and then the US government imposes new taxes in that country on foreign corporations. As the US taxes its citizens and permanent residents on their worldwide income, Canadian resident US persons that own shares in Canadian corporations may be caught by these new US tax measures.
As part of its Tax Reform, the US government has imposed two new taxes, a “transition tax” and a tax on income earned in a foreign corporation with little tangible assets. The transition tax is the most pressing matter as it potentially imposes a large tax bill due in April 2018. The latter tax is called “GILTI” and we understand it is not effective until the 2018 taxation year.
While the provisions appear to be aimed at multinational corporations, they also affect non-resident US citizens and green card holders.
We are not US tax experts and this Bulletin is only intended to provide awareness of these issues and highlight the possible implications to our clients. It is not intended to be a detailed examination of these provisions nor should it be considered professional advice. We strongly recommend that you discuss these changes with a cross-border expert. We have relationships with cross-border specialists that we will work with to guide you through these new provisions.
Learn more in the document below.
2018 FEDERAL BUDGET
Finance Minister Bill Morneau delivered the Liberal Government’s third budget on February 27, 2018 (“Budget Day”) titled Equity and Growth. The Budget anticipates a deficit of $19.4 billion for 2018-2019 and projects that by 2023 the deficit will drop to $12.3 billion.
The major spending announcements in the budget include amounts for gender equality provisions, indigenous communities and investments in science and innovations.
The tax changes again did not include an increase in the capital gains inclusions rate or the taxation of stock option benefits. Clarifications on plans for the taxation of corporate passive income which are to be effective for taxation years after 2018 were provided. The budget does not include any previously unannounced changes to personal or corporation tax rates or changes enhancing asset tax write-off rates in reaction to recent US tax reform announcements.
Learn more in the document below.
REDEFINING THE TAXATION OF PRIVATE CORPORATIONS
When Finance Minister Bill Morneau delivered the Liberal Government’s second budget on March 22, 2017 it included an announcement that the Department of Finance intended to review various tax planning strategies commonly utilized by private corporations.
2017 FEDERAL BUDGET
Finance Minister Bill Morneau delivered the Liberal Government’s second budget on March 22, 2017 (“Budget Day”).
2016 FEDERAL BUDGET REPORT
Finance Minister Bill Morneau delivered the new Liberal Government’s first budget on March 22, 2016.
2016 ONTARIO PROVINCIAL BUDGET
On February 25, 2016, Ontario’s Finance Minister Charles Sousa delivered this year’s provincial budget. Among some of the significant changes proposed are new grants to cover the tuition costs of post-secondary education for low-income households, new taxes on cigarettes and alcohol and a carbon “cap-and-trade” system as a push towards green initiatives, which is anticipated to increase the cost of gas and heating fuel.