February 10, 2016, No. 2016-07. Finance Minister Bill Morneau is soon expected to deliver the new Liberal government’s first federal budget, although no date has yet been announced. This budget will be closely watched to see which of the tax changes the Liberal party proposed during the election campaign will be included. Many businesses are especially interested in hearing about the new government’s plans for changes to the stock option tax regime and potential tax changes for the business income of Canadian-controlled private corporations (CCPCs).
The new government has already moved quickly after the October 19, 2015 federal election to implement some key platform promises. These measures include the promised high-profile personal tax rate changes, including increasing the top marginal tax rate and reducing the rate in the middle tax bracket for 2016. To fulfill its promise on these tax rates and to roll back the Tax-Free Savings Account (TFSA) contribution limit to $5,500 for 2016, the new government introduced Bill C-2 on December 9, 2015.
The 2016 federal budget should provide an update on the status of the remainder of the Liberal party’s election promises, including tax measures affecting individuals, small businesses, charities and multinational corporations.
Download this edition of the TaxNewsFlash to learn more [PDF 83.5 KB]
Information is current to February 9, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.