Canada – Family Tax Cuts Take Effect Now

Canada – Family Tax Cuts Take Effect Now

Prime Minister Stephen Harper announced tax changes that would provide tax savings to families in Canada starting in 2014, including a new “family tax cut” credit, enhancements to the existing child-care expense deduction, universal child-care benefits, and the elimination of the child tax credit starting in 2015.

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Flash Alert 2014-108

Canadian Prime Minister Stephen Harper announced tax changes that would provide tax savings to families starting in 2014.  The introduction of a new “family tax cut” credit would result in income splitting tax savings of up to C$2,000 for families with children under age 18 years. 

The proposals announced on October 30, 2014, also include enhancements to the existing child-care expense deduction, universal child-care benefits, and the elimination of the child tax credit, starting in 2015.

WHY THIS MATTERS

Providing that the international assignee taxpayer working in Canada has a family and children age 17 or under, he or she should be eligible for the above-mentioned new family tax cut credit, child-care expense deduction, and enhanced benefits.

RELATED RESOURCE

For the full description of these changes, read the TaxNewsFlash-Canada (October 30, 2014, No. 2014-46) prepared by the KPMG International member firm in Canada: “Surprise Family Tax Cuts Take Effect Now.”  

CONTACTS

For further information or assistance, please contact your local GMS or People Services professional or the following professional with the KPMG International member firm in Canada:

 

Tom Nicolopoulos

Tel. +1-416-777-3038

tnicolopoulos@kpmg.ca

The information contained in this newsletter was submitted by the KPMG International member firm in Canada.

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