Canada: Anticipating tax measures in new government’s first federal budget

Canada: Anticipating tax measures in federal budget

Canada’s Finance Minister is expected to deliver the new Liberal government’s first federal budget soon, 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).

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The new government has already moved quickly after the October 2015 federal election to implement some key platform promises. These measures include the promised high-profile individual (personal) tax rate changes, including increasing the top marginal tax rate and reducing the rate in the middle tax bracket for 2016.  

The 2016 federal budget is expected to 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. 


Read a February 2016 report [PDF 84 KB] prepared by the KPMG member firm in Canada: 2016 Federal Budget—What Tax Changes are in Play?

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