On March 22, 2017, Minister of Finance Bill Morneau tabled the 2017 Federal Budget entitled “Building a Strong Middle Class” (the “Budget”). As is often the case, there was much speculation regarding the Budget, both with respect to how the Liberal Government might react to predictions about lower tax rates in the United States and specifically concerning the taxation of capital gains.
As it turned out, the Budget did not introduce any major changes to our tax system, did not affect the taxation of capital gains, nor did it modify income tax rates. The Budget does, however, describe a further study that is underway to “ensure a fair and efficient tax system” by examining the use of private corporations as a planning tool, particularly for income splitting, earning investment income and converting investment income into capital gains.
From a fiscal perspective, the Budget projects the 2017 deficit to be $27.8 Billion (slightly larger than was forecasted in the Fall), the 2018 deficit to be $25.9 Billion to be followed by additional significant deficits through 2021.
Our summary of the tax highlights contained in the Budget follows.
- International Tax Measures
- Business Income Tax Measures
- Personal Income Tax Measures
- GST/HST Tax Measures
- Other Measures
- Previously Announced Measures
Those who are interested in reading about Charities and Not-for-Profit sections of the Budget may wish to consult our Social Impact group’s Special Budget Edition newsletter.
Miller Thomson’s National Tax Group
With a team of over 50 lawyers spanning our national offices, our Tax Law Group is one of the largest in the country, consistently providing strong legal advice, representation and cost-effective solutions to clients on a wide array of tax topics.
Our areas of expertise include Corporate Tax, Sales Tax, Customs & International Trade, Tax Litigation, Charities & Not-For-Profit, and Private Client Services. Contact a member of our team for more information on our services.
