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2013 Federal Budget Highlights 

By Deb MacPherson, KPMG Enterprise
Thurs, March 21, 2013 @ 5:00 PM


Finance Minister Jim Flaherty delivered Canada's 2013 federal budget earlier today, March 21, 2013. Members of the KPMG National Tax Centre attended the budget lock-up in Ottawa and have prepared a special edition of TaxNewsFlash-Canada summarizing the announced tax changes.


For highlights of tax measures in the budget, see this edition of TaxNewsFlash-Canada.


Budget measures of particular interest to private companies and their owners are: 

  • Changes to the non-eligible dividend tax rate such that the federal tax rate is increased to 21.22% (from 19.58%) for 2014 
  • An increase to the lifetime capital gains exemption to $800,000 (from $750,000) effective for 2014 
  • An extension for another year of the $1,000 Hiring Credit for Small Business 
  • Rules that will deny the tax benefits associated with two types of leveraged life insurance arrangements – Leveraged Insured Annuities and 10/8 Arrangements 
  • A phase-out of the federal Labour-Sponsored Venture Capital Corporations tax credit such that it will be completely eliminated by 2017.



Deborah A. MacPherson



Deb MacPherson is a partner with KPMG Enterprise in Calgary. 


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