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.