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2016 Canadian Federal Budget 

How will the 2016 budget affect you and your business?

 

The Federal Budget was tabled on March 22, 2016. The Tax professionals at KPMG were there to provide you with timely insights.

2016 Canadian Federal Budget

Highlights from the 2016 Federal Budget:

 

  • The budget expects a deficit of $5.4 billion for fiscal 2015-2016 and forecasts a deficit of $29.4 billion for 2016-2017
  • Major tax changes from the budget include:
    • The elimination of certain tax credits such as income splitting for couples with children, the Child Fitness Tax Credit, the Children’s Art Credit and the Education Tax Credit and Textbook Tax Credit
    • A new Canada Child Benefit was introduced
    • Small business tax rate was kept at 10.5% on the first $500,000 of business income
    • New tax rules were proposed to limit cross-border paid-up capital (PUC) increases, extend the “back-to-back” loan rules and implement country-by-country reporting

 

For more detailed information on these tax changes, please read our 2016 Federal Budget Highlights TaxNewsFlash.

 

More Budget News:

 

Provincial Budget Updates

 

Private Company Tax Changes from the 2016 Federal Budget

 

Real Estate Industry – Prepare for 2016 Federal Budget Measures

 

Federal Budget Restricts Diesel Fuel Excise Tax Relief

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Elio Luongo

Elio Luongo

Canadian Managing Partner, Tax

416-777-3586

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