Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/31/2014

Canada - Royal Assent of Ontario’s budget bill, tax measures 

July 31: Legislation enacting tax measures contained in Ontario’s budget bill received Royal Assent on 24 July 2014.

Bill 14 received its first reading on 14 July 2014 (Ontario has a majority government) and includes measures that:


  • Phase out the small business deduction for large CCPCs
  • Introduce amendments to allow Ontario to require corporations in Ontario to disclose aggressive tax avoidance transactions
  • Introduce a general anti-avoidance rule to the Land Transfer Tax Act

Bill 26 received first reading on 24 July 2014 and contains tax measures to:


  • Increase individual (personal) income tax on taxable incomes above $150,000*
  • Reduce the taxable income threshold for the 13.16% tax rate to $220,000 (from $514,090)
  • Add a new tax rate of 12.16% on taxable income between $150,000 and $220,000

These changes apply to tax years ending after 31 December 2013. The new income thresholds will not be adjusted for inflation each year.


Read a July 2014 report prepared by the KPMG member firm in Canada: 2014 Ontario Budget Bill Receives Royal Assent




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