• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/2/2014

Canada - Tax proposals in Ontario’s 2014 budget 

May 2:  Ontario Finance Minister on 1 May 2014 delivered the province's 2014 budget that proposes:
  • An increase on individual (personal) income tax increase on taxable incomes above $150,000
  • A phase out or repeal of the small business deduction for certain large Canadian-controlled private corporations (CCPCs)
  • A new Ontario Retirement Pension Plan

The budget also proposes amendments to require corporations in Ontario to disclose aggressive tax avoidance transactions to the federal Minister of National Revenue, parallel to the federal rules on reportable transactions.

Ontario will continue to review R&D tax credits and training tax incentives, as previously announced in the 2013 Economic Update.

Concerning indirect taxes, the budget proposes:

  • To increase the tobacco tax
  • To increase the tax on aviation fuel
  • To introduce a general anti-avoidance rule to the land transfer tax
  • New registration and licensing requirements on road-building machines (i.e., mobile cranes, concrete pumpers and hydrovacs) that use public roads and highways

Read a May 2014 report prepared by the KPMG member firm in Canada: Highlights of the 2014 Ontario Budget

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