2016 federal budget analysis (podcast)

The Federal Liberals presented their first Federal Budget in the House of Commons yesterday (March 22, 2016).  The budget announced spending for aboriginal communities and infrastructure, as well as making good on their election promise to revamp the tax credits available for middle-class families with children.

The larger than expected deficit inherited from the former Conservative government, a slower than expected economy and their election spending promises has the 2016/2017 deficit coming in at just under $30 billion.  This is significantly greater than their election promises of a $10 billion deficit.  Finance Minister Morneau indicated that despite the deficit spending, the size of the debt will shrink as a percentage of the overall economy over the coming years.

Our podcast provides details on a number of budget announcements, including:

• Changes to the Canada Child Benefit;
• Elimination of the Education and Textbook Tax Credit;
• Elimination of the Children’s Fitness and Arts Tax Credit;
• Support for Clean Energy;
• Life Insurance Policies;
• Eligible Capital Property;
• Small Business Deduction;
• Country-by-Country Reporting with respect to Transfer Pricing;
• Treaty abuse measures;
• Spontaneous Exchange of Tax Rulings; and
• Automatic exchange of Information with Foreign Jurisdictions.

 

Listen to our 2016 Canadian Federal Budget Podcasts

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Part 1: Introduction by Gordon Jessup   (download)

On March 22, 2016 the Federal Liberals presented their first budget. The budget announced spending for aboriginal communities and infrastructure, as well as making good on their election promise to revamp the tax credits available for middle-class families with children. Included in the budget were a number of tax changes, which we are covering in our podcast series.

 

 

Part 2: Notable Business Tax Changes – Life Insurance Policies, Eligible Capital Property and Emission Trading Regime by Andy Yap   (download)

The 2016 Canadian Federal Budget announced changes to life insurance policies that extract funds tax-free from a private corporation or partnership, proposed changes to eligible capital property, and introduced specific rules to clarify the tax treatment of emissions allowances and to eliminate the double taxation of certain free allowances under the Emission Trading Regime.

 

 

Part 3: Personal Tax Changes by Derek Wagar   (download)

We will cover some of the personal tax changes the 2016 Canadian Federal Budget announced, as well as a few of the anticipated changes that were not announced.

 

 

Part 4: International Tax Measure – Base Erosion and Profit Shifting by Frank Casciaro   (download)

The 2016 Canadian Federal Budget announced measures that allow the Canadian government to address base erosion and profit shifting in order to fulfil their objective of ensuring the integrity of the Canadian domestic and international tax base.

 

 

Part 5: Changes to the Small Business Tax Rate  by Gordon Jessup   (download)

The 2016 Canadian Federal Budget announced that the small business tax rate will remain at the current rate of 10.5%. This defers legislated reductions for 2017, 2018 and 2019.  Consequently, the dividend tax credit changes will also be deferred to maintain the integration of our personal and corporate tax systems.