The Liberal government’s first budget, Growing the Middle Class, was delivered Tuesday by the Honourable Bill Morneau, Minister of Finance.
From a tax perspective, the budget emphasizes the government’s commitment to prevent tax evasion and forward tax planning; to make the system “more fair”; and to provide the Canada Revenue Agency with more resources to administer and enforce tax laws. Several tax planning opportunities and tax credits have been eliminated.
Among other things, the budget proposes:
1) to make it more difficult for certain corporations to qualify for the Small Business Deduction;
2) to replace the Child Tax Benefit and Universal Child Care Benefit with a new Canada Child Benefit, with a maximum benefit of $6,400 per child under the age of 6 and $5,400 per child age 6 through 17;
3) to restore to 65 the age for beginning to receive Old Age Security;
4) to eliminate the income splitting tax credit, to maintain pension splitting;
5) to eliminate Children’s Fitness and Arts Credits; and
6) to increase Canada Student Grants by 50%.
Click here to read the summary.