Stikeman Elliott's Tax Group has prepared an analysis and commentary on the tax provisions of the 2015 Federal Budget.

HIGHLIGHTS

Business Income Tax Measures

  • Introducing legislation to combat synthetic equity arrangements and capital gains strips
  • Helping small businesses by reducing the small business tax rate from 11% to 9% by 2019

International Tax

  • Withholding exemption for non-resident employers
  • Streamlining reporting requirements for foreign assets
  • Captive insurance
  • Update on tax planning by multinational enterprises
  • Update on the Automatic Exchange of Information for tax purposes

Charities

  • Creating an exemption from capital gains tax in respect of certain dispositions of private corporation shares and real estate where the proceeds are donated to charity
  • Allowing registered charities to invest in limited partnerships
  • Allowing gifts to foreign charities

Personal Income Tax

  • Doubling the TFSA annual contribution limit to $10,000
  • Changing to the minimum withdrawal factors for RRIFs
  • Increasing the Lifetime Capital Gains Exemption for qualified farm or fishing property to $1,000,000
  • Introducing a new Home Accessibility Tax Credit
  • Alternative arguments in support of assessments

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.