The Minister of Finance for Canada - the Honourable James Flaherty - tabled the Conservative Government's federal Budget 2009 titled "Canada's Economic Action Plan" at 4:00 p.m. this afternoon. Budget 2009 can best be described as the minority Conservative government's attempt to respond to a call by the International Monetary Fund to countries to play their part in addressing the worldwide recession, while at the same time mending fences with the opposition parties at home. The result is a potpourri of action items and themes which include measures to implement a $20 billion dollar tax reduction for Canadians and businesses, enhance benefits and training opportunities for those affected by the economic slowdown and provide funding for perhaps the most ambitious infrastructure project in Canada's history. The government indicated that it is making a deliberate choice to run a substantial short term deficit which it suggests should affect the next five years in order to protect the Canadian economy and invest in the future of all Canadians.
Among the government's initiatives to assist Canadian businesses to remain competitive globally, is the announced repeal of the measures introduced last year which would have had the effect for taxation years after 2011 of restricting certain financing expenses associated with foreign investments by Canadian corporations. The Advisory Panel appointed by the government which issued its report on the Canadian international tax system on December 10, 2008, strongly recommended the repeal of these controversial rules. The government is to be commended on its timely response to this recommendation.
Members of Borden Ladner Gervais National Tax Group attended the budget lock-up in Ottawa. For a more detailed commentary on the Federal Budget 2009 initiatives please click here.
For direct access to the Budget document click here.
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