Thankfully, after reviewing the 2017 Canadian Federal Budget, there is not a lot to report. This reminded us of the Wendy’s commercial from 1984 that many of us remember with its popular catch phrase, where’s the beef? (See commercial here)
Most notable are the things that did not change in this years proposed budget which include:
- No change to the capital gains inclusion rate which still stands at 50%
- No change to the stock option deduction which remains at 50%
- No change to the taxation of private corporations
- No change to dividend tax rates
- No change to personal income tax rates. For BC residents, our highest marginal tax bracket is now the lowest in the country at 47.7%. That’s right….the lowest at 47.7%!
All of these things had been talked about as areas that the government might change and we are pleased that most were untouched for now.
When announcing the budget, Mr Morneau did mention that plenty of work is being done to investigate a few key areas of possible change. One of those areas was the tax treatment of private corporations which has the potential to be quite extensive. For anyone who owns a business structured as a private corporation, keep your eyes and ears open for further developments in the coming months.
For those of you who are interested in a deeper dive into the content of the budget click here for an update from Jamie Golombek of CIBC wealth strategies.
As always, if you have any comments or questions, please give us a call.