Finance Minister Bill Morneau delivered the government’s 2018 federal budget yesterday. The budget projects a deficit of $18.1 billion for fiscal 2018-19 and was consistent with the government’s key themes of helping middle class Canadians and improving gender equality in the workforce. Although there were no specific proposals, the budget acknowledged the significance of recent US tax reform and the ongoing NAFTA negotiations. Most notably, this budget elaborates on the last leg of the July 2017 proposals which originally contemplated sweeping tax reforms targeting private corporations.
What does it mean to you?
From a personal tax perspective this budget really doesn’t change anything for the majority of us. It sets the stage for future announcements on gender equality in the workforce and helping middle class Canadians but there are no specific action items in either of those camps.
If you own a business, this budget should help you sleep at night. The proposed changes in corporate taxation have been changed drastically from the original proposals. If you were one of the 21,000 submissions to government opposing the changes, well done, your voice was heard! If adopted, the new rules will not affect the majority of corporations in Canada. The new rules continue to allow these businesses to effective plan for both the short-term and the long-term.
For more details, view this piece on the Budget provided to us by Manulife Tax, Retirement and Estate Planning Services.