milimad.blogg.se - Federal budget 2021

#FEDERAL BUDGET 2021 FULL#

The CEWS and CERS programs have been extended to September 2021.Although widely speculated, there were no increases to the capital gains inclusion rate from its current 50% inclusion rate, no introduction of a wealth tax and no changes to the current principal residence exemption.

There are no personal tax or corporate tax rate increases or reductions with the exception of proposed 50% corporate tax rate reductions for certain “green businesses”.

And while these measures seem generous, they will undoubtedly be distortive to the luxury goods market.įor those that are not interested in reading the entire blog, below is an executive summary of the tax measures relevant to our clients: This time around it seems that, as discussed further below, if your new yacht costs less than $250,000 or your new car less than $100,000, well, then you are clearly middle class as you will not be affected by the new so-called luxury tax which will otherwise apply to these goods. The Liberals have again styled the 2021 budget for “middle class” Canadians, a term which has notoriously gone undefined in years past. In our view, Part 2 should include an announcement of long overdue comprehensive tax review and reforms however, we are not optimistic on this front. While we are grateful that all tax planning opportunities continue to apply for now, and we would most certainly not welcome these potential Part 2 budget changes, clearly something will need to be done to support the spending spree announced yesterday. Items that we expect to be included in Part 2 of this budget may include an increase in the capital gains inclusion rate, changes to the principal residence exemption, increases to personal and corporate tax rates, restrictions to planning measures commonly used by Canadians, as well as the introduction a wealth tax.

#FEDERAL BUDGET 2021 FULL#

It appears that the tax hikes that we know must inevitably follow a budget so full of election goodies will effectively be Part 2 of a budget to be released after the expected upcoming election. Part 1 is a pre-election announcement of large spending initiatives and a lot of consultations. Accordingly, when choosing the title of our firm’s 2021 budget blog, we decided to mostly recycle our 2019 title with a slight modification.Įffectively what we got on Apseems to be a work-in-progress with Part 1 of what will effectively be a two- part budget. Tax measures in the budget are, overall, rather benign to the average person notwithstanding there are some interesting proposals that we discuss below. Somehow the federal government is happy that its deficit for last year is less than $400B while the projected deficit for 2021-2022 will continue to be high at $154.7B – a staggering number. The 2021 budget turned out – again – to be a massive spending budget. The last time our firm wrote about a federal budget was Maand the title of our budget blog was 2019 Federal Budget – Spend, Spend, Spend, With No Real Competitiveness Measures.

(Whatever happened to the sacrosanct concept of budget secrecy and who was the source(s) of these inappropriate leaks? Will this be investigated?). However, the night before, news services Reuters and the Globe and Mail released very detailed content about what to expect and such predictions from “sources” largely turned out to be correct. With a record 25 months between budgets, there was no shortage of predictions about the content. On April 19, 2021, the Federal Government released its long-awaited budget.