The 2017 Federal Budget (the “Budget”) was released March 22nd, 2017 (“Budget Day”). Highlights include:
Upcoming Review of Private Corporate Tax Planning
The Budget announced that the federal government will be looking into:
- Income sprinkling using private corporations: The Budget states that this strategy can reduce income taxes by causing income that ...
Business
Corporate Tax Rate
The small business corporate income tax rate will be reduced from 2.5% to 2% effective April 1, 2017. This means that the combined Federal and Provincial tax rate for small business income, up to $500,000 per year, will be 12.5% in British Columbia (subject, of course, to any changes coming in the Federal Budget).
The Government projects this ...
The 2016 Federal Budget was released March 22nd. The overarching theme is to provide increased benefits and relief to middle-class individuals and to close or restrict cross-border tax planning. Highlights include:
Income Tax
Increased Individual Marginal Tax Rates
As part of Bill C-2 tabled on December 9, 2015, the federal government announced an increase to the top ...
Introduction
In its recent decision in Minister of National Revenue v. BP Canada Energy Company, the Federal Court of Canada considered the Minister’s ability to compel BP to provide its tax accrual working papers pursuant to the Minister’s inspection powers in subsection 231.1(1) of the Income Tax Act. The decision in favour of the Minister signals a ...
The BC Budget (tabled on February 17, 2015) contained no major announcements and no general corporate or personal tax rate changes. Nonetheless, it provides opportunity for personal tax planning for high rate tax payers, and extends useful assistance to early stage businesses in BC.
Personal
The combined top rate of BC tax is 45.8% (16.8% of BC tax + 29% of Federal tax). The ...
On September 26, 2013 the Supreme Court released its decision in the Envision[1] case. The case deals with the amalgamation of two credit unions, but has broader implications for the tax treatment of amalgamations in Canada, and will be of interest to Canadian corporations contemplating a merger in the future.
In 2001, two BC credit unions amalgamated to form Envision. The ...
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