On March 22, 2017, Canada’s Finance Minister Bill Morneau tabled the Liberal Government’s Federal Budget 2017, Building a Strong Middle Class, which includes various measures affecting businesses.
The federal budget 2017 is modest and is focused on skills training, innovation and how Canada will promote sustainable growth. The government is forecasting a deficit of $28.5-billion, up from $27.8-billion. New revenue measures are expected to generate a total of $4.7 billion over the next five years. They include: modest tax increases on tobacco and alcohol, closing some corporate tax loopholes and eliminating some tax deductions.
Although widely rumored, federal Budget 2017 does not contain any changes to income tax rates or the capital gains inclusion rate.
The government continued with its plan of closing down perceived tax loopholes and inequalities in the tax system. Some of the measures include:
- Extending to Registered Education Savings Plans and Registered Disability Savings Plans