Minister of Finance Jim Flaherty today tabled the 2014 Federal
Budget (the "Budget") entitled The Road to Balance:
Creating Jobs and Opportunities.We are pleased to provide our
summary of proposed tax measures contained in the Budget.
There were no changes proposed to corporate income tax rates or
to personal income tax rates. There were certain favourable changes
to tax credits available to individuals.
The Federal Government continued its focus on integrity and tax
fairness measures, sometimes described by the Federal Government as
closing tax loopholes, albeit to a lesser extent than in past
years. Some of the proposed measures appear to be based on changed
policy rationale rather than addressing technical deficiencies in
the Income Tax Act(Canada) (the "Tax Act"). The revenues
that are projected to be raised through integrity measures
contained in the Budget total $1.765 billion over the next five
years compared with 5-year revenue projections relating to
integrity measures proposed in the 2013 budget and the 2012 budget
of $6.066 billion and $3.131 billion respectively.
The Budget contains certain proposed and potential upcoming
changes in the areas of international taxation, trusts and the
charitable and not-for-profit sectors. Certain of the proposed
international tax measures specifically target arrangements
perceived by the Federal Government to erode the Canadian tax
From a fiscal perspective, the Budget reports a much improved
budgetary balance than was projected in the 2013 budget. In
particular, the Budget forecasts a deficit of $16.6 billion for
2014 (compared to a 2014 deficit of $18.7 billion that was
projected in the 2013 budget), a deficit of $2.9 billion for 2015
(compared to a 2015 deficit of $6.6 billion that was projected in
the 2013 budget) and a surplus of $6.4 billion for 2016.
Our summary of tax highlights contained in the Budget
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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