On June 6, 2011, the Canadian federal government tabled a budget containing the same income tax measures as in its budget delivered on March 22, 2011. There have been no substantive changes, and announced measures generally retain the effective dates announced in the original March 22, 2011, budget. Click here for Norton Rose's original summary of these income tax measures.

The June 2011 Budget also contains several notable non-income tax measures:

  • the House Standing Committee on Finance will be asked to undertake a study of charitable donation incentives in the first session of this Parliament;
  • a provision has been made in the 2011– 2012 fiscal year for $2.2 billion to be paid to the province of Quebec, provided there is a satisfactory agreement between the federal and Quebec governments on sales tax harmonization which, the Government announced in the Throne Speech delivered on June 3, 2011, should be reached by September 15, 2011;
  • as had previously been proposed, the Government announced the phase-out of subsidies for political parties; and
  • the Government's updated forecast for eliminating the federal deficit projects that the federal government will be in surplus by 2015–16.

We expect that the bill containing the measures set out in the June 2011 Budget will not be introduced in the legislature until the fall.

Norton Rose OR LLP

Norton Rose OR LLP is a member of Norton Rose Group, a leading international legal practice offering a full business law service to many of the world's pre-eminent financial institutions and corporations from offices in Europe, Asia Pacific, Canada, Africa and the Middle East.

The Group's lawyers share industry knowledge and sector expertise across borders to support clients anywhere in the world. The Group is strong in financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and pharmaceuticals and life sciences.

Norton Rose Group has more than 2600 lawyers operating from 39 offices in Abu Dhabi, Amsterdam, Athens, Bahrain, Bangkok, Beijing, Brisbane, Brussels, Calgary, Canberra, Cape Town, Dubai, Durban, Frankfurt, Hamburg, Hong Kong, Johannesburg, London, Melbourne, Milan, Montréal, Moscow, Munich, Ottawa, Paris, Perth, Piraeus, Prague, Québec, Rome, Shanghai, Singapore, Sydney, Tokyo, Toronto and Warsaw; and from associate offices in Dar es Salaam, Ho Chi Minh City and Jakarta.

Norton Rose Group comprises Norton Rose LLP, Norton Rose Australia, Norton Rose OR LLP, Norton Rose South Africa (incorporated as Deneys Reitz Inc), and their respective affiliates.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.