KPMG on The Hill on March 21
TORONTO, March 14, 2013 /CNW/ - With a goal to balance the books by
2015, the Conservative government is expected to stay the course in its
approach to the federal budget this year, KPMG predicts.
Budget day is now set for March 21 and will likely bring more measures
to close "tax loopholes" like the ones the government introduced in the
previous two years' budgets. For example, the 2012 budget included new
rules affecting multinational corporations, while measures in the 2011
budget affected corporate partnerships and some people's RRSPs. Since
these changes can touch such a broad range of corporations and
individuals, it's difficult to predict who might be affected by new
"tax integrity" provisions in this year's budget.
The budget could also include further streamlining and improving of the
SR&ED tax incentive program. Based on recommendations from the October
2011 Jenkins report, "Innovation Canada: A Call to Action", these improvements could include the government implementing its
commitment to direct savings generated by previous changes to support
innovative private-sector businesses.
"I don't expect we are going to see any wide-ranging tax measures
announced in the budget this year," says Elio Luongo, Canadian Managing Partner, Tax, KPMG in Canada. "Given the
government's plans to balance the budget in the next few years, we
don't anticipate any major increases in spending. But the federal
government has publicly stated that they plan to introduce more
measures to close 'tax loopholes'—so we should brace ourselves for a
few announcements with that in mind."
What to expect
This year's report by the House of Commons Finance Committee, Jobs, Growth, Productivity and Demographic Change: Challenges and
Opportunities for Canada, highlights additional 2013 budget considerations:
Business tax changes: improve the SR&ED tax incentive program to offer more direct support
to innovative private-sector businesses; explore expanding the
accelerated capital cost allowance to encourage construction of
domestic infrastructure in the oil and gas sector.
Personal tax changes: continue to implement pooled retirement pension plans; examine tax
provisions in relation to estate and succession planning and their
impact on the transfer of family owned businesses; explore tax
incentives to assist skilled workers and their mobility in an effort to
support skilled trade in Canada.
Charities and NPOs: changes to the tax credit for charitable donations to facilitate greater
charitable giving; eliminate or lower capital gains tax on charitable
donations of real estate and similar property and the shares of private
The Finance Committee also recommends that the government find ways to
simplify the Income Tax Act, and establish a commission to undertake a
comprehensive review of the tax system to ensure its fairness and
neutrality by closing "loopholes" that allow Canadians to avoid paying
KPMG on the Hill
KPMG will be on the frontline on budget day to provide commentary and
explain the budget's impact. Budget highlights will be made available
late afternoon on budget day. Details will be made available at www.kpmg.com/ca/budget2013.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian
limited liability partnership established under the laws of Ontario, is
the Canadian member firm of KPMG International Cooperative ("KPMG
International"). KPMG member firms around the world have 152,000
professionals, in 156 countries.
The independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss entity. Each KPMG firm is a legally
distinct and separate entity, and describes itself as such.
SOURCE: KPMG LLP
For further information:
and to arrange a pre-budget interview, please contact:
KPMG in Canada
KPMG in Canada