Grant Thornton LLP releases budget summary
TORONTO, March 29, 2012 /CNW/ - Today, Canadian Finance Minister, the Honourable James M. Flaherty, presented the first budget of the Conservative majority government; his objective is to generate a $3.4 billion surplus as of 2015-2016.
Grant Thornton LLP has released a detailed summary of the tax measures that were announced in this budget, noting:
- Spending cuts will achieve savings of about $5.2 billion, representing less than 2% of program spending in 2016-17 or 0.2% of Canada's GDP that same year.
- Compared with other G7 members, Canada has fared well, despite the debt crisis and European banking crisis that continue to undermine the world economy. While Canada expects modest growth in the short term, the government has chosen to support business and entrepreneurs directly by encouraging innovation and prosperity.
- To support research, innovation and entrepreneurship, the 2012 economic action plan will provide $1.1 billion over five years in direct research and development support and $500 million in venture capital. However, the significant Scientific Research and Experimental Development (SR&ED) Tax Incentive Program will unfortunately see a $1.33 billion reduction in business credits over five years. The SR&ED measures are summarized in this document.
- Other measures include $165 million over two years for natural resource development, and a streamlined review process for major economic projects in order to reduce red tape, encourage investors and contribute to the economic viability of major projects.
- One measure that affects all Canadians is the gradual increase of the Old Age Security age of eligibility from 65 to 67 for anyone born after March 31, 1958.
Journalists who have questions about changes to SR&ED, or who would like informed commentary and analysis on any aspect of the 2012 federal budget, are invited to speak with a Grant Thornton practitioner.
For general tax commentary on the federal budget, Gary Dent, National Tax Leader for Grant Thornton LLP, is available from Toronto. Grant Thornton also has local tax experts across the country.
In Toronto, Brian Leve is a tax partner with a specialty in SR&ED, and his credentials are an impressive trifecta —he is a chartered accountant, a lawyer, and he has an MBA. He has had a professional focus on SR&ED for over ten years, and is responsible for supporting SR&ED clients throughout Southern Ontario.
In Western Canada, Edmonton-based Ken Douglas has a Master of Engineering and an MBA, and has over 15 years of engineering, project management, research and development and SR&ED experience in a variety of industries, including several years as an engineer in the oil and gas and marine construction industries. He also spent five years as a research and technology advisor with Canada Revenue Agency's SR&ED Program, where he was involved with program delivery, taxpayer education and review of SR&ED claims.
In Eastern Canada, Halifax-based Britta Fiander has a Bachelor of Metallurgical Engineering, and is a licensed Professional Engineer in the provinces of Nova Scotia and New Brunswick. She has over ten years of experience in research and development, including five years as a SR&ED practitioner.
Click here to view a detailed summary of the tax measures that were announced in this budget.
Note to editors
Grant Thornton will be hosting a free budget webinar at 1 pm ET on April 2.
For further information:
to arrange to speak with a tax or SR&ED expert
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