Majority government may bring significant changes to the tax system
Feb 29, 2012, 17:02 ET
KPMG on The Hill when budget drops
TORONTO, Feb. 29, 2012 /CNW/ - With a Harper majority government in power, this could be a big year for changes to the tax system, KPMG predicts. Budget day is now set for March 29 and may bring potential cuts to government programs, including the retirement income system, Old Age security and R&D tax incentives.
"Prime Minister Harper's recent message in Davos on science and technology leads us to believe we could see significant changes to R&D tax credits," says Elio Luongo, Canadian Managing Partner, Tax with KPMG in Canada. "The Jenkins report calls for more direct funding through targeted grants and incentives, a move that will change the current tax credit program with a view to better results."
What to expect
This year's Finance Committee's report, Staying Focussed on Canadian Jobs and Growth highlights additional 2012 budget considerations:
- Business tax changes: a stronger focus on international competitiveness, including potential new rules for the taxation of corporate groups and continuing tax incentives for Canada's traditional industries like mining, forestry and manufacturing
- Personal tax changes: stronger support for charitable giving, reduced personal taxes through income splitting and increased TFSA contribution limits and additional tax support for skilled workers, retirees and family businesses
- Expert panels convened by the government to review, modernize and simplify the federal corporate tax and personal tax systems
KPMG on the Hill
KPMG will be on the front lines come Budget day. Whatever tax changes are announced, KPMG will provide commentary and explain the Budget's impact and ways to take advantage of new opportunities. Budget highlights will be made available late afternoon on Budget day. Details will be made available at www.kpmg.ca.
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 145,000 professionals, in 152 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.
For further information:
Senior Manager, Media Relations
KPMG in Canada
Manager, Media Relations
KPMG in Canada
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