TORONTO, March 3, 2016 /CNW/ - The new Liberal government is set to deliver the federal budget on March 22, 2016, and KPMG expects that the budget will unveil significant changes that will impact both individuals and businesses across the country. KPMG tax professionals across Canada are available pre-budget and on budget day for comment.
What changes Canadians can expect?
- Stock Option Deductions – the Liberal party's election platform states it will 'set a cap on how much can be claimed through stock option deduction'; however, 'employees with up to $100,000 in annual stock options gains will be unaffected by any new cap'. The federal government may look to Quebec's tax treatment of stock options as it considers potential changes which only allows a general 25 per cent deduction for qualifying stock option benefit but allows a 50 per cent deduction for employees of innovative small and medium sized companies.
- Small Business Income – the party's election platform said 'we will ensure that CCPC status is not used to reduce personal income tax obligations for high-income earners rather than supporting small businesses.' The new government could change the rules determining what types of income qualify for this small business tax rate.
- International Tax Measures – Canada has supported the OECD's Action Plan on the Base Erosion and Profit Shifting (BEPS) since this initiative began. The new government has yet to make comprehensive statements on the specifics of how Canada will support this initiative in the future. This year's budget may mention how the new government will amend domestic laws and tax treaty network to keep in step with the G-20 countries supporting this initiative.
With a deep understanding of Canadian business and the economy, KPMG professionals can provide perspective and insight to help Canadian businesses navigate the complex themes expected in the 2016 federal budget.
KPMG tax professionals across Canada are available to provide regional insight leading up to the federal budget. With 34 locations across Canada, our regional leaders are available to comment on the budget's local impact for Canadians and their businesses.
Budget Day Commentary
KPMG tax professionals will be on the Hill, providing insight and commentary about the impact of the 2016 budget on individuals and businesses in Canada. Highlights will be available late in the afternoon on budget day at kpmg.ca/budgets.
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 174,000 professionals, in 155 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: Tonique Bedeau, National Manager, Communications, KPMG in Canada, 416.777.3241, [email protected]