On March 28, 2023, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2023 to the House of Commons.
Below we have summarized the key provisions of the budget. Click here to read our full analysis and commentary – 2023 Federal Budget Highlights & Commentary
The budget proposes no changes to personal or corporate tax rates or the inclusion rate on taxable capital gains.
Here are some of the key provisions.
Personal Measures
- Modifications to the alternative minimum tax (AMT) regime focused on high-income individuals effective 2024.
- A one-time grocery rebate for taxpayers who receive GST/HST credits equal to two quarterly GST/HST credit payments.
- Additional flexibility and possibilities with Registered Disability (RDSP) and Registered Education Savings Plans (RESP).
Business Measures
- Modified intergenerational business transfer rules (Bill C-208) to measure activity of the children in the business and add restrictions on the transfer of control, equity ownership and management from the parents to the children.
- Introduction of the employee ownership trust structure to provide a mechanism for business owners to transfer ownership in their private corporations to employee groups.
- Several investment tax credits and other incentives were introduced or modified to encourage investment in clean energy.
- Visa and Mastercard have committed to lower fees for small businesses with potential fee reductions of up to 27%.
Previously Announced Measures
Intention to proceed with previously announced measures including, but not limited to:
- reporting rules for digital platform operators;
- extension of the residential property flipping rule to assignment sales; and
- GST/HST changes in respect of cryptoasset mining.
