![]() 2023 FEDERAL BUDGET
@ your fingertips |
There are proposals in the recent Federal Budget that are important to you, your family and your business. Here’s |
Highlights |
Budget Proposal |
Implication of Change |
Intergenerational business transfer |
Provide taxpayers with two options:
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Shut down loopholes left in Bill C-208 Prevent conversion of dividends to capital gains, aka surplus stripping without genuine transfer of business between family
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Employee Ownership Trusts (EOTs) |
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EOTs may be an attractive option for succession planning given that up to 75% of small business owners plan to retire in the next decade |
General Anti Avoidance Rule (GAAR) |
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Introduces more clarity and broadens potential transactions caught by the rule |
Healthcare
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Start providing dental coverage for uninsured Canadians with annual family income of < $90,000 |
Automatic tax filing |
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An effort to increase the eligible number of low-income taxpayers who file their annual tax returns for automated service |
Alternative Minimum Tax (AMT) |
Increasing AMT rate from 15% to 20.5%
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Energy transition |
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Tax credits for:
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Registered Disability Savings Plan (RDSP) |
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Broaden definition of “qualifying family member” to include an adult brother or sister of the beneficiary Will enable a sibling to establish an RDSP for an adult with mental disabilities |
Registered Education Savings Plan (RESP) |
Increase withdrawals
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Proposed changes so divorced and separated parents can open joint RESPs for their children |
“Grocery rebate” |
One time payout:
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Not tied to actual grocery bills; administered through GST rebate system |
Helping the Trades |
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10% or more of the total labour performed by Red Seal trades to be performed by registered apprentices |
Talk to your advisor for more advice and information on managing your finances.
Source: A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future, Federal Budget 2023
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April 2023