May 11, 2015 Monday Morning Learning and Growth, 2015 Budget Announcements
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Transcript of May 11, 2015 Monday Morning Learning and Growth, 2015 Budget Announcements
Monday Morning Learning and Growth
Presented by Jesse Dunnon May 11, 2015
2015 Federal and Provincial Budget Announcements
© Deloitte LLP and affiliated entities. 1
2
Presentation Outline
© Deloitte LLP and affiliated entities.
What We’ll Be Discussing Today
Presentation Purpose
2015 Federal Budget
2015 Ontario/Québec Budgets
Other Budget
Highlights
3© Deloitte LLP and affiliated entities.
Presentation Purpose
Presentation Purpose
4© Deloitte LLP and affiliated entities.
Objective and Scope
To provide a high-level overview of the most relevant 2015 budgets
ObjectiveDeloitte budget summaries (available online)
Scope
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Presentation Purpose (cont’d)
© Deloitte LLP and affiliated entities.
Pedagogical Method and Structure
Fed./Prov. Budget
Contextual overview
Measures for
businesses
Measures for
individuals
Other measures
6© Deloitte LLP and affiliated entities.
2015 Federal Budget
2015 Federal Budget
7© Deloitte LLP and affiliated entities.
A Contextual Overview
Contextual Overview of Budget
2015
Maintain balanced budget
Measures for families
Measures for innovation and infrastructure
Cross-border investment relief
2015 Federal Budget (cont’d)
8© Deloitte LLP and affiliated entities.
Measures for Businesses
SMB Tax RateReduce small business tax rate from 11% to 9%
by 2019
Income DefinitionReview definition of active v. investment
income for purposes of the SDB
CCA Class 29 Change to declining balance computation
RemittancesQuarterly remittances for
new employers with < $1,000.00 in withholdings
Anti-Avoidance Rules
Increase the scope of current GAAR
2015 Federal Budget (cont’d)
9© Deloitte LLP and affiliated entities.
Measures for Individuals
Proposed TFSA contribution limit increase to $10,000.00
Increase to lifetime CGE on disposition of qualified farm or fishing property
Non-eligible dividends taxed at higher rates
Amendments to family tax cut with respect to the transfer of education credits
2015 Federal Budget (cont’d)
10© Deloitte LLP and affiliated entities.
Other Measures
Donations
• CGE on cash proceeds from real estate disposition that are donated to a qualified done within 30 days
Employment Insurance
• Reduction of EI premium rate starting in 2017 via a 7-year break-even rate setting mechanism
2015 Federal Budget (cont’d)
11© Deloitte LLP and affiliated entities.
Other Measures (cont’d)
Relief from personal income tax withholding requirements for certain, specific non-residents
Simplified reporting requirement for taxpayers holding specified foreign property < $250,000.00
12© Deloitte LLP and affiliated entities.
2015 Ontario/ Québec Budget
2015 Ontario/Québec Budgets
13© Deloitte LLP and affiliated entities.
2015 Ontario Budget: A Contextual Overview
Contextual Overview of Budget
2015
Decrease in budgetary deficit
Increase infrastructural investments
Focus on employment,
talent, and skills
Ontario pension plan
2015 Ontario/Québec Budgets (cont’d)
14© Deloitte LLP and affiliated entities.
2015 Ontario Budget: Measures for Businesses
Several changes to the Apprenticeship Training tax credit
OIDMTC amended to focus the credit on entertainment and educational products; 80% of labour costs must go to PSBs
Reduction to the OPSTC and the OCASE; elimination of OSRTC
Highest personal income tax rate to be applied to all trusts and estates
2015 Ontario/Québec Budgets (cont’d)
15© Deloitte LLP and affiliated entities.
2015 Québec Budget: A Contextual Overview
Contextual Overview of Budget
2015
Return to balanced budget
No increases in income tax
rates announced
Major cost-cutting
measures
2015 Ontario/Québec Budgets (cont’d)
16© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Businesses
Reduction of the corporate tax rate from 11.9% to 11.4% by 2020
After 2016, only primary/manufacturing sector corp., that employ 3+ individuals will retain SBD eligibility
Gradual reduction of the Health Services Fund contribution for SMBs
Increase to the refundable tax credit for on-the-job training periods
Refundable tax credit for the integration of IT in manufacturing SMBs
2015 Ontario/Québec Budgets (cont’d)
17© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Businesses (cont’d)
Other amended tax credits include:
Refundable tax credit for the production of multimedia titles
Refundable tax credit for the development of e-business
Refundable tax credit for Québec film and television production
… etc.
2015 Ontario/Québec Budgets (cont’d)
18© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Individuals
Health Contribution Will gradually eliminated until complete removal in 2019
“Tax shield”A new refundable tax credit introduced to offset loss of socio-fiscal transfers
Tax Credit for AgeAge tax credit eligibility age will gradually be raised to a minimum of 70 by 2019
Solidarity Tax CreditDetermined on an annual basis, not monthly; paid monthly, quarterly, or annually
2015 Ontario/Québec Budgets
19© Deloitte LLP and affiliated entities.
2015 Québec Budget: Other Measures
General Integrity
Rule Partner./trusts
will be deemed to be corp. for RTCs
Taxable Benefit
Parameters To determine value of an employee
benefit
Broadened Scope
In disclosing aggressive tax
planning schemes
CGE On transfer of qualified agri.,
fishing, primary, and manufact.
corp. shares
20© Deloitte LLP and affiliated entities.
Other Budget Highlights
Other Budget Highlights
21© Deloitte LLP and affiliated entities.
A Look at Other Provincial Budgets
Western provincial budgets focus on decline in oil prices
Provinces with no budgetary changes: Nunavut, NWT, and NS
Credits for seniors: some provinces mirroring federal initiatives
Mode detailed summaries possibly to come on another date
22© Deloitte LLP and affiliated entities.
Today’s Presentation in 30 Seconds
Today’s Presentation in 30 Seconds
23© Deloitte LLP and affiliated entities.
In Conclusion
FederalForeign
specified property relief
OntarioApprenticeship tax credit and
OIDMTC changes
QuébecSMB eligibilityRefundable tax
credits
ElsewhereReaction to decline in oil
prices
24
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