On Tuesday March 22nd, the Federal government released its much-anticipated 2016 Federal Budget. On the heels of a Justin Trudeau and Liberal government victory, high net worth Canadians have been wondering how this government’s budget and future deficits would affect them personally.
At HighView, we have reviewed the budget and wish to share some of the key changes that high net worth clients and business owners must plan for with the help of their professional advisors:
Personal Tax Measures
- Elimination of income splitting tax credit.
- Elimination of the proposed donation of private company shares and real estate.
- Elimination of the advantage of corporate class funds (or “Switch Fund Shares”).
- Old Age Security moving back to 65 (not 67).
Business Income Tax Measures
- Small business tax rate.
- Small business deduction restrictions.
We also discuss a few tax bullets high net worth Canadians dodged in the new budget.
Watch our video to learn more details about these issues and how they may affect you.