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ARTICLE · 28 FEBRUARY 2018

2018 Federal Budget: Tax Highlights

Davies Ward Phillips & Vineberg LLP
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As anticipated, today's federal budget (Budget 2018) focuses on a few targeted areas, including the taxation of passive investments made by private corporations, and does not contain...

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R. Ian Crosbie
R. Ian Crosbie
Brian Bloom
Brian Bloom
Marie-Emmanuelle Vaillancourt
Marie-Emmanuelle Vaillancourt
Elie Roth
Elie Roth
Raj Juneja
Raj Juneja
Michael Kandev
Michael Kandev
Paul Lamarre
Paul Lamarre
Christopher Anderson
Christopher Anderson
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John Lennard
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As anticipated, today's federal budget (Budget 2018) focuses on a few targeted areas, including the taxation of passive investments made by private corporations, and does not contain any measures in response to the enactment of tax reform in the United States or relating to the OECD BEPS initiative. Significantly, Budget 2018 substantially narrows the scope of the Department of Finance's 2017 passive investment proposals. The 2017 proposals were exceedingly complex, and effectively proposed a punitive tax on income generated from investments made using after-tax business earnings of a private corporation. Budget 2018 presents a much simpler set of proposals.

The principal tax changes announced in Budget 2018 of interest to the business community are summarized below.

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