2019 Miller Thomson Federal Budget Review

With the tabling of its federal Budget ("Budget 2019"), the Federal Government (the "Government") has renewed its commitment to "investing" in the Canadian middle class (and in those aspiring to join the middle class). On the tax side, the Government has vowed to further its objective of bringing a greater measure of "fairness" to the Canadian tax system. However, with 2019 being an election year, it is no surprise that the tax changes announced today are modest in comparison to the substantial changes in prior Budgets, which mostly focused on the taxation of Canadian private corporations and their shareholders. Instead, Budget 2019 proposes amendments to certain Canadian tax rules, including to the provisions of the Income Tax Act (Canada) ("Tax Act") and the Excise Tax Act (Canada) ("ETA"), which are largely technical in nature and, in some cases, designed to close perceived tax "loopholes".