ARTICLE · 13 APRIL 2023

2023 Federal Budget: Top 4 Changes For Tax Planning

Thompson Dorfman Sweatman LLP

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On March 28, 2023, Canada's Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented the new federal budget ("Budget 2023").

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C. Leah Suderman

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On March 28, 2023, Canada's Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented the new federal budget ("Budget 2023"). While the primary focus of Budget 2023 was the introduction of new ways to develop Canada's green economy, the yearly budget commonly includes changes to Canadian tax policy that are relevant for both tax practitioners and taxpayers alike. Importantly, Budget 2023 made no changes to personal or corporate tax rates, or the inclusion rate on taxable capital gains. Therefore, transactions that rely on these tax rates (i.e. transactions that permit a taxpayer to draw funds from their corporation at lower capital gain rates instead of high dividend or salary rates) remain status quo.

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