Budget 2017: No Game-Changers In Holding-Pattern Budget

Despite rising deficits, Budget 2017 does not propose any general tax increases or other game-changing measures that were the subject of much speculation in recent weeks. This is arguably a "holding-pattern" budget, giving the Government of Canada time to gauge external developments prior to deciding whether to implement more significant tax changes at a later time.

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From a business perspective, perhaps most newsworthy is what is not in Budget 2017.  The Budget did not increase the capital gains inclusion rate. This had been widely speculated and was the impetus for many pre-Budget capital gain realization transactions. Budget 2017 also did not propose changes to the stock option regime, another favorite topic for pre-Budget speculation. The income tax changes with the most significant financial impact on business focused on very specific groups of taxpayers: professionals will be taxed on their work in progress; an anti-avoidance