Lifetime Capital Gains Exemption
The individual lifetime capital gains exemption limit of $750,000 will be increased to $800,000 effective for the 2014 taxation year, and will be indexed to inflation for taxation years after 2014.
Dividend Tax Credit
Budget 2013 proposes to reduce the effective rate of the dividend tax credit applicable to non-eligible dividends (i.e., dividends paid out of income that was taxed at a lower rate, generally being the small business income tax rate), such that the effective tax rate applicable to non-eligible dividends will increase. This proposal applies to non-eligible dividends paid after 2013.
Registered Pension Plan Contribution Errors
Budget 2013 proposes to allow administrators of registered pension plans (RPPs) to make a refund to correct a contribution that was made as the result of a reasonable error, without first obtaining approval from the CRA, if the refund is made no later than December 31 of the year following the year in
