ARTICLE · 23 MARCH 2011

Federal Budget 2011 - Income Tax Measures

Norton Rose Fulbright Canada LLP

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On March 22, 2011, the Canadian federal government tabled Budget 2011. This bulletin summarizes the principal income tax measures contained in Budget 2011.

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Adrienne Oliver

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On March 22, 2011, the Canadian federal government tabled Budget 2011. This bulletin summarizes the principal income tax measures contained in Budget 2011.

A. TAX RATES

Budget 2011 contains no changes to corporate and personal income tax rates and does not propose to withdraw any previously announced planned reductions in income tax rates. Accordingly, the Canadian federal corporate income tax rate applicable to active business income earned by a Canadian-controlled private corporation in excess of $500,000 and to all income earned by any other corporation is reduced from 18% for 2010 to 16.5% for 2011 and to 15% for 2012.

B. CORPORATE TAX MEASURES

Limiting the Deferral of Partnership Income

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