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ARTICLE · 05 APRIL 2023

Federal Budget 2023 – Major Changes For Business And High Net Worth Individuals

Davies Ward Phillips & Vineberg LLP
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On March 28, 2023 (Budget Day), the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party's federal budget (Budget 2023).

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Elie Roth
Elie Roth
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On March 28, 2023 (Budget Day), the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party's federal budget (Budget 2023).

Budget 2023 does not change the corporate and personal tax rates under theIncome Tax Act(Act). Instead it makes the following changes of particular relevance to business:

  • Substantially revising the alternative minimum tax (AMT) rules for 2024 and subsequent years. Budget 2023 does not raise the capital gains inclusion rate, but these changes could result in additional tax on capital gains and stock options realized after 2023.
  • Revising the general anti-avoidance rule (GAAR), expanding the scope of the GAAR and imposing penalties where the GAAR applies.

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