Federal Budget 2023: A Masterclass In Increasing Taxes Without Increasing Rates

The 2023 Federal Budget's (Budget 2023) tax measures are predominantly domestic, with relatively little directed towards non-residents of Canada. The Government appears very focused on how the Canadian economy responds to climate change. Several major "clean tech" tax credits are being offered in response to the extremely generous comparable measures announced in the U.S. last year. Businesses in (or hoping to be in) the "green economy" in one form or another should be reviewing eligibility criteria closely. Moreover, new measures bringing employee ownership trusts to Canada and limiting the scope of tax-efficient intergenerational business transfers address issues around succession planning in a significant way and taxpayers contemplating the sale of a business in the near future will need to familiarize themselves with these rules. On the revenue-raising side, substantial changes to increase the alternative minimum tax (AMT) and further focus it towards higher-income