Highlights Of Canada's 2019 Federal Budget

Last week, Bill Morneau tabled the Liberal government's fourth budget, the last before the federal election slated for the fall.

WHAT YOU NEED TO KNOW

• Improving the fairness of the tax system: The Government will allocate more resources to the Canada Revenue Agency (CRA) to crack down on tax evasion and combat tax avoidance. Budget 2019 also includes measures to close perceived tax loopholes in the Income Tax Act (Tax Act).
• Tax rates: No changes to the personal or business tax rates.
• Employee stock options: A proposed $200,000 annual cap on stock option grants that may benefit from the preferential 50% inclusion rate for employees of "large, long-established, mature firms" and corresponding changes to the deductibility rules for employers. These proposals will apply on a go-forward basis, with effect once the detailed legislative proposals are released later this year.