MT Federal Budget Review - March 22, 2016: Introduction

On March 22, 2016, Minister of Finance Bill Morneau tabled the highly anticipated 2016 Federal Budget (the "Budget"), the Liberal Government's first budget, entitled "Growing the Middle Class".

We are pleased to provide our summary of tax measures contained in the Budget.

The Budget proposed no changes to the general corporate income tax rates or the Goods and Services tax rate. The proposed corporate tax rate changes are focussed on the small business tax rate by deferring the previously proposed rate reductions that were to become effective in future years resulting in the small business tax rate remaining at 10.5% after 2016 and proposing changes to limit access to the small business deduction under certain corporate and partnership structures. The federal corporate tax rate applicable to personal services business income was increased from 28% to 33%.