Response To The 2010 Federal Budget

On March 4, 2010, the federal finance minister, the Honourable Jim Flaherty, released the 2010 federal Budget. The Budget continues to emphasize and build on last year's economic action plan with a focus on creating jobs and growth, sustaining Canada's economic advantages and planning a return to a balanced budget. While there were no announced changes to personal or corporate income tax rates, the finance minister reiterated his commitment to carry through with previously announced corporate and personal tax reductions and to have the lowest corporate income tax rate in the G7 by 2012. The Budget was relatively light on tax changes, but still contained many proposed changes of interest to the business community, not the least of which is a commitment to close "unfair tax loopholes" and introduce a reporting regime regarding "aggressive tax planning". The following is a summary of some of the more significant tax highlights of the Budget.