Federal Finance Minister Jim Flaherty delivered the federal
government's Budget 2014 on February 11. Budget 2014 forecasts
a deficit of $16.6 billion for fiscal 2014 and of $2.9 billion for
2015, and a surplus of $6.4 billion for 2016.
Budget 2014 contains a potpourri of tax measures based on the
government's focus on tax fairness and transparency. Below we
have summarized the principal tax measures that would be of most
interest to Bull Housser's clients and interested parties.
I. PERSONAL TAX
1. Estates and Trusts
Generally, most inter vivos trusts are taxed on all of their
income at the top marginal tax rate for individuals, whereas
estates and testamentary trusts (and certain
"grandfathered" inter vivos trusts) are taxed at the
graduated marginal tax rates available to individuals. Following up
on a proposal in Budget 2013, and starting in 2016, estates and
testamentary and grandfathered trusts will be taxed on all of their
income at the top marginal tax
