ARTICLE · 23 MARCH 2017

The 2017 Federal Budget: What's Changed, What Hasn't

Moodys Private Client Law LLP

On March 22, 2017, the federal Liberal government released their 2nd budget. For those of you who are not inclined to read the detail and commentary below, an executive summary follows.

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On March 22, 2017, the federal Liberal government released their 2^nd budget. For those of you who are not inclined to read the detail and commentary below, an executive summary follows.

EXECUTIVE SUMMARY

Capital gains inclusion rates – The status quo of 50% of capital gains inclusion remains... no change.
Stock option deduction – No changes.
Tax rates – No changes to personal or corporate tax rates.
Consultation study/paper on private corporations to be released by the government – This study will eventually comment on common "planning" for private corporations and their shareholders with the intent of shutting down such plans.
Work-in-progress election under section 34 to be eliminated – This is huge for professionals. Currently, WIP can be excluded from the calculation of taxable income. For taxation years that begin on or after March 22, 2017, affected professionals will not be able to utilize this accounting method, and will have to include WIP

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The 2017 Federal Budget: What's Changed, What Hasn't

EXECUTIVE SUMMARY

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