The highly anticipated 2021 Federal Budget was delivered by Canada's Deputy Prime Minister and Finance Minister Chrystia Freeland on April 19, 2021 (“the Budget”). The first budget in two years aims to help Canada recover from the COVID-19 pandemic and may bring key elements to an upcoming election as the minority Liberal Government will require the support of another political party before the measures are passed into law. The budget expects a deficit of $354.2 billion for 2020-21 and forecasts a deficit of $154.7 billion for 2021-2022. The budget did not change the Federal personal or corporate income tax rates. While the Budget did include expected items like Federal COVID-19 Support for businesses, more information on the digital services tax and a plan for a national childcare program, some rumoured items like an increase to the capital gains tax and a National Pharmacare plan were not introduced.
This overview will review the corporate and personal measures relevant to our clients as well as providing a brief list of other relevant proposals. If you have any questions about how the Budget may impact you or your business, please reach out to your Bateman MacKay LLP Business and Tax Advisor.
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