The first federal budget since the Liberals were re-elected in 2021, was presented April 7th 2022. While a number of us were bracing for higher personal tax rates, this did not come to pass, nor was there any increase in the capital gains inclusion rate or changes to the principal residence exemption.

What we did see (and not unexpectedly), was an increase in the corporate tax rate for banks and life insurance companies, from 15% to 16.5%. As part of this, a one-time “Canada Recovery Dividend” of 15% will also be levied on these same institutions, for taxable earnings greater than $1 billion, for the 2021 tax year.

For a full summary of the budget, please click HERE.

Thanks and as always, please reach out if you have any questions.

Libby

 

 

 

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