With the election of a minority government in Canada, I have fielded a few questions regarding potential taxation changes, and what strategies one could employ to take advantage of current circumstances before any changes are implemented. Some initial thoughts.....if anything gets done at all, it won't be near as impactful as some of the changes we have seen in recent memory (passive income and income splitting anyone?!?)
High level thoughts from our Financial Advisory Support team on potential change themes
1- Limiting corporate deductions for interest expense
2- Increase the basic personal tax credit
3- Add a luxury tax to boats, cars and personal aircraft (click here to buy now!!) --- this one could be a doozy!
4- Increase OAS by 10% at age 75
5- Increase Canada child benefit
6- Double the Child Disability Benefit
7- Make maternity and paternity leave benefits tax free
I have attached a nice summation by the good folks at KPMG. Click here to read it. It is short, concise and a relatively easy read.
Remember that the Liberal Party of Canada will be trying to form and maintain government in a minority environment. Given today's polarizing political climate, getting anything done should prove to be quite a challenge.