We had a great turn-out for our call this week, co-hosted with our partners in Commercial Banking. This last one was special, as Avril pointed out, our first all-female panel. If there is one take-away we’d hope everyone took-away: make sure to enquire about the important other parts of our service offerings, notably a Will & Estate consultation, which is an integral part of our practice. Many clients have gone through this value-added complementary discovery, and we will continue to reach out where we see its appropriate, and if that means exploring executor roles, we can look at this at the same time.

 

Perhaps not the most exciting of topics, but this week we will give some highlights from the Federal Budget (view here). Just to add salt to the wounds of “boring” topics”, next week we will have an Income-tax filing focused piece.: I’m sure most can’t wait!

 

For the Budget, no changes to personal or corporate income tax rates, capital gain inclusion rates or other measures coveted by Canadians, such as the principal residence exemption, are proposed.

 

One of the more convoluted measures is the clamping down on tax avoidance from high-income earners and trusts, that pay little or no tax as a result of tax incentives and credits. Bottom line, there is an Alternative Minimum Tax (AMT): so that everyone pays the AMT tax or regular tax, whichever is highest. The AMT rate increased to 20.5%, so that’s the minimum that high-income earners will pay in tax, regardless of other tax-avoidance strategies available.

 

A few “goodies” (presumably paid for by taxing the high income earners…: including a “Grocery Rebate” of up to $467, and a Dental Care Plan coverage for uninsured Canadians with annual income of less than $90,000. Measures to encourage investment in building the clean/green economy are also included. Worried about the effects of inflation: at least they have spared the increase on beer, spirits and wine , limiting tax increase to a paltry 2% this year!

 

Of course, if you have any questions about the Budget and how it may impact you, or if you have any other wealth management needs, please contact us directly.

It’s the start of the baseball season, and what a surprise, I’m predicting that the currently undefeated Toronto Blue Jays are going to win it all: of course, the World Series isn’t until October so the prediction will be long-forgotten, unless of course I’m right and will remind everyone!

 

Have a great weekend.