May 11, 2015 Monday Morning Learning and Growth, 2015 Budget Announcements

Monday Morning Learning and Growth

Presented by Jesse Dunnon May 11, 2015

2015 Federal and Provincial Budget Announcements

© Deloitte LLP and affiliated entities. 1

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Presentation Outline

© Deloitte LLP and affiliated entities.

What We’ll Be Discussing Today

Presentation Purpose

2015 Federal Budget

2015 Ontario/Québec Budgets

Other Budget

Highlights

3© Deloitte LLP and affiliated entities.




Objective and Scope

To provide a high-level overview of the most relevant 2015 budgets

ObjectiveDeloitte budget summaries (available online)

Scope

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Presentation Purpose (cont’d)


Pedagogical Method and Structure

Fed./Prov. Budget

Contextual overview

Measures for

businesses

Measures for

individuals

Other measures


2015 Federal Budget

2015 Federal Budget


A Contextual Overview

Contextual Overview of Budget

2015

Maintain balanced budget

Measures for families

Measures for innovation and infrastructure

Cross-border investment relief

2015 Federal Budget (cont’d)


Measures for Businesses

SMB Tax RateReduce small business tax rate from 11% to 9%

by 2019

Income DefinitionReview definition of active v. investment

income for purposes of the SDB

CCA Class 29 Change to declining balance computation

RemittancesQuarterly remittances for

new employers with < $1,000.00 in withholdings

Anti-Avoidance Rules

Increase the scope of current GAAR



Measures for Individuals

Proposed TFSA contribution limit increase to $10,000.00

Increase to lifetime CGE on disposition of qualified farm or fishing property

Non-eligible dividends taxed at higher rates

Amendments to family tax cut with respect to the transfer of education credits



Other Measures

Donations

• CGE on cash proceeds from real estate disposition that are donated to a qualified done within 30 days

Employment Insurance

• Reduction of EI premium rate starting in 2017 via a 7-year break-even rate setting mechanism



Other Measures (cont’d)

Relief from personal income tax withholding requirements for certain, specific non-residents

Simplified reporting requirement for taxpayers holding specified foreign property < $250,000.00


2015 Ontario/ Québec Budget



2015 Ontario Budget: A Contextual Overview


2015

Decrease in budgetary deficit

Increase infrastructural investments

Focus on employment,

talent, and skills

Ontario pension plan

2015 Ontario/Québec Budgets (cont’d)


2015 Ontario Budget: Measures for Businesses

Several changes to the Apprenticeship Training tax credit

OIDMTC amended to focus the credit on entertainment and educational products; 80% of labour costs must go to PSBs

Reduction to the OPSTC and the OCASE; elimination of OSRTC

Highest personal income tax rate to be applied to all trusts and estates



2015 Québec Budget: A Contextual Overview


2015

Return to balanced budget

No increases in income tax

rates announced

Major cost-cutting

measures



2015 Québec Budget: Measures for Businesses

Reduction of the corporate tax rate from 11.9% to 11.4% by 2020

After 2016, only primary/manufacturing sector corp., that employ 3+ individuals will retain SBD eligibility

Gradual reduction of the Health Services Fund contribution for SMBs

Increase to the refundable tax credit for on-the-job training periods

Refundable tax credit for the integration of IT in manufacturing SMBs



2015 Québec Budget: Measures for Businesses (cont’d)

Other amended tax credits include:

Refundable tax credit for the production of multimedia titles

Refundable tax credit for the development of e-business

Refundable tax credit for Québec film and television production

… etc.



2015 Québec Budget: Measures for Individuals

Health Contribution Will gradually eliminated until complete removal in 2019

“Tax shield”A new refundable tax credit introduced to offset loss of socio-fiscal transfers

Tax Credit for AgeAge tax credit eligibility age will gradually be raised to a minimum of 70 by 2019

Solidarity Tax CreditDetermined on an annual basis, not monthly; paid monthly, quarterly, or annually



2015 Québec Budget: Other Measures

General Integrity

Rule Partner./trusts

will be deemed to be corp. for RTCs

Taxable Benefit

Parameters To determine value of an employee

benefit

Broadened Scope

In disclosing aggressive tax

planning schemes

CGE On transfer of qualified agri.,

fishing, primary, and manufact.

corp. shares


Other Budget Highlights

Other Budget Highlights


A Look at Other Provincial Budgets

Western provincial budgets focus on decline in oil prices

Provinces with no budgetary changes: Nunavut, NWT, and NS

Credits for seniors: some provinces mirroring federal initiatives

Mode detailed summaries possibly to come on another date


Today’s Presentation in 30 Seconds

Today’s Presentation in 30 Seconds


In Conclusion

FederalForeign

specified property relief

OntarioApprenticeship tax credit and

OIDMTC changes

QuébecSMB eligibilityRefundable tax

credits

ElsewhereReaction to decline in oil

prices

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May 11, 2015 Monday Morning Learning and Growth, 2015 Budget Announcements

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