Budget 2014 confirms the Government’s intention to proceed with the following previously announced tax and related measures, as modified to take into account consultations and deliberations since their release:
- Proposed changes to automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit for 2012 announced on December 29, 2011, and for 2013 announced on December 28, 2012;
- Legislative proposals released on November 27, 2012 relating to income tax rules applicable to Canadian banks with foreign affiliates;
- Legislative proposals released on July 12, 2013 relating to income tax and excise duties and sales tax technical amendments;
- Legislative proposals released on August 16, 2013 relating to the foreign affiliate dumping rules;
- Legislative proposals released on August 23, 2013 relating to changes to the life insurance policyholder exemption test;
- Modifications to the Customs Tariff to implement the Notice of Ways and Means Motion tabled by the Government in Parliament on November 22, 2013, which clarified the tariff classification of certain imported food products;
- Legislative proposals released on November 27, 2013 relating to the tax rules governing Labour-Sponsored Venture Capital Corporations;
- Legislative proposals released on January 9, 2014 to require that international electronic funds transfers of $10,000 or more be reported to the Canada Revenue Agency;
- Legislative proposals released on January 17, 2014 clarifying GST/HST rules to prevent input tax credit claims that exceed tax actually paid; and
- Legislative proposals released on January 24, 2014 relating to the provision of a GST/HST exemption for hospital parking for patients and visitors.
Budget 2014 also reaffirms the Government’s commitment to move forward as required with technical amendments to improve the certainty of the tax system.
Those who are interested in reading about Charities and Not-for-Profit sections of the Budget may wish to consult Miller Thomson’s Charities and Not-for-Profit Budget Release.
If you have any questions regarding our 2014 Federal Budget Review, please feel free to contact a member of our Tax Group.
We acknowledge and thank the Department of Finance for their helpful commentary on the Budget which has been utilized in the compilation of this summary.