March 22, 2017

On March 22, 2017, Minister of Finance Bill Morneau tabled the 2017 Federal Budget entitled “Building a Strong Middle Class” (the “Budget”). As is often the case, there was much speculation regarding the Budget, both with respect to how the Liberal Government might react to predictions about lower tax rates in the United States and specifically concerning the taxation of capital gains.

As it turned out, the Budget did not introduce any major changes to our tax system, did not affect the taxation of capital gains, nor did it modify income tax rates. The Budget does, however, describe a further study that is underway to “ensure a fair and efficient tax system” by examining the use of private corporations as a planning tool, particularly for income splitting, earning investment income and converting investment income into capital gains.

From a fiscal perspective, the Budget projects the 2017 deficit to be $27.8 Billion (slightly larger than was forecasted in the Fall), the 2018 deficit to be $25.9 Billion to be followed by additional significant deficits through 2021.

Our summary of the tax highlights contained in the Budget follows.

Those who are interested in reading about Charities and Not-for-Profit sections of the Budget may wish to consult our Social Impact group’s Special Budget Edition newsletter.


Miller Thomson’s National Tax Group

With a team of over 50 lawyers spanning our national offices, our Tax Law Group is one of the largest in the country, consistently providing strong legal advice, representation and cost-effective solutions to clients on a wide array of tax topics.

Our areas of expertise include Corporate TaxSales Tax, Customs & International TradeTax LitigationCharities & Not-For-Profit, and Private Client Services. Contact a member of our team for more information on our services.


Brendan Burns, 604.643.1216
Dwight D. Dee, 604.643.1239
Sandra Enticknap, Q.C., 604.643.1292
Sarah Fitzpatrick, 604.643.1272
Michael Walker, 604.643.1288


Andrew Bird, 403.298.2411
Gail P. Black, Q.C., 403.298.2410
William J. Fowlis, Q.C., 403.298.2413
Bryant D. Frydberg, 403.298.2456
Victoria L. Hockley, 403.298.2455
Andrea Lamy, 403.298.2497
Shashi B. Malik, 403.298.2443
Regan A. O’Neil, 403.298.2452


Lesley M. Akst, 780.429.9771
Wendi P. Crowe, 780.429.9764
Brendon G. Ho, 780.429.9717
David R. McCalla, Q.C., 780.429.9752
Aaida Rajabali, 780.429.9756
Tyson A. Wagner, 780.429.9715
Joseph W. Yurkovich, Q.C., 780.429.9716


George Nystrom, 306.347.8392
Graham Purse, 306.347.8338


Robert Graham, 519.780.4645
Robin-Lee A. Norris, 519.780.4638
Hilary Van de Kamer, 519.780.4609


Stephen Sweeney, 519.593.2390


John M. Campbell, 416.595.8548
Donald Carr, Q.C., 416.595.8506
David W. Chodikoff, 416.595.8626
Ron Choudhury, 416.597.4398
Gerald D. Courage, 416.595.8163
Sheila Crummey, 416.595.8507
Nicole K. D’Aoust, 416.595.7926
Carla Figliomeni, 416.597.4355
Neil Gurmukh, 416.595.8518
Nicole Hastings, 416.597.4365
Robert B. Hayhoe, 416.595.8174
James A. Hutchinson, 416.597.4381
Kate Lazier, 416.595.8197
Benjamin Mann, 416.597.4332
Susan M. Manwaring, 416.595.8583
Peter A. Milligan, 416.595.8529
Alison Minard, 416.595.2957
Kim Ozubko, 416.597.4338
Rosanne T. Rocchi, 416.595.8532
Martin J. Rochwerg, 416.596.2116
Victoria Rodrigues, 416.595.2950
Rahul Sharma, 416.597.4335
Natasha Smith, 416.595.8552
Amanda J. Stacey, 416.595.8169
David Tang, 416.597.6047
Andrew Valentine, 416.595.2980
Michael J. Wren, 416.595.8184


Amina Boudiffa, 514.879.4091
Andrew Etcovitch, 514.879.4056
Éloïse Gagné, 514.879.2120
Nathalie Marchand, 514.905.4225
Troy McEachren, 514.871.5422
Normand Royal, 514.871.5453
Lampros Stougiannos, 514.871.5426
Louis-Michel Tremblay, 514.871.5421
Marie-Hélène Tremblay, 514.879.2121


This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.

Miller Thomson LLP uses your contact information to send you information electronically on legal topics, seminars, and firm events that may be of interest to you. If you have any questions about our information practices or obligations under Canada's anti-spam laws, please contact us at

© 2018 Miller Thomson LLP. This publication may be reproduced and distributed in its entirety provided no alterations are made to the form or content. Any other form of reproduction or distribution requires the prior written consent of Miller Thomson LLP which may be requested by contacting