2012 Federal Budget
Minister of Finance Jim Flaherty today tabled the 2012 Federal Budget (the “Budget”) entitled “Jobs, Growth and Long-Term Prosperity.”
We are pleased to provide our summary of tax measures contained in the Budget.
There were no changes proposed to corporate income tax rates or to personal income tax rates. The planned corporate tax rate reduction will proceed as previously proposed. However, there are changes that will impact the resulting taxes payable by a corporation or an individual through changes to deductions and credits available, certain special taxes and changes to withholding tax measures. The Budget also contains measures intended to preserve the tax base.
From a fiscal perspective, the Budget forecasts a deficit of $24.9 billion for 2012, $21.1 billion for 2013, $10.2 billion for 2014 and $1.3 billion for 2015. A $3.4 billion surplus is projected for 2016. The projected deficits for 2012 and 2013 are significantly improved over the 2011 Federal Budget. Expenditure reductions contained in the Budget are expected to achieve ongoing savings of $5.2 billion.
Our summary of tax highlights contained in the Budget follows.