2014 Federal Budget

Finance Minister Jim Flaherty tabled his 2014 Federal Budget in the House of Commons on February 11.

We have posted for you the highlights and attached InfoBudget 2014 the commentary and analysis of the budget as provided by CGA-Canada.

Budget Overview

• Government is on track to return to a balanced budget in 2015
• Expects a surplus in 2016
• Starting April 1, 2014 – the Canada Job Grant – proposed in the 2013 Budget will be launched
• Proposes new actions to reduce red tape and the tax compliance burden for small and medium sized businesses

Tax Highlights

Simplification of the Tax Compliance Burden

• GST/HST – individuals no longer need to apply – CRA to automatically determine eligibility
• Modernization of information technology to allow Charities to File Information Returns electronically
• Increase Remittance Thresholds for Employers to reduce frequency of remittances
• Eligible Capital Property – reduce complexity

Personal Income Tax Measures

• Adoption Expense Tax Credit – increased for 2014 and indexed for future years
• Medical Expense Tax Credit – therapy plans for mental or physical impairment may be eligible for tax credit
• Search and Rescue Volunteers Tax Credit – 15% non-refundable tax credit based on $3000
• Trusts – Graduated Rate Taxation of Trusts and Estates will be eliminated – starting in 2016 a flat top-rate tax will apply for inter vivos and testamentary trusts (other than estates for their first 36 months)
• Non-Resident Trusts – elimination of the 60 month exemption
• Estate Donations – donations by will and designated donations after 2015 may be allocated over a number of tax returns