2023 federal budget

Budget 2023 also provides general economic and fiscal information and projections, as well as updates on some previously announced tax measures and ...

A qualifying business transfer would occur where a taxpayer disposes of shares of a qualifying business for not more than fair market value to either a trust that qualifies as an EOT immediately after the sale or to a corporation wholly owned by the EOT where the EOT owns a controlling interest in the qualifying business immediately after the transfer. There is a potential for a property to be eligible for more than one of the credits, including, as noted above, the Clean Technology and Clean Electricity ITCs. These measures include a new “Grocery Rebate” in the form of an increase to the maximum Goods and Services Tax Credit available for January 2023 to low- and modest-income individuals and families. In addition, the reduced tax rates measure has been extended by two years and will begin to be phased out in 2032 (as opposed to 2029), with a full phase-out by 2035 (as opposed to 2032). Details on the application of this requirement to the CCUS ITC will be announced at a later date. A climate risk disclosure report must be prepared for each taxation year beginning in the year in which a taxpayer claims the CCUS tax credit and ending in the taxation year before the 21st calendar year after the taxation year in which the qualified CCUS project’s commercial operations began. The proposed legislation provides that the amount of a tax benefit that involves a tax attribute that has not yet been used to reduce tax is deemed to be nil for purposes of calculating the penalty. In the 2022 FES, the government announced a 30% refundable Clean Technologies ITC, available to eligible properties that are acquired and become available for use on or after March 28, 2023. Budget 2023 states that the policy behind the dividend received deduction conflicts with the policy behind the mark-to-market rules, in the sense that gains on mark-to-market shares are taxed as business income but dividends received on such shares are eligible for the intercorporate dividend deduction and are excluded from income. The GAAR is a rule in the Income Tax Act (Canada) (ITA) that is designed to negate tax benefits arising from “abusive” tax avoidance transactions. Issuance and cancellation of non-participating debt-like preferred shares and units, as well as the issuance and cancellation of shares or units in certain corporate reorganizations and acquisitions (including certain specified amalgamations, liquidations, and share-for-share exchanges), are excluded. Given that the demand side of the economy is already slowing sharply and most of the effects of last year’s increases in interest rates have yet to appear, it is even possible that Budget 2023 will help improve the odds of a soft landing in the economy, by buffering demand and boosting supply.

TORONTO, March 29, 2023 (GLOBE NEWSWIRE) -- Chartered Professional Accountants of Canada (CPA Canada) is encouraged that the 2023 federal budget proposes...

CPA Canada welcomes the emphasis in Budget 2023 on fostering a more competitive investment environment with a package of clean energy incentives to support Canada’s transition to a net-zero future. To protect Canadians from the risks that come with crypto-assets, there is a clear need for different orders of government to take an active role in addressing consumer protection gaps and risks to our financial system.” (page 175) The good news is that the federal debt-to-GDP ratio will continue to decline from 2024-25 onward. In comparison to other jurisdictions, our country is lagging. It is critical that Canada implement comprehensive and effective provisions for whistleblowers in the public and private sectors. We have experts available to comment further on these issues:

Budget 2023 contains several significant income tax measures, including: Substantial proposals to incentivize green initiatives and investment in clean energy; ...

A joint election would be required to be filed by the transferor and the child (or children) in order for a transfer to qualify as either an immediate or gradual intergenerational share transfer. Parents immediately and permanently transfer only legal control (i.e., right to elect a majority of the directors), including an immediate transfer of a majority of voting shares, and a transfer of the balance of voting shares within 36 months The EOT would be required to hold a controlling interest (more than 50%) in the shares of one or more qualifying businesses. Instead, the taxpayer would be denied the tax benefit in question and subject to interest on the tax owing. Budget 2023 provides the basis for the calculation of the Refurbishment ITC and limits the eligible refurbishment costs over the first 20 years of the project to a maximum of 10% of the total pre-operational costs that were eligible for the CCUS Tax Credit. A corporation, trust or partnership that is subject to the tax (a Covered Entity) will be required to timely file a prescribed form and remit the tax. Currently, the reduced tax rates are scheduled to be gradually phased out starting in taxation years beginning in 2029 and fully phased out for taxation years beginning after 2031. Budget 2023 proposes that dual use equipment that produces heat and/or power or uses water that is used for CCUS as well as other processes, be eligible for the CCUS Tax Credit. The rate will remain at 30% for property that becomes available for use in 2032 and 2033 and will be reduced to 15% for property that becomes available for use in 2034. Both new projects and the refurbishment of existing facilities are intended to be eligible for the Clean Electricity ITC. The Clean Hydrogen ITC will be available in respect of expenditures on eligible equipment that is available for use on or after Budget Day. Budget 2023 proposes that the Labour Requirements also apply to the proposed Clean Electricity ITC and the CCUS Tax Credit.

Minister of Finance Chrystia Freeland presented the budget in the House of Commons Tuesday.

So the Federal Government must act as a guardian of Canada's universal health system." However, if the federal government doesn't put strings attached that not a penny of it goes to for-profit delivery, it may achieve, in the long run, the bankruptcy of the health system. Doris Grinspun's initial reaction to the Federal Budget tabled Tuesday was a positive one.

The Liberals pitched a slew of affordability measures in Budget 2023 as government spending is set to rise. Will this make it any easier for Canadians ...

One party expected to be watching the 2023 budget carefully was the Bank of Canada, which bakes government spending plans into its forecasts for inflation, and by extension, its path for interest rates. “This recession is expected to be quite short and mild compared to historical recessions. “The finance minister tried to position this as a fiscally prudent budget. “We did see federal spending increase to the tune of billions of dollars a year over the next five years. And that’s where the concern over inflation fits in,” MacDonald says. Economists who spoke to Global News don’t think so. Yet the government had spending priorities to meet tied to its supply-and-confidence agreement with the New Democrats. Yet with a slowing economy and possible recession on the horizon, the government was also tasked with keeping some funds in reserve to avoid overspending and re-stimulating inflation. That’s largely “in line” with Deloitte’s own expectations, MacDonald said. She does not think the government’s strategy to limit future vulnerabilities in this space will help her clients who have been stuck trying to pay off loans with exorbitant interest rates for years. She says seniors are more often finding ways to boost their incomes themselves, for example by renting out a room in their homes or getting regular boosts from family members. “And I think they’ve done that, but they’ve done it in a way that ultimately also means that we’re going to be paying a lot more on government debt because of the amount the government’s going to have to borrow.”

Finance Minister Chrystia Freeland delivered her 2023 Federal Budget on Tuesday. Some of the highlights for the agriculture sector included:.

- $85.1 million dollars over five years for the establishment of the Canada Water Security Agency which is to be located in Winnipeg. - $333 million over 10 years for the dairy sector to support research into new products that use solids non-fat - $57.5 million has been designated over five years for the creation of a Foot and Mouth Disease vaccine bank and to develop emergency response plans

The 2023 federal budget provides funding for critical infrastructure and clean energy. But long-term planning is needed to fix chronic problems.

No political party is protected from the curse of the infrastructure deficit — and there are no winners in the game of infrastructure funding. We all need to learn that the connection between infrastructure and our well-being is closer than we think. [Local governments bear much of the additional infrastructure costs](https://www.cbc.ca/news/canada/toronto/fao-report-stormwater-wastewater-infrastructure-extreme-rainfall-1.6684988) related to extreme events, climate change mitigation and adaptation. The cost of rebuilding in British Columbia after 2021 flooding has reached [nearly $9 billion](https://www.theglobeandmail.com/canada/british-columbia/article-cost-of-rebuilding-bc-after-november-storms-nears-9-billion/). What we see in the 2023 budget is a careful dance. [Canada’s infrastructure is at risk](http://canadainfrastructure.ca/en/index.html). North Americans have an imbalanced relationship with infrastructure, and our understanding of priority and need. And more importantly, what do you do when too few people seem to pay attention? Previous budgets have focused on short-term infrastructure investments as an economic stimulus, which doesn’t support the The bank will play a leading role in electrification as part of the government’s push for clean power. There are also investments in [$33.5 billion to the Investing in Canada Infrastructure Program](https://www.infrastructure.gc.ca/pub/dp-pm/2022-23/2022-supp-tp-pt-eng.html), and $35 billion to the [Canada Infrastructure Bank](https://cib-bic.ca/en/about-us/our-purpose/).

The details of 2023's federal budget includes a projected $40 billion deficit, cutting three per cent of spending for federal government departments, ...

[rather learn from smart robots than less-smart humans](https://www.ctvnews.ca/sci-tech/kids-would-rather-learn-from-smart-robots-than-less-smart-humans-new-study-1.6332931) according to a new study [Aeo, a service robot from Aeolus Robotics is shown at the Aeolus booth during the CES tech show Friday, Jan. [set to cost more than double what the Liberals originally thought](https://www.ctvnews.ca/politics/projected-cost-of-federal-dental-program-set-to-more-than-double-budget-2023-1.6332732), adding another $7.3 billion over five years. [an across-the-board three per cent spending cut for all departments and agencies](https://ottawa.ctvnews.ca/budget-2023-proposes-across-the-board-3-per-cent-spending-cut-for-government-departments-1.6332668), a belt-tightening move after years of massive growth in the federal public service. Budget 2023: The government is unveiling continued deficit spending targeted at Canadians' pocketbooks, public health care, and the clean economy. The [federal deficit is projected to be $40.1 billion in 2023-24](https://www.ctvnews.ca/politics/budget-2023-prioritizes-pocketbook-help-and-clean-economy-deficit-projected-at-40-1b-1.6331787), nearly $10 billion more than forecast in last fall's economic snapshot.

The federal government expects an erosion of its fiscal capacity since last November's Fall Economic Statement 2022 (FES 2022). According to Budget 2023, the ...

Higher taxes, more spending, and greater subsidies to “green” energy are just some of the things dealers can expect from the 2023 federal budget, ...

Overall, CADA said the budget “was a missed opportunity to present a coordinated strategy to generate economic growth and address the rising costs for businesses.” “As a top-line, this budget was a choice between fiscal responsibility and economic growth while placating the NDP social agenda,” said CADA in its update. Other important elements include a refundable tax credit to manufacture clean technologies, such as zero-emission vehicles.

The federal government unveiled its spring budget Tuesday, with a clean economy as the centrepiece, and detailing targeted measures to help Canadians deal ...

[Sci-Tech](https://www.ctvnews.ca/sci-tech) [Could Canada soon standardize USB chargers? Apple is getting into the buy now, pay later space with a few tweaks to the existing model -- including no option to pay with a credit card. Joe Biden comes for a sleepover next week to make Canada the 18th country he has visited since being sworn in as U.S. More than 130,000 people have signed an e-petition calling on Canada to give transgender and non-binary people fleeing harmful laws in their home countries the right to claim asylum, but that's already possible in this country. - The government is also committing to amending the Canada Labour Code to create paid leave for workers in federally regulated sectors who experience pregnancy loss. One of the largest categories of spending in the spring budget is health care, which includes details of the previously announced funding deal between the federal government and the provinces and territories, along with plans to expand the dental care plan. The new plan would provide dental care coverage to uninsured Canadians with a family income of less than $90,000 by the end of this year. Significant travel delays and cancellations both over the summer months and during the 2022 winter holiday season led to frustration from many Canadians, and a massive backlog in traveller complaints to the Canadian Air Transport Security Authority (CATSA). - The budget also proposes changes to help Canadians access certain benefits, such as increasing the number of people eligible to file their income taxes automatically. - The federal government is clamping down on predatory loans, with plans to amend the Criminal Code and cap the amount of interest that can legally be charged at 35 per cent. - With the cost of food in stores rising by 10.6 per cent year over year last month according to Statistics Canada, the federal government is proposing a new one-time “grocery rebate.” According to the budget, about 11 million low- and modest-income Canadians would be eligible for the rebate, offered through the GST tax credit system. The Liberals are proposing some key items to help Canadians with the cost of living.

Canada's 2023 Federal Budget contains significant proposals to amend the Income Tax Act and the Excise Tax Act.

In effect, the rules provide that subsection 84.1(1) of the ITA will not apply to a transfer of Subject Shares, by a Transferor to a Purchaser Corporation, if: (i) the Subject Shares are qualified small business corporation shares or shares of a family farm or fishing corporation; (ii) the Purchaser Corporation is controlled by one or more adult children or grandchildren of the Transferor; and (iii) the Purchaser Corporation does not dispose of the Subject Shares within 60 months of acquiring the shares. Note that, by making the elections, the Transferor and Children will be jointly and severally liable for any additional taxes payable by the Transferor to the extent that section 84.1 of the ITA is applicable in respect of the disposition of the Subject Shares. If subsection 84.1(1) of the ITA applies to a transaction under which a Transferor disposes of Subject Shares to a Purchaser Corporation for non-share consideration (e.g. Generally, the proposals would (i) include 100% (up from 80%) of capital gains and 100% of employee stock option benefits (even if the employee was entitled to a deduction on the benefit) in the AMT base, (ii) include 30% of capital gains on donations of publicly listed securities, (iii) disallow 50% of many deductions (e.g. The AMT is calculated as 15% of an adjusted taxable income amount (adjusted to allow fewer deductions, exemptions, and credits than in computing normal taxable income) over a standard exemption amount of $40,000 (designed to exempt lower-income individuals). The definition of “credit union” under subsection 123(1) of the ETA makes reference to the ITA definition and if the revenue threshold requirement in that definition is not satisfied, the credit union would not be entitled to certain preferential tax treatment under both the ITA and ETA. The Alternative Minimum Tax (the “AMT”) is designed to ensure that higher-income individuals (including many types of trusts) pay a minimum amount of tax every year, notwithstanding the availability of various tax incentives. The primary taxing rule is known as the Income Inclusion Rule (“IIR”) under which the jurisdiction of the ultimate parent entity of the MNE would impose a top-up tax on the ultimate parent entity in respect of MNE operations in any jurisdiction where the effective tax rate is below 15%. The repayment period for amounts loaned by a qualifying business to an EOT to fund the purchase of qualifying shares will also be extended from the present one-year period to a fifteen-year period. The threshold for the test would shift from a “primary purpose” test to a “one of the main purposes” test. Budget 2023 contains significant proposals to amend the Income Tax Act (Canada) (the “ITA”) and the Excise Tax Act (the “ETA”) while also providing updates on previously announced tax measures and policies. The CEITC would be available as of the day of Budget 2024 for projects that did not begin construction before Budget Day, and would not be available after 2034.

Separated or divorced spouses could not open a new joint RESP account after separation. This change will allow separated families more flexibility in financial ...

This change will be particularly important for separating families with children who may not already have existing RESP accounts or want to change RESP promoters after separation. Separated or divorced spouses could not open a new joint RESP account after separation. Just because a couple has separated does not mean that they do not need to plan jointly for their children’s education.

Even as the Liberals keep a tight focus on new clean-tech and health-care spending, the federal budget released Tuesday still projects deficits for the next ...

It's like with a “regular person,” he said, who gets used to spending on something every year without consequence. Canada is not the only country that has allowed serial deficits in recent years. In the U.K., the last time a government ran a surplus was in 2000-01. “We could have saved a little bit,” Page said. That means less tax revenue to finance the federal government's spending priorities. The federal government is now expecting a shallow recession this year as high interest rates weigh on growth.

Food insecurity is a problem of income inadequacy. The 2023 federal budget's “grocery rebate” has the right idea, but falls short.

But a one-time benefit cannot address the chronic inadequacy of public income supports and wages underlying the persistence of food insecurity in this country. While surely helpful to low-income households, this amount comes nowhere close to making up for the drastic rise in costs of living. This policy takes the right kind of approach to supporting food-insecure Canadians, but it doesn’t go far enough to address the large and longstanding problem of household food insecurity in this country. Unfortunately, like last year’s GST top-up, the grocery rebate is far from enough. Food-insecure adults are more likely to require various health-care services, including Reducing food insecurity could offset considerable public health-care expenditures. Although this new measure is being called a grocery rebate, it’s a direct cash transfer to low-income Canadians, delivered through the GST credit system. And despite its name, the rebate will be provided automatically, without additional barriers like separate applications or eligibility criteria. There are several promising policy aspects of the grocery rebate. It can reach people who have had difficulty finding work or unable to work, like those on social assistance who are most likely to be severely food-insecure because their incomes are so low. These are the households most at risk of food insecurity and most heavily impacted by rising costs of living. Similarly high rates were charted in 2019 and 2020.