2013 Federal Budget Highlights
KPMG - Finance Minister Jim Flaherty delivered the government’s 2013 federal budget today. The budget expects a deficit of $25.9 billion for 2013, falling to $18.7 billion for 2014 and to $6.6 billion for 2015 and essentially calls for a balanced budget in 2016.
While the budget’s main focus is on jobs and the economy, the budget includes many targeted tax measures aimed at addressing what the government considers tax “loopholes” in the Canadian tax system. Areas as diverse as tax loss trading, life insurance products, labour sponsored venture capital corporations, trusts, thin capitalization rules, targeted GST provisions, the mining industry and farm losses are all affected.
A major job-related initiative in the budget is the Canada Job Grant Program. This program could provide up to $15,000 per person or more for training. To be eligible, businesses must have a plan to train unemployed and under-employed Canadians for an existing or better job. The budget also expands and extends the temporary hiring tax credit for small businesses.
The budget also creates a new Building Canada plan which will provide $53.5 billion over the next 10 years for provincial, territorial and municipal infrastructure.
Details of tax highlights