HVGP Commentary On The Federal Budget March 2023

HVGP Commentary On The Federal Budget March 2023

On March 28, 2023, the Federal Government tabled Budget 2023, which proposed a broad array of provisions impacting many individuals and businesses. The Budget did not include any changes to the personal or corporate tax rates or the inclusion rate on taxable capital gains.

Some of the items of interest include the following:

  • Intergenerational Business Transfers – Amendments were introduced to ensure that relieving provisions (implemented in Bill C-208 in 2021) will only apply to genuine intergenerational business transfers, requiring:
    • control by the child,
    • activity of the child in the business, and
    • active business continuing through a 3 or 10-year term, depending on the situation
  • Significant modifications to the alternative minimum tax (AMT) to target high-income earners.
  • Modifications to RESPs and RDSPs to add additional flexibility.

Please read our full Commentary for more details on these items.

Last week, the Ontario Government released their Budget for 2023. This budget introduces two new tax measures to support Ontario businesses:

  • Ontario Made Manufacturing Investment Tax Credit, which is a refundable 10% tax credit on eligible investments. For information on qualifying criteria and amounts please visit this link.
  • Expanding access to the small business tax limit, by increasing the upper limit of the grind down to $50 million of taxable capital between associated corporations.

Highlights of the Ontario 2023 budget can be found here.

Thank you for your business, and please do not hesitate to contact us if you have any questions please call our office at 905 891 5339.

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