Federal Budget 2024: Welcome back to 1988

1988: Calgary’s hosting the Olympics, the Oilers win the Stanley Cup, and Bruce Willis gives us (arguably) one of the greatest holiday movies—Die Hard. It also was the first time Canada had a two-thirds Capital Gains Inclusion Rate.

Authors: Denika Heaton, BBA, JD, TEP and Chris Hanley, CA, CPA, CFP® | Mawer Tax and Estate Planning Specialists

On April 16, 2024 (the “Budget Date”), Canada’s Deputy Prime Minister and Minister of Finance, The Honourable Chrystia Freeland, presented this year’s Budget, “Budget 2024: Fairness for Every Generation” (the “Budget”) to the House of Commons. 

In an effort to restore generational fairness, the Budget takes us back an entire generation with certain measures, such as the two-thirds capital gains inclusion rate. Specifically, the Federal Government proposes to increase the inclusion rate (i.e., the share of an actual capital gain that is taxable) for capital gains exceeding $250,000 realized annually by individuals, and for all capital gains realized by corporations and trusts, from 50% to 66.7%.

These proposals are to be effective for gains realized on or after June 25, 2024 (the “Effective Date”). By increasing the portion of the gain that is taxable, the Federal Government is effectively raising the amount of income tax that those realizing capital gains will pay. While these proposals may appear to only impact a small subset of taxpayers, many unwary, hard-working Canadians will be impacted. These proposals capture gains on all types of capital property, which includes stock portfolios, rental properties and even the family cottage. Furthermore, there is no proposed relief for deemed dispositions on death, creating a ballooning tax liability for grieving families. These changes may influence investment and tax planning decisions. Please continue reading for our detailed analysis in the next section, as we review some planning options that may be implemented in the narrow two-month time frame before these proposals are set to come into force.

While there are several tax measures that will bring gloom and despair to many hard-working entrepreneurs, professionals and business owners, there are some welcome initiatives from this year’s Budget. These include Alternative Minimum Tax relief for charitable donations and other related amendments, as well as proposals to increase the Lifetime Capital Gains Exemption to $1,250,000 for dispositions on or after the Budget Date. Some more niche and targeted measures include the new Canadian Entrepreneurs’ Incentive and greater clarification for Employee Ownership Trusts.

A key theme of this Budget is that equity across generations revolves heavily around greater access to housing, with an accelerated housing goal of 3.87 million new homes by 2031. The Budget proposes several initiatives to address housing affordability, supply and opportunities for both homebuyers and renters. Some of these initiatives include incentivizing purpose-built rental housing, increasing the withdrawal limit for the Home Buyers' Plan, making more land available for development, which could include repurposing federal assets, and innovations in building methods.

There were also many notably absent measures in this year’s Budget. Contrary to speculation, the Budget does not include any increases to personal or corporate tax rates, nor does it introduce a wealth tax. The $500,000 small-business limit of a Canadian-controlled private corporation remains unchanged, and there were no changes to the principal residence exemption. However, those with vacation properties or second homes may need to plan for the increased capital gains inclusion rate. Unfortunately, this Budget offered no further relief or clarification surrounding the compliance obligations for bare trusts.  

The following sections dive into key aspects of this year’s Budget that may impact tax and wealth planning:

• Capital Gains Inclusion Rate
• Alternative Minimum Tax
• Lifetime Capital Gains Exemption
• Canadian Entrepreneurs’ Incentive
• Employee Ownership Trusts
• Expanded CRA Powers
• 3.87 Million New Homes By 2031
• Purpose-Built Rental Housing
• Clean Energy Incentives
• Other Notable Initiatives 

Capital Gains Inclusion Rate

A Brief History of Capital Gains Taxes in Canada

Canada’s capital gains inclusion rate has varied over the years, reflecting changes in tax policy and the Federal Government’s priorities. Capital gains taxes were first introduced in 1972 and can be traced to the Royal Commission on Taxation, also known as the Carter Commission, which was a thorough review of Canada’s income tax system. The capital gains inclusion rate was initially set at 50%. This was raised to 66.7% in 1988, and then again raised to 75% for the years 1990–1999. In 2000, there were three different rates for a brief transitional period, including briefly reverting to a 66.67% inclusion rate for part of that year, but from late 2000 through to this Budget Date, the inclusion rate has been held at 50%. 

Capital Gains Inclusion Rate Implications 

The Budget proposes that after June 24, 2024 (the “Effective Date”), individuals will include 50% of the first $250,000 of annual capital gains in their income, and include 66.7% of annual capital gains in excess of $250,000. The $250,000 threshold applies to net capital gains, which are calculated after accounting for current year capital losses, carryover losses and any gains for which specific exemptions or incentives, such as the Lifetime Capital Gains Exemption, are claimed. For the 2024 taxation year, the entire $250,000 threshold is available, and it is not prorated.

Individuals claiming an employee stock option deduction, which treats stock option income in a similar manner to capital gains, will be entitled to a deduction of 50% of the taxable benefit, up to a combined limit of $250,000 for both employee stock options and capital gains. Any excess will receive a 33.3% stock option deduction.

For Corporations and Trusts, the same increase in inclusion rate, from including 50% to 66.7% of capital gains, applies, but there is no $250,000 threshold; it will apply to all gains realized after the Effective Date.

The implications of these proposals are multifaceted. The most obvious implication is an increase in the effective tax rate on capital gains, as seen below, where we compare the rate before and after the Effective Date for individuals and trusts taxed at the top marginal tax rate, and Canadian-controlled private corporations (‘CCPCs’), for select provinces:

Trusts may realize capital gains and distribute those capital gains to individual beneficiaries, to be taxed in the individual’s hands. If a gain is realized prior to the Effective Date, but distributed after, it is not clear how that will be treated for the individual.

These changes will cause additional departures from a principle known as “tax integration.” Tax integration in Canada is premised on the notion that if income is earned in a corporation and ultimately distributed out to shareholders, the total tax paid should be roughly the same as if the shareholders had earned the income personally. In essence, it should not matter what structure you earn income from under this principle.

Tax integration is imperfect, often with a relatively small net tax cost or savings resulting from earning income in a corporation—then distributing it by way of dividends to the shareholder. It's not unusual to see a 1–3% difference between the tax rate an individual in the top tax bracket would pay, as compared to the same income flowed through a corporation. 

However, these proposed tax measures result in a significant tax cost to earning and distributing capital gains from a corporation when compared to an individual, particularly for the first $250,000 of capital gains. For the three provinces noted below, the tax rate applicable is 10.36% to 12.66% higher by earning capital gains through a corporation. 

The capital gains inclusion rate proposals will also directly impact the calculations for the Capital Dividend Account (“CDA”) for CCPCs. The CDA is a notional corporate account that tracks tax-free balances, which can be distributed to Canadian resident shareholders tax-free. The CDA includes, among other components, the non-taxable portion of capital gains realized by the corporation. When the inclusion rate increases from 50% to 66.7%, only 33.3% of any capital gain realized by a CCPC will now be eligible for addition to the CDA, instead of the current 50%, significantly reducing the amount that can be distributed tax-free to shareholders.

Planning and Unresolved Details

The increase in the capital gains inclusion rate is likely to incentivize some taxpayers to realize capital gains prior to the Effective Date. The government estimates this will boost federal tax revenues by close to $5 billion this fiscal year as a result.

As with anything in tax and law, the devil is in the details; with no draft legislation for guidance, and some legislation from last year’s budget yet to be passed, we are left with many questions at this point and likely will not have concrete direction before the Effective Date of these proposals. Another possible wild card is the impact on this inclusion rate with any future change in the Federal Government.

With the Effective Date of the inclusion rate change set at ten weeks after the Budget release, taxpayers have limited time to properly assess their situations. These proposed changes present new challenges and considerations. Proactive tax planning may mitigate the impact of these changes, which may include timing the realization of capital gains. It is a good time to review your investment and real estate portfolio and consider how these proposals could affect your overall wealth plan. Ultimately you and your family’s own specific situation will need to be thoroughly considered by your own tax and legal team, but you may wish to discuss some planning options with them, such as:

• Accelerating the crystallization of capital gains prior to June 25, 2024, while carefully considering the acceleration of the income tax and evaluating the overall investment mix (you do not want the ‘tax tail to wag the investment dog.’)
• Accelerating lifetime gifting while considering the legal and non-tax aspects.
• Crystallizing personal capital gains annually to maximize the $250,000 annual personal threshold.
• Allocating your asset mix differently between personal and corporate holdings, to the extent possible, to minimize the punitive effects of capital gains on a corporation.

For any dispositions, your tax and legal advisors will need to also carefully consider whether the Alternative Minimum Tax could be triggered and other possible transaction costs, such as land transfer tax/levies, trading fees, etc.  

Alternative Minimum Tax ("AMT")

This year’s Budget proposes further amendments to the draft AMT changes released in August 2023, which, at the time, were met with criticism for potential effects on charitable giving. These new proposals aim to address those concerns and notably allow individuals to claim a larger percentage of the charitable donation tax credit (80%, compared to 50% previously proposed) when calculating the AMT. 

AMT is a parallel tax calculation that aims to prevent high-income earners from reducing their tax below a minimum amount when they claim certain tax deductions and credits. A taxpayer either pays their regular income tax, or AMT, whichever is higher. If you are subject to AMT, you may apply that AMT as a credit against future regular taxes over the next seven years. This year’s Budget provides some relief by increasing the donation tax credit in the calculation, among other favourable adjustments noted below.  

Lifetime Capital Gains Exemption (“LCGE”)

This Budget proposes to increase the LCGE limit to $1,250,000, from the current level of $1,016,836. The new proposed limit would be indexed to inflation from 2026 onwards. 

The LCGE provides individuals with tax savings on the capital gains realized, either by sale or upon death, of shares of a qualified small business corporation (an active business in Canada meeting certain conditions) or qualified farm or fishing property. 

This measure would be applicable to dispositions on or after June 25, 2024. 

Canadian Entrepreneurs’ Incentive ("CEI")

The Budget introduces a new incentive for entrepreneurs, which will reduce the capital gains inclusion rate on capital gains by 50% for certain share dispositions if conditions are met. As the budget also proposes a 66.67%, inclusion rate for capital gains, then the CEI measure would result in a capital gain inclusion rate of 33.33%. 

There will be a lifetime limit for the CEI of $2 million, to be phased in by annual increments of $200,000 per year, from 2025 through 2034. For example, an individual entrepreneur meeting all conditions and having a sale in 2027 would have a CEI limit of $600,000. 

This measure will provide significant tax savings to those that are able to meet the criteria, especially for dispositions later in the phase-in period. The CEI ($2 million once phased-in) can also be combined or stacked with the LCGE discussed above ($1,250,000), providing favourable taxation on a total of $3,250,000 of gains. 

To benefit from the CEI, criteria include similar holding-period and asset-threshold requirements as the existing LCGE rules, as well as all of the additional criteria unique to the CEI: 

• The individual must own the shares directly for five years;
• The shares must represent more than 10% of the corporation's market value and voting rights; 
• The individual must be actively involved in the business throughout the five years; and
• The shares must have been obtained for fair market value consideration. 

There are notable types of businesses that will not qualify for the CEI: 

• A direct or indirect interest in a professional corporation;
• A corporation whose principal asset is the reputation or skill of one or more employees; or
• Businesses operating in certain industries including financial, insurance, real estate, food, accommodation, arts, recreation, entertainment, consulting and personal care. 

Guidance is not yet available on how to interpret the conditions; for example, how to determine if a business falls into one of the excluded types. 

Employee Ownership Trusts ("EOTs")

Budget 2024 provides further clarity around EOTs, which are structures originally proposed in Budget 2023 and currently with draft legislation before Parliament. As announced in the 2023 Fall Economic Statement, EOTs are proposed to exempt $10 million of capital gains on the sale of a business to an EOT, subject to certain conditions. 

Budget 2024 introduces a very lengthy set of conditions to qualify for the $10 million exemption, including level of activity in the business, Canadian residency of the beneficiaries, the use of business assets and choice of trustees, among other restrictions—along with disqualifying criteria, including a possible retroactive denial of the tax exemption. All of these onerous conditions combine to make EOTs a higher commercial risk when business owners are looking at options to sell their business.

These proposals will apply to transactions occurring between January 1, 2024 and December 31, 2026. 

Expanded CRA Powers

The Budget provides for expanded CRA powers, purportedly to increase the efficiency and effectiveness of tax audits and collections, but it also applies more generally. These changes include information gathering tools, new rules to prevent tax-debt avoidance, more penalties and stronger enforcement abilities. These changes are also being proposed for other tax statutes administered by the CRA, including the Excise Tax Act, as an example. Some key CRA expanded powers are discussed below.

Compliance Orders and Notice of Non-Compliance

The Budget proposes new penalties for non-compliance equal to 10% of tax payable (if the tax owing exceeds $50,000 for a tax year) to be levied against a taxpayer who fails to comply with compliance orders issued by the Federal Court to disclose information or documents to the CRA. This is in addition to the existing powers of the Federal Court to hold taxpayers in contempt of Court for failure to comply with CRA demands for information.

This Budget further proposes to give the CRA new powers to issue a new separate type of notice: a “notice of non-compliance” to those who fail to comply with CRA demands for assistance or information. Failure to comply can result in daily penalties of $50 per day, up to a maximum of $25,000. These notices can be issued to any person, including a taxpayer's accountant. Additionally, it is proposed that a notice of non-compliance prevents taxation years from becoming statute-barred for the taxpayer and any non-arm’s length parties.

Questioning Under Oath

The Budget also proposes expanded investigative powers to permit the CRA to demand information from any person, including a taxpayer's accountant, orally under oath, or by sworn affidavit. This is analogous to the powers of other administrative bodies to compel sworn statements, such as Securities Commissions. This means taxpayers may need to engage legal counsel to gain the protection of solicitor-client privilege on their tax matter(s), which privilege is not available to accountants and other advisors.

Avoidance of Tax Debts

Another of these measures is aimed at improving the existing rule on tax-debt avoidance. This proposed penalty would be applicable for engaging in section 160 avoidance planning, which is when a property has been transferred from a tax debtor to another person, and in the same transaction or series of transactions, there’s been a separate transfer of property from a person other than the tax debtor to a transferee that does not deal at arm’s length with the original tax debtor. One of the objectives of tax-debt avoidance is to evade joint and several, or solidary, liability for that tax debt, i.e., aiming to render all or a portion of a current or future tax-liability debt of the taxpayer uncollectible.

The proposed penalty, for those who engage in, participate in, or knowingly support section 160 avoidance planning, is the lesser of 50% of the liability sought to be avoided or the sum of $100,000 and the person’s gross entitlements at the time the notice of assessment of the penalty is sent. The penalty does not apply to a person solely because they provided clerical or secretarial services with respect to section 160 avoidance planning. The proposed amendments will apply to transactions that occur on or after Budget Date.

The above amendments would come into effect upon passing of the enacting legislation.

3.87 Million New Homes By 2031

In attempts to address the national affordability crisis, the Federal Government aims to rapidly increase housing affordability and supply through a multitude of measures aimed predominately at first-time homebuyers and renters, which include both tax and non-tax initiatives. Some of these non-tax measures include: increasing the annual limit for Canada Mortgage Bonds, incentivizing municipalities to make drastic zoning changes, and launching a new Canada Housing Infrastructure Fund. The Budget further proposes the new Public Lands for Homes Plan to build homes on repurposed public lands, such as postal offices and National Defence land, which includes unlocking federal properties to be leased to builders—for instance, building nearly 100 homes at Currie in Calgary, Alberta.

Other initiatives involve funding for new technology for innovative ways to build more homes faster, such as upscaling of modular homes, the use of 3D printing and apprenticeship funding to train those needed to build these homes. In addition, there are also proposals for funding to recognize foreign credentials in the construction industry. The Budget also aims to implement a new Canada Secondary Suite Loan Program, which would allow homeowners access to $40,000 in low-interest loans to add secondary suites.

For first-time buyers of new builds, the Budget proposes access to 30-year mortgage amortizations, thereby lowering first-time buyers’ mortgage payments. The Budget is also enhancing the Home Buyers’ Plan (“HBP”) by increasing the withdrawal limit from $35,000 to $60,000. This means that after the Budget Date, an additional $25,000 could be withdrawn from RRSPs as part of the HBP’s increased limit, which can also be withdrawn for the benefit of a disabled individual. Amounts withdrawn under the HBP must be repaid to the taxpayer’s RRSP over 15 years. However, for HBP withdrawals made from RRSPs between January 1, 2022, and December 31, 2025, the 15-year period will be deferred by an additional three years. We query whether these first-time home buyer initiatives will have the opposite effect and instead add fuel to the already hot housing market and make residential real estate less affordable for Canadians.

For renters, the Budget proposes a new Tenant Protection Fund to provide funding to tenants’ advocacy groups, as well as implementing a new Canadian Renters’ Bill of Rights, to be developed in conjunction with the provinces and territories.

In advance of this Budget, in February of this year, the Federal Government announced that it intends to extend the ban, facilitated by the Purchase of Residential Property by Non-Canadians Act, on foreign investment in Canadian homes by an additional two years, to January 1, 2027. Furthermore, this Budget announces that the Federal Government will launch consultations on a new tax aimed at residentially zoned vacant land. If enacted, the aim of this would be to encourage the development of unused land for housing, thereby increasing the supply of homes. The Federal Government plans to consult on this proposal later in the year. This is in addition to the previously announced (from the 2021 Federal Budget) 1% vacancy tax on underused residential properties owned by nonresident, non-Canadians.

Purpose-Built Rental Housing

To provide incentives for businesses to address the housing crisis, the Budget proposes two key measures: accelerated Capital Cost Allowance and Interest Deductibility Limits

Accelerated Capital Cost Allowance (“CCA”)

This Budget proposes a temporary, accelerated tax depreciation, CCA, at 10% for eligible, purpose-built rental projects. These projects must commence construction after April 15, 2024, and before January 1, 2031, and must be available for use before January 1, 2036. 

This measure aims to incentivize the construction of rental housing that meets specific criteria, including: 

• Having a minimum of four private apartment units, or 10 private rooms or suites; and
• Holding at least 90% of residential units for long-term rental.

The accelerated CCA will not apply to renovations of existing residences. New additions to an existing structure will be eligible, and projects converting existing, non-residential real estate into a residential complex will also qualify. The Accelerated Investment Incentive, which suspends the half-year rule, will remain applicable to eligible property put in use before 2028.  

Interest Deductibility Limits  

The Budget proposes to exempt certain interest and financing costs from rules that might otherwise limit their deductibility. The excessive interest and financing expenses limitation (or “EIFEL”) rules are currently before Parliament and would limit the deduction of these expenses once enacted. The exemption from the EIFEL rules for a residential project is available for interest and financing expenses incurred before January 1, 2036, and eligibility is based on the same criteria as the accelerated CCA above, namely: 

• Having a minimum of four private apartment units, or 10 private rooms or suites; and
• Holding at least 90% of residential units for long-term rental.

This measure will apply to taxation years beginning on or after October 1, 2023, consistent with the EIFEL rules.

Clean Energy Incentives

This year’s Budget introduces a suite of clean energy incentives aimed at accelerating Canada's transition to a low-carbon economy. These initiatives are designed to promote the adoption and development of clean energy technologies through a variety of tax incentives and regulatory changes. Some of these Clean Energy Incentives are:

• Electric Vehicle Supply Chain Investment Tax Credit
• Canada Carbon Rebate for Small Businesses
• The Clean Electricity Investment Tax Credit 

Electric Vehicle Supply Chain Investment Tax Credit

The Budget introduces more tax incentives for investing in clean technologies and expands eligibility of previous tax incentives in this area. Some of these include a 10% Electric Vehicle Supply Chain Investment Tax Credit on the cost of buildings used in crucial segments of the electric vehicle supply chain across three supply chain segments: electric vehicle assembly, electric vehicle battery production, and cathode active material production.

Canada Carbon Rebate for Small Businesses 

The Canada Carbon Rebate, which is an automatic refundable tax credit for CCPCs with no more than 499 employees in Canada, was introduced in this year’s Budget. This rebate is applicable to CCPCs with employees located in provinces that participate in the federal backstop pollution-pricing fuel charge, commonly known as the federal carbon tax. The government will announce the payment rate for each province for each fuel charge year. That payment rate will then be multiplied by the number of employees the CCPC employed in that province for that year. To qualify, eligible CCPCs must file their tax return for their 2023 tax year by July 15, 2024, to be entitled for the rebate pertaining to the 2019−2023 fuel charge years. 

Clean Electricity Investment Tax Credit 

Additional details for this tax credit, previously announced in Budget 2023, have been included in this year’s Budget. The tax credit will be available to Canadian corporations including provincial, Crown, and municipally owned corporations, as well as corporations owned by Indigenous communities and pensions. This measure will provide a 5−15% investment tax credit on the purchase of equipment that generates electricity from sources such as solar, wind, water, nuclear and geothermal, as well as certain refurbishments and transmission equipment. This tax credit will generally apply to new purchases that become available for use on or after April 16, 2024, and before 2035, provided no part of the project construction started before March 28, 2023. 

Other Notable Initiatives

There are several more mandates and measures from this Budget that we need to briefly review:

• Measures for Indigenous communities
• Investing in artificial intelligence (“AI”)
• Addressing ‘junk fees’
• Common Reporting Standards ("CRS") and Organisation for Economic Co-operation and Development’s (“OECD”) Crypto-Asset Reporting Framework
• Mutual fund corporations
• Qualified investments for registered plans
• Other personal tax measures

Measures for Indigenous Communities

This year’s Budget introduces tax measures that impact trusts benefiting Indigenous groups, focusing on providing tax exemptions such as AMT and eligibility for the Clean Electricity Credit, both subject to specific conditions, and amendments to the First Nations’ Goods and Services Tax Act. Other measures are designed to support Indigenous groups by recognizing the unique status and rights of these communities within Canada's constitutional framework. This approach includes funding to advance Indigenous self-determination and governance development, addressing the legacy of residential schools, and promoting economic reconciliation. Additionally, the Budget touches on improving health, housing, infrastructure, and food security in Indigenous communities.

Investing in AI

In addition to the Budget funding major research and science infrastructure investments, the Federal Government is making significant investments in AI. These include $2 billion to launch a new AI Compute Access Fund and Canadian AI Sovereign Compute Strategy to help Canadian researchers, start-ups, and scale-up businesses access the computational power to drive the development of Canadian-owned AI infrastructure, as well as creating an AI Safety Institute of Canada to ensure this AI development is done safely.

Addressing ‘Junk Fees’

This Budget proposes that the Federal Government and provinces and territories will work to target and reduce ‘junk fees,’ which include hidden or unexpected charges that consumers face, such as excessive banking fees, airline baggage fees, and cancellation fees. The Federal Government aims to work with provinces and territories to modernize laws to prohibit misleading fees, investigate high international roaming fees, reduce telecom prices, and provide stronger protections against concert ticket vendors’ excess fees and predatory reseller practices. The government is taking steps to modernize the Competition Act, improve competition in the telecom space, and engage the Consumer Bureau.

Common Reporting Standards and Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework

The Budget proposes integrating the OECD's Crypto-Asset Reporting Framework into Canada's reporting requirements for crypto assets. This is part of a broader initiative to address the changing nature of financial markets, particularly the emergence of crypto assets. This is a significant expansion of the information exchange and reporting mechanisms currently in place for financial accounts under the CRS, which is geared to increase compliance with respect to the taxation of these assets in line with global efforts to prevent tax evasion. Once implemented, businesses in Canada that deal with crypto-assets, such as exchanges, will need to report detailed information about these transactions to the CRA. This integration is aimed to be implemented in 2026, with the reporting requirements to begin in 2027.

Mutual Fund Corporations

Specific amendments to the Income Tax Act are proposed in the Budget to prevent certain corporations from qualifying as a mutual fund corporation where it is controlled by, or for the benefit of, a group that does not deal at arm’s length. Mutual Fund Corporations enjoy preferential tax rules, such as allowing capital gains realized by the mutual fund corporation to the treated as capital gains realized by its investors. The government wishes to ensure these benefits apply only to corporations that are “widely held” by the public, and not those which are controlled by a small group. This measure would apply to taxation years that begin after 2024. 

Qualified Investments for Registered Plans

This year’s Budget is seeking input from stakeholders in the asset management industry, regarding the modernization and harmonization of the definition of qualified investments for registered plans (RRSPs, RRIFs, TFSA, RESPs, RDSPs, FHSAs and DPSPs). The current definition of qualified investments is rather limited and includes assets such as publicly traded securities, mutual funds, GICs, and certain bonds. Presently, these plans have slightly varying definitions of qualified investments, and the Federal Government is considering several changes, including how to promote Canadian-based investments, whether crypto assets should be included as qualified investments, and how to simplify the inclusion of investments in small businesses in registered plans. Stakeholders can submit their comments by July 15, 2024. 

Other Personal Tax Measures

This Budget proposes to extend the Canada Child Benefit for six months after a child's death, starting in January 2025, to help financially support grieving families. The Budget also proposes the creation of a National School Food Program and more funding to create additional affordable childcare spaces, and proposes enhancements to the list of expenses recognized for the Disability Supports Deduction to better acknowledge the broad range of supports needed for those individuals’ success in various aspects of their lives.

Our Tax and Estate Planning team is ready to assist you in navigating the changes outlined in this year’s Budget. Please contact your Investment Counsellor to explore how we can support you. 

Disclaimers:

This communication is an overview only and it does not constitute financial, business, legal, tax, investment, or other professional advice or services. It is not intended to be a complete statement of the law or an opinion on any matter. If you (or any of your family members) are a U.S. citizen, hold a U.S. green card, or are otherwise considered a U.S. resident for U.S income/estate tax purposes, the Canadian and/or U.S. tax implications could be substantially different from those outlined herein. No one should act upon the information in this communication as an alternative to legal, financial or tax advice from a qualified professional. No member of Mawer Investment Management Ltd. is liable for any errors or omissions in the content or transmission of this email or accepts any responsibility or liability for loss or damage arising from the receipt or use of this information.

While we endeavour to ensure that the information in this communication is correct, we do not warrant or represent its completeness or accuracy. This communication is not updated, and it may no longer be current. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this communication.

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Mawer Investment Management Ltd. provides this publication for informational purposes only and it is not and should not be construed as professional advice. The information contained in this publication is based on material believed to be reliable at the time of publication and Mawer Investment Management Ltd. cannot guarantee that the information is accurate or complete. Individuals should contact their account representative for professional advice regarding their personal circumstances and/or financial position. This publication does not address tax or trust and estate considerations that may be applicable to an individual’s particular situation. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.