News for advisors from the 2016 federal budget tabled on March 22 in Ottawa, including Investment Executive‘s post-budget webinar with Jamie Golombek.
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Jamie Golombek, managing director, tax & estate planning, CIBC Wealth Strategies, discusses the main changes to personal taxes. He spoke from the budget lock-up in Ottawa.
This year’s budget proposes several changes to student loan and student grant programs
Ottawa aims to spend on infrastructure and expanding the innovation economy
Budget 2016 proposes changes to ensure the capital dividend account rules for private corporations, and the adjusted cost base rules for partnership interests, apply as intended
However, the small business tax rate will remain at 10.5% in 2017, but not drop to 10% as the previous Conservatives had promised
Feds to end tax-planning opportunity associated with linked notes
The decision to eliminate the proposed change introduced under the Conservatives may reduce wealthy individuals’ gifts to charities
Budget 2016 proposes to restore the credit to 15% for share purchases of provincially registered LSVCCs for 2016 and subsequent taxation years
Change would be part of Ottawa’s plan to renew financial services legislation and modernize consumer protection
A move from one class to another within the corporate structure will be considered to be a disposition and subject to capital gains taxes