The 2013 federal government is likely to follow suit with previous budgets and close off more tax loopholes, predicts KPMG LLP.

The March 21 budget could include improvements to the Scientific Research and Experimental Development (SR&ED) tax credit, suggests KPMG, to support innovative private-sector business as recommended in the October 2011 Jenkins report: Innovation Canada: A Call to Action.

Closing such loopholes would be in keeping with changes implemented in the 2011 and 2012 budgets, according to KPMG, such as the new rules affecting multinational corporations.

Other possible changes to watch out for according to the finance committee’s recent report, Jobs, Growth, Productivity and Demographic Change: Challenges and Opportunities for Canada, include:

  • the consideration of an expansion of the accelerated capital cost allowance to bolster domestic infrastructure construction in the oil and gas sector;
  • further implementation of pooled retirement pension plans;
  • a look at estate and succession planning tax provisions;
  • an exploration of tax incentives to help skilled workers;
  • tax code changes to foster more charitable giving; and
  • the elimination or lowering of capital gains tax on real estate and private corporation shares charitable donations