As you are aware, on March 22, Finance Minister Jim Flaherty released the 2011 federal budget. For the current fiscal year a deficit of $40.5 billion is projected, falling to $29.6 billion in 2012, to $19.4 billion in 2013, and a balanced budget for the 2015-2016 fiscal year.
The Budget did not contain changes to corporate, personal, or GST tax rates. However, it did include several measures to tighten the tax base, including the ending of partnership tax deferrals for corporate partners, new rules to restrict the exemption from capital gains tax on the donation of flow-through shares and new rules for individual pension plans and RRSP anti-avoidance rules. The budget also included accelerated CCA for manufacturing and processing equipment and clean energy generation equipment. For more information, and to determine what the budget changes mean for you, you can visit:http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/TNF/Pages/tnfc1108.html
Although the opposition parties do not support the budget, which may lead to a general election in the spring, it is still possible that many of the technical changes proposed may be enacted taking effect as of March 22, 2011.
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