Shedding Some Light on the 2019 Federal Budget

On March 19, 2019, the Honourable Bill Morneau, Minister of Finance, presented the 2019 Federal Budget, Investing in the Middle Class, to the House of Commons. Our team has reviewed and marked some of the items we feel are important for you to know.

No changes were made to personal or corporate tax rates, nor to the inclusion rate on taxable capital gains.

Highlights in this federal budget include:

  1.     Personal Income Tax
  • Enhancements to the first-time home buyers’ plan.
  • Introduction of the $250 per year refundable Canada Training Credit.
  • Introduction of additional types of investments that can be made in registered tax-sheltered plans.
  1.     Business Income Tax
  • Full immediate write-off for certain zero-emission vehicles.
  • Further protection for farmers and fishers from the rules which prevent the multiplication of the small business deduction.
  • Increased ability of private businesses with income greater than $500,000 to claim the 35% refundable Scientific Research & Experimental Development investment tax credit.
  1.     International Tax
  • Several amendments relating to transfer pricing, foreign affiliate dumping, and cross-border securities lending arrangements.
  1.     Sales and Excise Tax
  • GST/HST relief on human ova and in vitro embryos, and multidisciplinary health care services.
  • Revisions to excise duties on various cannabis products.

 

  1.     Other Tax and Business Measures
  • Introduction of the First-Time Home Buyer Incentive.
  • $5,000 rebate for the purchase of electric or hydrogen fuel cell vehicles.
  • Interest relief on student loans.
  • CRA funding for targeted compliance initiatives and service improvements.
  1.     Previously Announced
  • Intention to proceed with a number of previously announced measures, such as the accelerated CCA changes from the Fall Economic Statement, and expanded disclosure requirements for trusts.
  1.   Other Budget Expenditures
  • Various other expenditures such as investments in rural internet and EI and CPP service delivery.

Need us to shed a bit more light on this budget for you? Feel free to connect with anyone of us at JMH.

Tax Highlights

  1. Home Buyers Plan (HBP) – (Page 1)
  2. First-Time Home Buyers Incentive (page 7)
  3. Guaranteed Income Supplement (GIS) – (page 8)
  4. Employment Insurance Small Business Premium Rebate (page 8)
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