An Overview of the 2014 Federal Budget
The 2014 Federal Budget was tabled yesterday, and while many are saying this was a ‘boring’ budget, there were a few measures that are worth noting, specifically:
- The tax rates applicable to testamentary trusts and estates are going to change after 2015. This measure was first introduced in the 2013 Budget, and was previously blogged by LW.
- All trusts (other than certain testamentary trusts) will be deemed to have a calendar year end.
- Immigration trusts will no longer be an option for recent arrivals to Canada.
- The government proposes clarifying and expanding the rules relating to testamentary charitable donations and the related tax credit.
- The ability to split business or rental income with a minor through a trust or partnership will be reduced or eliminated.
- Changes to the frequency of source deduction remittances for businesses with average monthly withholdings between $25,000 and $100,000.
- The list of clean energy generating equipment that qualifies for accelerated capital cost allowance will be expanded.
- The government proposes changing the way goodwill is taxed, to bring it in line with other depreciable property.
- The GST/HST Joint Venture election for participants in a joint venture will be changed so that it applies to more joint ventures engaged in commercial activities.
- The income tax exempt status of non-profit organizations is under review.
As with all budgets, we will have to wait to see until the legislation is introduced to fully understand the extent of any of the above changes.
Written by: Dineen Beath