![]() Similar declines are contemplated for the Canada Emergency Rent Subsidy. Additionally, while the current iteration provides a subsidy for any decline in revenue, starting in the July period declines below 10% will no longer warrant a subsidy benefits will likewise be declining as all levels of revenue decline. Currently, the maximum benefit under the CEWS is 75%: this will fall to 60% for July, 40% for August, and 20% for September. The current iteration of the Canada Emergency Wage Subsidy (CEWS) runs through June 2021 and rather than cut the subsidy off in June Budget 2021 proposes to gradually reduce the benefit into the fall. Measures Affecting Corporate Clients Continuation of the CEWS and CERS Regimes into the Fall Concerns around the creation of a federal estate tax were also unfounded. Such measures were not included in the budget. In addition, there was recent speculation that the budget would review and possibly eliminate the principal residence exemption, impose a wealth tax and/or address other loopholes perceived to benefit wealthy individuals. Likewise, there were no changes to the marginal tax rates on personal or corporate income tax. No such changes occurred on this front, though we will eat our collective hats if similar concerns are not circulated ahead of budget 2022. Notwithstanding this, budget watchers will be familiar with the annual concerns around changes to the capital gains inclusion rate, i.e., worries that instead of capital gains being taxable only as to one half, that the government will increase the taxable portion to two thirds, or even three quarters, which reared its head again this year. The government had indicated in the fall that the deficits being projected could be supported without meaningful changes to marginal tax rates. This difference in attitude has allowed the government to make many bold spending proposals that may have lasting effects on the Canadian landscape.īelow is a summary of items in Budget 2021 that are most likely to be significant to clients, but first: What Wasn’t Included in the Budget Today, many are relieved that the 2020-2021 deficit will only be $350 billion, and are seemingly sanguine about a projected deficit for 2021-2022 of a further $150 billion. ![]() Two years ago, some commenters were decrying the roughly $20 billion proposed deficit. Of course, the situation on the ground is radically different today than it was two years ago. As such, not unlike the March 2019 budget released in anticipation of a fall election, Budget 2021 had “something for everyone”. IntroductionĪs many commentators noted upon the release of the budget on Ap(“Budget 2021”), this is the Liberal government’s first budget since the last election and is likely to be the last budget before the next election. This article was authored by Beard Winter LLP corporate lawyers Brandon Tigchelaar, Partner, Business and Financial Services Group and Andrea Tratnik, Associate, Trusts and Estates Group.
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