Tax Perspectives

Please note that these publications may not be up-to-date as taxation matters are subject to frequent changes.

PDF Format All Issues Spring 2007 Volume 7, Number 2 SPECIAL BUDGET COMMENTARY SPECIAL BUDGET COMMENTARY March 19, 2007 Federal Budget Overview In delivering his first full budget, Finance Minister Flaherty has produced a series of initiatives, tax incentives, and get-tough measures, which are hard to criticize. In doing so, he has thrown down the gauntlet to the opposition parties to either... Individuals This is an area of new ideas and returns to earlier eras. To effect equality between the single-income family and the two-income family, the personal tax credit for a spouse has been raised to equal the individual exemption credit. For 2007, this is... Businesses The Budget continued with the corporate tax rates that were proposed in the 2006 Budget. The only additional change is to further reduce the general tax rate in 2011 to 18. 5%. Capital Gains Leading up to this Budget, there was much discussion as to the deferral reduction or elimination of capital gains. This did not happen. Instead, the Budget focuses on the incentives for sale of certain private company shares as well as the donation of... International The Budget contains a surprisingly long list of international measures, many of which have been laid out in great detail. U. S. Limited Liability Companies (LLC's)It has become increasingly common for U. S. businesses to invest in Canada...