1. Monday Morning Learning
and Growth
Presented by Jesse Dunn
on May 11, 2015
2015 Federal and Provincial
Budget Announcements
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2. Presentation Outline
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What We’ll Be Discussing Today
Presentation
Purpose
2015
Federal
Budget
2015
Ontario/
Québec
Budgets
Other
Budget
Highlights

3. 3© Deloitte LLP and affiliated entities.
Presentation
Purpose

4. Presentation Purpose
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Objective and Scope
To provide a
high-level
overview of the
most relevant
2015 budgets
Objective
Deloitte budget
summaries
(available online)
Scope

5. Presentation Purpose (cont’d)
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Pedagogical Method and Structure
Fed./Prov.
Budget
Contextual
overview
Measures
for
businesses
Measures
for
individuals
Other
measures

6. 6© Deloitte LLP and affiliated entities.
2015 Federal
Budget

7. 2015 Federal Budget
7© Deloitte LLP and affiliated entities.
A Contextual Overview
Contextual
Overview
of Budget
2015
Maintain
balanced budget
Measures for
families
Measures for
innovation and
infrastructure
Cross-border
investment relief

8. 2015 Federal Budget (cont’d)
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Measures for Businesses
SMB Tax Rate
Reduce small business
tax rate from 11% to 9%
by 2019
Income Definition
Review definition of
active v. investment
income for purposes of
the SDB
CCA Class 29
Change to declining
balance computation
Remittances
Quarterly remittances for
new employers with <
$1,000.00 in
withholdings
Anti-Avoidance
Rules
Increase the scope of
current GAAR

9. 2015 Federal Budget (cont’d)
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Measures for Individuals
Proposed TFSA contribution limit increase to
$10,000.00
Increase to lifetime CGE on disposition of
qualified farm or fishing property
Non-eligible dividends taxed at higher rates
Amendments to family tax cut with respect to
the transfer of education credits

10. 2015 Federal Budget (cont’d)
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Other Measures
Donations
• CGE on cash proceeds from
real estate disposition that
are donated to a qualified
done within 30 days
Employment Insurance
• Reduction of EI premium
rate starting in 2017 via a 7-
year break-even rate setting
mechanism

11. 2015 Federal Budget (cont’d)
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Other Measures (cont’d)
Relief from personal income tax withholding requirements for certain,
specific non-residents
Simplified reporting requirement for taxpayers holding specified
foreign property < $250,000.00

12. 12© Deloitte LLP and affiliated entities.
2015 Ontario/
Québec Budget

13. 2015 Ontario/Québec Budgets
13© Deloitte LLP and affiliated entities.
2015 Ontario Budget: A Contextual Overview
Contextual
Overview
of Budget
2015
Decrease in
budgetary deficit
Increase
infrastructural
investments
Focus on
employment,
talent, and skills
Ontario pension
plan

14. 2015 Ontario/Québec Budgets (cont’d)
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2015 Ontario Budget: Measures for Businesses
Several changes to the Apprenticeship Training tax credit
OIDMTC amended to focus the credit on entertainment and
educational products; 80% of labour costs must go to PSBs
Reduction to the OPSTC and the OCASE; elimination of OSRTC
Highest personal income tax rate to be applied to all trusts and estates

15. 2015 Ontario/Québec Budgets (cont’d)
15© Deloitte LLP and affiliated entities.
2015 Québec Budget: A Contextual Overview
Contextual
Overview
of Budget
2015
Return to
balanced
budget
No increases in
income tax
rates
announced
Major cost-
cutting
measures

16. 2015 Ontario/Québec Budgets (cont’d)
16© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Businesses
Reduction of the corporate tax rate from 11.9% to
11.4% by 2020
After 2016, only primary/manufacturing sector corp.,
that employ 3+ individuals will retain SBD eligibility
Gradual reduction of the Health Services Fund
contribution for SMBs
Increase to the refundable tax credit for on-the-job
training periods
Refundable tax credit for the integration of IT in
manufacturing SMBs

17. 2015 Ontario/Québec Budgets (cont’d)
17© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Businesses (cont’d)
Other amended tax credits
include:
Refundable tax credit for the
production of multimedia titles
Refundable tax credit for the
development of e-business
Refundable tax credit for Québec
film and television production
… etc.

18. 2015 Ontario/Québec Budgets (cont’d)
18© Deloitte LLP and affiliated entities.
2015 Québec Budget: Measures for Individuals
Health Contribution
Will gradually eliminated until
complete removal in 2019
“Tax shield”
A new refundable tax credit
introduced to offset loss of
socio-fiscal transfers
Tax Credit for Age
Age tax credit eligibility age
will gradually be raised to a
minimum of 70 by 2019
Solidarity Tax Credit
Determined on an annual
basis, not monthly; paid
monthly, quarterly, or annually

19. 2015 Ontario/Québec Budgets
19© Deloitte LLP and affiliated entities.
2015 Québec Budget: Other Measures
General
Integrity
Rule
Partner./trusts
will be deemed
to be corp. for
RTCs
Taxable
Benefit
Parameters
To determine
value of an
employee
benefit
Broadened
Scope
In disclosing
aggressive tax
planning
schemes
CGE
On transfer of
qualified agri.,
fishing,
primary, and
manufact.
corp. shares

20. 20© Deloitte LLP and affiliated entities.
Other Budget
Highlights

21. Other Budget Highlights
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A Look at Other Provincial Budgets
Western provincial budgets focus on
decline in oil prices
Provinces with no budgetary changes:
Nunavut, NWT, and NS
Credits for seniors: some provinces
mirroring federal initiatives
Mode detailed summaries possibly to
come on another date

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Today’s Presentation
in 30 Seconds

23. Today’s Presentation in 30 Seconds
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In Conclusion
Federal
Foreign
specified
property relief
Ontario
Apprenticeship
tax credit and
OIDMTC
changes
Québec
SMB eligibility
Refundable tax
credits
Elsewhere
Reaction to
decline in oil
prices

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