Middle market reform and anti-avoidance legislation among central tax themes in Federal Budget 2022

Faster than expected economic recovery, new tax revenue streams and reining in the deficit were front and centre in the federal government's first budget following the 2021 election.

TORONTO, April 7, 2022 /CNW/ - RSM Canada, the leading provider of audit, tax and consulting services focused on the middle market, issued key perspectives for Canada's middle market businesses following the tabling of today's federal budget.

As part of its highly anticipated budget unveiling, the Government of Canada laid out key changes that, among other things, should allow more businesses – especially medium-sized businesses – to benefit from the small business deduction. This provides a preferential corporate tax rate of nine per cent rather than 15 per cent on up to $500,000 of active business income.

"Buoyed by a surge in commodity prices, the federal government finds itself with billions more than it expected in its coffers and a greater determination to exhibit fiscal discipline," explains Maria Severino, national tax leader at RSM Canada. "Yet the budget also continues a theme from last year: attempting to correct perceived inequalities in the tax system. Last year, the government introduced a tax on vacant property owned by non-Canadian non-residents, a luxury tax on big-ticket items and a digital services tax. In this year's budget, the government expects to procure more than $25 billion in additional tax revenue by enhancing anti-avoidance legislation, continuing with international tax reform, imposing an additional tax on financial institutions and life insurers, and eliminating other perceived tax loopholes."

For more information about the Federal Budget's implications for Canada's middle market, visit the RSM Canada website and follow RSM Canada on LinkedIn.

About RSM Canada

RSM's purpose is to deliver the power of being understood to our clients, colleagues and communities through world-class audit, tax and consulting services focused on middle market businesses. The clients we serve are the engine of global commerce and economic growth, and we are focused on developing leading professionals and services to meet their evolving needs in today's ever-changing business environment.

RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms with 51,000 people across 123 countries. RSM Alberta LLP is a limited liability partnership and independent legal entity that provides public accounting services. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International. For more information visit rsmcanada.com, like us on Facebook, follow us on Twitter and/or connect with us on LinkedIn.

SOURCE RSM Canada

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