Northern Residents Deduction

You are eligible if you live in prescribed areas in Northern Canada for at least six consecutive months beginning or ending in a taxation year.

Personal Tax Changes

The budget proposes to eliminate the income splitting tax credit for couples with children under the age of 18 for the 2016 and subsequent taxation years. Pension income splitting will not be affected by this change.

Children‘s Fitness Amount

For 2016, the budget reduces the 2016 maximum eligible amounts to $500.00 (from $1000.00) for the Children’s Fitness Credit (which will remain refundable for 2016) and to $250.00 (from $500.00) for the Children’s Arts Tax Credit. The supplemental amounts for children eligible for the Disability Tax Credit will remain at $500.00 for 2016. Both credits […]

Small Business Tax Rate

The budget keeps the small business tax rate at 10.5% on the first $500,000 of business income. Furthermore, the budget precludes the multiplication of the small business deduction in certain partnership and corporate structures. As well, the budget repeals the eligible capital property regime, which will be replaced with a new capital cost allowance class. […]

Canada Child Benefit

The budget introduces a new Canada Child Benefit that provides monthly payments to eligible families, beginning in July 2016. The credit, which replaces the Canada Child Tax Benefit and Universal Child Care benefit, provides a maximum annual benefit of up to $6400.00 per child under the age of 6 and up to $5400.00 per child for […]