What key goals did the 2013 federal budget aim to achieve?

The 2013 federal budget primarily aimed to promote economic growth and fiscal responsibility within Canada. Its key goals included addressing the national deficit, supporting job creation, and enhancing the country's overall competitiveness.

What specific tax adjustments did the 2013 federal budget introduce for individual taxpayers?

The 2013 federal budget introduced several tax adjustments for individual taxpayers, including increased tax credits for certain expenses and modifications to pension rules. These measures were designed to offer some financial relief while supporting the government's broader goal of fiscal responsibility.

What significant changes did the 2013 federal budget introduce for businesses?

The 2013 federal budget introduced several initiatives to support businesses, especially small and medium-sized enterprises. These changes included tax measures aimed at encouraging investment and innovation, as well as efforts to reduce administrative burdens.

How did the government plan to reduce the deficit in the 2013 federal budget?

The 2013 federal budget aimed to reduce the deficit through controlled government spending and strategic investments. It set a goal to achieve balanced budgets by 2015, prioritizing responsible financial management.

Key Highlights of the 2013 Federal Budget

Review the key highlights of the 2013 federal budget. Understand the tax initiatives and measures that impacted individuals and businesses.

Of the dozens of tax initiatives and measures introduced in the budget, we have narrowed our list down to the 4 most likely to affect you, our client:

Tax rate on Non-Eligible Dividends: The effective tax rate on non-eligible dividends, dividends paid by the majority of small businesses, will be increasing by 1.64% at the top marginal tax rate. Starting in 2014 the gross up and dividend tax credit for non-eligible dividends are changing and this will have the effect of increasing the amount of tax that you will pay personally on dividends that are paid from your company.
Lifetime Capital Gains Exemption (LCGE): The LCGE is increasing from $750,000 to $800,000 effective for 2014. It will also be indexed for years after 2014.
First Time Donor’s Super Credit: If you or your spouse have never claimed a personal tax credit for donations or haven’t since 2007 then you can receive an extra “super credit” if you claim donations anytime from 2013 to 2017. The donations must be made after March 20, 2013 and before December 31, 2017 and will generate an extra 25% tax credit on up to $1,000 of donations.
Safety Deposit Box: For 2014 and subsequent years your safety deposit box will no longer be a deductible expense.

If you would like to contact us about any of the above, please call us at 780-466-6204 or click here.