LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • How Canadians can access online casinos through mobile phones

  • Comment gérer un retard de vol ?

  • 5 ways sudoku boosts brain health

  • 10 tips to successfully market your law firm

  • 7 Amazing Gifts for Kids Who Like to Cook

Business
Home›Business›Canadians Will Ring in 2017 with Some Tax Changes

Canadians Will Ring in 2017 with Some Tax Changes

By admin
December 29, 2016
1898
0
Share:

MONTREAL—Canadians will ring in the new year with a number of tax changes that will affect the bottom line of federal and provincial governments. Here’s a look at some of them:

Nationally

The federal government is ending four child tax credits this year: arts, fitness, education and textbooks in 2017. Parents of children under the age of 16 can pre-pay 2017 arts and fitness programs to claim them on 2016 tax returns as long as total spending for 2016 does not exceed $250 and $500 limits, respectively.

It is also cancelling income splitting for families, a tax reduction measure that allowed someone to transfer up to $50,000 of income to a spouse with lower income if they had a child under 18 years of age. The tax credit for income splitting was capped at $2,000.

Offsetting those changes are the Canada Child Benefit and changes to Employment Insurance benefits introduced in 2016.

“High income earners in most provinces will pay more but for the majority of Canadians, these two changes will mean more money in their pockets,” Canadian Taxpayers Federation federal director Aaron Wudrick said Wednesday in a news release.

Several other changes at the federal level will affect life insurance, business owners selling their companies and some mutual funds.

Under changes enacted by the previous government, the tax treatment of universal life insurance policies will be less favourable starting Jan. 1. New policy holders will see a decrease in their ability to build up investment gains above death benefit premiums on a tax-free basis.

The new formula for calculating insurance will make policies a little more expensive or reduce death benefits, says Jason Safar, a PricewaterhouseCoopers partner specializing in personal taxes.

Business owners, large and small, will gain less from the sale of their operations as assets such as goodwill and trademarks will become fully taxable as investment income. Currently, half of the proceeds can be distributed tax-free as a dividend.

Investors will also no longer be able to rebalance their non-registered mutual fund investments in corporations structured as “switch funds” on a tax-deferred basis. As of the new year, capital gains from such moves will be taxed in the same way as equities.

Provincially

Cash-strapped Newfoundland and Labrador is the only province hiking its income tax rates next year, the second time it’s doing so in six months. Rates in all tax brackets will rise, with those earning between about $35,000 and $70,300 paying 14.5 per cent, up one percentage point from July and two points from 2015. The province is also raising entry fees into provincial parks and campsites.

Quebec is bidding adieu two years early to controversial health premiums introduced in mid 2010.

Ontarians will get an eight-per-cent rebate on rising hydro bills and see the maximum total cost of borrowing for a payday loan lowered to $18 per $100 borrowed from $21 per $100.

The province is also doubling the first-time homebuyers’ maximum land transfer tax refund to $4,000 and is introducing its carbon cap and trade system.

British Columbia is scrapping medical services plan premiums for children and young adults attending school.

Alberta is reducing its small business corporate income tax rate from three per cent to two per cent. It is also introducing a carbon tax on the purchase of fossil fuels, offset with a rebate for low- and middle-income earners.

The federal government and provinces have already mostly implemented tax changes announced in their 2016 budgets.

“There are a few changes that are unique for 2017 but the average Canadian is not going to see much difference between 2016 and 2017,” said Jamie Golombek, managing director of tax and estate planning for CIBC Wealth Advisory Services.

Jason Safar, of PricewaterhouseCoopers, said more changes are possible in 2017. He said the federal government could eliminate more tax credits and could feel pressure from possible personal and corporate tax cuts in the United States.

“I do find it interesting to consider that given (Donald) Trump’s election in the U.S. and the promise of lower tax rates in the U.S., what is going to happen with Canadian tax rates?” Safar said.

Finally, various tax amounts — including maximum RRSP contributions, tax brackets and maximum amounts of various credits — will increase in 2017 to reflect inflation but the tax-free savings account limit remains at $5,500.

Read More..

Post Views: 2,061
Previous Article

What to Expect When you’re Expecting to ...

Next Article

Airbus Delays A380 Jet Deliveries to Emirates ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    Why Yahoo Users are Struggling to Switch Services after Mass Breach

    October 10, 2016
    By admin
  • Business

    Hackers Could Tap Into Smart Light Bulbs, Research Shows

    November 3, 2016
    By admin
  • Business

    Ashley Madison not as Discreet, a lot More Deceptive than it Said, Probe Finds

    August 24, 2016
    By admin
  • Business

    Bagnall: Capital region job market weaker than it seems, but budget could hold fixes

    March 28, 2016
    By admin
  • Business

    Twentieth anniversary of Ski for the Cure event raises $50,000

    February 19, 2019
    By admin
  • Business

    Fashion Designer Tommy Hilfiger to Sell his ultra-rare Ferrari Collectible Car After Lifestyle Change

    December 4, 2016
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Ottawa Market
  3. Agora Publishing Consortium
  4. Le Journal Canadien
  5. Dominion: Food News
  6. LeCanadian.com
  7. The Ottawa Star
  8. Capitalistocracy.com
  9. Agora Books Author House
  10. First Nations Press
  11. The Etiquette Show
  12. Ontario People's Front





Mark's



Recent Posts

  • How Canadians can access online casinos through mobile phones
  • Comment gérer un retard de vol ?
  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19
  • Catching Covid-19 after being vaccinated isn’t a myth. It happened to me
  • My COVID Story: “I got COVID after being fully vaccinated”
  • Albertans fully vaccinated for COVID-19 urged to stay cautious during pandemic’s 4th wave