However, keep in mind that, because the Liberals are now managing a minority government, the implementation of potential tax changes is less certain, says Debbie Pearl-Weinberg, executive director, tax and estate planning at CIBC Financial Planning and Advice.<\/p>\n
Regarding corporations, she highlights the Liberals broad-based proposed changes. These include a promise to crack down on tax loopholes that allow companies to deduct debt from earnings to reduce tax.<\/p>\n
Well have to wait and see what those changes actually are, she says.<\/p>\n
She also notes the promise to cut corporate taxes by 50% for clean-tech companies, specifically those that develop and manufacture zero-emissions technology.<\/p>\n
For personal taxes, several changes are in the works.<\/p>\n
What will impact the most Canadians is changes to the basic personal amount the amount of income that any individual can earn that is not subject to tax, Pearl-Weinberg says.<\/p>\n
That amount is currently $12,069 in 2019 and rises annually with inflation. The Liberals have promised to increase it by 15% over four years. By 2023, it will reach $15,000, she says.<\/p>\n
The increase isnt universal. It will not apply for those individuals who are described as being Canadas wealthiest 1%, she says.<\/p>\n
The amount will be reduced for those earning more than $147,667 those in the second-highest federal tax bracket and completely eliminated for those in the top bracket, which is $210,371 in 2019.<\/p>\n
Those in the top bracket will continue to receive the current basic personal amount, which will continue to be adjusted for inflation, Pearl-Weinberg says.<\/p>\n
The Liberals also promised to boost Old Age Security (OAS) by 10% for seniors over age 75 who earn less than $77,580, and to raise the Canada Pension Plan (CPP) survivors benefits by 25%.<\/p>\n
The change to OAS could mean an increase of $729 a year, according to the Liberals platform. It will start in July 2020, Pearl-Weinberg says.<\/p>\n
With CPP, a spouse or common-law partner currently receives about 60% of what their deceased spouse or common-law partner received in benefits, she says. The promised increase could mean an additional $2,080 per year.<\/p>\n
Parents have been promised that their maternity and parental benefits, received through employment insurance, will be tax-exempt at source, starting in 2020. The result would be about $1,800 more annually for someone receiving EI benefits who earns about $45,000 annually, Pearl-Weinberg says.<\/p>\n
Adoptive parents could also see a change in their EI benefits, with the Liberals proposing a 15-week leave the same length as for maternity leave.<\/p>\n
The tax-free Canada Child Benefit is also slated for an increase for those with kids under one year old. The promise is to boost the benefit by 15%, resulting in an increase of up to $1,000. Starting in July 2020, the base benefit should be $7,750 for these children, Pearl-Weinberg said.<\/p>\n
The Liberals proposed to immediately double the tax-free Child Disability Benefit. The benefit applies to families caring for a child with a disability who is under age 18 and eligible for the disability tax credit. The Liberal platform said the increase could result in more than $2,800, to $5,664 annually.<\/p>\n
A new vacancy tax would limit the housing speculation that can drive up home prices, the Liberal platform said. The residential tax would apply to vacant properties owned by non-resident non-Canadians.<\/p>\n
Finally, the Liberals might move forward with two tax credits originally announced in the federal budget, Pearl-Weinberg says.<\/p>\n
The Canada Training Credit was proposed to start in 2020, to help cover up to half of eligible tuition and fees associated with training. The credit could accumulate a balance up to a lifetime limit of $5,000.<\/p>\n
The second is a non-refundable 15% credit for eligible digital news subscriptions. The credit is for a limited time, for amounts paid after 2019 and before 2025, and is a maximum tax credit of $75 annually, to start in 2020, she says.<\/p>\n
This article is part of the AdvisorToGo program, powered by CIBC. It was written without input from the sponsor.<\/p>\n
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Original post:<\/p>\n
Tax implications of the Liberal win - Advisor.ca<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" However, keep in mind that, because the Liberals are now managing a minority government, the implementation of potential tax changes is less certain, says Debbie Pearl-Weinberg, executive director, tax and estate planning at CIBC Financial Planning and Advice. Regarding corporations, she highlights the Liberals broad-based proposed changes. These include a promise to crack down on tax loopholes that allow companies to deduct debt from earnings to reduce tax. Continue reading