Moore Stephens
Budget

Our summary of the 2023-2024 federal budget

On March 28, 2023, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, tabled the 2023 federal budget.

Against a backdrop of sustained inflation, the latest budget announces a number of measures designed to help low-income earners. Tax breaks for clean energy production are also being promoted.

Demers Beaulne presents his executive summary of the most important tax measures that caught his team’s attention during the analysis of this budget.

MEASURES RELATING TO BUSINESS TRANSFERS (P. 5)
Intergenerational business transfers
Employee group trusts

MEASURES FOR COMPANIES (P. 10)
Retirement Compensation Arrangement
GAAR and mandatory disclosure rules

CLEAN TECHNOLOGY TAX MEASURES (P. 13)
ITC for clean technologies – geothermal energy
Clean hydrogen tax credit
ITC – labour requirements
ITC – clean technology manufacturing
Manufacturers of zero-emission technologies
ITC for carbon capture, utilization and storage
Clean electricity ITC

OTHER MEASURES FOR COMPANIES (P. 14)
Flow-through shares – Critical minerals
Tax on redemption of equity
Deduction of dividends received from financial institutions
Changes to SR&ED credit
Federal Business Registry

INTERNATIONAL TAX MEASURES (P. 15)
Worldwide minimum tax

MEASURES FOR INDIVIDUALS (P. 17)
Alternative minimum tax for high-income individuals
Grocery rebate
Tradesperson’s tools deduction
Other measures for individuals

SALES AND EXCISE TAX MEASURES (P. 21)
Processing of payment card clearing services
Excise duty on alcohol
Cannabis taxation

PREVIOUSLY ANNOUNCED MEASURES: GOVERNMENT MOVES FORWARD (P. 23)
Restricting excessive interest and financing expenses
Hasty resale rule (reminder)
CCPCs in substance
Hybrid devices
Treatment of crypto mining (GST/HST)
Digital Services Tax Act
Transfer pricing

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