On April 16, 2024, the federal government introduced Budget 2024: Fairness for Every Generation. The Budget contains tax measures aimed at generating increased tax revenue from wealthier Canadians. The federal government believes that this will make the tax system more "fair".

The most significant proposals include:

• increasing the capital gains inclusion rate from one-half to two-thirds for all capital gains realized by corporations and trusts and for capital gains in excess of CA$250,000 realized by individuals in a tax year;
• increasing the lifetime capital gains exemption CA$1.25 million for capital gains realized on the disposition of qualified small business corporation shares or qualified farm or fishing property (effective June 25, 2024);
• the introduction of the “Canadian entrepreneur’s incentive” which reduces the capital gain inclusion rate on certain dispositions of qualifying shares by an individual;
• additional changes to the alternative minimum tax rules
• rules regarding the Clean Electricity investment tax credit

Members of Dentons’ Tax group, together with a team at Wolters Kluwer, have prepared a Special Report which provides a detailed analysis of the key tax components in the Budget.

Download the complimentary Special Report here.

Additional key contacts:

• Mike Harris
• Gergely Hegedus
• Keith R. Hennel
• Brian Kearl
• Larry Nevsky
• Joel A. Nitikman, KC
• Emmanuel Sala
• Tony Schweitzer
• Pam Shin
• Hannah Bourgeois
• Paige Donnelly
• Adam Kotlowitz
• Daniel Safi
• Ann Chen
• Nolan Menard