Peter Wiesner, CPA, CALicensed Public AccountantCopyright @ 2019
December 9 th, 2019
Today, Finance Minister Bill Morneau tabled in the House of Commons a Notice of Ways and Means Motion that proposes to amend the Income Tax Act to lower taxes for the middle class, and people working hard to join the middle class, by increasing the Basic Personal Amount (BPA) to $15,000 by 2023.
The enhanced Basic Personal Amont would mean that middle class Canadians, and people working hard to join the middle class, would pay no federal taxes on the first $15,000 they earn. This increase would cut taxes for close to 20 million Canadians, and would be phased in over four years, starting in 2020.
When fully implemented in 2023, single individuals would save close to $300 in taxes every year, and families, including those led by a single parent, would save nearly $600 every year.
The benefit would also be gradually reduced for people making more than $150,473 in net income in 2020.
The Government also proposes to increase two related amounts, the Spouse or Common-Law Partner Amount and the Eligible Dependant Credit, to $15,000 by 2023.
If any questions or comments arise, please contact me (Peter Wiesner CPA, CA) at 905-898-3355
December 16, 2019 – Ottawa, Ontario – Department of Finance Canada
Minister of Finance Bill Morneau announced the 2020 Climate Action Incentive payment amounts for residents of provinces that have not adopted the federal system or otherwise met the federal stringency requirements for pricing carbon pollution: Ontario, Manitoba, Saskatchewan and Alberta. Individuals will be able to claim these amounts through their 2019 personal income tax returns.
December 19th, 2019
Stock Option Changes are Coming
Today the government reconfirmed that it will proceed to reform employee stock option plans.
On June 17, 2019, the Government tabled a Notice of Ways and Means Motion in the House of Commons proposing changes to the taxation of employee stock options.
As part of the June 17 announcement, stakeholders were invited to provide input on the characteristics of companies that should be considered start-up, emerging, and scale-up companies for purposes of this measure. Such corporations would not be subject to the new rules. The consultations closed on September 16, 2019, and Minister Morneau thanks all those who contributed.
The Government is carefully reviewing the input received during the consultations to ensure that the new regime meets both of its key objectives. As a result, the proposed changes to the tax treatment of employee stock options will not come into force on the previously proposed date of January 1, 2020.
The Government will announce details on how it intends to move forward with the measure in Budget 2020. The new coming-into-force date, to be announced in Budget 2020, will provide individuals and businesses time to review and adjust to the new employee stock option tax rules.