In the midst of an economic downturn and staggering volatility, the Liberal government delivered a federal budget that will see a nearly $30-billion deficit in the hopes of stimulating – and growing – the Canadian economy.
Supporting the Liberal election platform, with a focus on economic growth, the 2016 federal budget focused on closing perceived tax loopholes in order to maintain integrity in the tax system and generate tax revenue for the government. Here are the top five things small business owners need to know about how the budget may impact them.
1) Small business deduction
The 2016 budget saw two types of changes made to the small business deduction. Under existing legislation, the small business deduction is available to corporations that earn business income up to $500,000. The tax rate is 15 per cent and the deduction provides tax savings of up to $55,000.
Read more from Globe and Mail