Finance Minister Chrystia Freeland delivered the federal government’s fall economic update on November 3rd. Although the update did announce some new program spending and taxes applicable to publicly traded companies, these new measures are not relevant to private corporations and individual taxpayers. However, if you are interested to learn more about yesterday’s new measures, please feel free to visit this Government of Canada site at Fall Economic Statement 2022 (budget.gc.ca) for more information.
Minister Freeland reiterated the government’s intent to proceed with several outstanding tax and estate planning proposals but did not provide any new details about them or timelines for implementation. Although not specifically mentioned, the capital gains/surplus strip strategy is likely among these outstanding proposals since it was discussed in the March 2022 federal budget. While the capital gains/surplus strip strategy was not impacted by the 2022 economic update, it remains to be seen when the federal government will introduce changes to eliminate this planning.
Please don’t hesitate to reach out to us if you have any questions concerning the fall economic update.