McCarthy Tétrault Provides Analysis of 2006 Federal Budget
May 3, 2006
The new Conservative Government’s inaugural Federal Budget focuses on the five core commitments made in the Speech from the Throne on April 4, 2006: accountability, opportunities, families and communities, security, and restoring fiscal balance.
The Budget introduces broad-based tax measures affecting individuals, families and businesses. Highlights of the proposed tax measures include an expected reduction in the GST from 7 per cent to 6 per cent effective July 1, 2006, as well as the following tax measures relevant to business:
- a reduction in the federal corporate income tax rate and elimination of the corporate surtax;
- the elimination of federal capital tax;
- a single tax rate and increased threshold in respect of capital tax on financial institutions;
- an extension of the carry-forward period for non-capital losses and investment tax credits to 20 years; and
- an increase to the small business limit and a reduction in the small business tax rate.
For full analysis of these business-related tax measures by the McCarthy Tétrault Tax Group, click here to read the publication.
With offices in all major Canadian financial centres, as well as London, U.K., McCarthy Tétrault advises on the largest transactions and cases in Canada. Authoritative legal directories such as the International Financial Law Review and the Guide to the Leading 500 Lawyers in Canada consistently rank McCarthy Tétrault among the world’s top law firms. Chambers Global: The World’s Leading Lawyers has described McCarthy Tétrault as "clearly a leader" with "an enviable position in the marketplace." With close to 700 lawyers representing a broad spectrum of practice areas, it’s easy to see why McCarthy Tétrault is Canada’s premier law firm.
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Canada’s leading business law and litigation firm since 1855
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We deliver integrated legal solutions nationally and globally through our business law, tax, real property, labour and employment, and litigation expertise
Approximately 500 lawyers in Vancouver, Calgary, Toronto, Montréal and Québec City, as well as in New York City and London, UK
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One of the nation’s top-ranked tax law practices by leading tax directories
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