2022 Canada Federal Budget: Detailed commentary

Apr 08, 2022
Federal tax Federal provincial budget

Key budget insights and implications for the middle market

On April 7, 2022, Canada’s Minister of Finance, Chrystia Freeland, released Canada’s 2022 budget.

The budget is based on three pillars: (i) investing in people by increasing the housing supply and establishing affordable child care, (ii) facilitating a transition to a green economy to fight climate change, and (iii) incentivizing and supporting Canadian production and innovation.

The budget signals the end of COVID-19 subsidies and credits, and adopts a measure of fiscal restraint. From a tax perspective, the only tax rate increases are on banks and life insurers. However, there is a clear focus on strengthening anti-avoidance rules and eliminating other tax deferrals and benefits that could affect many middle market businesses. In this respect, Budget 2022 continues one of the themes from Budget 2021, which introduced the Luxury Tax, the Digital Services Tax, mandatory disclosure rules and enhanced collection measures to combat tax avoidance.

This tax alert summarizes the business and personal income and indirect tax measures in Budget 2022 relevant to the middle market.

Looking for industry-specific takeaways? View our 2022 Canada Federal Budget: Industry Highlights

RSM Contributors

Peter Ahn, Sr. Director
Dan Beauchamp, Sr. Director
Allison Baum, Sr. Manager
Sigita Bersenas, Associate
Bob Boser, Partner
Adrian Jack, Manager
Marino Jeyarajah, Partner
Nakul Kohli, Manager
Danny Ladouceur, Partner
Bev Lucas-King, Sr. Manager
Sean McNama, Partner
Hayley Mercer, Manager

Yoni Moussadji, Sr. Manager
Clara Pham, Partner
Shannon Preitauer, Supervisor
Austen Ramsay, Partner
Melina Rocha, Manager
Stephen Rupnarain, Partner
Greg Synanidis, Sr. Manager
Sam Tabrizi, Partner
Enzo Testa, Partner
Chetna Thapar, Sr. Associate
Danielle Wallace, Manager

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