Welcome!

News Feed Item

Harper Government focuses on jobs, and innovation in 2014 federal budget

KPMG sheds light on budget day impacts

TORONTO AND OTTAWA, Feb. 11, 2014 /CNW Telbec/ - In an effort to balance the books by 2015, today's federal budget focused mostly on job creation and innovation. As predicted by KPMG, this budget also introduced a host of new measures to tighten the tax system by closing "tax loopholes".

Budget 2014 highlights include the following proposals:

  • Job creation:
    • Funding of approximately $229 million for apprenticeships and internships, including:
      • $40 million over four years to the Canada Accelerator and Incubator Program to help entrepreneurs create new companies and provide mentoring and other resources.
      • $40 million towards supporting up to 3,000 internships in high-demand fields.
      • $15 million annually towards supporting up to 1,000 internships in small and medium-sized enterprises.
      • $150,000 to increase mentorship among women entrepreneurs.
  • Innovation funding:
    • Additional funding for research and innovation, including the creation of the Canada First Research Excellence fund with $ 1.5 billion in funding over the next 10 years for certain post-secondary institutions.
  • Tax transparency and Base Erosion and Profit Shifting (BEPS) consultations:
    • Focus on key areas, such as aggressive tax planning using preferential tax regimes and treaty shopping, hybrid instrument mismatches, transfer pricing methodologies, and other potential areas for abuse under taxation systems around the world.
    • The budget is requesting comments from stakeholders on a number of broad questions intended to provide the government with a framework for Canada's own BEPS action plan.
  • International tax changes:
    • Expand the existing anti-avoidance rules in the thin capitalization provisions and to add a back-to-back loan provision.
    • Amend the current rule aimed at preventing Canadian taxpayers from shifting income from the insurance of Canadian risks offshore.
  • Business tax changes:
    • Proposes to repeal the Eligible Capital Property regime, replacing it with a new Capital Cost Allowance (CCA) class and transfer taxpayers' existing Cumulative Eligible Capital pools to the new CCA class.
  • Personal tax changes:
    • Proceed with measures to eliminate the tax benefits that arise from taxing at graduated rates the taxable income of testamentary trusts.
    • Eliminate the benefits for immigrant trusts that end after 2014 if the 60-month exemption is applied.
    • Apply the tax on split income where a minor is allocated income from a partnership or trust that is derived from business or rental activities conducted with third parties.

KPMG's Perspective on the Budget

Quotes

"The themes for today's budget are jobs, growth and innovation. The focus on jobs and growth is to manage current issues including bridging the skills gap in Canada while balancing the budget by 2015. The Harper Government has also introduced a number of tax measures aimed at closing "tax loopholes" in line with the government's continued focus on tax fairness measures and tax transparency."

− Elio Luongo, Canadian Managing Partner, Tax, KPMG

KPMG's Spokespeople across the Country

KPMG's Tax professionals from coast to coast are available to provide regional insight into the federal budget. With more than 30 offices across the country, our regional professionals can comment on the budget's local impact for Canadians and businesses.

LEARN MORE

KPMG website
@KPMG_Canada - #bdgt14 #eap14
KPMG on LinkedIn
KPMG's Federal Budget Webcast

About KPMG

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG member firms around the world have 155,000 professionals, in 155 countries. 

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

SOURCE KPMG LLP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often un...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....