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
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...