Posted under: News
March 28th, 2023
The 2023 Federal Budget was released on March 28th, and though it contained a few measures of note, regarding the alternative minimum tax (AMT), there were very limited measures that would impact the planning for small business clients as it relates to GBL.
There were no changes to rules governing Individual Pension Plans (IPPs), Health Benefit Plans (HBPs) or Fair Market Valuations (FMVs) of life insurance.
Retirement Compensation Arrangements (RCAs) were mentioned in the budget where they are used on a supplemental basis to an existing registered pension plan, as it relates to fees paid for the purposes of securing or renewing a letter of credit or a surety bond. They will no longer be subject to the 50% refundable tax for retirement benefits paid after 2023. In addition, there will be an adjustment of the refundable tax paid for the historical fees these plans have paid in securing letters of credit.
On the plus side, we can all raise a pint in honour of a reduction to the proposed alcohol taxes that were set to increase on April 1st by 6.4% and instead will rise by 2%. This is welcome news to the restaurant industry that has been recovering from the extended lockdowns in recent years.
Please contact us at 403.249.1820 or [email protected] with any inquires.
