From pandemic to recovery
On April 19, 2021, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget. Read more about the tax initiatives proposed in the budget in our in-depth Tax Insights.
For additional insights on the impact of the Federal Budget on private companies and the power and utilities sectors, please see below.
The Federal Budget extends the wage subsidy, rent subsidy and lockdown support programs to September 25, 2021, and introduces a hiring subsidy program from June 6 to November 20, 2021.
It enhances Canada’s mandatory reportable transaction disclosure rules (subject to public consultation) for taxation years beginning after 2021.
It also limits the deductibility of interest by corporations, trusts and partnerships to a percentage of tax-basis EBITDA, starting taxation years beginning after 2022.
The Federal Budget aims to empower private companies as we come out of the pandemic.
It’s focused on the future of work, with supports to help the next generation of workers. A new childcare plan could help retain parents in the workforce, further boosting inclusion and diversity.
But there’s also more oversight in certain areas to prevent the erosion of the Canadian tax base.
The 2021 Federal Budget attempts to align economic recovery initiatives with the federal government’s plans for Canada to become net zero by 2050.
Canadian power and utilities companies have an opportunity to embrace these new initiatives to support their own transformation.
Energy, power and utilities companies that take advantage of this momentum will be uniquely positioned to succeed as Canada and the world transition to a more interconnected, circular economy.
Explore this year’s provincial and territorial budgets in the interactive map below by hovering over each province or territory’s capital city to determine the budget day. Learn more by reading our Tax Insights, if available.