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Tracking Federal Tax Policy Changes: Conservative vs Liberal
As the 2025 election approaches, Canada’s two major parties are rolling out new tax proposals.
This page is maintained by tax expert Kim G C Moody, FCPA, FCA, TEP to provide ongoing, side-by-side comparisons
of federal tax policy announcements from the Conservative and Liberal parties.
Want to stay informed as policies change?
Subscribe here
to receive weekly tax policy updates right in your inbox.
Last updated: April 3, 2025
Tracking Federal Tax Policy Changes: Conservative vs Liberal
As the 2025 election approaches, Canada’s two major parties are rolling out new tax proposals.
This page is maintained by tax expert Kim G C Moody, FCPA, FCA, TEP to provide ongoing, side-by-side comparisons
of federal tax policy announcements from the Conservative and Liberal parties.
Want to stay informed as policies change?
Subscribe here
to receive weekly tax policy updates right in your inbox.
Last updated: April 3, 2025
Tax Policy Comparison: Tax Reform
Conservative Party
Date: June, 2024
Summary:
Overall Tax Reform
Description & Comment:
In June 2024, Conservative Party leader, Pierre Poilievre, announced that - should the Conservatives get elected - he would convene, within 60 days of getting elected, a “Tax Reform Task Force” with a mandate to deliver a “Bring it Home Tax Cut” to:
1. Lower taxes on work, hiring and making stuff;
2. Reduce the share of taxes paid by the poor and middle income earners
Obviously, the mandate of such a Task Force would be limited and not as broad based as the 1962-1966 Royal Commission on Taxation (the last time there has been comprehensive tax review) but this proposed approach is certainly welcome.
View Policy (Video)
Summary:
Overall Tax Reform
Description & Comment:
In June 2024, Conservative Party leader, Pierre Poilievre, announced that - should the Conservatives get elected - he would convene, within 60 days of getting elected, a “Tax Reform Task Force” with a mandate to deliver a “Bring it Home Tax Cut” to:
1. Lower taxes on work, hiring and making stuff;
2. Reduce the share of taxes paid by the poor and middle income earners
• Reduce corporate welfare.
• “Cracking down” on overseas tax havens.
3. Reduce paperwork by 20% by simplifying tax rules – “lower, simpler, fairer”
.• “Cracking down” on overseas tax havens.
Obviously, the mandate of such a Task Force would be limited and not as broad based as the 1962-1966 Royal Commission on Taxation (the last time there has been comprehensive tax review) but this proposed approach is certainly welcome.
View Policy (Video)
Liberal Party
Date: N/A
Summary:
Overall Tax Reform
Description & Comment:
The Liberal Party has consistently rejected calls for tax reform / review.
No Policy to View
Summary:
Overall Tax Reform
Description & Comment:
The Liberal Party has consistently rejected calls for tax reform / review.
No Policy to View
Tax Policy Comparison: Personal Taxation #1
Conservative Party
Date: March 24, 2025
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
2.25 % reduction of the current lowest bracket (income from nil to approximately $57K). In other words reduce from current 15% to 12.75%.
This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 12.75% as well.
Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits.
View Policy Video
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
2.25 % reduction of the current lowest bracket (income from nil to approximately $57K). In other words reduce from current 15% to 12.75%.
This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 12.75% as well.
Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits.
View Policy Video
Liberal Party
Date: March 23, 2025
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
1.0% reduction of the current lowest bracket (income from nil to approximately $57K).
In other words, reduce from current 15% to 14%.
This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 14.0% as well.
Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits.
View Policy
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
1.0% reduction of the current lowest bracket (income from nil to approximately $57K).
In other words, reduce from current 15% to 14%.
This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 14.0% as well.
Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits.
View Policy
Tax Policy Comparison: Personal Taxation #2
Conservative Party
Date: January 16, 2025 and earlier
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget.
View Policy
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget.
View Policy
Liberal Party
Date: March 21, 2025
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
New PM Mark Carney announces that he would "cancel" the capital gains proposals.
View Policy
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
New PM Mark Carney announces that he would "cancel" the capital gains proposals.
View Policy
Tax Policy Comparison: Personal Taxation #3
Conservative Party
Date: March 26, 2025
Summary:
Increase the Basic Personal Amount For Seniors
Description & Comment:
The Conservatives announced its intention to enable seniors to earn up to $34K without personal tax. Presently, seniors are able to earn the basic personal amount of roughly $16K along with the age credit of roughly $9K (assuming no grind down for the age credit).
It would appear that the Conservatives want to increase the basic personal amount (only for seniors age 65 and older) such that they can earn additional amounts (likely employment and self-employment income only) without attracting tax. Obviously the devil is in the details and would have to ensure that this policy objective doesn't result in grinddowns of the age credit and potential other consequences.
View Policy Video
Summary:
Increase the Basic Personal Amount For Seniors
Description & Comment:
The Conservatives announced its intention to enable seniors to earn up to $34K without personal tax. Presently, seniors are able to earn the basic personal amount of roughly $16K along with the age credit of roughly $9K (assuming no grind down for the age credit).
It would appear that the Conservatives want to increase the basic personal amount (only for seniors age 65 and older) such that they can earn additional amounts (likely employment and self-employment income only) without attracting tax. Obviously the devil is in the details and would have to ensure that this policy objective doesn't result in grinddowns of the age credit and potential other consequences.
View Policy Video
Liberal Party
Tax Policy Comparison: Personal Taxation #4
Conservative Party
Date: March 26, 2025
Summary:
Change the Mandatory Conversion of RRSPs to RRIFs to Age 73 From 71
Description & Comment:
Currently, paragraph 146(2)(b.4) of the Income Tax Act requires RRSPs to be converted to a RRIF no later than the end of the year in which the annuitant reaches 71 years of age. The Conservative Party is proposing to change this requirement to age 73 enabling seniors more flexibility in how they manage their retirement funds.
View Policy Video
Summary:
Change the Mandatory Conversion of RRSPs to RRIFs to Age 73 From 71
Description & Comment:
Currently, paragraph 146(2)(b.4) of the Income Tax Act requires RRSPs to be converted to a RRIF no later than the end of the year in which the annuitant reaches 71 years of age. The Conservative Party is proposing to change this requirement to age 73 enabling seniors more flexibility in how they manage their retirement funds.
View Policy Video
Liberal Party
Tax Policy Comparison: Personal Taxation #5
Conservative Party
Date: March 27, 2025
Summary:
$5,000 Top-Up For TFSAs If Invested in Canadian Equities
Description & Comment:
Calling this the Canada First TFSA Top-Up, the Conservatives announced today that if elected they would introduce a $5,000 top-up to the normal TFSA contribution limit of $7,000 if such amounts are invested in Canadian equities. Currently, the Income Tax Act has strict rules as to what can be invested in registered plans, like RRSPs, RRIFs, TFSAs, etc. pursuant to the “qualified investment” rules under various sections of the Act. For TFSAs, the rules fall under the definition of “qualified investment” under subsection 207.01(1) and Regulation 4900 of the Regulations to the Act. The Conservatives intend to amend the Act to ensure that it is clear as to what types of Canadian entities will qualify for this additional contribution limit.
There is precedent for this proposal. Prior to 2005, there were foreign content restrictions in the Act that were designed to limit the amount of foreign property that could be held within registered plans like RRSPs, RRIFs and RESPs. In the 1990s, the limit was that no more than 20% of the plan could be foreign content. In 2001, that limit was increased to 30%. The limits were repealed in 2005. These restrictions were in place to ensure that a significant portion of the investments remained within Canada.
With the Conservative announcement, the foreign content rules would re-appear such that 0% of the extra $5,000 TFSA contribution limit could be invested in foreign entities.
View Policy Video
Summary:
$5,000 Top-Up For TFSAs If Invested in Canadian Equities
Description & Comment:
Calling this the Canada First TFSA Top-Up, the Conservatives announced today that if elected they would introduce a $5,000 top-up to the normal TFSA contribution limit of $7,000 if such amounts are invested in Canadian equities. Currently, the Income Tax Act has strict rules as to what can be invested in registered plans, like RRSPs, RRIFs, TFSAs, etc. pursuant to the “qualified investment” rules under various sections of the Act. For TFSAs, the rules fall under the definition of “qualified investment” under subsection 207.01(1) and Regulation 4900 of the Regulations to the Act. The Conservatives intend to amend the Act to ensure that it is clear as to what types of Canadian entities will qualify for this additional contribution limit.
There is precedent for this proposal. Prior to 2005, there were foreign content restrictions in the Act that were designed to limit the amount of foreign property that could be held within registered plans like RRSPs, RRIFs and RESPs. In the 1990s, the limit was that no more than 20% of the plan could be foreign content. In 2001, that limit was increased to 30%. The limits were repealed in 2005. These restrictions were in place to ensure that a significant portion of the investments remained within Canada.
With the Conservative announcement, the foreign content rules would re-appear such that 0% of the extra $5,000 TFSA contribution limit could be invested in foreign entities.
View Policy Video
Liberal Party
Tax Policy Comparison: Personal Taxation #6
Conservative Party
Date: March 29, 2025
Summary:
Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation
Description & Comment:
This announcement was described as follows by the Conservatives:
“The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is.
Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness:
1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change.
2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.”
With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meal deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business.
Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms.
View Policy Video
Summary:
Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation
Description & Comment:
This announcement was described as follows by the Conservatives:
“The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is.
Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness:
1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change.
2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.”
With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meal deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business.
Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms.
View Policy Video
Liberal Party
Tax Policy Comparison: Personal Taxation #7
Conservative Party
Date: March 30, 2025
Summary:
“Canada First Reinvestment Tax Cut” – A Broad-Based Capital Gains Tax Deferral When Proceeds Are Reinvested in Canada
Description & Comment:
This proposal is a broad based capital gains tax deferral for all taxpayers who realize capital gains and reinvest the proceeds in Canadian based assets from July 1, 2025 – December 31, 2026 (although the video and policy annoucement does hint that this proposal could be made permanent if the economic impact is as large as they expect it could be).
This is a “big bang” tax idea. And has the potential to drive large economic activity.
Of course, the devil will be in the details. For example, what types of property will be considered “Canadian”? The obvious will be Canadian stocks and real estate. There is precedent under the Act with the definition of “taxable Canadian property” (that could likely be easily modified to suit this proposal). When will the proceeds need to be reinvested in the Canadian property? 45 days? 90 days? 3 months? 6 months? If there are future capital gains inclusion rate increases, will the lower inclusion rate apply when there is an ultimate monetization that is not eligible for the deferral?
Presently, there is very limited deferral opportunities for realized or deemed capital gains under the Act. The two most obvious ones are section 44 and 44.1.
Section 44 provides rules for deferring the recognition of capital gains when a taxpayer disposes of a capital property and acquires a replacement property within a specified period. This section is particularly relevant for taxpayers who have disposed of a property involuntarily (e.g., due to expropriation, theft, or destruction) or have disposed of a “former business property” (generally, land and a building used in a business). Little used section 44.1 (because of the very restrictive requirements) provides deferral opportunities on the disposition of shares of certain small business corporations when they reinvest in eligible small business corporation shares.
In the U.S., broad based capital gains deferral has been in existence for decades (although it has been narrowed in recent years). Section 1031 of the U.S. Internal Revenue Code allows taxpayers to defer capital gains taxes on the exchange of “like-kind” real property, facilitating the reinvestment of proceeds into similar types of property. The primary purpose of section 1031 is to promote investment continuity and economic growth by allowing taxpayers to defer taxes and reinvest in productive assets, although it is limited to real property exchanges and excludes personal property and principal residences.
The cries for Canada to introduce a U.S. style “like-kind” exchange rule have been around for a long time but have always fallen on deaf ears. The Conservative proposal appears to be introducing a broader based, but limited time, Canadian equivalent.
This proposal announcement by the Conservatives is very exciting and has the potential to generate decent economic activity!
View Policy Video
Summary:
“Canada First Reinvestment Tax Cut” – A Broad-Based Capital Gains Tax Deferral When Proceeds Are Reinvested in Canada
Description & Comment:
This proposal is a broad based capital gains tax deferral for all taxpayers who realize capital gains and reinvest the proceeds in Canadian based assets from July 1, 2025 – December 31, 2026 (although the video and policy annoucement does hint that this proposal could be made permanent if the economic impact is as large as they expect it could be).
This is a “big bang” tax idea. And has the potential to drive large economic activity.
Of course, the devil will be in the details. For example, what types of property will be considered “Canadian”? The obvious will be Canadian stocks and real estate. There is precedent under the Act with the definition of “taxable Canadian property” (that could likely be easily modified to suit this proposal). When will the proceeds need to be reinvested in the Canadian property? 45 days? 90 days? 3 months? 6 months? If there are future capital gains inclusion rate increases, will the lower inclusion rate apply when there is an ultimate monetization that is not eligible for the deferral?
Presently, there is very limited deferral opportunities for realized or deemed capital gains under the Act. The two most obvious ones are section 44 and 44.1.
Section 44 provides rules for deferring the recognition of capital gains when a taxpayer disposes of a capital property and acquires a replacement property within a specified period. This section is particularly relevant for taxpayers who have disposed of a property involuntarily (e.g., due to expropriation, theft, or destruction) or have disposed of a “former business property” (generally, land and a building used in a business). Little used section 44.1 (because of the very restrictive requirements) provides deferral opportunities on the disposition of shares of certain small business corporations when they reinvest in eligible small business corporation shares.
In the U.S., broad based capital gains deferral has been in existence for decades (although it has been narrowed in recent years). Section 1031 of the U.S. Internal Revenue Code allows taxpayers to defer capital gains taxes on the exchange of “like-kind” real property, facilitating the reinvestment of proceeds into similar types of property. The primary purpose of section 1031 is to promote investment continuity and economic growth by allowing taxpayers to defer taxes and reinvest in productive assets, although it is limited to real property exchanges and excludes personal property and principal residences.
The cries for Canada to introduce a U.S. style “like-kind” exchange rule have been around for a long time but have always fallen on deaf ears. The Conservative proposal appears to be introducing a broader based, but limited time, Canadian equivalent.
This proposal announcement by the Conservatives is very exciting and has the potential to generate decent economic activity!
View Policy Video
Liberal Party
Tax Policy Comparison: Personal Taxation #8
Conservative Party
Liberal Party
Date: March 31, 2025
Summary:
Re-introduction of the Old “Multi-Unit Residential Building” (“MURB”) Tax Shelters?
Description & Comment:
Today, the Liberals announced more spending. This time they are proposing to spend $25 billion to create a new housing fund. And provide $10 billion in incentivized financing to home builders. How this is supposed to significantly increase housing starts is a mystery. One can legitimately debate whether or not the government should be in the business of housing which clearly this announcement suggests that a Liberal government wants to be in that business.
Notwithstanding, buried in the spending release, was the following line:
Make the housing market work better by catalyzing private capital, cutting red tape, and lowering the cost of homebuilding [by]…… reintroducing a tax incentive which, when originally introduced in the 1970s, spurred tens of thousands of rental housing across the country.
The reference to the 1970s tax incentive is no doubt a reference to the old Multiple Unit Residential Building (“MURB”) tax shelter provisions. The provisions were introduced in 1973. They were implemented as tax incentives to stimulate investment in multiple-unit rental properties. The goal was to encourage the construction and maintenance of rental housing by providing favorable tax treatment to investors for investments in these types of properties.
The MURB program ended in 1987.
Was the MURB Program Successful?
From history, the MURB program was successful in attracting investment into the rental housing market. By offering tax incentives, it encouraged investors to put their money into multiple-unit residential buildings, which helped increase the supply of rental housing during the program's active years.
However, There were Multiple Criticisms of the MURB Program Including:
1. Tax Shelter Concerns: the program was often used as a tax shelter. Investors were able to use the CCA to create or increase rental losses, which could then be used to offset other taxable income. This led to concerns that the program was being exploited for tax avoidance rather than genuinely stimulating long-term investment in rental housing.
2. Short-Term Focus: Critics argued that the program encouraged short-term investment rather than long-term commitment to rental housing. Investors were often more interested in the immediate tax benefits rather than the long-term viability and maintenance of the rental properties.
3. Market Distortions: The program was also criticized for creating market distortions. By providing significant tax advantages, it may have led to an oversupply of rental units in certain areas, which could have depressed rental prices and affected the overall housing market dynamics.
View Policy
Summary:
Re-introduction of the Old “Multi-Unit Residential Building” (“MURB”) Tax Shelters?
Description & Comment:
Today, the Liberals announced more spending. This time they are proposing to spend $25 billion to create a new housing fund. And provide $10 billion in incentivized financing to home builders. How this is supposed to significantly increase housing starts is a mystery. One can legitimately debate whether or not the government should be in the business of housing which clearly this announcement suggests that a Liberal government wants to be in that business.
Notwithstanding, buried in the spending release, was the following line:
Make the housing market work better by catalyzing private capital, cutting red tape, and lowering the cost of homebuilding [by]…… reintroducing a tax incentive which, when originally introduced in the 1970s, spurred tens of thousands of rental housing across the country.
The reference to the 1970s tax incentive is no doubt a reference to the old Multiple Unit Residential Building (“MURB”) tax shelter provisions. The provisions were introduced in 1973. They were implemented as tax incentives to stimulate investment in multiple-unit rental properties. The goal was to encourage the construction and maintenance of rental housing by providing favorable tax treatment to investors for investments in these types of properties.
The MURB program ended in 1987.
Was the MURB Program Successful?
From history, the MURB program was successful in attracting investment into the rental housing market. By offering tax incentives, it encouraged investors to put their money into multiple-unit residential buildings, which helped increase the supply of rental housing during the program's active years.
However, There were Multiple Criticisms of the MURB Program Including:
1. Tax Shelter Concerns: the program was often used as a tax shelter. Investors were able to use the CCA to create or increase rental losses, which could then be used to offset other taxable income. This led to concerns that the program was being exploited for tax avoidance rather than genuinely stimulating long-term investment in rental housing.
2. Short-Term Focus: Critics argued that the program encouraged short-term investment rather than long-term commitment to rental housing. Investors were often more interested in the immediate tax benefits rather than the long-term viability and maintenance of the rental properties.
3. Market Distortions: The program was also criticized for creating market distortions. By providing significant tax advantages, it may have led to an oversupply of rental units in certain areas, which could have depressed rental prices and affected the overall housing market dynamics.
View Policy
Tax Policy Comparison: Excise & Other Tax #1
Conservative Party
Date: March 25, 2025
Summary:
Reduce the GST on new housing.
Description & Comment:
Previous announcements by the Conservative Party proposed to eliminate the GST on new housing on the first $1M of cost. Today's announcement increases that amount to $1.3M.
This is a broad-based proposal and is not restricted to first-time home buyers.
View Policy
Summary:
Reduce the GST on new housing.
Description & Comment:
Previous announcements by the Conservative Party proposed to eliminate the GST on new housing on the first $1M of cost. Today's announcement increases that amount to $1.3M.
This is a broad-based proposal and is not restricted to first-time home buyers.
View Policy
Liberal Party
Date: March 20, 2025
Summary:
Reduce the GST on new housing.
Description & Comment:
The Liberals announce that the GST on new home construction will be eliminated on the first $1M of cost.
This propsal is restricted to first time home buyers.
View Policy
Summary:
Reduce the GST on new housing.
Description & Comment:
The Liberals announce that the GST on new home construction will be eliminated on the first $1M of cost.
This propsal is restricted to first time home buyers.
View Policy
Tax Policy Comparison: Excise & Other Tax #2
Conservative Party
Date: Longstanding policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
The repeal of the consumer carbon tax has long been a policy and rallying cry for the Conservatives - "Axe the Tax".
View Policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
The repeal of the consumer carbon tax has long been a policy and rallying cry for the Conservatives - "Axe the Tax".
View Policy
Liberal Party
Date: March 14 & 25, 2025
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
Mr. Carney, in a non-binding display, signed a "directive" as one of his first actions as new PM on March 14, 2025 to reduce the consumer carbon tax to nil.
To be clear, however, the legislation has NOT been repealed and an order-in-council was subsequently signed to bring the rate down to nil. Mr. Carney has also subsequently released a long list of inititiatives that he would like to do regarding new carbon tax for industrial companies, provide incentives for "energy efficient" buildings and EV vehicles. This sounds very expensive and burdensome.
View Policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
Mr. Carney, in a non-binding display, signed a "directive" as one of his first actions as new PM on March 14, 2025 to reduce the consumer carbon tax to nil.
To be clear, however, the legislation has NOT been repealed and an order-in-council was subsequently signed to bring the rate down to nil. Mr. Carney has also subsequently released a long list of inititiatives that he would like to do regarding new carbon tax for industrial companies, provide incentives for "energy efficient" buildings and EV vehicles. This sounds very expensive and burdensome.
View Policy
Tax Policy Comparison: Excise & Other Tax #3
Conservative Party
Date: March 17, 2025
Summary:
Elimination of the industrial carbon tax.
Description & Comment:
The Conservatives announced that they would repeal the carbon tax for large industrial emitters but, of course, the Provinces would be free to address industrial emissions how they like.
View Policy
Summary:
Elimination of the industrial carbon tax.
Description & Comment:
The Conservatives announced that they would repeal the carbon tax for large industrial emitters but, of course, the Provinces would be free to address industrial emissions how they like.
View Policy
Liberal Party
Date: N/A
Summary:
Expansion of the industrial carbon tax.
Description & Comment:
The Liberals intend to significantly expand carbon taxes to industrial emitters. See above commentary for the consumer carbon tax for more details.
View Policy
Summary:
Expansion of the industrial carbon tax.
Description & Comment:
The Liberals intend to significantly expand carbon taxes to industrial emitters. See above commentary for the consumer carbon tax for more details.
View Policy
Tax Policy Comparison: Excise & Other Tax #4
Conservative Party
Date: April 1, 2025
Summary:
The Conservative Party will Eliminate the Annual Alcohol Tax Increase Implemented by the Liberal Party
Description & Comment:
Alcohol, including beer, spirits and wine, are taxed federally – for the most part – under the Excise Act, 2001. This Act mandates that excise duty rates on beer, spirits, and wine are indexed to inflation, with adjustments occurring every April 1st based on changes to the Consumer Price Index (CPI). This indexing mechanism was introduced in the 2017 federal budget to ensure that excise duties keep pace with inflation. However, the federal government announced a temporary cap on these adjustments so that the inflationary increase was limited to 2% for two years starting April 1, 2024. The April 1, 2025 2% increase happened today automatically.
Given the above, the Conservatives have announced “…he [Poilievre] will axe the automatic annual tax increases on alcohol that the Mark Carney Liberals hiked again today. Conservatives will bring the tax rate back down to 2017 levels so Canadians pay less and businesses earn more.”
In other words, the automatic increases to the excise tax rates on alcohol will be eliminated and rolled back to the pre-indexation rate from 2017.
Well, I guess I can start buying more nice wine again soon!!
View Policy
Summary:
The Conservative Party will Eliminate the Annual Alcohol Tax Increase Implemented by the Liberal Party
Description & Comment:
Alcohol, including beer, spirits and wine, are taxed federally – for the most part – under the Excise Act, 2001. This Act mandates that excise duty rates on beer, spirits, and wine are indexed to inflation, with adjustments occurring every April 1st based on changes to the Consumer Price Index (CPI). This indexing mechanism was introduced in the 2017 federal budget to ensure that excise duties keep pace with inflation. However, the federal government announced a temporary cap on these adjustments so that the inflationary increase was limited to 2% for two years starting April 1, 2024. The April 1, 2025 2% increase happened today automatically.
Given the above, the Conservatives have announced “…he [Poilievre] will axe the automatic annual tax increases on alcohol that the Mark Carney Liberals hiked again today. Conservatives will bring the tax rate back down to 2017 levels so Canadians pay less and businesses earn more.”
In other words, the automatic increases to the excise tax rates on alcohol will be eliminated and rolled back to the pre-indexation rate from 2017.
Well, I guess I can start buying more nice wine again soon!!
View Policy
Liberal Party
Tax Policy Comparison: Excise & Other Tax #5
Conservative Party
Date: April 3, 2025
Summary:
Removal of GST on Canadian Made Cars
Description & Comment:
The Conservatives announced the following:
“Conservative Leader Pierre Poilievre announced today that he will take the GST off the sale of new Canadian-made cars, after Trump announced unjustified tariffs on Canada’s auto sector. This will boost the sale of new Canadian-made cars, supporting our auto industry and protecting workers’ jobs.…
President Trump’s decision to slap a 25% tariff on Canadian-made vehicles is a direct attack on our workers and our automotive industry, jeopardizing thousands of jobs. To counter this unjustified attack, Poilievre will temporarily remove the Goods and Services Tax (GST) on purchases of all new Canadian-manufactured vehicles. The GST will be removed as long as Trump’s tariffs remain in place.”
I wonder if the Provinces will follow suit for those provinces who are harmonized with the GST?
View Policy
Summary:
Removal of GST on Canadian Made Cars
Description & Comment:
The Conservatives announced the following:
“Conservative Leader Pierre Poilievre announced today that he will take the GST off the sale of new Canadian-made cars, after Trump announced unjustified tariffs on Canada’s auto sector. This will boost the sale of new Canadian-made cars, supporting our auto industry and protecting workers’ jobs.…
President Trump’s decision to slap a 25% tariff on Canadian-made vehicles is a direct attack on our workers and our automotive industry, jeopardizing thousands of jobs. To counter this unjustified attack, Poilievre will temporarily remove the Goods and Services Tax (GST) on purchases of all new Canadian-manufactured vehicles. The GST will be removed as long as Trump’s tariffs remain in place.”
I wonder if the Provinces will follow suit for those provinces who are harmonized with the GST?
View Policy
Liberal Party
Tax Policy Comparison: Corporate Taxation Policy #1
Conservative Party
Date: March 29, 2025
Summary:
Restrict the Deductibility of the Use of Corporate Aircraft
Description & Comment:
See the description of the announcement in Personal Taxation Policy #6.
Currently under the Income Tax Act, there is no statutory maximum on how much a corporation can deduct for the business use of an airplane. However, the deductions must meet certain criteria to be allowable. Specifically, the expenses must be reasonable in the circumstances and directly related to the business use of the aircraft. This includes operating costs such as fuel, maintenance, insurance, and pilot salaries, as well as capital cost allowance (CCA) for the aircraft. Operating costs related to the personal use of an aircraft by a shareholder or employee are not deductible by the corporation because they are not considered to be laid out to earn income.
Given the above, there are often blurred lines as to what is personal vs business usage of an aircraft. This announcement appears to want to draw an objective line in the sand so that the overall deductible costs of corporately owned aircraft will be restricted to the cost of an equivalent commercial flight (with the exception of charters that are necessary to bring workers to a job site).
While the devil will be in the details, this could significantly impact the use of corporately owned aircraft.
View Policy Video
Summary:
Restrict the Deductibility of the Use of Corporate Aircraft
Description & Comment:
See the description of the announcement in Personal Taxation Policy #6.
Currently under the Income Tax Act, there is no statutory maximum on how much a corporation can deduct for the business use of an airplane. However, the deductions must meet certain criteria to be allowable. Specifically, the expenses must be reasonable in the circumstances and directly related to the business use of the aircraft. This includes operating costs such as fuel, maintenance, insurance, and pilot salaries, as well as capital cost allowance (CCA) for the aircraft. Operating costs related to the personal use of an aircraft by a shareholder or employee are not deductible by the corporation because they are not considered to be laid out to earn income.
Given the above, there are often blurred lines as to what is personal vs business usage of an aircraft. This announcement appears to want to draw an objective line in the sand so that the overall deductible costs of corporately owned aircraft will be restricted to the cost of an equivalent commercial flight (with the exception of charters that are necessary to bring workers to a job site).
While the devil will be in the details, this could significantly impact the use of corporately owned aircraft.
View Policy Video
Liberal Party
Tax Policy Comparison: Corporate Taxation Policy #2
Conservative Party
Date: March 30, 2025
Summary:
“Canada First Reinvestment Tax Cut” – A Broad Based Capital Gains Deferral in Proceeds Are Reinvested in Canada
Description & Comment:
See the description of the announcement in Personal Taxation Policy #7.
View Policy Video
Summary:
“Canada First Reinvestment Tax Cut” – A Broad Based Capital Gains Deferral in Proceeds Are Reinvested in Canada
Description & Comment:
See the description of the announcement in Personal Taxation Policy #7.
View Policy Video
Liberal Party
| Tax Policy Comparison: TAX REFORM |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Overall Tax Reform | Overall Tax Reform |
| DATE | June, 2024 | N/A |
| URL | View Policy (Video) | No Policy to View |
| DESCRIPTION & COMMENT |
In June 2024, Conservative Party leader, Pierre Poilievre, announced that - should the Conservatives get elected - he would convene, within 60 days of getting elected, a “Tax Reform Task Force” with a mandate to deliver a “Bring it Home Tax Cut” to: 1. Lower taxes on work, hiring and making stuff; 2. Reduce the share of taxes paid by the poor and middle income earners
• Reduce corporate welfare.
3. Reduce paperwork by 20% by simplifying tax rules – “lower, simpler, fairer”.• “Cracking down” on overseas tax havens. Obviously, the mandate of such a Task Force would be limited and not as broad-based as the 1962-1966 Royal Commission on Taxation (the last time there has been comprehensive tax review) but this proposed approach is certainly welcome. |
The Liberal Party has consistently rejected calls for tax reform / review. |
| Tax Policy Comparison: PERSONAL TAXATION #1 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Reduce the rate of the Bottom Personal Taxation Bracket | Reduce the rate of the Bottom Personal Taxation Bracket |
| DATE | 24-Mar-25 | 23-Mar-25 |
| URL | View Policy Video | View Policy |
| DESCRIPTION & COMMENT |
2.25 % reduction of the current lowest bracket (income from nil to approximately $57K). In other words, reduce from current 15% to 12.75%. This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 12.75% as well. Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits. |
1.0% reduction of the current lowest bracket (income from nil to approximately $57K). In other words reduce from current 15% to 14%. This means, unless amendments are made to the Income Tax Act, that personal tax credit amounts, except for certain charitable donations will be at 14.0% as well. Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits. |
| Tax Policy Comparison: PERSONAL TAXATION #2 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Eliminate the capital gains proposals from the 4/16/24 Budget | Eliminate the capital gains proposals from the 4/16/24 Budget |
| DATE | 16-Jan-25 and earlier | 21-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget. | New PM Mark Carney announces that he would "cancel" the capital gains proposals. |
| Tax Policy Comparison: PERSONAL TAXATION #3 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Increase the Basic Personal Amount For Seniors | N/A |
| DATE | 26-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | The Conservatives announced its intention to enable seniors to earn up to $34K without personal tax. Presently, seniors are able to earn the basic personal amount of roughly $16K along with the age credit of roughly $9K (assuming no grind down for the age credit). It would appear that the Conservatives want to increase the basic personal amount (only for seniors age 65 and older) such that they can earn additional amounts (likely employment and self-employment income only) without attracting tax. Obviously, the devil is in the details and would have to ensure that this policy objective doesn't result in grinddowns of the age credit and potential other consequences. |
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| Tax Policy Comparison: PERSONAL TAXATION #4 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Change the Mandatory Conversion of RRSPs to RRIFs to Age 73 From 71 | N/A |
| DATE | 26-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | Currently, paragraph 146(2)(b.4) of the Income Tax Act requires RRSPs to be converted to an RRIF no later than the end of the year in which the annuitant reaches 71 years of age. The Conservative Party is proposing to change this requirement to age 73 enabling seniors more flexibility in how they manage their retirement funds. | N/A |
| Tax Policy Comparison: PERSONAL TAXATION #5 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | $5,000 Top-Up For TFSAs If Invested in Canadian Equities | N/A |
| DATE | 27-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | Calling this the Canada First TFSA Top-Up, the Conservatives announced today that if elected they would introduce a $5,000 top-up to the normal TFSA contribution limit of $7,000 if such amounts are invested in Canadian equities. Currently, the Income Tax Act has strict rules as to what can be invested in registered plans, like RRSPs, RRIFs, TFSAs, etc. pursuant to the “qualified investment” rules under various sections of the Act. For TFSAs, the rules fall under the definition of “qualified investment” under subsection 207.01(1) and Regulation 4900 of the Regulations to the Act. The Conservatives intend to amend the Act to ensure that it is clear as to what types of Canadian entities will qualify for this additional contribution limit.
There is precedent for this proposal. Prior to 2005, there were foreign content restrictions in the Act that were designed to limit the amount of foreign property that could be held within registered plans like RRSPs, RRIFs and RESPs. In the 1990s, the limit was that no more than 20% of the plan could be foreign content. In 2001, that limit was increased to 30%. The limits were repealed in 2005. These restrictions were in place to ensure that a significant portion of the investments remained within Canada. With the Conservative announcement, the foreign content rules would re-appear such that 0% of the extra $5,000 TFSA contribution limit could be invested in foreign entities. |
N/A |
| Tax Policy Comparison: PERSONAL TAXATION #6 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation | N/A |
| DATE | 29-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | This announcement was described as follows by the Conservatives: “The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is. Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness: 1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change. 2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.” With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meals deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business. Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms. |
N/A |
| Tax Policy Comparison: PERSONAL TAXATION #7 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | “Canada First Reinvestment Tax Cut” – A Broad-Based Capital Gains Tax Deferral When Proceeds Are Reinvested in Canada | N/A |
| DATE | 30-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | This proposal is a broad based capital gains tax deferral for all taxpayers who realize capital gains and reinvest the proceeds in Canadian based assets from July 1, 2025 – December 31, 2026 (although the video and policy annoucement does hint that this proposal could be made permanent if the economic impact is as large as they expect it could be).
This is a “big bang” tax idea. And has the potential to drive large economic activity. Of course, the devil will be in the details. For example, what types of property will be considered “Canadian”? The obvious will be Canadian stocks and real estate. There is precedent under the Act with the definition of “taxable Canadian property” (that could likely be easily modified to suit this proposal). When will the proceeds need to be reinvested in the Canadian property? 45 days? 90 days? 3 months? 6 months? If there are future capital gains inclusion rate increases, will the lower inclusion rate apply when there is an ultimate monetization that is not eligible for the deferral? Presently, there is very limited deferral opportunities for realized or deemed capital gains under the Act. The two most obvious ones are section 44 and 44.1. Section 44 provides rules for deferring the recognition of capital gains when a taxpayer disposes of a capital property and acquires a replacement property within a specified period. This section is particularly relevant for taxpayers who have disposed of a property involuntarily (e.g., due to expropriation, theft, or destruction) or have disposed of a “former business property” (generally, land and a building used in a business). Little used section 44.1 (because of the very restrictive requirements) provides deferral opportunities on the disposition of shares of certain small business corporations when they reinvest in eligible small business corporation shares. In the U.S., broad based capital gains deferral has been in existence for decades (although it has been narrowed in recent years). Section 1031 of the U.S. Internal Revenue Code allows taxpayers to defer capital gains taxes on the exchange of “like-kind” real property, facilitating the reinvestment of proceeds into similar types of property. The primary purpose of section 1031 is to promote investment continuity and economic growth by allowing taxpayers to defer taxes and reinvest in productive assets, although it is limited to real property exchanges and excludes personal property and principal residences. The cries for Canada to introduce a U.S. style “like-kind” exchange rule have been around for a long time but have always fallen on deaf ears. The Conservative proposal appears to be introducing a broader based, but limited time, Canadian equivalent. This proposal announcement by the Conservatives is very exciting and has the potential to generate decent economic activity! |
N/A |
| Tax Policy Comparison: PERSONAL TAXATION #8 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | N/A | Re-introduction of the Old “Multi-Unit Residential Building” (“MURB”) Tax Shelters? |
| DATE | N/A | 31-Mar-25 |
| URL | No Policy to View | View Policy |
| DESCRIPTION & COMMENT | N/A | Today, the Liberals announced more spending. This time they are proposing to spend $25 billion to create a new housing fund. And provide $10 billion in incentivized financing to home builders. How this is supposed to significantly increase housing starts is a mystery. One can legitimately debate whether or not the government should be in the business of housing which clearly this announcement suggests that a Liberal government wants to be in that business.
Notwithstanding, buried in the spending release, was the following line: Make the housing market work better by catalyzing private capital, cutting red tape, and lowering the cost of homebuilding [by]…… reintroducing a tax incentive which, when originally introduced in the 1970s, spurred tens of thousands of rental housing across the country. The reference to the 1970s tax incentive is no doubt a reference to the old Multiple Unit Residential Building (“MURB”) tax shelter provisions. The provisions were introduced in 1973. They were implemented as tax incentives to stimulate investment in multiple-unit rental properties. The goal was to encourage the construction and maintenance of rental housing by providing favorable tax treatment to investors for investments in these types of properties. The MURB program ended in 1987. Was the MURB Program Successful? From history, the MURB program was successful in attracting investment into the rental housing market. By offering tax incentives, it encouraged investors to put their money into multiple-unit residential buildings, which helped increase the supply of rental housing during the program's active years. However, There were Multiple Criticisms of the MURB Program Including: 1. Tax Shelter Concerns: the program was often used as a tax shelter. Investors were able to use the CCA to create or increase rental losses, which could then be used to offset other taxable income. This led to concerns that the program was being exploited for tax avoidance rather than genuinely stimulating long-term investment in rental housing. 2. Short-Term Focus: Critics argued that the program encouraged short-term investment rather than long-term commitment to rental housing. Investors were often more interested in the immediate tax benefits rather than the long-term viability and maintenance of the rental properties. 3. Market Distortions: The program was also criticized for creating market distortions. By providing significant tax advantages, it may have led to an oversupply of rental units in certain areas, which could have depressed rental prices and affected the overall housing market dynamics. |
| Tax Policy Comparison: EXCISE & OTHER TAX #1 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Reduce the GST on new housing | Reduce the GST on new housing |
| DATE | 25-Mar-25 | 20-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | Previous announcements by the Conservative Party proposed to eliminate the GST on new housing on the first $1M of cost. Today's announcement increases that amount to $1.3M. This is a broad-based proposal and is not restricted to first-time home buyers. |
The Liberals announce that the GST on new home construction will be eliminated on the first $1M of cost. This proposal is restricted to first-time home buyers. |
| Tax Policy Comparison: EXCISE & OTHER TAX #2 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Elimination of the consumer carbon tax | Elimination of the consumer carbon tax |
| DATE | Longstanding policy | 14-Mar-25 & 25-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | The repeal of the consumer carbon tax has long been a policy and rallying cry for the Conservatives - "Axe the Tax". | Mr. Carney, in a non-binding display, signed a "directive" as one of his first actions as the new PM on March 14, 2025 to reduce the consumer carbon tax to nil. To be clear, however, the legislation has NOT been repealed and an order-in-council was subsequently signed to bring the rate down to nil. Mr. Carney has also subsequently released a long list of initiatives that he would like to do regarding the new carbon tax for industrial companies, providing incentives for "energy efficient" buildings and EV vehicles. This sounds very expensive and burdensome. |
| Tax Policy Comparison: EXCISE & OTHER TAX #3 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Elimination of the industrial carbon tax | Elimination of the industrial carbon tax |
| DATE | 17-Mar-25 | N/A |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | The Conservatives announced that they would repeal the carbon tax for large industrial emitters but, of course, the Provinces would be free to address industrial emissions how they like. | The Liberals intend to significantly expand carbon taxes to industrial emitters. See above commentary for the consumer carbon tax for more details. |
| Tax Policy Comparison: EXCISE & OTHER TAX #4 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | The Conservative Party will Eliminate the Annual Alcohol Tax Increase Implemented by the Liberal Party | N/A |
| DATE | 1-Apr-25 | N/A |
| URL | View Policy | No Policy to View |
| DESCRIPTION & COMMENT | Alcohol, including beer, spirits and wine, are taxed federally – for the most part – under the Excise Act, 2001. This Act mandates that excise duty rates on beer, spirits, and wine are indexed to inflation, with adjustments occurring every April 1st based on changes to the Consumer Price Index (CPI). This indexing mechanism was introduced in the 2017 federal budget to ensure that excise duties keep pace with inflation. However, the federal government announced a temporary cap on these adjustments so that the inflationary increase was limited to 2% for two years starting April 1, 2024. The April 1, 2025 2% increase happened today automatically.
Given the above, the Conservatives have announced “…he [Poilievre] will axe the automatic annual tax increases on alcohol that the Mark Carney Liberals hiked again today. Conservatives will bring the tax rate back down to 2017 levels so Canadians pay less and businesses earn more.” In other words, the automatic increases to the excise tax rates on alcohol will be eliminated and rolled back to the pre-indexation rate from 2017. Well, I guess I can start buying more nice wine again soon!! | N/A |
| Tax Policy Comparison: EXCISE & OTHER TAX #5 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Removal of GST on Canadian Made Cars | N/A |
| DATE | 3-Apr-25 | N/A |
| URL | View Policy | No Policy to View |
| DESCRIPTION & COMMENT | The Conservatives announced the following:
“Conservative Leader Pierre Poilievre announced today that he will take the GST off the sale of new Canadian-made cars, after Trump announced unjustified tariffs on Canada’s auto sector. This will boost the sale of new Canadian-made cars, supporting our auto industry and protecting workers’ jobs.… President Trump’s decision to slap a 25% tariff on Canadian-made vehicles is a direct attack on our workers and our automotive industry, jeopardizing thousands of jobs. To counter this unjustified attack, Poilievre will temporarily remove the Goods and Services Tax (GST) on purchases of all new Canadian-manufactured vehicles. The GST will be removed as long as Trump’s tariffs remain in place.” I wonder if the Provinces will follow suit for those provinces who are harmonized with the GST? | N/A |
| Tax Policy Comparison: CORPORATE TAXATION POLICY #1 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Restrict the Deductibility of the Use of Corporate Aircraft | N/A |
| DATE | 29-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | See the description of the announcement in Personal Taxation Policy #6. Currently under the Income Tax Act, there is no statutory maximum on how much a corporation can deduct for the business use of an airplane. However, the deductions must meet certain criteria to be allowable. Specifically, the expenses must be reasonable in the circumstances and directly related to the business use of the aircraft. This includes operating costs such as fuel, maintenance, insurance, and pilot salaries, as well as capital cost allowance (CCA) for the aircraft. Operating costs related to the personal use of an aircraft by a shareholder or employee are not deductible by the corporation because they are not considered to be laid out to earn income. Given the above, there are often blurred lines as to what is personal vs business usage of an aircraft. This announcement appears to want to draw an objective line in the sand so that the overall deductible costs of corporately owned aircraft will be restricted to the cost of an equivalent commercial flight (with the exception of charters that are necessary to bring workers to a job site). While the devil will be in the details, this could significantly impact the use of corporately owned aircraft. |
N/A |
| Tax Policy Comparison: CORPORATE TAXATION POLICY #2 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | “Canada First Reinvestment Tax Cut” – A Broad Based Capital Gains Deferral in Proceeds Are Reinvested in Canada | N/A |
| DATE | 30-Mar-25 | N/A |
| URL | View Policy Video | No Policy to View |
| DESCRIPTION & COMMENT | See the description of the announcement in Personal Taxation Policy #7. |
N/A |