Friday, March 30, 2012

Five Year Freeze on Expected Tax Cuts


Ontario Finance Minister Dwight Duncan announced on Tuesday that plans for corporate tax cuts will be put on hiatus until the province can get back on track with its debt.

Businesses were looking forward to a drop from the current corporate rate of 11.5% down to 10%. They will now have to wait at least five years for any chance at seeing those cuts take shape.

As the Liberals look to balance the ledgers by 2018, businesses that were counting on a tax break need to find other ways to save cash for the near future.

Will this news cause significant hardship for your business?

See below for an excerpt from the article.

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By Romina Maurino, The Canadian Press, thecanadianpress.com, Updated: March 27, 2012 8:08 PM
Ontario delays cut to corporate tax rates
It's a move Finance Minister Dwight Duncan called necessary, and one he said will put $1.5 billion in government coffers over three years.

The budget also promised to save $250 million by merging many business support programs into a Jobs and Prosperity Fund, as well as freeze scheduled decreases in business education taxes, again until the budget is balanced, for an additional $300 million in savings.

Duncan said he spoke with various business leaders and they "recognize that the business community has to make its contribution."

"We have made Ontario a more attractive place for businesses to invest and create new jobs," Duncan told the legislature while delivering his budget.

"So we are asking business to do its part to help Ontario balance its budget."

View the full article here at MSN Money Canada

Source URL: http://money.ca.msn.com/investing/news/business-news/ontario-delays-cut-to-corporate-tax-rates

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