December 2, 2020
Canadian Government presents Federal Fall Economic Statement 2020
Our strategy is clear: We will do whatever it takes to help Canadians through this crisis. We will invest in every necessary public health measure. We will support Canadians and Canadian businesses, in a deliberate, prudent and thoughtful way. And we will ensure the Canadian economy that emerges from this pandemic is more robust, inclusive and sustainable than the one that preceded it, with a stronger, more resilient middle class.”
Deputy Prime Minister and Finance Minister Chrystia Freeland
2020 Fall Economic Statement
On 30 November 2020, Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland tabled Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020. The Fall Economic Statement (FES) contains several tax measures affecting individuals and corporations. As set out in Table A, the Minister anticipates a deficit of CA$381.6b1 for 2020–21 and projects deficits for each of the next five years.
Table A: Projections of federal budgetary deficit
Changes to the Fiscal Outlook since the 2019 Economic and Fiscal Update (EFU 2019):
Note: Numbers may not add due to rounding.
Several income tax measures, and the accompanying legislative amendments, are proposed in the FES, including measures with respect to:
Also, several sales tax measures, and the accompanying legislative amendments, are proposed in the FES, including measures with respect to:
The Government also outlined other measures to improve tax fairness and strengthen compliance by:
Additional information and insight with respect to these proposals will be discussed shortly in greater detail in upcoming EY Global Tax Alerts.
For more information on these measures, see Supporting Canadians and Fighting COVID-19.
1. Currency references in this Alert are to the CA$.
2. The EFS was delivered on 8 July 2020. See EY Global Tax Alert, Canada: Federal Government delivers its 2020 Economic and Fiscal Snapshot, dated 9 July 2020.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Toronto
Ernst & Young LLP (Canada), Montréal
Ernst & Young LLP (Canada), Calgary
Ernst & Young LLP (Canada), Vancouver
Ernst & Young LLP (United States), Canadian Tax Desk, New York