April 2017

On April 27, 2017, Finance Minister Charles Sousa tabled his fifth Budget.

The deficit for the 2016-17 fiscal year is projected to be $1.5 billion, with a balanced budget projected for 2017-18, 2018-19 and 2019-20.

The Budget does not include any changes to Ontario’s personal or corporate income tax rates.

Please Click Here to read Lipton’s full Ontario Budget Commentary.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Lipton LLP to discuss these matters in the context of your particular circumstances. Lipton LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.

As expected, Ontario has announced that effective April, 21, 2017, a new tax of 15% will be payable on the purchase or acquisition of residential property located in specified parts of Ontario by non-resident individuals, foreign corporations and certain taxable trustees. The new Non-Resident Speculation Tax (NRST) is part of several measures to address strong demand for housing in Ontario, including changes to rent controls as well as allowing municipalities to consider imposing additional taxes (for example, a vacant homes property tax). The NRST would apply in addition to Ontario’s land transfer tax.

While the NRST will be effective as of April 21, 2017, it will not apply to binding agreements of purchase and sale signed on or before April 20, 2017. The NRST will also not apply to transfers of multi-residential rental apartment buildings, agricultural land or commercial/industrial land.

Please contact your Lipton adviser if you would like to discuss any of these changes further.