As we enter into our third decade of dealing with the federal Goods and Services Tax, most recently amended in Ontario by harmonization with the Retail Sales Tax to become the Harmonized Sales Tax, many aspects of the GST/HST continue to be the subject of some confusion. When the GST was implemented, some were concerned about the impact of increasing the cost of new residential housing by the (then) 7% GST.
Residents of Ontario who are in the highest tax bracket will typically pay tax at rates of roughly 23 per cent on capital gains, 46 per cent on interest income, 28 per cent on dividends from public companies, and 32 per cent on dividends from private companies.
Originally published in Blaneys on Business: March 2009.
Presentation slides from our in-house seminar "Protecting You/Protecting Your Business", presented on February 1, 2007.