Introduction
On March 22, 2016, Minister of Finance Bill Morneau tabled the highly anticipated 2016 Federal Budget (the “Budget”), the Liberal Government’s first budget, entitled “Growing the Middle Class”. We are pleased to provide our summary of tax measures contained in...
Business Income Tax Measures
IN THIS SECTION: Expanding Tax Support for Clean Energy Emissions Trading Regimes Small Business Taxation Life Insurance Policies Debt Parking to Avoid Foreign Exchange Gains Valuation for Derivatives Eligible Capital Property Expanding Tax Support for Clean Energy Currently, the Tax...
International Tax Measures
IN THIS SECTION: Base Erosion and Profit Shifting Cross-Border Surplus Stripping Extension of the Back-to-Back Rules Back-to-Back Shareholder Loan Rules Base Erosion and Profit Shifting Base erosion and profit shifting (“BEPS”) is the term used to refer to tax planning...
Personal Income Tax Measures
Canada Child Benefit The Canada child tax benefit (the “CCTB”) is a non-taxable benefit which is paid based on a family’s adjusted net income and the number of children in the family. There are three general components to the CCTB:...
Sales and Excise Tax Measures
IN THIS SECTION: Health Measures Exported Call Centre Services Reporting of Grandparented Housing Sales GST/HST on Donations to Charities De Minimis Financial Institutions Application of GST/HST to Cross-Border Reinsurance Closely Related Test Restricting the Relief of Excise Tax on Diesel...
Other Measures
IN THIS SECTION: Charities and Not-for-Profit Measures Aboriginal Tax Policy Charities and Not-for-Profit Measures In addition to clarifying some pertinent tax rules relating to charities, the Budget includes some disappointing announcements. Previous Budget Measures (a) Capital Gains Exemption for Donations...
Previously Announced Measures
The Budget confirms the Federal Government’s intention to proceed with certain tax and related measures that were announced in the current session of Parliament but have not yet been legislated, specifically: the common reporting standard established by the Organisation for...
Previously Announced Measures
The Budget confirms the Federal Government’s intention to proceed with the following previously announced tax and related measures, as modified to take into account consultations and deliberations since their announcement or release: Legislative proposals released on July 12, 2013, providing...
International Tax Measures
IN THIS SECTION: Income Tax Withholding Requirements for Non-Resident Employers Streamlining Reporting Requirements for Foreign Assets (Form T1135) Captive Insurance Update on Tax Planning by Multinational Enterprises Update on the Automatic Exchange of Information for Tax Purposes Income Tax Withholding...
Business Income Tax Measures
Small Business Tax Rate Currently, as a result of the small business deduction, the first $500,000 per year of qualifying active business income of a Canadian-controlled private corporation (“CCPC”) is subject to a federal income tax rate of 11%. Consistent...
