Tax Alert – Canada

Tax Alert – Canada

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Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.

Budget information: For up-to-date information on the federal, provincial and territorial budgets, visit And follow us on Twitter @EYCanada.

Prince Edward Island to raise HST by 1%: transitional rules
No. 35, 8 July 2016

In its 2016 provincial budget, Prince Edward Island announced a 1% increase in the provincial component of the harmonized sales tax (HST). The province recently released a notice outlining transitional rules in respect of the rate change.

New mandatory certificate from Revenu Québec: Personnel placement agencies and subcontractors
No. 34, 22 June 2016

Subcontractors and personnel placement agencies are now required to obtain a certificate from Revenu Québec before entering into private contracts for construction work, personnel or temporary placement services. Non-compliance with this new obligation could result in penalties.

Northwest Territories budget 2016-17
No. 33, 2 June 2016

Finance Minister Robert C. McLeod tabled the Northwest Territories’ fiscal 2016-17 budget on 1 June 2016.

Saskatchewan budget 2016-17
No. 32, 2 June 2016

Finance Minister Kevin Doherty tabled Saskatchewan’s fiscal 2016-2017 budget on 1 June 2016.

Manitoba budget 2016-17
No. 31, 31 May 2016

Manitoba Finance Minister Cameron Friesen tabled the province's fiscal 2016-17 budget on 31 May 2016.

Finance Canada issues legislative proposals on the implementation of the OECD Common Reporting Standard
No. 30, 11 May 2016

Recently, the federal Department of Finance released draft legislative proposals related to the implementation of the Organisation for Economic Co-operation and Development (OECD) Common Reporting Standard, as well as related explanatory notes, which provide the proposed framework for the implementation of the OECD Common Reporting Standard in Canada. Comments on the proposed legislation are requested to be submitted by 15 July 2016.

WCO Trade Committee on Customs Valuation: new case study on transfer pricing
No. 29, 10 May 2016

The World Customs Organization's (WCO's) Technical Committee on Customs Valuation (TCCV) has demonstrated how a transfer pricing study can be used as support for customs valuation involving related parties, based on a recently released TCCV case study.

Finance Department invites views on proposed tariff elimination on certain agri-food processing inputs
No. 28, 9 May 2016

The federal Department of Finance has made an announcement inviting interested parties to submit their views on the proposed Most Favored Nation (MFN) tariff elimination on certain agri-food processing inputs.

Newfoundland and Labrador to raise HST by 2%
No. 27, 5 May 2016

In its 2016-17 budget, Newfoundland and Labrador announced a 2% increase in the provincial component of the harmonized sales tax (HST) from 8% to 10%, effective 1 July 2016. The new combined HST in the province will be 15%. The province recently released a notice outlining transitional rules in respect of the rate change.

Nova Scotia and Prince Edward Island budgets 2016-17
No. 25 & 26, 19 April 2016

The Nova Scotia and Prince Edward Island finance ministers introduced their provinces' fiscal 2016-17 budgets on 19 April 2016.

Budget implementation NWMM tabled
No. 24, 19 April 2016

On 18 April 2016, a detailed notice of ways and means motion (NWMM) to implement certain tax measures announced in the 2016 federal budget, as well as various other tax measures previously announced by the former government, was tabled in the House of Commons.

Alberta budget: carbon tax update
No. 23, 15 April 2016

On 14 April 2016, Alberta released its 2016-17 budget and reaffirmed the province's intention to implement the Climate Leadership Plan, including the introduction of a new carbon tax levy effective 1 January 2017.

Newfoundland and Labrador and Alberta budgets 2016-17
No. 21 & 22, 14 April 2016

Newfoundland and Labrador and Alberta tabled their provincial fiscal 2016-17 budgets on 14 April 2016.

Measures to combat tax evasion and avoidance announced
Revenue Minister announces measures to combat aggressive tax avoidance and offshore tax evasion

No. 20, 12 April 2016

National Revenue Minister Diane Lebouthillier held a news conference on 11 April 2016 to announce measures aimed at addressing international tax evasion and avoidance.

Yukon budget 2016-17
No. 19, 7 April 2016

Yukon Finance Minister Darrell Pasloski tabled the territory's fiscal 2016-17 budget on 7 April 2016.

New Section 385 regulations in the U.S. and their broad impact on cross-border financing
No. 18, 7 April 2016

On 4 April 2016, the U.S. Treasury Department and the Internal Revenue Service released proposed regulations under Section 385 of the Internal Revenue Code. The proposed regulations would have far-reaching consequences for corporations that issue debt instruments to related corporations and partnerships, and significantly impact Canadian multinationals with U.S. operations.

New Brunswick releases HST transitional rules
No. 17, 6 April 2016

On 30 March 2016, the province released transitional rules in respect of the 2% increase in the provincial component of the harmonized sales tax (HST) from 8% to 10%, effective 1 July 2016. The new combined HST in the province will be 15%.

Budget 2016: consequences for Canadian private company sale transactions
No. 16, 4 April 2016

The federal budget, tabled by Finance Minister Bill Morneau on 22 March 2016, introduced tax measures that will affect the purchase and sale of private companies.

Private company insights – Federal budget 2016-17
No. 15, 22 March 2016

Read our executive summary highlights of Budget 2016 that are relevant to private companies and their shareholders.

Federal budget 2016-17
No. 14, 22 March 2016

Read our late-breaking Tax Alert on the 2016-17 federal budget. And to hear more in-depth analysis and perspectives on the budget, view our budget evening webcast.

The impact of government assistance on transfer pricing
No. 13, 22 March 2016

Recently, the Canada Revenue Agency (CRA) released a new transfer pricing memorandum, TPM-17, dated 2 March 2016. This Memorandum, which reaffirms the CRA's existing informal position, provides guidance on the impact of government assistance, such as scientific research and experimental development (SR&ED) credits or wage subsidies, on determining transfer prices between related parties.

Quebec budget: tax measures affecting the mining sector
No. 12, 21 March 2016

The Quebec 2016-17 budget included a number of important tax measures relating to mining activities in the province of Quebec: increased assistance for exploration in the North and amendments to the Mining Tax Act.

Quebec budget 2016-17
No. 11, 17 March 2016

Finance Minister Carlos J. Leitão tabled Quebec's fiscal 2016-17 budget on 17 March 2016.

CETA one step closer to completion
No. 10, 3 March 2016

Canada is one step closer to ratifying the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). International Trade Minister Chrystia Freeland announced that as part of the review process, amendments have been made to the agreement in principle draft, including changes to strengthen provisions relating to the right of governments to regulate investments on a public policy basis.

Nunavut budget 2016-17
No. 09, 26 February 2016

Finance Minister Keith Peterson tabled Nunavut’s fiscal 2016-17 budget on 25 February 2016.

Ontario budget 2016-17
No. 08, 25 February 2016

Finance Minister Charles Sousa tabled Ontario's fiscal 2016-2017 budget on 25 February 2016.

Ontario delays ORPP implementation
No. 07, 17 February 2016

To provide time for further discussion between the federal government and the provinces, Ontario has proposed a one-year delay in the enrolment in the Ontario Retirement Pension Plan (ORPP). Enrolment will now commence in January 2017.

British Columbia budget 2016-17
No. 06, 16 February 2016

BC Finance Minister Michael de Jong tabled the province's fiscal 2016-17 budget on 16 February 2016.

Ontario unveils details of the ORPP
No. 05, 12 February 2016

On 26 January 2016, the Ontario government announced it has completed the design of the Ontario Registered Retirement Pension Plan (ORPP), which will be phased in starting 1 January 2017.

Draft proposals: tax treatment of certain trusts and their beneficiaries
No. 04, 3 February 2016

On 15 January 2016, the Department of Finance released for public comment technical proposals and accompanying explanatory notes on the life interest trust and estate donation rules. The proposals are intended to address various inequities that have been communicated to Finance.

New Brunswick budget 2016-17
No. 03, 3 February 2016

New Brunswick Finance Minister Roger Melanson introduced the province's fiscal 2016-17 budget on 2 February 2016.

OECD BEPS final reports have implications for sovereign wealth and pension funds
No. 02, 19 January 2016

In October 2015, the Organisation for Economic Co-Operation and Development (OECD) released the final reports on the 15 Action points identified in its Action Plan on Base Erosion and Profit Shifting (BEPS). Several of the BEPS Action items have the potential to impact sovereign wealth and pension funds’ current investment returns and future investment behaviour.

Employer Certification: Non-resident employees working in Canada
No. 01, 14 January 2016

On 12 January 2016, the Canada Revenue Agency issued the long anticipated employer certification Form RC473, Application for Non-Resident Employer Certification. This form applies to foreign employers that apply to be certified by the Minister of National Revenue as a qualifying nonresident employer with qualifying non-resident employees who work in Canada.