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.

Ontario surtax relief for mutual fund trusts
No. 63, 15 December 2014

On December 11, 2014 the Ontario Ministry of Finance issued a comfort letter in respect of the application of subsection 105(3) of the Taxation Act, 2007 (the Act) to mutual fund trusts (MFTs). The comfort letter was issued as a response to an inequality that arises between the capital gains refund mechanism (CGRM) and the amount of surtax payable by a trust.

Quebec releases amendments to its mining tax regime
No. 62, 15 December 2014

On 4 December 2014, Bill 13 received first reading in the Quebec National Assembly and is substantively enacted for IFRS financial reporting purposes as of that date. The legislation contains amendments to the province's Mining Tax Act.

Quebec R&D tax credit assistance further restricted
No. 61, 10 December 2014

On 2 December 2014, Quebec Finance Minister Carlos Leitão gave an update on Quebec's economic and financial situation and announced several reductions in tax expenditures, including decreases to Quebec's R&D tax credit assistance.

Quebec 2014 fall economic update
No. 60, 6 December 2014

On 2 December 2014, Quebec Finance Minister Carlos Leitão gave an update on the province's economic and financial situation. The update contains several tax measures affecting individuals and corporations.

OECD releases discussion draft on follow-up work on treaty abuse under BEPS Action 6
No. 59, 21 November 2014

The Organisation for Economic Co-operation and Development (OECD) released a discussion draft, Follow-up work on BEPS Action 6: preventing treaty abuse, under its Action Plan on Base Erosion and Profit Shifting (BEPS).

Finance confirms position on loading for the reinsurance industry
No. 58, 12 November 2014

The Department of Finance has issued a letter clarifying its intentions on the requirement to self-assess GST/HST on reinsurance. The letter is not binding on the Canada Revenue Agency (CRA) or in a court of law, but it could serve as a strong tool of persuasion in any related discussions with the CRA.

Finance tables Extractive Sector Transparency Measures Act
No. 57, 30 October 2014

The federal government tabled the Extractive Sector Transparency Measures Act on 23 October 2014 as part of Bill C-43, Economic Action Plan 2014 Act, No. 2. The Act is introduced for the purpose of implementing Canada’s international commitments in the fight against corruption.

Insurance swaps and offshore banking arrangements: Bill C-43 (2014)
No. 56, 28 October 2014

On 23 October 2014, the federal government tabled Bill C-43, which includes certain tax measures announced in the 2014 federal budget and earlier with respect to insurance swaps and offshore banking arrangements.

BC tables LNG income tax legislation
No. 55, 22 October 2014

On 21 October 2014, the BC government tabled draft proposals for the new liquefied natural gas (LNG) income tax legislation, as well as for a related natural gas corporate income tax credit. The proposals include a number of substantial changes to the LNG tax regime described in the 2014 provincial budget.

Finance amends TLRE rules for commercial investment fund industry
No. 54, 21 October 2014

On 20 October 2014, the Department of Finance tabled a notice of ways and means motion that includes relief from the application of the loss restriction event rules for certain trusts in the commercial investment funds industry.