Tax Alert – Canada
Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.
Canada–Hong Kong tax treaty enters into force
No. 50, 30 October 2013
The agreement between Canada and Hong Kong for the avoidance of double taxation and the prevention of fiscal evasion entered into force on 29 October 2013.
Second budget implementation bill receives first reading
No. 49, 22 October 2013
On 22 October 2013, Bill C-4, Economic Action Plan 2013 Act, No. 2, received first reading in the House of Commons. Learn more.
Character conversion transactions and synthetic dispositions
No. 48, 3 October 2013
On 13 September 2013, the Department of Finance released draft legislative proposals that include a measure aimed at ensuring that derivative transactions cannot be used to convert ordinary income into capital gains through so-called “character conversion transactions,” and a measure to ensure that the tax consequences of disposing of property cannot be avoided by entering into a synthetic disposition arrangement. Interested parties are invited to provide comments by 15 October 2013.
Highlights from the CRA’s 2012-13 APA Program Report
No. 47, 26 September 2013
On 18 September 2013, the Canada Revenue Agency (CRA) released its Advance Pricing Arrangement (APA) Program Report for the fiscal year ending 31 March 2013. The report provides an overview of the operations of the APA program, and finds that APAs completed in 2012-13 were at a historic high.
Finance releases draft legislation for 2013 budget measures
No. 46, 13 September 2013
On 13 September 2013, the Department of Finance released for public comment a package of draft legislative proposals and explanatory notes to implement a number of international, corporate and personal tax measures announced in the 2013-14 federal budget.