No. 42, 20 December 2019
On 19 December 2019, federal Finance Minister Bill Morneau released an update on the proposed changes to the tax treatment of employee stock options.
The proposals, which were scheduled to come into force on 1 January 2020, have been postponed.
No. 41, 24 October 2019
Alberta Finance Minister Travis Toews tabled the province’s fiscal 2019–20 budget on 24 October 2019.
No. 40, 25 September 2019
On 29 August 2019, Canada deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the MLI).
The MLI will enter into force vis-à-vis Canada on 1 December 2019. Accordingly, it will enter into effect for any particular covered tax treaty in accordance with the provisions set forth in its “entry into effect” articles and will apply to some of Canada’s tax treaties with effect as early as 1 January 2020.
No. 39, 16 September 2019
The Government of Canada has implemented new reporting requirements for imports of carbon steel, specialty steel products and aluminum products in a bid to improve Canada’s steel and aluminum import regime and meet its commitments under the Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum.
No. 38, 16 September 2019
On 4 September 2019, the Government of Canada published SOR/2019-314, Regulations amending the Special Import Measures Regulations in Part II of the Canada Gazette.
The Government of Canada has amended the Special Import Measures Regulations (SIMR) to provide the Canada Border Services Agency (CBSA) with additional methods for calculating appropriate dumping margins in its anti-dumping investigations. The amendments are expected to afford the CBSA with more flexibility in determining production costs in transactions between associated parties, and in particular market situations.
No. 37, 16 September 2019
Effective 23 August 2019, the Surtax on the Importation of Certain Steel Goods Remission Order relieves surtax paid since October 2018 on seven types of imported heavy steel plate and one type of imported stainless steel wire.
No. 36, 5 September 2019
On 13 August 2019, the Organisation for Economic Co-operation and Development (OECD) released the Stage 2 peer review reports of Canada relating to the implementation of the Base Erosion and Profit Sharing (BEPS) minimum standard under Action 14 on improving tax dispute resolution mechanisms.
No. 35, 29 August 2019
On 21 August 2019, the Government of Canada published SOR/2019-290, an Order Amending the Schedule to the Customs Tariff (Costa Rica) in Part II of the Canada Gazette.
Effective 8 August 2019, Canada is extending entitlement of the Canada–Costa Rica Free Trade Agreement (CCRFTA) preferential tariff treatment to certain goods that originate under the CCRFTA but were excluded from CCRFTA preferential tariff treatment prior to 8 August 2019.
No. 34, 28 August 2019
On 1 September 2019, An Act to amend the Canada-Israel Free Trade Agreement Implementation Act and to make related amendments to other Acts (the Act) comes into force.
The Act allows for the implementation of the 28 May 2018 Canada-Israel Free Trade Amending Protocol 2018, which provides for updates to provisions of existing chapters and for the addition of several chapters in the Canada-Israel Free Trade Agreement (CIFTA).
No. 33, 28 August 2019
On 7 August 2019, the Government of Canada made an Order Amending the Schedule to the Customs Tariff (CPTPP) to correct errors in the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Due to an error with the transposition of Canada’s tariff commitments under the CPTPP, 15 tariff items in the Schedule were assigned the incorrect staging category for the CPTPP preferential tariffs in domestic legislation.
No. 32, 26 August 2019
Non-Québec resident Canadian suppliers and foreign suppliers registered for GST have until 1 September 2019 to register under the new specified registration system for QST purposes.
No. 31, 13 August 2019
The Canada Border Services Agency (CBSA) released its semi-annual list of trade compliance verification (audit) priorities in July 2019. The list is designed to update the importing community on ongoing verification priorities and set the stage for new priorities for the upcoming calendar year.
The CBSA continues to focus on tariff classification as a priority audit area, with the introduction of eight new rounds to the list of tariff classification priorities.
No. 30, 1 August 2019
On 30 July 2019, the Department of Finance released for public comment draft legislative proposals (and accompanying explanatory notes) to implement measures remaining from the 2019–20 federal budget, as well as revisions to the recently enacted measures concerning accelerated capital cost allowance (CCA) and resource expenses.
Interested parties are invited to provide comments on these draft legislative proposals by 7 October 2019.
No. 29, 10 July 2019
As of 13 June 2019, private corporations incorporated under the Canada Business Corporations Act are required to maintain a register of shareholders who, directly or indirectly, exercise “significant control” over a corporation. These amendments are expected to be followed by similar amendments to the counterpart legislation in the provinces and territories.
The amendments are intended to improve corporate transparency, a goal that the Canadian federal, provincial and territorial finance ministers committed to when they signed an Agreement to Strengthen Beneficial Ownership Transparency in 2017.
No. 28, 26 June 2019
PEI Finance Minister Darlene Compton tabled the province’s fiscal 2019–20 budget on 25 June 2019.
No. 27, 24 June 2019
On 21 June 2019, Bill C-97, Budget Implementation Act, 2019 No. 1, which implements certain tax measures announced in the 2019 federal budget and the 21 November 2018 federal fall economic statement (as well as other previously announced measures), received Royal Assent.
As a result, the business income tax measures contained in Bill C-97 are now enacted for financial reporting purposes. Most notably, the capital cost allowance (CCA) acceleration measures that were first announced in the 21 November 2018 federal fall economic statement, including some modifications since their initial release, are now enacted.
No. 26, 20 June 2019
On 17 June 2019, federal Finance Minister Bill Morneau tabled a Notice of Ways and Means Motion that contains proposed changes to the tax treatment of employee stock options that were announced in the 19 March 2019 federal budget. The proposals include a $200,000 annual limit on employee stock option grants that can receive tax-preferred treatment under the current employee stock option rules.
In addition, stakeholders are invited to provide input on the characteristics of companies that should be considered start-ups, emerging and scale-up under the new rules by 16 September 2019.
No. 25, 12 June 2019
On 11 June 2019, Newfoundland and Labrador Finance Minister Tom Osborne retabled the province’s pre-election fiscal 2019-20 budget as its post-election fiscal 2019-20 budget.
No. 24, 27 May 2019
On 17 May 2019, the Department of Finance (Finance) released a package of draft legislative proposals and explanatory notes relating to the holding corporation rules contained in section 186 of the Excise Tax Act (ETA). These proposals would extend the application of the rules to include holding partnerships and trusts. Finance indicated that it had considered submissions from industry stakeholders and other interested parties relating to the original legislative proposals released on 27 July 2018, as well as a consultation paper released on the same day.
In addition to the proposed changes to the holding corporation rules, Finance has released draft amendments to the ETA that would:
- Extend the application of the drop shipment rules to commercially interchangeable or fungible goods
- Treat virtual currency as a financial instrument for GST/HST purposes
- Expand the definition of a freight transportation service so that zero-rated international freight transportation services would include international driving services
Interested parties are invited to provide comments on these legislative proposals by 17 June 2019.
No. 23, 23 May 2019
On 17 May 2019, the Québec Ministry of Finance released Information Bulletin 2019-5, “Measures designed to protect the integrity and fairness of Québec’s tax system.“
This bulletin announces new measures to oppose aggressive tax planning by imposing significant new penalties and disclosure requirements on both taxpayers and tax advisors and promoters.
No. 22, 22 May 2019
Effective 13 May 2019, Canada will apply final safeguard orders on imports of heavy steel plate and stainless-steel wire imported from all countries except for:
- Goods originating in Canada;
- Goods originating in Chile, Colombia, Mexico, Panama, Peru, South Korea, the US or Israel or another Canada-Israel Free Trade Agreement beneficiary; and
- Goods originating in a World Trade Organization member country that is a beneficiary of the General Preferential Tariff.
No. 21, 21 May 2019
On 17 May 2019, Canada and the US announced that an understanding has been reached on eliminating the US Section 232 tariffs imposed on Canadian steel and aluminum and Canada’s retaliatory surtaxes.
No. 20, 7 May 2019
On 26 April 2019, the federal Department of Finance announced that it will enact final safeguards on heavy plate and stainless-steel wire originating from countries other than the US, Mexico, Israel, South Korea, Panama, Peru, Colombia and Honduras, and countries whose goods are eligible for General Preferential Tariff treatment.
No. 19, 23 April 2019
On 2 April 2019, Bill 23, Land Owner Transparency Act (LOTA), received first reading in the British Columbia legislative assembly. If enacted, the LOTA would establish a registry of beneficial ownership of real property in British Columbia to be administered by the Land Title and Survey Authority. Although the LOTA is not a tax statute, the information contained in the registry it establishes would be publicly available and could be shared with tax and law enforcement officials.
No. 18, 16 April 2019
Newfoundland and Labrador Finance Minister Tom Osborne tabled the province’s fiscal 2019-20 budget on 16 April 2019.
No. 17, 15 April 2019
On 3 April 2019, the Canadian International Trade Tribunal (CITT) submitted to the Governor in Council its safeguard inquiry concerning the future importation into Canada of steel goods that have been subject to a provisional safeguard surtax since 25 October 2018.
No. 16, 11 April 2019
Ontario Finance Minister Victor Fedeli tabled the province’s 2019-20 budget on 11 April 2019.
No. 15, 9 April 2019
On 8 April 2019, Bill C-97, Budget Implementation Act, 2019 No. 1, which implements certain tax measures announced in the 2019 federal budget and the 21 November 2018 federal fall economic statement (as well as other previously announced measures) received first reading in the House of Commons. Bill C-97 contains the tax measures that were included in the notice of ways and means motion tabled on 4 April 2019.
As a result, the business income tax measures contained in Bill C-97 are now substantively enacted for financial reporting purposes. Most notably, the capital cost allowance (CCA) acceleration measures that were first announced in the 21 November 2018 federal fall economic statement, including some modifications since their initial release, are now substantively enacted.
No. 14, 29 March 2019
On 19 March 2019, federal Finance Minister Bill Morneau tabled his fourth budget. The budget proposes significant changes to the tax treatment of employee stock options.
No. 13, 26 March 2019
Nova Scotia Finance and Treasury Board Minister Karen Casey introduced the province’s fiscal 2019–20 budget on 26 March 2019.
No. 12, 21 March 2019
Quebec Finance Minister Eric Girard tabled the province’s fiscal 2019-20 budget on 21 March 2019.
No. 11, 20 March 2019
Saskatchewan Finance Minister Donna Harpauer tabled the province’s fiscal 2019-20 budget on 20 March 2019.
No. 10, 20 March 2019
New Brunswick Finance Minister Ernie Steeves introduced the province’s fiscal 2019-20 budget on 19 March 2019.
No. 09, 19 March 2019
Read our late-breaking Tax Alert on the 2019-20 federal budget.
No. 08, 15 March 2019
On 5 March 2019, the Canada Border Services Agency (CBSA) released Customs Notice 19-05, announcing that 22 contraventions related to commercial trade under the Administrative Monetary Penalties (AMPs) system will be amended with increases to the penalty levels.
No. 07, 8 March 2019
Yukon Finance Minister Sandy Silver tabled the territory’s fiscal 2019-20 budget on 7 March 2019.
No. 06, 7 March 2019
Manitoba Finance Minister Scott Fielding tabled the province’s fiscal 2019-20 budget on 7 March 2018.
No. 05, 21 February 2019
The restrictions on obtaining an input tax refund (ITR) applicable to large businesses have been gradually phased out since 1 January 2018. Accordingly, large businesses concerned must once again update their procedures as of 1 January 2019 and increase the rate of the ITRs they claim in respect of restricted expenses from 25% to 50%.
As a result, with respect to taxable benefits provided to employees in 2018, registered employers that are deemed to be large businesses are required to include in the calculation of their net tax to be remitted 25% of the tax arising from taxable benefits related to expenses subject to the restrictions applicable to ITRs.
No. 04, 21 February 2019
Nunavut Finance Minister George Hickes tabled the territory’s fiscal 2019–20 budget on 20 February 2019.
No. 03, 19 February 2019
BC Finance Minister Carole James tabled the province’s fiscal 2019-20 budget on 19 February 2019.
No. 02, 19 February 2019
The Canada Border Services Agency (CBSA) released its semi-annual list of trade compliance verification (audit) priorities in January 2019.
The CBSA continues to focus on tariff classification as a priority audit area, with the introduction of two new rounds to the list of tariff classification priorities and one new round to the list of valuation verification priorities.
No. 01, 7 February 2019
Northwest Territories Finance Minister Robert C. McLeod tabled the territory’s fiscal 2019-20 budget on 6 February 2019.