On 14 July 2017, the Ontario Ministry of Finance posted a consultation document on the Regulatory Registry, setting out proposals to facilitate compliance with section 3 of the Land Transfer Tax Act, which imposes provincial land transfer tax (LTT) on unregistered dispositions of beneficial interests in land. The ministry has invited feedback and will consider all comments submitted on or before 28 August 2017 electronically or in writing.
The Province of Alberta has taken the unusual step of authorizing its Tax and Revenue Administration to audit insureds for charges payable under section 61 of the provincial Insurance Act. The Insurance Act is a regulatory statute but the TRA appears to be attempting to administer it like a tax statute.
On 18 July 2017, federal Finance Minister Bill Morneau released for consultation a paper and draft legislative proposals addressing tax planning arrangements using private corporations. It is the government’s view that these changes are necessary to close perceived tax loopholes and improve the fairness of the Canadian income tax system. These proposed measures represent the most significant amendment to the taxation of private corporations in Canada since the tax reform in 1972.
On 7 June 2017, Canada and 67 other countries became signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the MLI). The MLI contains certain minimum standards that the signatories must accept and a host of optional standards - for instance, with respect to treaty abuse - which the signatories can accept, should they so desire.
On the last day before its summer break, the U.S. Supreme Court agreed to hear and review the administration’s appeal of the 4th U.S. Circuit Court of Appeals’ May 25, 2017 decision to uphold a lower court’s injunction against President Trump’s second executive order aimed at restricting admission of certain individuals from six designated countries (Iran, Libya, Somalia, Sudan, Syria and Yemen). The case will be heard in full when the Supreme Court reconvenes in October.