Tax Alert – Canada
More 2016 Tax Alerts
Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.
SCC concludes general intention of tax neutrality insufficient for rectification in common law and civil law
No. 48, 12 December 2016
On 9 December 2016, the Supreme Court of Canada (SCC) released decisions on two cases regarding rectification in the tax context. Both decisions agree that a general intention of tax neutrality is insufficient to justify a rectification order.
Proposed amendments to the ETA: closely related election under section 150 or 156
No. 47, 7 December 2016
On 25 October 2016, federal Finance Minister Bill Morneau tabled Bill C-29, which includes measures announced in the 2016 federal budget to limit application of the election under section 150 and 156 of the Excise Tax Act (ETA).
These new measures could have implications for elections under section 150 and 156 of the ETA currently in effect, as well as effective after 22 March 2016 or on or after 22 March 2017.
Finance tables NWMM for 2016 budget measures and various technical changes
No. 46, 25 October 2016
On 21 October 2016, federal Finance Minister Bill Morneau tabled a notice of ways and means motion that includes the draft legislative proposals that were released on 29 July 2016 relating to the remaining outstanding measures announced in the 2016 federal budget, as well as certain previously announced measures from the 2015 federal budget.
Proposed amendments to principal residence exemption rules for trusts and nonresidents
No. 45, 6 October 2016
On 3 October 2016, federal Finance Minister Bill Morneau announced new measures relating to the capital gains tax exemption on the disposition of property that may be designated as a principal residence.
Proposed legislative amendments may tax cross-border notional cash pooling arrangements
No. 44, 4 October 2016
On 29 July 2016, the Department of Finance released for public comment a package of draft legislative proposals and explanatory notes relating to a number of measures that were previously announced in the 2016 federal budget. Among other measures, the package would expand the back-to-back loan rules, which may impact a broad range of cross-border cash pooling arrangements.
Foreign employers with nonresident employees working in Canada: update on employer certification
No. 43, 28 September 2016
In early 2016, the Canada Revenue Agency (CRA) issued the long-anticipated employer certification Form RC473, Application for Non-Resident Employer Certification. The CRA recently commenced audit activity, requesting information to validate that certified employers are compliant with their obligations.
CRA treats certain US partnerships as corporations
No. 42, 22 September 2016
Recently, the Canada Revenue Agency (CRA) announced that it will consider limited liability partnerships and limited liability limited partnerships established under Delaware and Florida law to be corporations for Canadian income tax purposes.
Income Tax Technical Amendments
No. 41, 21 September 2016
Consultation on GST/HST for some limited partnerships and investment plans
No. 40, 17 August 2016
Canada introduces country-by-country reporting legislation
No. 39, 8 August 2016
On 29 July 2016, following on the OECD's Base Erosion and Profit Sharing initiative, the Department of Finance released draft legislative proposals that would implement certain measures from the 2016 budget, including those addressing country-by-country reporting.
Finance releases draft GST/HST amendments to pension plans and master trusts
No. 38, 5 August 2016
On 22 July 2016, the Department of Finance released legislative and regulatory proposals relating to the goods and services tax/harmonized sales tax (GST/HST) with respect to the GST/HST treatment of pension plans and master trusts. The government has asked for comments on the proposals by 31 August 2016.
Finance releases draft proposals on taxation of switch funds and linked notes
No. 37, 3 August 2016
On 29 July 2016, the Department of Finance released the anticipated legislative proposals impacting the taxation of switch funds and linked notes relating to measures first announced in the 2016 federal budget.
Finance releases draft legislation for 2016 budget and other previously announced measures
No. 36, 2 August 2016
On 29 July 2016, the Department of Finance released for public comment a package of draft legislative proposals and explanatory notes relating to a number of measures announced in the 2016 federal budget, as well as certain previously announced measures from the 2015 federal budget. Interested parties are invited to comment by 27 September 2016.
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
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
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
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.