On 27 July 2018, the Department of Finance released a package of draft legislative proposals and explanatory notes including draft amendments to the holding corporation rules contained in section 186 of the Excise Tax Act (ETA) that would broaden the “commercial operating corporation property test” an operating corporation must meet for the parent to benefit from the holding corporation rules. Learn more in our latest Tax Alert.
On 27 July 2018, 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 2018 federal budget, together with a revised version of an income tax measure originally announced on 16 September 2016, as well as some other indirect tax measures. The government also released a consultation paper on proposed changes to the GST/HST holding corporation rules. Interested parties are invited to provide comments on the legislative proposals by 10 September 2018, and on the consultation paper by 28 September 2018. Learn more in our latest Tax Alert.
This year, recreational cannabis is set to become legal in Canada. In the US, however, the Controlled Substance Act (CSA), in conjunction with the Immigration and Nationality Act, classifies cannabis as a Schedule 1 narcotic — making its use, sale and distribution illegal, and potentially making your key employees inadmissible to the US.
On July 13, 2018, the U.S. Citizenship and Immigration Services (USCIS) issued a new Policy Memorandum PM-602-0163 (USCIS PM), updating guidance for USCIS adjudicators regarding the discretion to deny an application, petition or request without first issuing a Request for Evidence (RFE) or Notice of Intent to Deny (NOID) if initial evidence is not submitted or if the evidence in the record does not clearly establish eligibility.
EY has confirmed that importers can take advantage of the Duties Relief Program and/or Duty Drawback Program to defer or obtain a refund of the recent surtax imposed under the United States Surtax Order (Steel and Aluminum) (SOR/2018-152) and the United States Surtax Order (Other Goods) (SOR/2018-153) for imported goods that are re–exported or are used as inputs or consumed in producing other goods for export. In addition, the federal government has announced a remission program to relieve unfair applications of the surtax or hardship in limited circumstances. Learn more in our latest Tax Alert.