Canadian Tax Adviser
December 20, 2011

2011 Federal Budget Enacted for U.S. GAAP Purposes

Paul Hickey
Toronto, National Tax Centre

Legislation to enact several tax measures announced in the 2011 federal budget, tabled as Bill C-13, received Royal Assent on December 15, 2011, making it enacted for U.S. GAAP purposes. Among other things, Bill C-13 contains legislation to enact the corporate partnership tax deferral rules and the RRSP anti-avoidance rules.

Previously, Bill C-13 received third reading in the House of Commons on November 21, 2011 and was substantively enacted for purposes of Canadian GAAP and IFRS on October 4, 2011.

Included in Bill C-13
Bill C-13 includes:

• Provisions for the proposed corporate partnership tax deferral rules
• The RRSP anti-avoidance rules
• An extension of the kiddie tax to capital gains realized upon disposition to non-arm's length parties
• An extension of the accelerated capital cost allowance treatment for manufacturing and processing equipment
• The definition of "clean energy generation equipment".

For more information, contact your KPMG adviser.

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