Canadian Tax Adviser
December 13, 2011
Quebec 2011 Budget and Tax Harmonization Measures Enacted
Paul Hickey
Toronto, National Tax Centre
Quebec Bill 32 received Royal Assent on December 9, 2011. This bill, which is now considered enacted for U.S. GAAP purposes, contains amendments that include changes to the taxation of stock options, charitable disbursement quotas and a broadened scope for the QST zero-rating status of certain printed books.
Bill 32 includes measures originally announced in the 2011 Quebec budget, harmonization measures with the 2010 federal budget and measures announced in various Information Bulletins published in 2010 and 2011.
These measures are considered substantively enacted as of November 2, 2011, as Quebec has a majority government.
Federal tax harmonization measures
Bill 32 includes harmonization measures with the
federal 2010 budget, as enacted in Bill C-9 and Bill C-47, such as:
- Amendments to the tax incentives for employee stock options
- Reform of the disbursement quota rules for registered charities
- Revisions to the QST rules related to the new rebate for registered pension plan trusts.
2011 Quebec budget measures
Bill 32 includes several measures announced in the 2011 Quebec
budget on March 17, 2011. The bill
features
a new refundable tax credit
of up
to
15¢ per litre
of
cellulosic ethanol produced,
to
apply in parallel with the existing tax credit for the production of
ethanol,
beginning March 18, 2011 and ending March 31, 2018.
Other measures
Quebec's Bill 32 also:
- Allows printed books sold with "other property" (i.e., a read-only medium or a right to access a website) after October 31, 2011 to be generally eligible as zero-rated printed books for QST purposes
- Amends the tax treatment of amounts reimbursed by an estate
- Makes various technical, terminology and other consequential amendments.
For more information, contact your KPMG adviser.
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