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B.C.'s Corporate Rate Increase Still Not Substantively Enacted 

Canadian Tax Adviser

 

May 28, 2013

 

Mike Brawn
Vancouver, Canadian Corporate Tax

 

Although British Columbia has re-elected a majority Liberal government, the proposed general corporate tax rate increase to 11% (from 10%) announced in the Liberal's 2013 pre-election budget is still not considered substantively enacted for accounting purposes. This is because budget Bill 9, which includes the rate increase, was not passed into law and officially died on the order paper when B.C.'s election campaign began this past April.

The proposed increase to the general corporate tax rate will have to be reintroduced in a new bill in B.C's legislature as well the new bill will have to receive first reading before it can be considered substantively enacted for accounting purposes.

 

Legislative background
British Columbia's 2013 budget, which was delivered on February 19, 2013, accelerated last year's provisional 1% increase in the B.C. general corporate tax rate to 11% (from 10%). This increase was scheduled to take effect April 1, 2013, one year earlier than previously announced. British Columbia's 2013 budget bill was not passed into law before the election.

 

For more information, contact your KPMG adviser.

 

 

 

Information is current to May 28, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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