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  • Date: 6/24/2014

Budget Bill C-31 Receives Royal Assent 

Canadian Tax Adviser

 

June 24, 2014

 

Bill C-31, which implements certain measures announced in the 2014 federal budget, received Royal Assent, on June 19, 2014. The provisions in Bill C-31 are considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of March 28, 2014, when it received first reading in the House of Commons (as Canada has a majority government). Bill C-31 is enacted for U.S. GAAP purposes on June 19, 2014, the date the bill received Royal Assent.

Background
Bill C-31 contains the same legislation as the Notice of Ways and Means Motion released on March 24, 2014. It also contains the FATCA legislation to implement the Canada-United States Enhanced Tax Information Exchange Agreement and legislation to:

 

  • Reduce the maximum number of requirement payments on account of source deductions for certain organizations
  • Require certain financial intermediaries to report international electronic funds transfers of $10,000 or more to the CRA (announced in the 2013 federal budget)
  • Introduces legislation to amend the GST/HST Closely Related Relief election.

 

The bill also contains legislation to implement the personal tax measures and many of the indirect tax measures from the 2014 federal budget and to implement other tax measures such as the legislation requiring Finance to annually table a list of the government's outstanding tax measures in Parliament.

 

This bill does not contain the "controversial" tax changes from the 2014 federal budget, such as the loss of graduated rates for certain trusts, elimination of benefits for immigrant trusts, thin-capitalization, captive insurance, donation credits for certain estates, CCA changes for clean energy generation equipment and certain indirect tax changes such as the new joint venture election. Also not included are any comments on the tax areas for which consultations are still ongoing or which have not yet been announced, such as treaty shopping, offshore regulated banks, non-profit status, eligible capital property and tax transparency and BEPS.

 

For further details, please see TaxNewsFlash-Canada 2014-33, "FATCA Now Law - Are You Ready for July 1, 2-014? [PDF 44KB], or contact your KPMG adviser.

 


 

Information is current to June 24, 2014. 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