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P.E.I. Bill for 2014 Non-Eligible Dividends and Credit Unions Receives Royal Assent 

Canadian Tax Adviser

 

December 17, 2013

 

Bill 7, which increases the tax rate on non-eligible dividends to 38.74% (from 38.56%) effective January 1, 2014, received Royal Assent on December 6, 2013. Bill 7 also provides for the gradual phase-out of the additional deduction for credit unions, mirroring the federal changes announced in the 2013 federal budget.

The provisions in Bill 7 are considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of November 13, 2013, when Bill 7 received first reading in the provincial legislature (as P.E.I. has a majority government). Bill 7 is enacted for U.S. GAAP purposes on December 6, 2013, the date the bill received Royal Assent.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to December 17, 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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