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Provincial Budget Legislation - Atlantic Canada Round-Up 

Canadian Tax Adviser

 

June 25, 2013

 

The bills containing the 2013 budget income tax measures for New Brunswick, Nova Scotia and Prince Edward Island all recently received Royal Assent. Therefore, these provincial budgets are now considered enacted for U.S. GAAP purposes.

New Brunswick
Bill 51, which enacts tax changes announced in New Brunswick's 2013 budget, received Royal Assent on June 21, 2013. Bill 51 includes measures to increase the provincial general income tax rate to 12% (from 10%) effective July 1, 2013. Since the bill received Royal Assent, the budget measures are considered enacted for purposes of U.S. GAAP as of June 21, 2013. The bill received first reading in the provincial legislature on May 22, 2013, and is considered substantively enacted for purposes of IFRS and ASPE as of that date (New Brunswick has a majority government).

 

The bill also includes measures to increase the personal income tax rates to the levels that applied in 2006, among other changes.

 

Nova Scotia
Bill 51, which enacts tax changes announced in Nova Scotia's 2013 budget, received Royal Assent on May 10, 2013. Bill 51 includes measures to reduce the small business income tax rate to 3% (from 3.5%) and to decrease the small business income threshold to $350,000 (from $400,000), effective January 1, 2014. The bill also contains measures not included in the 2013 budget, such as changes to the computation of taxable paid-up capital of a bank. Since the bill received Royal Assent, the budget measures are considered enacted for purposes of U.S. GAAP as of May 10, 2013. The bill received first reading in the provincial legislature on April 18, 2013, and is considered substantively enacted for purposes of IFRS and ASPE as of that date (Nova Scotia has a majority government).

 

Prince Edward Island
Bill 47, which enacts tax changes announced in Prince Edward Island's 2013 budget, received Royal Assent on May 8, 2013. Bill 47 includes measures to increase the small business corporate income tax rate to 4.5% (from 1%), effective April 1, 2013. Since the bill received Royal Assent, the budget measures are considered enacted for purposes of U.S. GAAP as of May 8, 2013. The bill received first reading in the provincial legislature on April 23, 2013, and is considered substantively enacted for purposes of IFRS and ASPE as of that date (Prince Edward Island has a majority government).

 

The bill also provides details that were not included in the budget on changes to the province's tax credit for non-eligible dividends.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to June 25, 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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