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Quebec Harmonizes with 2013 Federal Budget Proposals 

Canadian Tax Adviser


July 16, 2013

Anouk Leclair
Montreal, National Tax Centre


Line Arseneau
Montreal, National Indirect Tax


Quebec has released a new information bulletin that, among other changes, introduces harmonization measures with the 2013 federal budget now partly contained in the first federal budget bill, Bill C-60 . The 36-page bulletin announces an enhancement of the refundable tax credit for the development of e-business, as well as:

  • A refocusing of the temporary contribution payable by financial institutions towards large institutions and temporary tax relief for damage insurance firms
  • Fiscal measures pertaining to businesses, most of which are designed to clarify the application of certain tax credits
  • Clarifications to the calculation of contributions payable by workers and employers to the Quebec Pension Plan
  • Recognition of two new centres as eligible public research centres for the purposes of the refundable tax credit for scientific research and experimental development.


Harmonization measures


Quebec is harmonizing with most measures included in the 2013 federal budget where similar measures exist in the Quebec tax system (for details of the federal budget, see TaxNewsFlash-Canada 2013-10 "2013 Federal Budget Highlights". Certain measures announced in the 2013 federal budget were included in Bill C-60, which received Royal Assent on June 26, 2013.


Federal measures Quebec will not harmonize with
Quebec is not harmonizing with certain 2013 federal budget measures including:


  • Labour-sponsored venture capital corporations
  • Phasing out of additional deduction for credit unions
  • Extension of eligibility for the Mineral Exploration Tax Credit for flow-through share investors
  • Elimination of the additional capital cost allowance for certain assets acquired for use in eligible mine expansion projects or new mines
  • International banking centres
  • International electronic funds transfers
  • Possibility for the administrator of a registered pension plan to refund contributions paid to the plan
  • Extension of the normal reassessment period - Reportable transaction
  • Extension of the normal reassessment period - Specified foreign property
  • First-time donor's super credit.


For more information, contact your KPMG adviser.






Information is current to July 16, 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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