The tax measures contained in Bill C-45 are considered substantively enacted for IFRS and Canadian GAAP purposes on October 18, 2012, when the bill received first reading in the House of Commons. Bill C-45 implements the 2012 federal budget measures including changes to the Scientific Research and Experimental Development (SR&ED) program, foreign affiliate dumping, thin capitalization, and section 88 bump denial limits for partnerships.
See below for a handy summary table that highlights the federal tax legislation contained in Bill C-45 and when these corporate, international and personal tax measures are considered to be substantively enacted for purposes of IFRS and Canadian GAAP. These tax measures will not be considered to be substantively enacted for purposes of U.S. GAAP, however, until the bill is passed through Parliament and receives Royal Assent.
Catch-Up Notice of Ways and Means Motion
Finance released a detailed 950-page NWMM on October 24, 2012 that consolidates almost all outstanding tax measures that Finance released beginning in 2002 related to foreign affiliates, non-resident trusts, real estate investment trusts (REIT), and many more general technical amendments to hundreds of sections of the Act, including two mini-technical bills. These measures will generally not become substantively enacted for purposes of IFRS and Canadian GAAP purposes until a bill to implement the NWMM receives first reading in the House of Commons.
Here's a handy summary table of the foreign affiliate, non-resident trust and foreign investment entity, REIT, and general tax measures contained in this large catch-up NWMM. As indicated in the table, the "TBA" (or "to be announced") tax accounting date of substantive enactment will be determined when a bill to implement the NWMM receives first reading in the House of Commons.
We Can Help
KPMG's tax accounting and audit support professionals can help you assess the impact these changes in tax law will have on your organization's financial statements. We can also help your organization understand and manage your obligations under the Canadian, U.S. and IFRS for income tax accounts and disclosures. For details, contact your KPMG adviser.
For more information, contact your KPMG adviser.
Information is current to November 8, 2012. 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.