Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/13/2012

Canada - Tax accounting update of 2012 federal tax provisions 

November 13:   The Department of Finance on 18 October 2012 introduced Bill C-45 to implement the major 2012 federal budget measures.

Also, on 24 October 2012, Finance released a Notice of Ways and Means Motion containing a “backlog” of tax legislation—some going as far back as 2002.


The tax measures contained in Bill C-45 are considered substantively enacted for IFRS and Canadian GAAP purposes on 18 October 20120—the date 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
  • Section 88 bump denial limits for partnerships

The KPMG member firm in Canada has prepared a summary table that highlights the federal tax legislation contained in Bill C-45 and when these corporate, international, and individual 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.


Read a November 2012 report prepared by the KPMG member firm in Canada: Tax Accounting Update - Finance Plays Catch-Up




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1801 K Street NW
Washington, DC 20006.

 

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