Global

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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/6/2012

Canada - Tax measures enacted in federal budget bill 

July 6:  Legislation to enact certain tax measures announced in the 2012 federal budget—tabled as Bill C-38—received Royal Assent on June 29, 2012, making these measures enacted for U.S. GAAP as of that date.

The bill—which received first reading on April 26, 2012—does not make any corporate or income tax rate changes or include many of the bigger changes in the 2012 budget (including the SR&ED changes, the change to the thin cap rules, foreign affiliate debt dumping and transfer pricing amendments).


The bill does contain measures to:


  • Allow corporations to make split or late eligible dividend designations
  • Extend the mineral exploration tax credit for one year
  • Legislate numerous changes to the GST / HST treatment of goods and services

Read a July 2012 report prepared by the KPMG member firm in Canada: Bill C-38 - Federal Budget Bill #1 Enacted




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