• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 9/18/2013

Canada - “Technical glitch” corrected in credit union tax legislation 

September 18:  Canada’s Department of Finance corrected what was an unintended “technical glitch” in the credit union legislation in its 13 September 2013 draft legislative proposals.

Although the 2013 federal budget proposed to phase-out the preferential tax rate for credit unions over five years, the enacted legislation in Bill C-60 did not technically work this way. Read TaxNewsFlash-Americas: Canada - Technical glitch in credit union tax amendments

Finance corrected this unintended technical glitch so that the five-year phase-out of the credit union deduction would operate as originally intended. Specifically, the 11% credit union tax rate would now increase to a 15% general corporate rate over five years.

Read a September 2013 report prepared by the KPMG member firm in Canada: Draft Legislative Proposal Corrects Credit Union Tax Hike Glitch

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