• Service: Tax, Global Indirect Tax, Global Mobility Services
  • Type: Regulatory update
  • Date: 3/28/2014

Canada - First package of budget legislation 

March 26:  Canada’s Department of Finance released a Notice of Ways of Means Motion (NWMM or the Budget Bill #1) on 24 March 2014 to implement selected measures announced in the 2014 budget.

The NWMM is a 136-page package (78 pages of legislation and 58 pages of explanatory notes) that consists mostly of individual (personal) tax measures from the 2014 budget.

Not included in Budget Bill #1

The NWMM does not include what might be identified as the more substantial tax changes in the budget—such as loss of graduated rates for certain trusts; elimination of benefits for immigrant trusts; thin capitalization provisions; captive insurance; donation credits for certain estates; changes for clean energy generation equipment; and certain indirect tax changes (e.g., the new joint venture election).

Also not included in the NWMM are any comments on the tax areas for which consultations are still ongoing or which have not yet been announced—such as treaty shopping, offshore regulated banks, non-profit status, eligible capital property and tax transparency and BEPS (base erosion and profit shifting) proposals.

Read a March 2014 report prepared by the KPMG member firm in Canada: 2014 Federal Budget Bill #1 Introduced

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