The legislation, which was released on August 9, 2022, provides details on the Canada Recovery Dividend, the additional 1.5% tax on banks and life insurers and tax changes to address International Financial Reporting Standards for Insurance Contracts (IFRS 17). In addition, the legislation includes changes to address hedging and short selling, reporting requirements for RRSPs and RRIFs and mandatory disclosure requirements for financial institutions.
Financial institutions may want to carefully review this new draft legislation to determine how they are affected. These institutions should also be aware that Finance has not made further amendments to its proposals to address tax planning relating to allocations to redeeming fund unit holders in the mutual fund industry. Previously, Finance released draft legislation for these rules for public consultation.
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KPMG in Canada provides the latest Canadian and international tax news for your business