​The Update anticipates a deficit of $36.4 billion for 2022-23 and forecasts deficits of $30.6 billion for 2023-24 and $25.4 billion for 2024-25. Although the Update does not include any personal or corporate tax rate changes, Finance also announced that the proposed interest and financing expenses limitation (EIFEL) rules will now only apply to taxation years beginning on or after October 1, 2023 (instead of taxation years beginning in 2023). Similarly, Finance said it would delay the proposed mandatory reporting requirements for certain reportable and notifiable transactions until these changes receive Royal Assent (instead of for transactions after 2022). The Update introduces a refundable Clean Technology Investment Tax Credit and announces Finance’s intention to introduce a 2% share buyback tax on certain corporations, among other tax measures.

Although Finance notes that it will provide more specific details on some of these announcements in its 2023 federal budget, Finance did release draft legislation for reporting requirements for digital platform operators and revised draft legislation for the EIFEL rules.

Download this edition of the TaxNewsFlash to learn more.