Bill C-47, which includes some of the outstanding tax measures previously announced in the 2021, 2022 and 2023 federal budgets and 2022 federal economic update, along with certain other technical amendments, received first reading on April 20, 2023. The bill includes the expanded mandatory disclosure rules and new reporting requirements for digital platform operators, among other business, personal and indirect tax measures.

Note that the corporate income tax measures included in Bill C-47 will not be substantively enacted for IFRS or Accounting Standards for Private Enterprise (ASPE) purposes until the bill passes third reading in the House of Commons (as Canada has a minority government). In addition, the corporate income tax measures in the bill will not be considered enacted for U.S. GAAP purposes until the date the bill receives Royal Assent.

Business tax measures

The bill includes some of the outstanding corporate tax measures from the 2021 and 2022 federal budgets, including changes related to:

  • Mandatory disclosure rules
  • Reporting rules for digital platform operators
  • Hedging and short selling by Canadian financial institutions
  • Borrowing by defined benefit pension plans
  • Reporting requirements for Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs).

Personal tax measures

The bill includes some of the personal tax measures from the 2023 federal budget and 2022 federal fall economic update, including measures to:

  • Extend the residential property flipping rule to assignment sales
  • Implement changes related to Registered Education Savings Plans (RESPs)
  • Implement changes related to Registered Disability Savings Plans (RDSPs)
  • Increase the deduction for tradespeople’s tool expenses.

Indirect tax measures

The bill includes certain measures from the 2023 federal budget, as well as other previously announced measures, affecting:

  • GST/HST treatment of payment card clearing services
  • Pension plans
  • Crypto asset mining
  • Excise duties — Spirits, wine, beer
  • Increases to the Air Travellers Security Charge.

Administrative tax measures

The bill includes certain tax measures from the 2022 federal budget, including measures related to:

  • Electronic filing and certification of tax and information returns
  • Fixing contribution errors in defined contribution pension plans
  • Electronic payment requirements.

Other technical tax amendments

The bill also includes several other previously announced technical amendments.

For more information, contact your KPMG adviser.

Information is current to April 24, 2023. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500