Finance recently released draft legislation to enact these AMT changes that were first proposed in the 2023 federal budget. Although the draft legislation generally follows the budget proposals, it also includes some unexpected changes, such as a proposal to increase to 100% the AMT inclusion rate for capital gains on donations of property other than publicly listed securities (from 50%). In addition, Finance’s proposals also expand the types of trusts that will not be subject to the AMT rules, to include graduated rate estates, trusts with classes of their units traded on a designated stock exchange, certain investment funds and others. The draft legislation, which was released on August 4, 2023, is proposed to apply for taxation years that begin after 2023. Finance is accepting comments on the draft legislation until September 8, 2023.

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