Canada: Budget bill receives first reading; tax measures from 2022 budget

The bill reflects certain individual (personal) and indirect tax proposals introduced in the 2022 federal budget.

Tax measures from 2022 budget

Bill C-19 received first reading on 28 April 2022. The bill reflects certain individual (personal) and indirect tax proposals introduced in the 2022 federal budget—read TaxNewsFlash.

The bill also includes several outstanding 2021 federal budget measures, such as immediate expensing of certain capital property for Canadian-controlled private corporations (CCPCs), sole proprietors and certain partnerships; corporate income tax rate reductions for zero-emission technology manufacturing; changes to capital cost allowance (CCA) for clean energy equipment; and the new luxury tax.

Bill C-19 does not include corporate tax changes proposed in the 2022 federal budget, such as the “substantive CCPC” rules; the one-time 15% Canada recovery dividend on bank and life insurer groups; or the additional 1.5% tax on the taxable income for members of bank and life insurer groups (as determined for the purposes of the dividend).

Read a May 2022 report prepared by the KPMG member firm in Canada


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