Canada: Proposed budget legislation concerning financial institutions

Draft legislation released provides details concerning financial institutions

Draft legislation released provides details concerning financial institutions

Draft legislation released on 9 August 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)—proposals included in the 2022 federal budget. Read TaxNewsFlash

In addition, the legislation includes proposed changes to address:

  • Hedging and short selling
  • Reporting requirements for registered retirement savings plans and registered retirement income funds
  • Mandatory disclosure requirements for financial institutions

KPMG observation

Financial institutions may want to carefully review this new draft legislation to determine how they are affected. These institutions must also be aware that the Department of 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, the Department of Finance released draft legislation for these rules for public consultation.

Read an August 2022 report [PDF 210 KB] prepared by the KPMG member firm in Canada


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