Canada: Second federal budget bill includes measures from 2022 and 2021 federal budgets

Tax measures in the bill

Tax measures in the bill

Bill C-32, which includes certain outstanding measures announced in the 2022 and 2021 federal budgets, received first reading on 4 November 2022.

Tax measures in the bill include:

  • Enhanced trust reporting rules, which have been delayed by an additional year, and are now proposed to apply to tax years that end after 30 December 2023 (instead of after 30 December 2022).
  • One-time Canada recovery dividend
  • Additional 1.5% tax on banks and life insurer groups
  • Expanded access to the small business deduction
  • Several tax credits

However, Bill C-32 does not include the mandatory disclosure reporting rules or updated EIFEL rules. Read TaxNewsFlash

The bill also does not include previously announced measures related to substantive Canadian-controlled private corporations (CCPCs), hybrid mismatch arrangements, the carbon capture, utilization and storage investment tax credit or any changes to the existing intergenerational business transfer rules, among other measures.

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


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