Canada: Tax measures in 2023 federal budget bill
Outstanding tax measures previously announced in the 2021, 2022, and 2023 federal budgets and 2022 federal economic update
Outstanding tax measures previously announced in the 2021, 2022, and 2023 federal budgets
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 20 April 2023.
The bill includes the expanded mandatory disclosure rules and new reporting requirements for digital platform operators, among other business, individual, and indirect tax measures.
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)
Indirect tax measures
The bill includes certain measures from the 2023 federal budget, as well as other previously announced measures, affecting:
- Goods and services tax / harmonized sales tax (GST/HST) treatment of payment card clearing services
- Pension plans
- Crypto asset mining
- Excise duties—Spirits, wine, beer
- Increases to the air travelers security charge
Individual (personal) tax measures
The bill includes some of the individual 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
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.
Read an April 2023 report prepared by the KPMG member firm in Canada
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