Canada: Direct and indirect tax measures in federal budget (Bill C-47) enacted
The bill includes some of the outstanding business tax measures from the 2021 and 2022 federal budgets
Direct and indirect tax measures in federal budget (Bill C-47) enacted
Bill C-47, which received first reading on 20 April 2023 and implements certain outstanding tax measures announced in the 2021, 2022, and 2023 federal budgets and 2022 federal economic update, along with previously announced technical amendments, passed third reading in the House of Commons on 8 June 2023.
Business tax measures
The bill includes some of the outstanding business 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).
Other tax measures
The bill also includes certain indirect tax measures from the 2023 federal budget, as well as other previously announced measures, affecting the goods and services tax / harmonized sales tax (GST/HST) treatment of payment card clearing services, pension plans and cryptoasset mining.
In addition, the bill includes some of the individual (personal) tax measures from the 2023 federal budget and 2022 federal fall economic update, such as extension of the residential property flipping rule to assignment sales, changes related to registered education savings plans (RESPs) and registered disability savings plans (RDSPs) and an increase to the deduction for tradespeople’s tool expenses.
The bill also contains administrative tax measures (e.g., related to electronic filing and certification of tax and information returns) and other previously announced technical amendments (e.g., related to changes to Canadian exploration expenses).
Read a June 2023 report prepared by the KPMG member firm in Canada
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