Canada Tables Tax Technical Amendments

by Mike Godfrey, Tax-News.com, Washington

20 July 2010

The Canadian Department of Finance on July 16 released draft legislative proposals to implement outstanding income tax technical measures, as introduced in the previous parliament.

The proposals include measures that will implement a large number of technical amendments that provide tax relief and other technical amendments deemed important to the integrity of the tax system. The proposals also include amendments to ensure that both the common law and civil law are properly referred to and reflected in the Income Tax Act.

The department said this will be achieved through:

• Modifications to the provisions relating to restrictive covenants;
• Modifications to the provisions in section 143.3 of the Income Tax Act relating to non-monetary consideration;
• Updated amendments to reflect previously announced reductions in the general corporate income tax rate;
• Modifications to the provisions concerning the rate to be applied to investment income earned by cooperatives and credit unions; and
• Draft amendments to the Income Tax Regulations.

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