Archived - Department of Finance Consults on Draft Tax Legislative Proposals

July 29, 2016 – Ottawa, Ontario – Department of Finance Canada

The 2016 Budget, entitled Growing the Middle Class, announced a number of important tax changes that will help promote greater tax fairness, and generally improve the integrity of Canada’s tax system. These changes will help support the objective of an economy that works for everyone, including middle-class Canadians. The Department of Finance is today releasing for consultation draft legislative proposals that would implement certain measures from the 2016 Budget.

These include proposals, as modified in some cases to take into account consultations and deliberations since the tabling of Budget 2016, relating to:

• Alternative Arguments in Support of Assessments;
• Taxation of Switch Fund Shares;
• Sales of Linked Notes;
• Expanding Tax Support for Clean Energy;
• Emissions Trading Regimes;
• Multiplication of the Small Business Deduction;
• Avoidance of the Business Limit and Taxable Capital Limit;
• Life Insurance Policies;
• Debt-Parking to Avoid Foreign Exchange Gains;
• Valuation for Derivatives;
• Eligible Capital Property;
• Country-by-Country Reporting;
• The Common Reporting Standard Penalty and Consequential Amendments;
• Cross-Border Surplus Stripping; and
• Extension of the Back-to-Back Rules.

References to "Announcement Date" in the draft legislative proposals refer to today's date. Explanatory notes are included with the draft legislative proposals.

These measures, as well as other Budget 2016 measures, may be included in a bill to be tabled in Parliament following the consultation period.

Interested parties are invited to provide comments on the draft legislative proposals by September 27, 2016. Please send your comments to fin.legislation-taxation-legislation-taxation.fin@canada.ca or to:

Tax Policy Branch
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5

• Legislative Proposals Relating to Income Tax, Sales Tax and Excise Duties and Explanatory Notes Relating to the Income Tax Act, Excise Tax Act, Excise Act, 2001 and Related Legislation

• Budget 2016: Growing the Middle Class

Annie Donolo
Press Secretary
Office of the Minister of Finance
613-369-5696

Media Relations
Department of Finance Canada
613-369-4000