Industry News

The two sets of proposals concern changes to GST/HST rules and income tax legislation

By James Langton |

 

The Department of Finance Canada on Friday announced consultations on a variety of proposed changes to the tax rules, including measures that will impact certain income tax rules, and a litany of changes to sales tax (GST/HST) rules.

On the income tax side, the proposals include measures that were outlined in the 2017 budget, along with certain previously announced changes.

Finance Canada has also revised certain budget proposals based on feedback received since the budget was released, the announcement says, including proposed measures relating to the anti-avoidance rules for registered plans; rules regarding investment fund mergers; and the timing of recognition of gains and losses on derivatives.

The income tax proposals also include proposed budget measures regarding the base erosion rules for foreign branches of life insurers; the rules for flow-through share investor expenses; and measures to implement the government's Ecological Gifts Program; among other things.

On the sales tax side, the proposals include measures regarding the application of the GST/HST rules to certain investment limited partnerships; revising the GST/HST rules for certain pension plans; and extending the GST/HST rules to include group trusts for RESPs.

Both sets of proposals are out for consultation until Oct. 10.

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