Government releases draft legislation
On February 4, 2022, Finance Canada released draft legislative proposals to implement previously announced tax measures. The proposals would implement various measures announced as part of Budget 2021 and previous budgets, including measures that would:
- allow the immediate expensing of up to $1.5 million of eligible investments by certain businesses
- increase access to the Disability Tax Credit
- implement the income tax mandatory disclosure rules
- allow for administration of, and compliance with, electronic filing and certification of tax and information returns
- enhance the CRA’s authority to conduct audits and undertake other compliance activities
- limit the amount of interest and other financing expenses that businesses may deduct
- introduce additional tax reporting requirements for trusts
Finance Canada has provided a detailed backgrounder on the proposed income tax mandatory disclosure rules along with sample notifiable transactions. A backgrounder has also been provided on the proposed immediate expensing measures.
Finally, the proposals also include measures which clarify the GST/HST treatment of crypto asset mining.
See Finance Canada’s news release for a complete list of measures included in the proposals.
Canadians are invited to provide comments on the draft proposals and the sample notifiable transactions. We will be reviewing the proposals in further detail and will continue to update you on key developments and findings.