Joint Tax Committee’s recommendations on Budget 2015

The Joint Committee on Taxation of the Canadian Bar Association and CPA Canada has submitted advice to Finance about the budget’s proposals on non-resident employee withholdings, Section 55 planning and synthetic equity arrangements.

Since Budget 2015 was tabled on April 21, members of the Joint Committee on Taxation have been studying the details of its tax proposals and developing technical advice to Finance on how to best implement them.


  • In its Joint-Tax-Committees-recommendations-Budget-2015-Reg, the committee welcomes Finance’s move to ease the administrative burden related to source withholdings on payments to certain non-resident employees, but says more guidance and clarity are needed.
  • In its submission on the changes to Section 55 of the Income Tax Act, the committee proposes a more targeted alternative for preventing corporations from inappropriately converting taxable capital gains into tax-free dividends. The submission raises serious concerns about the breadth of the proposed changes, which would adversely impact persons not targeted by these new anti-avoidance rules.

The committee plans to make a submission on Finance’s request for comments on the distinction between active versus property income, due August 31, 2015.

If you have comments, on this or other items, please contact Gabe Hayos.


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