CPA Canada’s response to Finance Canada’s proposed amendments on contingent liabilities

CPA Canada has provided feedback to Finance Canada regarding its potential introduction of section 143.4 of the Income Tax Act, which would implement changes to contingent liabilities. Developed by the Joint Committee on Taxation of the Canadian Bar Association and CPA Canada, this November 7, 2011 submission paper raises concerns about the nature and scope of the proposed amendments, and provides insights on how to more effectively implement these tax amendments.

What you will learn

Committee members provide their expert insights on the following aspects of the contingent liabilities amendments:

• proposed definition of “contingent amount”
• proposed definition of “right to reduce”
• applying the proposals in practice