Ottawa, July 12, 2013

Archived - Government of Canada Seeks to Improve the Fairness and Certainty of the Tax System

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The Department of Finance today released for public comment a package of draft legislative proposals relating to a number of technical changes to the Income Tax Act, Income Tax Regulations, Excise Act, 2001 and Part IX of the Excise Tax Act.

Many of these proposals respond to issues brought to the attention of the Department by taxpayers and their representatives. This release is part of an ongoing effort to ensure that tax legislation is clear and reflects its underlying policy intent.

The proposals include technical changes relating to:

  • the taxation of Canadian corporations with foreign affiliates (including changes to ensure that various rules apply appropriately to structures that include partnerships, changes to certain of the base-erosion rules, and new rules to ensure an appropriate income inclusion for “stub-year foreign accrual property income” on dispositions of foreign affiliate shares);
  • the application of the “exempt surplus” rules to certain trusts resident in Australia in which a controlled foreign affiliate of a Canadian corporation has a beneficial interest;
  • the circumstances under which government officials can confidentially alert law enforcement organizations to evidence of the commission of a serious crime based on taxpayer information (such as money laundering or terrorism financing); and
  • the rules for determining the residence of international shipping corporations.

Full explanatory notes are included with the draft legislation. References to “Announcement Date” in the draft legislation and explanatory notes refer to today’s date.

Interested parties are invited to provide comments on the draft legislation by September 13, 2013 to:

Tax Policy Branch
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5

Or by email:

For further information, media may contact:

Kathleen Perchaluk
Press Secretary
Office of the Minister of Finance

Jack Aubry
Media Relations
Department of Finance

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