Stikeman Elliott's Tax Group has prepared a commentary on the 2022 federal budget.
Welcome to the Grand Illusion
Highlights:
- Changes to address investment income earned and distributed by a private corporation that is "in substance", but is not technically, a Canadian-controlled private corporation
- Potential new minimum tax for high earners
- Amendments to the general anti-avoidance rule to address unused tax attributes
- New taxes applicable to banks and life insurers
- New rules with respect to hedging and short selling by Canadian financial institutions
- Expansion of the scope of existing interest coupon stripping rules
- Elimination of oil, gas, and coal flow-through shares and introduction of a new critical mineral exploration tax credit for flow-through share investors
- Additional support for carbon capture and clean technology
- Changes to the restrictions on borrowing by defined benefit pension plans
- Consultation process to tighten the surplus stripping rules that address intergenerational wealth transfers
Download the full budget commentary here.
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