Canada To Implement 2014 Budget Tax Provisions
The Canadian Government has tabled a detailed Notice of Ways and Means Motion to implement tax provisions contained in its 2014 Budget, along with a number of previously unannounced measures.
Finance Minister Joe Oliver said: “Canada’s Economic Action Plan builds on our Government’s record of keeping taxes low for families and businesses. Our Government’s plan for jobs and growth is creating opportunities right across the country.
The Motion proposes the implementation of Budget measures relating to international, business, and personal taxation. It also includes a number of new income tax and sales tax measures.
The Motion includes plans for better circumscribing an existing exception from the “investment business” definition in the foreign accrual property income regime, by introducing additional conditions for the application of the exception.
The Motion also adds a specific anti-avoidance rule in respect of withholding tax on interest payments and modifies an existing anti-avoidance rule in the thin capitalization rules. Both measures are designed to address back-to-back loan arrangements involving an intermediary.
Source: taxnews- Canada To Implement 2014 Budget Tax Provisions
