Amendments Implement the Rest of Budget 2013

On October 18, Finance Canada released proposed amendments to the Income Tax Act, the Excise Tax Act and the Income Tax Regulations for the remaining provisions from the March 21, 2013 Federal Budget. 

They include the following provisions, largely targeted at businesses, investors and trusts:

• The increases in the Lifetime Capital Gains Exemption to $800,000 starting in 2014.
• Expanded accelerated capital cost allowance for investments in clean energy generation.
• Requirement that synthetic disposition transactions are taxed as actual dispositions.
• Appropriate characterization of income from character conversion.
• Proper reporting of  tax attributes of trusts when transferred to arm’s length persons.
• New rules applicable to non-resident trusts.
• Elimination of unintended tax benefits in two types of leveraged life insurance arrangements.
• The restriction of corporate loss trading among arm’s length persons.

These issues will be discussed from a year-end planning point of view at both Knowledge Bureau's Corporate Tax Bootcamp Tour and TaxCycle's Software Training and Planning for Individuals Tour in cities across Canada this November.