The changes relate to the Income Tax Act, Income Tax Amendments Act, 2000, Income Tax Regulations, and the Excise Tax Act.
Many of the proposals respond to issues brought to the attention of the department by taxpayers and their representatives. This release is part of an effort to ensure that the tax legislation is clear and reflects the underlying policy intent.
The proposals include technical changes relating to:
· Trusts, investment corporations, mortgage investment corporations, mutual fund corporations and agricultural cooperative corporations;
· The treatment of non-residents with Canadian service providers;
· Corporations that carry on an insurance business; and
· The reporting of recaptured input tax credits.
Full explanatory notes are included with the draft legislation.
Interested parties are invited to provide comments on the draft legislation by November 30 2011 to:
Tax Policy Branch
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5