Quebec has announced new measures to harmonize with federal tax legislation.
Quebec's Information Bulletin 2018-6 will align the province with measures that were announced in the 2018 federal budget and included in Bill C-74 (which received royal assent on June 21, 2018), as well as other recently proposed federal government tax legislation.
When implementing measures relating to the federal budget, the bulletin states that the changes to the Quebec tax system will only be adopted following assent to any federal statute (or adoption of any federal regulation) implementing the proposed federal measure being harmonized. Further, the bulletin states that these changes will apply on the same dates as the federal measures being harmonized.
Measures harmonizing with the 2018 federal budget
Quebec will harmonize with various federal corporate and personal provisions proposed in the 2018 federal budget, including measures that:
Quebec also announced that, at a later date, it intends to harmonize with federal 2018 budget measures to:
Quebec will not harmonize with certain 2018 budget measures, including those that relate to:
Quebec announced it will clarify tax legislation to suspend the "reassessment limitation period" in situations where taxpayers are subject to a formal demand concerning unnamed persons and the assessment is GAAR-based, as of the day on which the demand is filed.
The information bulletin also introduced various changes to the parameters of Capital regional et coopératif Desjardins and amendments will be introduced in the Act constituting Capital regional et coopératif Desjardins.
Quebec also announced that it will introduce changes to the QST system with respect to the upcoming legalization of cannabis to:
For more information, contact your KPMG adviser.
Information is current to July 17, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
© 2018 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.