March 24, 2016, No. 2016-13. The financial services industry may want to start preparing for the effect of certain tax changes proposed in the 2016 federal budget. Specifically, the budget proposes corporate and indirect tax measures for:
The budget introduces a “bail-in” regime to protect taxpayers in the event of a large bank failure. This would allow authorities to convert eligible long-term debt of a failing bank into common shares to recapitalize the bank and allow it to remain in operation. Finance has indicated that legislation implementing this measure will follow, and that stakeholders will have an opportunity to provide comments.
The budget also commits $4.2 million over five years for Finance to review banking and insurance legislation and extends the current statutory sunset date to March 29, 2019.
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