Newfoundland 2016 Budget Bills Receive First Reading | KPMG | CA

Newfoundland 2016 Budget Bills Receive First Reading

Newfoundland 2016 Budget Bills Receive First Reading

Canadian Tax Adviser, May 31, 2016 Newfoundland Bills 15, 16, 18, 21 and 23 enact certain measures that were announced in Newfoundland's 2016 budget, and they received first reading on May 19, 2016. Newfoundland Bill 20, which also enacts certain measures from Newfoundland's 2016 budget, received first reading on May 24, 2016. These bills are considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on the day when the bills received first reading in the provincial legislature (as Newfoundland has a majority government).

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The bills contain legislation to:

  • Increase the general corporate income tax rate to 15% (from 14%), retroactive to January 1, 2016 (Bill 15)
  • Increase the financial corporations capital tax rate to 6% (from 5%), effective January 1, 2016 (Bill 16)
  • Increase the insurance companies tax rate to 5% (from 4%), effective July 1, 2016 (Bill 21)
  • Increase the retail sales tax on used vehicles to 15% (from 14%), effective July 1, 2016 (Bill 18)
  • Increase the tax rate on diesel fuel grade of gasoline to 21.5 cents per litre (from 16.5 cents per litre), increase the tax rate on gasoline for use in an aircraft to 2.5 cents per litre (from 0.7 cents per litre), and increase the tax rate on all other grades of gasoline to 33 cents per litre (from 16.5 cents per litre), all effective June 2, 2016 (Bill 20)
  • Provide a rebate of 10 cents per litre for gasoline, other than diesel fuel, in the Labrador border zones, effective June 2, 2016 (Bill 23).

For more information, contact your KPMG adviser. 

Disclaimer

Information is current to May 31, 2016. 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

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