Finance released a NWMM to implement selected measures announced in 2015.
Finance released a Notice of Ways of Means Motion (NWMM) on May 4, 2015 to implement selected measures announced in the 2015 budget (see TaxNewsFlash-Canada 2015-18 "2015 Federal Budget Highlights") as well as certain previously announced tax measures.
The 69-page NWMM (35 pages of legislation and 34 pages of explanatory notes) includes the more straightforward personal and corporate tax measures from the 2015 budget. The more complicated tax changes, such as the amendments to subsection 55(2) and Regulation 102 and the new synthetic equity arrangement rules are not included in the NWMM. The NWMM also includes measures to implement the previously announced Family Tax Cut credit and the changes to the Child Care Expense Deduction, Universal Child Care Benefit and Child Tax Credit, as well as the extension to the flow-through mining expenditure tax credit.
Given the impending fall election, it is likely that the government will attempt to pass this first budget bill (including the previously announced measures) into law before Parliament's summer recess begins at the end of June. Otherwise, it's highly unlikely that the legislation can be passed before the October 2015 election.
The NWMM contains measures that:
The NWMM contains measures that:
The NWMM contains measures that allow certain foreign charitable foundations to be registered as qualified donees.
The NWMM contains measures that allow certain new employers to immediately remit payroll withholdings on a quarterly basis.
The NWMM includes the Family Tax Cut credit and the changes to the Child Care Expense Deduction, Universal Child Care Benefit and Child Tax Credit originally announced in October 2014. This legislation was previously included in Bill C-57, which received first reading on March 27, 2015, but it appears that it has now been combined with the 2015 budget measures to move forward in the legislative process.
The NWMM also includes a change to the flow-through mining expenditure definition in subsection 127(9) which extends the related credit to include expenses incurred after March 2015 and before 2017 where they are renounced through share agreements entered into after March 2015 and before April 2016. This change legislates the extension announced in March.
The NWMM does not include the following more substantial tax changes in the budget, including measures to:
The NWMM also does not include any comments on tax areas for which consultations are still ongoing or which have not yet been announced, such as:
For more information, contact your KPMG adviser.
Information is current to May 05, 2015. 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