Recent information bulletin includes harmonization measures for personal and federal tax.
Quebec has recently announced certain tax measures in Information Bulletin 2016-9 that will align several Quebec tax measures more closely with recently proposed federal government tax legislation. The Information Bulletin, which was published September 23, 2016, also discusses various topics, such as personal tax measures and QST changes that are similar to recent federal GST/HST proposals of July 22, 2016.
Quebec will harmonize the Quebec rules that are applicable to certain trusts and their beneficiaries with the Federal government's January 15, 2016 draft legislation relieving measures for trusts and estates affected by the "graduated rate estate" rules and proposed amendments to the trust "loss restriction event rules". The measures announced in Quebec's bulletin will:
Regarding the joint election that allows income in certain testamentary trusts to be deemed to have become payable to their primary beneficiary for the trust's taxation year (deemed to end at the end of the beneficiary's day of death), a valid election made for purposes of the federal tax legislation will be deemed to have been made for the purposes of Quebec's tax legislation. If a valid election is not made for the purposes of the federal tax legislation, no election will be possible for the purposes of Quebec's tax legislation.
Quebec will only adopt these harmonization measures if the corresponding federal legislation receives royal assent.
The announced personal tax measures include several changes to Quebec's refundable tax credit for child assistance. These changes include:
Also, new terms and conditions will be added for filing a farm property tax credit application.
Quebec plans to introduce changes to the QST system to generally incorporate the proposed GST/HST legislative and regulatory measures announced by the federal government on July 22, 2016. The proposed federal measures to be incorporated into the Quebec tax system include:
Quebec also notes that the QST changes would generally have the same effective dates as the GST/HST changes, subject to the required adaptations. Indeed, the QST system has only been harmonized to certain provisions related to FIs since January 1, 2013.
For more information, contact your KPMG adviser.
Information is current to September 27, 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