Entities in the real estate sector may want to consider preparing for the effect of certain GST/HST* tax changes proposed in the 2016 federal budget. Specifically, the budget proposes measures for:
* GST/HST = goods and services tax / harmonized sales tax
The 2016 budget indicates that the government will not proceed with proposed measures affecting the donation of real estate or make changes to the rules on determining whether certain income from property would qualify as active business income.
Read a March 2016 report prepared by the KPMG member firm in Canada: Real Estate Industry — Prepare for 2016 Federal Budget Measures
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.