Canada’s Finance Department on 18 April 2016 released draft legislation to implement certain measures that were proposed in the 2015 and 2016 federal budgets. The measures are set out in 91 pages of draft legislation and 96 pages of explanatory notes.
The draft legislation includes changes proposed in the 2015 budget affecting the taxation of inter-corporate dividends under section 55, withholding tax requirements for non-resident employers under section 153, and the dividend rental arrangement rules under section 112. The draft legislation does not appear to include many of the significant tax changes announced in the 2016 federal budget. These may be expected in a future bill.
The draft legislation features numerous amendments to the Income Tax Act, including changes that affect:
Amendments to the Excise Tax Act are also included in the release.
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