Finance releases significant draft tax legislation

Published by Ian Gamble

On September 13, 2013 the Department of Finance released significant draft legislative proposals. The attached Quick Update Report outlines the corporate tax-related items in this release, which

  • target derivative transactions whose purpose is to convert ordinary income into a capital gain;
  • target transactions that economically dispose of property without changing ownership;
  • phase out accelerated deductions for the mining industry;
  • restructure and expand corporate attribute-trading restrictions; and
  • expand existing thin capitalization rules to restrict interest expense for Canadian branches of non-resident corporations.