Finance releases significant draft tax legislation

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.