{"id":6967,"date":"2024-07-04T13:04:05","date_gmt":"2024-07-04T20:04:05","guid":{"rendered":"https:\/\/www.thor.ca\/?post_type=tax_alert&p=6967"},"modified":"2025-02-21T12:56:42","modified_gmt":"2025-02-21T20:56:42","slug":"bill-c-59-and-bill-c-69-become-law-and-bring-massive-tax-changes","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2024\/07\/bill-c-59-and-bill-c-69-become-law-and-bring-massive-tax-changes\/","title":{"rendered":"Bill C-59 and Bill C-69 become law and bring massive tax changes"},"content":{"rendered":"

On June 20, 2024, Bill C-59<\/a> and Bill C-69<\/a> each received Royal Assent. Together, they make sweeping changes to the federal Income Tax Act <\/em>(the \u201cAct<\/strong>\u201d) that taxpayers and their advisors simply must know. The below chart notes the key changes and their applicable in-force dates. Readers may refer to our previous blogs and tax alerts for commentary regarding certain of the provisions noted below.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Statutory Provision<\/strong><\/td>\nComing Into Force<\/strong><\/td>\n<\/tr>\n
Excessive interest and financing expenses limitation (\u201cEIFEL<\/strong>\u201d) rules [enacted]<\/td>\nGenerally effective for taxation years beginning on or after October 1, 2023.<\/td>\n<\/tr>\n
Hybrid mismatch rules [enacted]<\/td>\nGenerally apply to payments arising on or after July 1, 2022.<\/td>\n<\/tr>\n
Intergenerational business transfer rules [amended]<\/td>\nGenerally apply to dispositions of shares on or after January 1, 2024.<\/td>\n<\/tr>\n
General anti-avoidance rule (\u201cGAAR<\/strong>\u201d) [amended]<\/td>\nAmendments generally apply to transactions occurring on or after January 1, 2024. However, new GAAR penalty provisions apply to transactions occurring on or after June 20, 2024.<\/p>\n

 <\/td>\n<\/tr>\n

\u201cSubstantive CCPC\u201d rules [enacted]<\/td>\nGenerally effective for taxation years ending on or after April 7, 2022.<\/td>\n<\/tr>\n
Tax on equity repurchases (AKA share buyback tax) [enacted]<\/td>\nGenerally applies to transactions occurring after 2023<\/td>\n<\/tr>\n
Employee ownership trusts (\u201cEOT<\/strong>\u201d) [enacted]<\/td>\nGenerally applicable in respect of transactions occurring on or after January 1, 2024<\/td>\n<\/tr>\n
Various clean energy \/ technology measures [enacted]<\/td>\nThe carbon capture, utilization and storage (CCUS) rules generally apply as of January 1, 2022.<\/p>\n

 <\/p>\n

The clean technology investment tax credit rules generally apply as of March 28, 2023.<\/p>\n

 <\/p>\n

The clean hydrogen tax credit rules \u00a0generally apply after March 28, 2023.<\/p>\n

 <\/p>\n

The clean technology manufacturing (CTM) investment tax credit rules\u2002generally apply as of January 1, 2024.<\/p>\n

 <\/td>\n<\/tr>\n

Digital Services Tax Act <\/em>[enacted]<\/td>\nIn force June 28, 2024 pursuant to the order<\/a> of the Governor in Council.<\/td>\n<\/tr>\n
Alternative minimum tax (AMT) [amended]<\/td>\nAmendments generally apply to taxation years beginning after December 31, 2023.<\/td>\n<\/tr>\n
Global Minimum Tax Act <\/em>[enacted]<\/td>\nGenerally applies to fiscal years of subject multinational entity (MNE) groups beginning on or after December 31, 2023.<\/td>\n<\/tr>\n
Exclusion of bona fide <\/em>concessional loans from \u201cgovernment assistance\u201d [enacted]<\/p>\n

 <\/p>\n

\u00a0<\/em><\/td>\n

Generally applicable to loans made after December 31, 2019.<\/td>\n<\/tr>\n
Home buyers\u2019 plan withdrawal limits [amended]<\/td>\nAmendments apply to 2024 and subsequent tax years for amounts received after April 16, 2024.<\/td>\n<\/tr>\n
Denied deductions for non-compliant short-term rentals [enacted]<\/td>\nApplicable to outlays and expenses incurred after 2023.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

On June 20, 2024, Bill C-59<\/a> and Bill C-69<\/a> each received Royal Assent. Together, they make sweeping changes to the federal Income Tax Act <\/em>(the \u201cAct<\/strong>\u201d) that taxpayers and their advisors simply must know. The below chart notes…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"class_list":["post-6967","post","type-post","status-publish","format-standard","hentry","category-tax-alerts"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=6967"}],"version-history":[{"count":2,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6967\/revisions"}],"predecessor-version":[{"id":7285,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6967\/revisions\/7285"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=6967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=6967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=6967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}