Department of Finance releases draft legislation on Budget 2023 proposals and other notable tax measures

On August 4, 2023, the Department of Finance released draft legislative proposals relating to certain measures that were announced as part of the 2023 federal budget (“Budget 2023”) as well as other previously-announced measures. Included is draft legislation on the general anti-avoidance rule (GAAR), the alternative minimum tax (AMT), intergenerational business transfers, employee ownership trusts, , excessive interest and financing expenses limitations (EIFEL), global minimum tax (Pillar Two), digital services tax, and revised draft regulations for the luxury tax. A full list of the topics covered by the draft legislation is contained in the accompanying backgrounder.

See our previous three-part blog series for a more detailed discussion of the principal tax measures from Budget 2023.

Finance will be accepting submissions on the draft legislative proposals until September 8, 2023, except for submissions on the global minimum tax (Pillar Two) which will be accepted until September 29, 2023.

Prepared by: Rebecca Loo

Rebecca Loo is a partner working out of the Toronto office of Thorsteinssons LLP. Rebecca’s practice focuses on Canadian commodity tax matters, including the Goods and Services Tax (GST), Harmonized Sales Tax (HST), and provincial sales taxes.  She has written… more »

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