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Deems profits from flipped residential property to be business income, not
capital gain, and principal residence exemption cannot apply to the income.
Included in Bill C-32 tabled Nov 3, 2022.
Effective January 1, 2023.
Will also apply to profits arising from the disposition of rights to
purchase a residential property via an assignment sale, if the rights were
assigned after having been owned for less than 12 months.
Once the property is owned by the taxpayer who entered into a purchase and
sale agreement, the 12-month holding period for the flipping rule will be
reset - i.e., start anew.
Advance payments of 1/2 of the estimated CWB entitlement will now be done automatically
in July, October and January - no need
to apply. This will be done based on the prior year tax return, so
payments will start in July 2023 based on 2022 tax returns.
Any residual entitlement would be calculated and paid through the
individual's tax return for the year.
There is no mention of repayment of amounts that exceed the entitlement
for the current year.
The wording in the FES is that the FES "proposes to automatically
provide individuals who received the CWB for the previous taxation year an entitlement
for the current taxation year through quarterly advance payments, so long as
their income tax return for the previous year is received and assessed by the
CRA prior to November 1 of the current year".
In their report Fall
Economic Statement 2022 - Issues for Parliamentarians the Parliamentary
Budget Officer report indicates on page 7 of the pdf that the government made a
"policy decision not to recoup these advance payments when recipients'
incomes rise and they become ineligible for benefits, or eligible for lower
benefits. Not requiring repayment of federal benefits for ineligible individuals
is a pronounced departure from the existing federal tax and transfer system."
The legislation for this measure is not yet available.
Canada has an alternative minimum tax system that ensures that in certain
situations where a taxpayer would have little or no tax under the
"regular" tax calculation rules, there will be a minimum amount of
Detailed proposal and path for implementation will be announced in Budget
Addressing the digitalization of money: re digital currencies, including
cryptocurrencies, stablecoins, and central bank digital currencies.
Implementing the Organisation for Economic Cooperation and Development (OECD)
Model Rules for income reporting by digital platforms
Limiting excessive interest deductions for large and multinational
Official Development Assistance - whether current international assistance
payments continue to contribute to fighting poverty, meeting the needs of
developing countries, and upholding international human rights standards
Draft Legislation Introduced Subsequent to
the Tabling of the Budget
9, 2022 News Release re draft legislation for consultation, which
includes measures from Budget 2022, as well as from the 2021 Economic Update and
Budget 2021. The proposals re Budget 2022 measures relate to:
for residents of Canada, at least 18 years of age, must not have lived
in a home that they owned, either:
at any time in the year the account is opened, or
during the preceding 4 calendar years.
ownership includes beneficial ownership, but excludes a right
to acquire less than 10% of a qualifying home.
contributions of up to $8,000 are deductible annually: unlike
RRSPs, only contributions made within the calendar year (not within the
first 60 days of the following calendar year) can be claimed as a
deduction for that calendar/tax year.
contributions made can be carried forward indefinitely and deducted
in a later tax year instead of being deducted in the year the
contribution is made.
unused contribution room can be
lifetime contribution limit of $40,000
withdrawals to purchase home are non-taxable
before the withdrawal, an agreement must be in place to
purchase or construct the qualifying home before October 1 of the
year following the date of the withdrawal
the individual cannot have acquired the qualifying home more
than 30 days before the withdrawal is made.
other withdrawals are taxable: to the holder of the FHSA, with no
attribution to a spouse or common-law partner who may have gifted the
funds for the FHSA contributions.
funds not used for a qualifying first home purchase within 15 years of
first opening an FHSA (by Dec 31 of the year in which the earlier of
these events occurs: the15th anniversary of the individual first opening
the FHSA, or the individual turning 71 years old) would have to be withdrawn (taxable) or
transferred tax-free to an RRSP or RRIF: these transfers would not be
reduced, or be limited by, an individual's RRSP contribution limit.
also cannot open an FHSA after Dec 31st of the year in which
the earliest of the above events occurs.
can transfer funds tax-free from RRSP to FHSA subject to the annual
and lifetime FHSA contribution limits: unless the RRSP is a spousal RRSP
to which spousal contributions have been made in the current year or 2
cannot make both an FHSA withdrawal and a Home Buyers' Plan withdrawal
in respect of the same qualifying home purchase
individuals should be able to open an FHSA and start contributing
sometime in 2023
following rules in place for the Mineral Exploration Tax Credit (METC)
METC provides a tax credit of 15% of specified mineral exploration
expenses incurred in Canada and renounced to flow-through share
new CMETC would provide a 30% tax credit for specified minerals used
in the production of batteries and permanent magnets, or in the
production and processing of advanced materials, clean technology, or
eligible expenditures would not benefit from both the proposed CMETC
and the METC
would apply to expenditures renounced under eligible flow-through
share agreements entered into after April 7, 2022 and on or before March
included in Bill C-32 tabled November 3, 2022proposal to extend the range over which the business limit is reduced
based on the combined taxable capital employed in Canada of the CCPC and
its associated corporations.
New range for taxable capital would be $10 million to $50 million, to
allow more medium-sized CCPCs to benefit from the small business
Applies to taxation years that begin on or after April 7, 2022.
measures proposed to prevent taxpayers from "manipulating" the status
of their corporations to avoid qualifying as a CCPC to achieve a
tax-deferral advantage on investment income earned in their corporations
Substantive CCPCs earning and distributing investment income would be
subject to the same anti-deferral and integration mechanisms as CCPCs
with respect to such income.
would apply to taxation years that end on or after April 7, 2022
retailers may continue to sell until January 1, 2023 unstamped
products that are in inventory as of October 1, 2022
exclusions for vaping products already subject to the cannabis excise
duty framework and those produced by individuals for their personal use
duty-free importations of unstamped vaping products for personal use
for travellers returning to Canada, for an absence of 48 hours or more,
for up to 12 vaping products with a total volume being imported of up to
proposal to allow licensed cannabis producers to remit excise duties
on a quarterly rather than month basis, starting from the quarter that
began on April 1, 2022, for licensees required to remit less than a
total of $1M in excise duties during the four fiscal quarters
immediately preceding that fiscal quarter
proposals for other technical amendments; changes to penalties for
lost excise stamps; changes to licences
proposal to eliminate excise duty for beer containing no more than
0.5% alcohol by volume (ABV), bringing the tax treatment of such beer
into line with the treatment of wine and spirits with the same alcohol
proposal to amend the Nisga'a Final Agreement Act to provide force-of-law
to all provisions of the Nisga'a Nation Taxation Agreement
includes a forthcoming amendment with respect to an income tax exemption
for amounts received by citizens of the Nisga'a Nation from a registered
pension plan to the extent that the employment on which the pension amounts
are based was itself exempt from tax