Canadian Income Tax

On October 12, 2015, TEI submitted a letter to the Canadian Department of Finance suggesting further legislative changes surrounding Regulation 102 in the form of (1) allowing self-certification as to “qualifying non-resident employer” status and (2) eliminating the $10,000 threshold for T4 reporting requirements. The proposed legislation would require employers to obtain advance certification from the CRA before being considered a “qualifying non-resident employer” as well as reporting on form T4 of all “qualifying non-resident employees” who make more than $10,000.

On October 12, 2015, TEI submitted a letter to the Canadian Department of Finance stating that a proposed expansion of the Income Tax Act's subsection 55(2), which is an anti-avoidance provision, would unduly apply to routine transactions that have no anti-avoidance purpose. The proposed legislation would expand the “purpose test” to capture instances in which dividends are paid on a share, not to reduce a capital gain, but instead to (i) significantly decrease the fair-market value of any share, or (ii) significantly increase the total property costs to the dividend recipient.

On August 28, 2015, TEI submitted a letter to the Canadian Department of Finance urging exception for stock-based compensation programs from potential representation requirements at issue in proposed legislation regarding synthetic equity arrangements. The legislation would require participants in synthetic equity arrangements to affirmatively represent that they are Canadian taxpayers in order to claim a dividends-received deduction in certain transactions involving stock hedging.

On June 12, 2015, TEI submitted comments on the Canadian Government's proposals to provide targeted relief from the withholding and remittance requirements that otherwise apply to non-resident employers of non-resident employees who perform work in Canada. TEI expressed appreciation for the Government's interest in reducing red tape and excessive administrative and tax compliance burdens for businesses, but noted several areas where the proposals fall short.

On November 18-19, 2014, representatives from Tax Executives Institute, led by 2014-2015 President Mark C. Silbiger and 2014-2015 Vice President for Canadian Affairs Paul T. Magrath, met with officials from Canada Revenue Agency and the Canadian Department of Finance to discuss tax policy and administrative matters.

On September 26, 2014, TEI submitted a letter to the Canadian Department of Finance setting forth the Institute’s recommended revisions to August 29, 2014, draft legislation that will restrict back-to-back loans made through intermediaries.

On August 6, 2014, Tax Executives Institute submitted a written statement to the House of Commons Standing Committee on Finance in connection with the 2014 pre-budget consultations in Canada.

On June 11, 2014, Tax Executives Institute submitted comments on the Consultation on Tax Planning by Multinational Enterprises announced in Annex 2 of the 2014 Canadian Budget Message.

On April 10, 2014, TEI filed comments with Canada’s Minister of Finance Joe Oliver on the 2014 Budget Proposals. TEI’s comments were prepared by its Canadian Income Tax Committee, whose chair is Bonnie Dawe of Finning International. Contributing substantially to the development of TEI’s comments were Carolyn Mulder of Wal-Mart Canada, Corp. and Jason Vincze of General Electric Canada. Also contributing to the comments were Giovanna Baragetti of Hydro One Networks, Inc. and Lynn Moen of Walton Global Investments, Ltd. Senior Tax Counsel Jeffery P.

On February 11, 2014, TEI submitted a letter to the Publications Section of Canada Revenue Agency making recommendations for prioritizing the development and publication of folio guidance for Canadian taxpayers and tax advisers. The folios supplant technical interpretation bulletins previously published by CRA.