Important Dates Regarding Tax Law Changes to the Income & Excise Tax Acts

Marco Iampieri B.A., JD, M.B.A

March 7, April 5 and May 5 are the deadline dates for providing your views on significant tax provisions that will implement legislation stemming from April 19, 2021, Federal Budget, many of which would have an in-force date of January 1, 2022, or January 1, 2023.  Interestingly, these consultations are scheduled throughout the busy tax season, making it difficult for tax specialists to find the time to comment.  If you do find the time, here are the submission topics: 

Consultation Dates & Timeline of Implementation

March 7, 2022

• Immediate Expensing of Eligible Investments by CCPC’s of up to $1,500,000 -
• Clean Energy Equipment Tax Incentives - Applied to property acquired after April 18, 2021, that has not been used or acquired for use before April 19, 2021
• RRSP Contribution Room Increase for Postdoctoral Fellowship Income – In-force during the 2021 and subsequent tax years
• Ameliorating Tax Laws Concerning Defined Contribution Pension Plans - deemed to have come into force on January 1, 2021
• Increasing Availability for Mental Functions Qualifying for the DTC - applies to the 2021 and subsequent tax years
• Increased Movement Towards Online Filing and Certification - deemed in-force January 1, 2022, and provisions relating to electronic notice of assessment deemed in-force January 1, 2023
• Rate Reduction for Zero-Emission Technology Manufacturers - deemed to have come into force on January 1, 2022

April 5, 2022

• Amending Anti-Avoidance Rules to Avoiding Tax Debts - deemed to have come in force on April 19, 2021
• Tax Law Changes Regarding Crypto Asset Mining - in-force effective February 5, 2022
• ETF Unit Holder Redeemers - apply to tax years that begin after December 15, 2021
• New Rule Mandating transactions for disclosure by Taxpayers, advisers, promoters, and other certain persons - apply to years that begin after 2021
• Beneficial Ownership Data for Trusts - Deemed to come into force for tax years ending after December 30, 2022

May 5, 2022

• Interest Deductibility Provisions - Applies for tax years that begin on or after January 1, 2023 except that it may apply to a year that begins before January 1, 2023 and ends after that day under prescribed circumstances

Make your views known to Consultation-Legislation@fin.gc.ca.

Further reading: Explanatory Notes Relating to the Excise Tax Act, the Air Travellers Security Change Act, the Excise Act, 2001, the Greenhouse Gas Pollution Pricing Act and a Related Text: ita-lir-0222-n-eng.pdf (canada.ca) Explanatory Notes describing proposed amendments to the Income Tax Act and other legislation: ita-lir-0222-1-n-eng.pdf (canada.ca)