PolitiKit

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by

• denying income tax deductions for expenses incurred with respect to non-compliant short-term rentals;
• exempting from taxation the international shipping income of certain Canadian resident companies;
• exempting from taxation any income of the trusts established under the First Nations Child and Family Services, Jordan’s Principle, and Trout Class Settlement Agreement;
• doubling the volunteer firefighters and search and rescue volunteers tax credits;
• extending the eligibility for the Canada child benefit in respect of a child for six months after the child’s death;
• increasing the cap on labour expenditures per eligible newsroom employee from $55,000 to $85,000 and increasing, for four years, the Canadian journalism labour tax credit rate from 25% to 35%;
• extending eligibility for the mineral exploration tax credit by one year;
• providing a refundable tax credit to small and medium-sized businesses in designated provinces by returning a portion of fuel charge proceeds from the province;
• providing a refundable investment tax credit to qualifying businesses for investments in certain clean hydrogen projects;
• providing a refundable investment tax credit to qualifying businesses for certain investments in clean technology manufacturing property;
• amending the definition “government assistance” to exclude bona fide concessional loans with reasonable repayment terms from public authorities;
• implementing a number of amendments to the alternative minimum tax;
• increasing the home buyers’ plan withdrawal limit from $35,000 to $60,000 and deferring the repayment period by three additional years;
• excluding the failure to report under the mandatory disclosure rules from the application of the section 238 penalty;
• introducing a $10-million capital gains exemption on the sale of a business to an employee ownership trust; and
• implementing a number of technical amendments to correct inconsistencies and to better align the law with its intended policy objectives.

Part 2 enacts the Global Minimum Tax Act, a regime based on the rules of the Organisation for Economic Co-operation and Development (OECD). The global minimum tax regime will ensure that large multinational corporations are subject to a minimum effective tax rate of 15% on their profits wherever they do business. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.

Part 3 amends the Excise Tax Act, the Excise Act, the Excise Act, 2001, the Underused Housing Tax Act, the Greenhouse Gas Pollution Pricing Act and other related texts in order to implement certain measures.

Division 1 of Part 3 amends the Excise Tax Act by repealing the temporary relief for supplies of certain face masks or respirators and certain face shields from the Goods and Services Tax/Harmonized Sales Tax.