Federal budget bill 2016, Bill C-15, has received first reading on 20th April 2016 that contains some of the proposals announced by the 2016 federal budget. It also includes several measures, such as changes affecting the inter-corporate dividend under section 55, the withholding tax requirements for non-resident employers under an amendment to section 153, and the dividend rental arrangement rules under section 112. The proposed legislation in Bill C-15 includes corporate tax measures that would:
- Modify the anti-avoidance rules in section 55 of Canada’s income tax law;
- preserve 10.5% rate for small business tax in 2016 and for following tax years;
- changing the dividend rental arrangement rules to reject the inter-corporate dividend;
- Squeeze the anti-avoidance rules for captive insurance companies by amending the foreign accrual property income.
