The Finance Department released a public consultation on September 8, 2017 regarding draft legislative and regulatory proposals on the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and excise duty as well as income tax.
GST/HST and Excise Duty Proposals:
The proposal makes changes to the GST/HST rebate application timing; amends provisions applicable to pension plans; extends the application rules for GST/HST for listed financial institutions, and revises the excise framework to ensure that beer made from concentrate is taxed in a manner that is consistent with other beer products. There are also amendments to revise and modernize the GST/HST drop shipment rules.
Income Tax Proposals:
With regard to income tax, the Department is re-releasing draft legislative proposals announced in Budget 2017, along with explanatory notes. These proposals would implement a range of these measures respecting:
- The Ecological Gifts Program;
- Clean energy generation equipment for geothermal energy;
- The exploration expense for oil and gas discovery wells;
- The reclassification of expenses renounced to flow-through share investors;
- The meaning of factual control;
- Extending the base erosion rules to foreign branches of life insurers;
- Anti-avoidance rules for registered plans;
- Investment fund mergers;
- The timing of recognition of gains and losses on derivatives;
- Billed-basis accounting; and
- Nurse practitioners.
Canadians are invited to provide comments on these proposals relating to the GST/HST and the excise duty on beer products and regarding income tax proposals by October 10, 2017.
