The Department of Finance Canada has issued a draft legislation naming “Notice of Ways and Means Motion” on October 18, 2013 to complete remaining tax measures from the 2013 federal budget and some previously declared tax measures. These measures were released as draft legislation on September 13, 2013. It does not contain the draft proposals for which a consultation period is still open. These include the proposed life insurance elimination test, treaty shopping prevention, and testamentary trusts’ graduated tax rates. The Notice incorporates the following 2013 federal budget measures:
- Lifetime capital gains exemption is increasing and indexing;
- Expanding accelerated capital cost allowance to further investments encouragements in clean energy generation;
- Synthetic disposition transactions are taxed as actual dispositions is providing;
- Given that income from character conversion transactions is taxed properly;
- Providing that the tax attributes of trusts cannot be inaccurately transferred among arm’s length persons;
- Changing the rules that apply to non-resident trusts;
- Deducting unintended tax benefits from two types of leveraged life insurance arrangements;
- Restricting corporate loss trading among arm’s length persons.
