The Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget on 19 April 2021. The budget includes: 1) immediate expensing of up to $1.5 million per taxation year of capital property acquisitions to Canadian-controlled private corporations (CCPCs); 2) enhances Canada’s mandatory reportable transaction disclosure rules, subject to public consultation; 3) further details of a proposed digital services tax, to be effective January 1, 2022; 4) reduces corporate tax rates on eligible zero-emission technology manufacturing and processing income; 5) limits the deductibility of interest by corporations, trusts and partnerships to a percentage of tax-basis EBITDA.
This Tax Insights discusses these and other tax initiatives proposed in the budget.
