The Tax Management Transfer Pricing Report ™ provides news and analysis on U.S. and international governments’ tax policies regarding intercompany transfer pricing.
June 29 — Canada's finance minister released proposed legislative changes to implement commitments to the OECD's anti-tax base erosion and profit shifting initiative, and other changes announced in the fiscal 2016-17 budget.
The draft amendments to the Income Tax Act would strengthen Canada's transfer pricing rules by adopting country-by-country reporting, effective for the 2015 taxation year, the Department of Finance said in a July 29 statement.
Measures to adopt BEPS commitments are part of a broad range of legislative and regulatory changes proposed to implement commitments in the Canadian government's budget for fiscal 2016-2017, introduced in the Canadian Parliament March 22 (24 Transfer Pricing Report 1478, 3/31/16).
The amendments would also incorporate penalties for failing to meet the OECD's common reporting standard, under which Canada is to make its first information exchanges in 2018 on financial accounts held in Canada by foreign residents.
The department noted that the proposals have been modified in some cases to take into account consultations since then, but didn't identify specific changes that have been made.
Other international issues addressed in the draft amendments include:
Domestic tax integrity issues covered by the draft amendments would:
The amendments would also expand tax support for clean energy production, including through enhanced capital cost allowance treatment of investments in electric vehicle charging stations and storage equipment for electricity from renewable sources.
The draft amendments to the Income Tax Act and the Income Tax Regulations are open to public comment through Sept. 27.
To contact the reporter on this story: Peter Menyasz in Ottawa at firstname.lastname@example.org
To contact the editor on this story: Rita McWilliams at email@example.com
The draft proposals are at http://src.bna.com/hg5.
Copyright © 2016 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)