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Canada Consults On Tax Provisions

Wednesday, September 1, 2010

The Canadian Department of Finance has commenced a consultation on draft legislative proposals to implement tax measures from Budget 2010 along with several previously announced tax initiatives.

The proposals, released on August 27, include draft legislation to:

  • Provide for the sharing of the Canada Child Tax Benefit and the Universal Child Care Benefit in cases of shared custody;
  • Allow Registered Retirement Savings Plan proceeds to be transferred to a Registered Disability Savings Plan on a tax-deferred basis;
  • Implement disbursement quota reform for registered charities;
  • Better target the tax incentives in place for employee stock options;
  • Expand the availability of accelerated capital cost allowance for clean energy generation;
  • Adjust the capital cost allowance rate for television set-top boxes to better reflect the useful life of these assets;
  • Clarify the definition of a principal-business corporation for the purposes of the rules relating to Canadian Renewable and Conservation Expenses;
  • Introduce amendments consequential to the introduction in 2011 of new International Financial Reporting Standards (IFRS) by the Accounting Standards Board;
  • Provide legislative authority for the Canada Revenue Agency to issue online notices where the taxpayer so requests;
  • Implement a new reporting regime for aggressive tax planning, taking into account comments received during post-budget consultations;
  • Counter schemes designed to shelter tax otherwise payable by artificially increasing foreign tax credits;
  • Replace the previous proposals relating to foreign investment entities with several limited enhancements to the current Income Tax Act, and better target and simplify previous proposals relating to non-resident trusts, taking into account comments received during post-budget consultations;
  • Ensure that income trust conversions into corporations are subject to the same loss utilization rules that currently apply to similar transactions involving only corporations; and finally to,
  • Limit tax arbitrage opportunities by extending the application of the Specified Leasing Property rules to property that is the subject of a lease to a government or other tax-exempt entity, or to a non-resident.

The draft legislative proposals also include other previously announced measures identified in Budget 2010, as modified to take into account consultations and deliberations since their release, as well as an income tax amendment relating to the enactment of the Fairness for the Self-Employed Act. Among other proposals, the introduction of a personal income tax credit in respect of Employment Insurance premiums paid by self-employed individuals is also proposed.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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