Apr 26, 2021
The Canadian government’s first budget in two years delivered numerous tax changes that will impact Canadian businesses including a new digital services tax, new Canada Revenue Agency (CRA) auditing powers and new reporting regime.
As part of its budget coverage, Zena Olijnyk of Canadian Lawyer magazine spoke to Peter Macdonald, a partner in Osler’s Tax Advisory Services Group, who noted that many of the proposals aren’t accompanied by specific legislation.
Peter told Olijnyk that the government is allowing for a consultation process in the coming months before settling on rules.
“Clients may be well served to keep tabs on, as they may want to provide submissions to ensure their voices are heard and increase the probability that their concerns are addressed,” he says.
Businesses may choose to prepare a submission on these proposals independently, but Peter advises that law firms and accountants can also help in writing a response.
While full details may not be out yet, “it’s clear that the government has every intention to implement several revenue-raising measures eventually,” he says. “And they are focused primarily on corporations and multinational corporations.
Peter explained that the proposals give the CRA more audit powers and require more disclosure. However, he notes that most of the proposed changes aren’t surprising and follow through on a number of international tax items, including efforts being undertaken by the Organisation for Economic Co-operation and Development.
Read Zena Olijnyk’s full article, “Federal budget will mean significant tax changes for business: lawyer,” in Canadian Lawyer magazine.