Overview
On August 9, the Canadian federal government released a package of draft legislation that included amendments to the mandatory disclosure rules released earlier this year. Osler Tax lawyers Amanda Heale, Shaira Nanji and Matias Milet provide an in-depth discussion of the amended rules and how taxpayers can prepare in the coming months.
The mandatory disclosure rules, first introduced on February 4, 2022 and revised on August 9, are currently scheduled to come into effect in 2023. The draft legislation expands the existing reportable transactions rules and introduces new reporting rules for notifiable transactions and uncertain tax positions. The proposed reportable and notifiable transaction rules will apply to a wide range of transactions, and to a wide range of people who participate in such transactions, with tight timelines for reporting and significant penalties for failure to report. The uncertain tax position rules will also require careful consideration when preparing financial statements and determining how to comply with the proposed rules.