On August 27, 2010, the Department of Finance released a “consultation draft” of various legislative proposals, including draft amendments to the Income Tax Act to implement an information-reporting regime for certain tax avoidance transactions. Explanatory notes were released on September 10, 2010.
This regime was first announced in the March 4, 2010 federal budget and follows the lead of other jurisdictions, including the United States, the United Kingdom and the province of Quebec. On May 7, 2010, the Department of Finance released proposals concerning the information-reporting regime for certain tax avoidance transactions. The May release did not include draft legislation.
This Tax memo supersedes our Tax memo: Federal Proposals for Reporting Tax Avoidance Transactions which discusses the May release. Quebec’s reporting regime is discussed in the following Tax memo: