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Government introduces budget bill no. 2

October 30, 2018 – Yesterday the Minister of Finance introduced Bill C-86 the Budget Implementation Act, 2018 No. 2 in the House of Commons. The legislation will implement remaining proposals from the 2018 Budget as well as some previously announced measures. While much of the legislation relates to corporate and non-resident anti-avoidance provisions announced in Budget 2018, it also contains legislation that would:

  • Allow the Canada Revenue Agency to calculate the Canada Workers Benefit for any tax filer who has not claimed it;
  • Provide a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan;
  • Introduce Climate Action Incentive payments for returning direct proceeds from carbon pollution pricing to individuals and families in certain provinces;
  • Remove the limits on political activities for charities, so that they may pursue their charitable purposes by engaging in non-partisan political activities and in the development of public policy; and
  • Provide an allocation rule for situations in which losses are claimed by a corporation to partly reduce its Part IV taxes otherwise payable and those Part IV taxes would otherwise be added to both the Eligible Refundable Dividend Tax On Hand (ERDTOH) and the Non-Eligible Dividend Tax on Hand (NERDTOH) accounts.

It is anticipated that this legislation will be enacted before the end of the year.

The Canadian Federal Budget 2018

Please click here to view this Special Report, which provides highlights of issues and tax proposals of greatest interest to our members and their clients. 

We extend our thanks to Kevin Wark, and to Angela Ross, CALU's Tax Advisors, for their work in preparing this summary.