Canada Reveals New tax Rules

February 13, 2014 Taxation in Canada

Canada TrustOTTAWA – The Canadian government is looking to make a series of sweeping tax changes to boost tax revenues and to reduce the abuse of current tax rules.

As part of the plan of the national budget, presented on February 11th by the Finance Minister Jim Flaherty, the government of Canada has proposed several tax changes ultimately aimed at boosting tax revenues and helping the country return to a budget surplus.

As a first step, the government intends to launch new consultations on the taxation of non-profit organization and large multinational corporations earning profits from activities in Canada.

Within the short term, the government also hopes to instate a 25 percent hike to the duties on tobacco products, while eliminating the special tax-free trusts available to new migrants, and capping the preferential tax treatment available to trust used for estate planning.

The budget also entailed new tax credit of up to CAD 3000 for the volunteers involved in high risk work, and an of up to 15% in the tax credit for available adoptive parents , as well as a number of other changes in the rules and regulations regulation and administration of income tax and VAT in Canada.

Photo by: Alex Indigo