What is New for 2010? (continued)
Non-resident trusts – “outstanding proposals” simplified and better targeted, and will be subject to further public consultation.
Offshore investment funds – rules modified and foreign investment entity proposals essentially eliminated.
Taxable Canadian property – commencing March 5, 2010, excludes shares of corporations, and certain other interests, that do not derive their value (over a 60-month look-back period) principally from real or immovable property situated in Canada, Canadian resource property or timber resource property.
Corporate income tax rates –
General and M&P rate – declining in British Columbia (2011), New Brunswick (2010 to 2012) and Ontario (2010 to 2013; for M&P, 2010 only).
Small business rate – declining in Newfoundland and Labrador (2011), Nova Scotia (2011), Ontario (2010) and Prince Edward Island (2010); eliminated in British Columbia (April 1, 2012) and Manitoba (December 1, 2010).
Ontario small business clawback – eliminated on July 1, 2010.
Small business threshold – $500,000 threshold applies in all jurisdictions except Manitoba, Nova Scotia and, until January 1, 2011, the Yukon.
Nova Scotia – M&P property costing over $50,000 that is acquired after 2009 may qualify for a 10% investment credit.
Quebec – credit rates revised for investments made in certain regions after December 10, 2009.
Manitoba – R&D credit:
fully refundable after 2009 for work with qualifying research institutes; and
partially refundable (25% in 2011 and 50% after 2011) for in-house R&D expenditures.
Quebec – R&D Wage Tax Credit enhanced with respect to clinical trial work and arm's length subcontracting.
General capital tax – eliminated in all jurisdictions by July 1, 2012; eliminated in Ontario on July 1, 2010, in Manitoba and Quebec on January 1, 2011, and in Nova Scotia on July 1, 2012.
Ontario Corporate Minimum Tax (CMT) – rate decreased on July 1, 2010, and thresholds increasing for taxation years ending after June 30, 2010.
Quebec aggressive tax planning – disclosure required for certain aggressive tax planning transactions, generally carried out after October 14, 2009.
Quebec Sales Tax (QST) rate – increasing from 7.5% to 8.5% on January 1, 2011, and to 9.5% on January 1, 2012.
Harmonized Sales Tax (HST) – on July 1, 2010:
HST replaced the 5% federal Goods and Services Tax (GST) and provincial sales tax in British Columbia and Ontario; and
HST rate in Nova Scotia increased from 13% to 15%.
Financial Statement Reporting
for financial statements, for fiscal years beginning after December 31, 2010:
"publicly accountable enterprises" must adopt International Financial Reporting Standards (IFRS); and
private enterprises must adopt either IFRS or Accounting Standards for Private Enterprises (ASPE).