FINANCE CANADA RELEASES DRAFT PROPOSALS
The Department of Finance has released draft legislation to implement several tax proposals included in the 2021 Federal Budget. Included in the proposals is a measure to expand the reporting of beneficial ownership information for certain trusts. The proposed legislation would require impacted trusts to reveal the identity of all trustees, beneficiaries and settlors, as well as the name of any person who has the ability to exert influence over trustee decisions regarding the appointment of income or capital of the trust.
Several categories of trusts are excluded from this proposal including mutual fund trusts and trusts whose units are listed on designated stock exchange. These exclusions will minimize the potential impact of the proposed measure on dealers.
The proposal also includes a new methodology for the allocations of capital gains for ETF redemptions.
For more information, please contact Jack Rando.