Bill C-70
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SUMMARY |
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These amendments implement certain measures announced in the
Budget of February 22, 1994 as well as other measures which were
announced by the government in 1994. These measures are described
below.
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(1) Debt Forgiveness: requires a debtor whose indebtedness is
forgiven to apply the unpaid amount to reduce any tax losses and the tax
cost of properties owed by the debtor; any unapplied balance is brought
into income by individual debtors whose income exceeds $40,000 and
by corporate debtors that are not bankrupt or insolvent.
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(2) Foreign Affiliates: expands the categories of income of foreign
affiliates which must be reported as income of their Canadian
shareholders.
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(3) Financial Institutions: requires a financial institution to report
profits and losses on securities held in the ordinary course of business
on income, rather than capital, account and to report profits and losses
on certain securities on a mark-to-market basis.
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(4) Funeral Arrangements: provides on exemption for interest
earned on amounts prepaid under eligible arrangements entered into by
individuals that cover their funeral and cemetery expenses.
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(5) Real Estate Investment Trusts: permits publicly-traded real
estate investment trusts to qualify as mutual fund trusts for tax purposes.
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(6) Mutual Fund Reorganizations: allows a mutual fund
corporation to convert into a mutual fund trust on a tax-free basis and
allows tax-free mergers of mutual fund trusts.
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(7) Objection and Appeals: requires large corporations to specify
in notices of objection to income tax assessments the issues under
dispute and the amount of relief sought.
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(8) Securities Lending: permits investment dealers to deduct 2/3 of
dividend compensation payments made in a securities lending
arrangement.
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