Under this bill of 2024, the CRA would be authorized to issue a notice of non-compliance when a taxpayer does not comply with a request for information within the framework of an audit. The CRA would also be authorized to extend the normal re-evaluation period for the question linked to the notice of non-compliance of a duration equivalent to that during which the opinion remained pending.
Penalties would apply to a taxpayer with an unanswered non-compliance notice, as well as when the CRA obtains a compliance order against a taxpayer. In the latter case, the proposed penalty was 10 % of the taxes due, if the order concerned taxes due above $ 50,000 per year. The arc could also force taxpayers to testify under oath.
The updated changes published on August 15 change the penalty to “up to 10 %”, instead of 10 %, for a taxpayer who receives a compliance order. Another modification is that the penalty for non-compliance would not apply if the taxpayer did not comply with the request for information because he reasonably considered that this information was protected by professional secrecy. The same goes for the penalty in the event of non-compliance.
The technical changes made to the legislation on the declaration of trustees, which also appeared in the bill in August 2024, had exempted more simple trusts from the extended rules for the declaration of the trustee. The updated proposals published on August 15 are largely similar. In a message published on LinkedIn, Adam Friedlan, tax lawyer at Friedlan Law in Richmond Hill, Ontario, said that the rules relating to simple trust are “still far too complex” and that determining the existence of a simple trust remains difficult. “Many Canadian taxpayers will wonder if their trust is subject to these rules,” wrote Adam Friedlan.
Among the other bills published on August 15, we find the following proposals:
- Extension of capital gain in capital gains on commercial investments (drawn from the fall economic declaration);
- Technical modifications to the current exemption from capital gains for business sales to employee shareholding (from the 2024 budget);
- improvements to the scientific research and experimental development program and extension of the incentive to accelerated investment (drawn from the autumn economic declaration);
- The implementation in Canada of the Cryptoactifs Declaration of the Organization for Economic Cooperation and Development (from the 2024 budget); And
- The implementation of the remaining part of the substantial measure relating to private companies under Canadian control concerning passive revenues of affiliated foreign companies (drawn from the 2022 budget).
The Ministry of Finance has also published draft legislative proposals relating to the Minimum world tax law and at the ACCISE ACTION Regarding the provisions relating to the rules of the tax on products and services/harmonized sales tax.
Directives on other measures announced previously will follow “on a later date”, according to the press release from the Ministry of Finance.
Legislative proposals are subject to consultation until September 12.
