The Stikeman Elliott Federal Budget Commentary 2019

Stikeman Elliott's Tax Group has prepared a commentary on the 2019 federal budget. Download: English (277.9 Kb), French (344.7 Kb)

Highlights:

Proposed Change to Preferential Tax Treatment for Stock Options

New annual cap of $200,000 on options granted by large, mature companies that will be eligible for the 50% tax deduction.

Extension of Foreign Affiliate Dumping Rules

Foreign affiliate dumping rules extended to Canadian resident corporations controlled by non-resident individuals and trusts.

Taxation of Mutual Fund Trusts

Proposed rules may deny a deduction to a mutual fund trust of a portion of capital gains and income attributed to redeeming unitholders.

Withholding Tax on Cross-Border Securities Lending Arrangements

Proposed rules will ensure non-residents cannot avoid withholding tax on dividends from Canadian corporations by entering into securities lending arrangements in respect of shares of Canadian resident corporations.