The federal government has proposed amendments to the Income Tax Act (“ITA”) under sections 68 and 69 of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023.
The Law Society of Ontario is concerned about this proposal and has sent in a submission to the Standing Senate Committee on National Finance. They are also hoping to secure an appearance before the Committee.
The Federation of Law Societies of Canada has also sent a submission.
FOLA would like to hear from Law Association members in respect of anticipated impacts of these proposed changes - specifically, regarding the practical effects these changes will have on sole practitioners and lawyers working in small firms. Please send your comments to Katie at firstname.lastname@example.org by June 5th.
There is a government of Canada backgrounder available here. It sets out the information that will be required to be filed in respect of the new notifiable transactions (copied below) and a CRA information form in respect of the current reportable (avoidance) transaction regime.
It is expected that every information return required to be filed in respect of a notifiable transaction must:
Justice sector expense is projected to be $313 million higher, primarily due to investments related to essential service delivery within courts, corrections and policing.
Base Justice sector expense is projected to decrease from $5.5 billion in 2022–23 to $5.3 billion in 2025–26. This is primarily due to obligations under the Crown Liability and Proceedings Act, 2019 in 2022–23, which are recorded annually and are not included in forecasted expenses beyond 2022–23. The government continues to make investments in the Justice sector for key initiatives such as the Guns, Gangs and Violence Reduction Strategy in order to protect public safety.
Total expense in 2023–24 is projected to be $204.7 billion. The largest expense is the Health Sector at $81.0 billion, accounting for 39.6 per cent of total expense. The remaining sectors of total expense include the Education Sector* at $34.7 billion or 17.0 per cent; the Postsecondary Education Sector at $12.1 billion or 5.9 per cent; the Children, Community and Social Services Sector at $19.4 billion or 9.5 per cent; the Justice Sector at $5.4 billion or 2.6 per cent; Other Programs at $38.1 billion or 18.6 per cent; and Interest on Debt, included as part of Total Expense, is $14.1 billion or 6.9 per cent.
That’s it for justice – nothing on legal aid or, specifically, courthouses/courthouse infrastructure.
Access full Budget, Highlights, & the Ministry's Press Release here: https://budget.ontario.ca/2023/index.html