On December 16, 2021, Prime Minister Trudeau provided a mandate letter to Chrystia Freeland, Deputy Prime Minister and Minister of Finance. The letter instructs Freeland to move forward on a host of proposals including several introduced in the 2021 budget and Liberals’ 2021 election campaign platform. There are several items of broad industry concern which are listed below:
Taxation
- Establishing a minimum 15 per cent tax rule for top-bracket earners.
- Introducing legislation to raise the corporate income tax payable by banks and insurance companies that earn more than $1 billion and requiring them to pay a temporary Canada Recovery Dividend.
- Introducing additional investment tax credits for renewable energy and battery storage solutions.
- Doubling the Mineral Exploration Tax Credit for minerals essential to the manufacture of vital clean technologies.
- Establishing an investment tax credit of up to 30 per cent for a broad range of clean technologies, both market-ready and emerging.
- Introducing legislation to double the First-Time Home Buyers’ Tax Credit.
- Reviewing and considering possible reforms to the tax treatment of Real Estate Investment Trusts.
- Introducing amendments to the Income Tax Act to allow privately owned, Canadian-controlled businesses to expense up to $1.5 million of growth-enhancing investments, such as software, patents and machinery.
Government Programs
- Creating a tax-free First Home Savings Account.
- Launching an annual program of green bond issuances with an initial issuance of $5 billion.
- Implementing a beneficial ownership registry.
Enforcement, Surveillance and Compliance
- Investing in the Canada Revenue Agency to combat aggressive tax planning and avoidance, and modernizing the general anti-avoidance rule regime.
- Establishing a single, independent ombudsperson, with the power to impose binding arbitration, to address consumer complaints involving banks.
- Advancing legislation to enhance the powers of the Financial Consumer Agency of Canada to review bank fees and charges.
- Considering options to strengthen laws and investigative powers related to major financial crimes and to bring forward a proposal to establish a Canada Financial Crimes Agency.
The IIAC will work with members on monitoring developments and co-ordinating certain responses.