Summary of What You Missed While You Were Away: Summer 2021 Tax Developments

On October 1, 2021, the OBA Taxation Law Section hosted its annual program titled What You Missed While You Were Away: Summer 2021 Tax Developments. This year’s program, organized and chaired by Lisa Watzinger (KPMG Law LLP) and Hennadiy Kutsenko (Bennett Jones LLP), continued the Section’s long-standing tradition to start the fall season with summer updates. The three presenters were Joan Jung (Minden Gross LLP), Lesley L’Heureux (Department of Justice Canada), and Christopher Anderson (Davies Ward Phillips & Vineberg LLP).

Joan Jung updated the audience on legislative changes. First, CEWS and CERS have been extended twice over the summer, first to September 25, 2021 (“qualifying period 20”) and then to October 23, 2021 (“qualifying period 21”). A key difference is that the maximum rate for CEWS and CERS for qualifying period 20 is set at 40% but is reduced to 20% for qualifying period 21. Second, Jung reminded the audience that several finance consultations had ended by the end of the summer. They covered items such as digital services tax, “underused housing tax,” and income tax mandatory disclosure rules. Lastly, Jung delivered a detailed analysis of Bill C-208 (Royal Assent granted on June 29, 2021). This private-member bill is intended to provide tax reliefs to intergenerational transfers of family businesses. However, Jung’s analysis revealed that the new tax measures would likely generate more questions than solutions, e.g., some critical anomalies in the new Section 84.1(2.3).