Just when high-net-worth taxpayers thought that the amount of
tax they must pay could not get any higher, the Canadian government
brought in new changes to the Alternative Minimum Tax (the
"AMT") regime.
Putting aside politics and the arguments for or against the
changes to the AMT regime, this blog sets out a brief background on
the purpose and mechanism behind the AMT and a few effects the new
changes will have on high-net-worth taxpayers going forward.
This blog is not meant to be a comprehensive review of the AMT
regime, or the changes to the AMT, nor does it focus on the effects
of the AMT rules on charitable giving. Instead, it focuses on
bringing attention to some of the uncertainty and confusion that
may result from the application of the changes to the AMT
rules.
