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ARTICLE · 15 FEBRUARY 2022

New Mandatory Tax Disclosure Rules Announced For 2022

As part of the 2021 Canadian federal budget, the government announced that it would be expanding the existing "mandatory disclosure rules" in the Income Tax Act (Canada) (the ITA) in accordance...

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I. Background

As part of the 2021 Canadian federal budget, the government announced that it would be expanding the existing "mandatory disclosure rules" in the Income Tax Act (Canada)  (the ITA) in accordance with the Organisation for Economic Co-operation and Development (OECD)'s Base Erosion Profit Shifting Action 12 Report.  The budget proposals (the Proposals) included:

  1. Expanding existing "reportable transactions" rules in section 237.3 of the ITA;
  2. Creating a new category of "notifiable transactions";
  3. Requiring "certain corporations" to report "uncertain tax treatments";
  4. Extending the normal reassessment period where there is non-compliance with reporting rules; and

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