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ARTICLE · 01 JUNE 2017

Subsection 55(2) – The Road Ahead

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Subsection 55(2) of the Act2 was introduced on December 11, 1979, and until now, this provision of the Act has, by and large, remained the same.

CanadaTax
Kenneth Keung
Kenneth Keung
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Subsection 55(2) of the Act2 was introduced on December 11, 1979, and until now, this provision of the Act has, by and large, remained the same. On April 21, 2015, the Department of Finance ("Finance") proposed a dramatic proposed overhaul to these rules as part of the 2015 federal Budget. The proposals went through certain minor revisions when Finance released draft legislation on July 31, 2015. Despite criticism and suggestions from the tax practitioner community, the draft legislation was largely unchanged when it was introduced to Parliament in 2016 as Bill C-15 which received first reading on April 2016.3 For ease of reference, the provisions contained in the draft legislation are referred to as the "new" section 55 rules in this paper.

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