ARTICLE · 11 APRIL 2022

The Stikeman Elliott Federal Budget Commentary 2022

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New rules with respect to hedging and short selling by Canadian financial institutions

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Stikeman Elliott's Tax Group has prepared a commentary on the 2022 federal budget.

Welcome to the Grand Illusion

Highlights:

Changes to address investment income earned and distributed by a private corporation that is "in substance", but is not technically, a Canadian-controlled private corporation
Potential new minimum tax for high earners
Amendments to the general anti-avoidance rule to address unused tax attributes
New taxes applicable to banks and life insurers
New rules with respect to hedging and short selling by Canadian financial institutions
Expansion of the scope of existing interest coupon stripping rules
Elimination of oil, gas, and coal flow-through shares and introduction of a new critical mineral exploration tax credit for flow-through share investors

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