ARTICLE · 05 APRIL 2023

The Stikeman Elliott Federal Budget Commentary 2023

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Stikeman Elliott's Tax Group has prepared the following commentary on the 2023 federal budget.

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Stikeman Elliott's Tax Group has prepared the following commentary on the 2023 federal budget.

Highlights

A Broadened GAAR

Broadening the application of the GAAR through various changes, including a new preamble, a revised avoidance transaction standard, and an "economic substance" test.

Tax on Repurchases of Equity

A 2% tax on the net value of repurchases of equity by certain publicly traded entities.

Intergenerational Business Transfers

Amendments to ensure that only genuine intergenerational share transfers are excluded from the application of section 84.1.

Employee Ownership Trusts

Introducing rules to facilitate the purchase of a business by employees through employee ownership trusts.

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