On November 21, the 2023 Fall Economic Statement was released. It included the following proposals:
to deny income tax deductions for all expenses incurred to earn short-term rental income (e.g. Airbnb, VRBO), including interest expenses, where operators are not compliant with municipal or provincial restrictions;
that bona fide concessional loans with reasonable repayment terms would not be government assistance;
to exempt the first $10 million in capital gains realized on the sale of a business to an employee ownership trust from taxation;
to introduce new elements to the clean hydrogen, clean technology and clean electricity investment tax credits;
to increase the Canadian journalism labour tax credit;
to introduce a new 15-week shareable EI adoption benefit; and
to remove GST/HST from psychotherapists’ and counselling therapists’ services.
Consultations on the following matters were also announced:
on proposed changes to the Underused Housing Tax (UHT), including a significant expansion of the definition of “excluded owner,” a reduction of the penalties and a reduction of the types of properties subject to the rules; and
on proposed GST/HST joint venture election rules.
The government also noted its intention to proceed (subject to modifications due to feedback) with several previously announced tax and related measures, including the following:
strengthening the intergenerational business transfer framework;
the alternative minimum tax for high-income individuals;
updating the general anti-avoidance rule (GAAR);
excessive interest and financing expenses limitations (EIFEL); and
substantive Canadian-controlled private corporations.
*Updated November 23, 2023
