Canada's Department of Finance on February 4, released for public comment draft legislative proposals (and accompanying explanatory notes) to implement most of the remaining measures from the 2021 federal budget, postpone application of previously announced measures pertaining to new reporting requirements for trusts, introduce amendments relating to allocations to redeemers by mutual fund trusts (including extending the rules to mutual fund trusts that are exchange-traded funds), introduce rules respecting the application of GST/HST to crypto asset mining, and make certain other technical amendments. The 2021 federal budget proposals concerning the hybrid mismatch rules; the tax incentive for carbon capture, utilization and storage; the GST/HST input tax credit information requirements; the rebate of excise tax for goods purchased by provinces; the excise duty on vaping products; the tax on select luxury goods; and the measures to improve duty and tax collection on imported goods are not included in this package of draft legislative proposals.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Full text of Tax Alert