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New Brunswick Budget Bill Substantively Enacted

New Brunswick Budget Bill Substantively Enacted

Province won’t adjust a CCPC’s small business limit based on its passive investment income

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New Brunswick Bill 22 received third reading on May 30, 2019. This bill implements the province's 2019 budget announcement that New Brunswick will not parallel federal tax measures to phase out the small business limit for Canadian-controlled private corporations (CCPCs) based on passive investment income.

The corporate income tax measure in Bill 22 is substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on May 30, 2019, the date the bill received third reading (as New Brunswick has a minority government).

Corporate income tax measure
Bill 22 amends the New Brunswick Income Tax Act to deem the federal passive investment income grind to the small business limit to be zero for purposes of calculating the New Brunswick small business limit calculation.

This amendment reflects the province's decision not to align with the 2018 federal tax measures to phase out the small business limit on a straight-line basis for CCPCs that, together with associated corporations, have between $50,000 and $150,000 of adjusted aggregate investment income for taxation years that begin after 2018.

For more information, contact your KPMG adviser.

Information is current to June 04, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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