Province won’t be mirroring federal rules that adjust small business limits for certain CCPC’s
New Brunswick's budget implementation bill received Royal Assent on June 14, 2019. Bill 22 enacts the province's decision not to align with federal tax measures to phase out the small business limit for Canadian-controlled private corporations (CCPCs) based on passive 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). The corporate income tax measure in Bill 22 is enacted for U.S. GAAP purposes on June 14, 2019, the date the bill received Royal Assent.
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.
Under the federal measures, the small business limit is phased out 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.
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Information is current to June 18, 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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