The bill introduces changes related to additional CCA, Quebec’s mandatory disclosure of nominee agreements, and more...
Quebec Bill 42 received first reading on November 7, 2019. It contains measures previously announced in Quebec's 2019 budget and in various information bulletins published in 2017, 2018 and 2019. The 196-page bill includes previously announced measures that provide for additional capital cost allowance (CCA) on eligible property at differing rates, depending on the property's acquisition date, among other measures.
The majority of the corporate income tax measures included in Bill 42 are considered substantively enacted for the purposes of IFRS and Accounting Standards for Private Enterprise as of November 7, 2019, the date Bill 42 received first reading (as Quebec has a majority government).
Notably, Bill 42 re-introduces additional CCA measures for certain eligible property acquired after March 28, 2017 or after March 27, 2018, which were originally included in Bill 175 and were already substantively enacted. Bill 175 died on the order paper ahead of Quebec's provincial general election on October 1, 2018, but these measures continue to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of May 9, 2018, the date Bill 175 received first reading.
Finally, Bill 42 does not harmonize with the federal accelerated investment incentive, nor with the measure to accelerate deductions for Canadian development expenses and Canadian oil and gas property expenses.
Key measures from Bill 42 are listed below.
The bill includes measures announced in the 2018 Quebec fall economic update to:
The bill also re-introduces previously announced measures to allow additional CCA of 35% or 60%, as follows:
Various tax credits
Bill 42 introduces and amends several tax credits, including:
Harmonization with federal bills
The Taxation Act and the Act respecting the Québec Sales Tax are amended to harmonize with recent changes made to the Income Tax Act and the Excise Tax Act by federal bills enacted mainly in 2017 and 2018. Bill 42 essentially enacts harmonization measures that were announced in Information Bulletins published in 2017 and 2018, including those that:
Other tax measures
Bill 42 also includes measures to:
For more information, contact your KPMG advisor.
Information is current to November 19, 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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