Canada: Finance to propose delayed effective date for intergenerational transfer rules

Canada intends to introduce legislation to delay the application date of intergenerational transfer rules

Proposed legislation to delay the application date of intergenerational transfer rules

The Department of Finance announce on 30 June 2021 that it intends to introduce legislation to delay the application date of the intergenerational transfer rules to 1 January 2022, although these rules were effective on 29 June 2021 (the date of Royal Assent).

It is not clear when Finance could introduce draft legislation to implement these changes, or when these changes could be included in a new bill because both the House and Senate have now adjourned for the summer recess.

It is also possible that Finance could announce other changes to the legislation, given that Finance consistently expressed concerns about these new rules throughout the legislative process. Finance previously noted that the legislation, as drafted, was too broad and lacked the safeguards needed so that it would only apply to “genuine” intergenerational transfers.

Read a July 2021 report prepared by the KPMG member firm in Canada

 

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