Finance Minister Jim Flaherty recently launched public consultations to explore changes to the taxation of corporate groups that may improve efficiency and support economic growth. The introduction of a new system for the taxation of corporate groups would constitute a fundamental change to the Canadian corporate tax system.
The intention of the consultation with the business community and the provinces is to explore a wide range of possible approaches, such as a more formalized system of loss transfers or some form of consolidated reporting. The government released a 33-page consultation paper titled The Taxation of Corporate Groups, which frames the topics for consultation. The government invites comments from stakeholders on any element of the paper by February 25, 2011 — instructions are available here. To address transparency, the Department of Finance will post submissions on its website, with the consent of the submitting party.
Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,700 people in 58 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.
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