Ottawa is putting advance income tax rulings for very large projects on the express lane. These are formal determinations from the Canada Revenue Agency that spell out how the tax code would apply to a planned deal. The CRA typically issues a written, legally binding ruling that explains the relevant provisions and identifies the specific taxes an entity would owe in Canada.
The priority track kicks in for requests tied to capital commitments of C$1 billion or more, with the goal of helping global firms looking to deploy substantial money in Canada. Faster certainty can make it easier to say yes to big projects by removing a delay that can get in the way of investment decisions. As the CRA put it, the change aims to "provide additional support to some of the world's largest investors."
Champagne will roll out the update Monday in Toronto, right before the first Canada Investment Summit. His pitch is straightforward: "When investors are considering major projects, certainty matters." Back in April, he said the CRA would also prioritize rulings for major "nation-building projects," such as large housing and infrastructure efforts and work focused on boosting productivity and strengthening critical economic sectors.
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If a request does not get priority treatment, the CRA's usual target is to issue a ruling within 90 days of receiving it. The agency did not say how quickly an expedited ruling would be delivered.
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