The Ministère des Finances has published an information bulletin announcing changes to Quebec’s tax system, mainly in response to the consequences of the current crisis and the introduction of assistance measures by the federal government. These changes concern, in particular, Canadian economic stimulus benefits, assistance affecting tax incentives, the flow-through share plan, health and welfare trusts, the accelerated investment incentive, tax credits for holders of a cab driver’s or owner’s license, and zero-emission automotive vehicles and equipment.
Canadian economic stimulus benefits
Quebec tax legislation will be amended to allow the deduction of repayments made by taxpayers in respect of over-received Canadian economic stimulus benefits.
Assistance affecting tax incentives
Changes will be made to tax legislation regarding the amounts of assistance excluded for the application of certain cultural tax credits and the definition of “non-governmental assistance” for the purposes of various tax incentives.
Flow-through share plan
Quebec’s tax legislation will be amended to incorporate the changes to federal tax legislation proposed last July, which would give companies issuing flow-through shares an additional twelve months to spend the capital raised by issuing such shares.
Health and welfare trusts
The Quebec tax system will be amended to harmonize the treatment of health and welfare trusts and employee life and health trusts with the federal tax system. The main purpose of these changes is to ensure the conversion of existing health and welfare trusts into employee life and health trusts.
Tax credits for holders of a cab driver’s or owner’s permit
The amendments are designed to take into account the new legal framework for the paid transportation of people by automobile, to phase out the tax credit for holders of a cab driver’s permit by 2022, and to allow a taxpayer who, as at October 9, 2020, held a cab owner’s permit to benefit from the tax credit for holders of a cab owner’s permit for the taxation year beginning after December 31, 2019.
Accelerated investment incentive and capital cost allowance for zero-emission motor vehicles and equipment
Québec tax legislation and regulations will also be amended to incorporate the proposed changes to federal tax legislation and regulations relating to the accelerated investment incentive, and to grant a temporary enhanced capital cost allowance rate for zero-emission motor vehicles and equipment for the year in which they are put into service. The zero-emission vehicles and equipment concerned are those that do not already benefit from the temporary 100% bonus capital cost allowance rate.
Details of these measures can be found in Information Bulletin 2020-12 published by the Ministère des Finances and available at
http://www.finances.gouv.qc.ca/documents/Bulletins/fr/BULFR_2020-12-f-b.pdf.
