Canada MOF Announces Proposal for Nontaxable Treatment of Canada Carbon Rebates for Small Businesses

The Canadian Department of Finance June 30 announced draft legislation for the nontaxable treatment of Canada Carbon Rebates for Small Businesses, for implementation in the fall. The announcement includes that: 1) the treatment would apply to payments received for the 2019-2020 to 2023-2024 fuel charge years, and to final rebate payments for the 2024-2025 fuel charge year; 2) the Revenue Agency would process amended corporation income tax returns for businesses that already included the rebate in taxable income; 3) eligible businesses that filed the 2023 return after July 15, 2024, and on or before Dec. 31, 2024, would also be ...