Proposed income tax amendments provide support for businesses

Today, Premier and Finance Minister Sandy Silver tabled Bill #12 in the Yukon Legislative Assembly. The Income Tax Amendments Act, (2022) includes a range of proposed administrative changes that will ensure that the Yukon’s Income Tax Act remains up to date with its federal equivalent and continues to meet the needs of the territory. The changes to the Yukon’s Income Tax Act do not involve any new or increased taxes for Yukoners.

This modernization Bill includes several amendments to update language in the Yukon’s taxation legislation and supports Yukon businesses. Proposed amendments include:

• Deferring scheduled changes to the Business Income Tax Credit as part of ongoing COVID-19 support.
• The requirement to fulfil obligations under the Canada-Yukon Tax Collection Agreement that ensure federal and territorial income tax legislation share consistent rules for collection, administration and enforcement. Amendments also provide authority for the Canada Revenue Agency (CRA) to share information about Yukon tax programs with Finance Canada for fiscal policy evaluation and development.
• Miscellaneous changes that will replace gendered language in the Income Tax Act with gender-neutral pronouns as well as the removal of outdated references to sections in the corresponding federal Income Tax Act that no longer exist.
• Changes to section 12 of the Income Tax Act, which provides details relating to the First Nations Income Tax Credit. These changes will provide more clarity for the Canada Revenue Agency.