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that will replace gendered language in the Income Tax Act with gender-neutral pronouns as well as the removal of outdated references to sections in the corresponding federal Income Tax Act that no longer exist.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.
These proposed amendments to the Yukon’s Income Tax Act ensure that the Yukon continues to deliver on its commitments under the Canada-Yukon Tax Collection Agreement and will bring the territory’s legislation in line with the federal Income Tax Act. This not only demonstrates the positive relationship between the territory and the federal government, but also ensures efficient and consistent tax collection for Yukoners, Yukon businesses and for Yukon First Nations governments.
Minister of Finance Sandy Silver
The Canada Revenue Agency collects income tax on behalf of the Government of Yukon. The agency relies on the Yukon’s Income Tax Act in order to interpret how to collect this revenue. As changes or deletions are made to the federal Act, changes must also be made to the territorial Act so that it continues to reference accurate information.
- Amendments in this Bill update a number of these references.
- Amendments also provide authority for the Canada Revenue Agency to share information about Yukon tax programs with Finance Canada for fiscal policy evaluation and development.
The Budget Measures Implementation Act 2020 was introduced in spring 2020 and adjusted the eligibility for the Business Investment Tax Credit to allow more Yukon businesses to qualify.
The Budget Measures Implementation Act 2020 encourages investment in Yukon companies by providing a credit to investors in Yukon businesses valued at 25 per cent of their investment up to $25,000 annually.
The Budget Measures Implementation Act 2020 included two temporary measures:
- The asset limit for an eligible corporation to provide credits to investors increased to $100 million, from $25 million, until 2023 and to $50 million after that date.
- The amount a company can receive from investors increased to $4 million per year limit, up from $800,000, until 2023. After that date, a rolling limit of $4 million in any four-year period would come into effect.
The Income Tax Amendments Act, 2022 defers these two temporary measures to 2027 to support local businesses whose plans to raise capital were disrupted by the pandemic, giving more time and flexibility to make use of these benefits.
Renée Francoeur
Cabinet Communications
867-334-9194
renee.francoeur@yukon.ca
Eric Clement
Communications, Finance
867-393-6482
eric.clement@yukon.ca