The Canadian Minister of Finance recently introduced the Economic Action Plan 2013 Act in an effort to stimulate the economy and job creation, reports Nair & Co. International Tax Team.

1. Canada Introduces Economic Action Plan 2013 Act #2
Update from Nair & Co. International Tax Team
(Bristol, UK) - The Canadian Minister of Finance recently introduced the Economic Action Plan 2013 Act #2 in an
effort to stimulate the economy and job creation, reports Nair & Co. International Tax Team. The new measures
are also intended to prevent tax evasion and minimize tax loopholes.
Efforts to increase job creation and economic growth include provisions to increase the scope for the Hiring Credit
for Small Business, securing Employment Insurance premium rates for three years and increasing the Lifetime
Capital Gains Exemption to CAD 800,000. In addition, the government has expanded the accelerated capital cost
allowance to encourage investments in clean energy generation.
The measures that have been introduced to close tax loopholes and combat tax evasion include new monetary
penalties and criminal offences to discourage the use, sale, development and possession of software used to forge
records for tax evasion purposes .These measure also include closing tax loopholes in relation to character
conversion transactions, leveraged life insurance arrangements and synthetic dispositions, just to list a few. The
Canada Revenue Agency, in certain situations, will be allowed to audit taxpayers for failing to report income
generated from foreign property. Further, the act includes the phasing out of the Labour-Sponsored Venture
Capital Corporations tax credit.
For more information about doing business overseas or to know more about our International Tax
Services please contact us. Subscribe to regular global tax compliance alerts from Nair & Co.
Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news
at Nair & Co. Industry Alerts.
About Nair & Co.
Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and
compliance services for the set up and management of your international operations. Our model of a single-pointof-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so
they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250
clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China,
India, Japan, Singapore, and the US. Learn more at www.nair-co.com
Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com
or call Yvonne Smith at +1.408.501.8867