The Department of Finance released draft legislation on 3 November 2022 introducing new reporting obligations applicable to certain digital platform operators. These rules are intended to implement the OECD’s Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy originally released in July 2020. These new Canadian measures are proposed to come into force on 1 January 2024.
On 4 February 2022, the Canadian Department of Finance released a proposed set of rules “EIFEL Rules”) intended to address concerns that Canadian taxpayers that are part of a multinational group are deducting excessive interest and other financing costs. The EIFEL Rules restrict the deductibility of net interest and other financing expenses. Although technical amendments are expected, it is anticipated that the EIFEL Rules will begin to apply for tax years that begin in 2023. Multinational groups with Canadian members are encouraged to consider the impact of the EIFEL Rules, and potential mitigation and optimization strategies, now.