Explanatory Notes Relating to Bill C-42, An Act to amend the Canada Business Corporations Act and to make consequential and related amendments to other Acts

Preface

These explanatory notes describe proposed amendments to the Income Tax Act in Bill C-42, as tabled in Parliament on March 22, 2023. These explanatory notes describe these proposed amendments, clause by clause, for the assistance of Members of Parliament, taxpayers and their professional advisors.

The Honourable Chrystia Freeland, P.C., M.P.
Deputy Prime Minister and Minister of Finance

These notes are intended for information purposes only and should not be construed as an official interpretation of the provisions they describe.

Income Tax Act

Clause 17

ITA
241(4)(u)

Section 241 prohibits the use or communication of taxpayer information except as authorized. Subsection 241(4) permits a government official to communicate taxpayer information for limited purposes.

New paragraph 241(4)(u) authorizes the communication of certain taxpayer information to an official of the Department of Industry, solely for the purpose of the verifying and validating data required to be filed by certain private corporations under section 21.21 of the Canada Business Corporations Act in relation to the corporate beneficial ownership registry. Specifically, the information that may be provided under paragraph (u) is information on shareholdings and corporate ownership structures of private corporations reported to the Canada Revenue Agency through schedules 9 and 50 of the T2 Corporation Income Tax Return.

This amendment comes into force on a day to be fixed by order of the Governor in Council.