Canada

Major overhaul of the US tax code

TAX ALERT  | 

The long-awaited legislation regarding the U.S. tax reform was passed by both the House and the Senate on December 19, 2017. As expected, the Senate voted strictly along party lines at 51-48 (Sen. McCain did not vote due to medical reasons) and the House passed the bill 227-203 with 12 Republicans joining the Democrats in opposition. No Democrat supported the bill in the House or the Senate.

Formerly known as The Tax Cuts and Jobs Act, due to a procedural technicality, the Senate parliamentarian ruled that the name of the bill was in violation of the Byrd rule and would thereafter be called “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” (Tax Reform Bill).

Also due to the Byrd rule, the House re-voted on the Tax Reform Bill on December 20, 2017 and as expected, the Tax Reform Bill was passed again. President Trump celebrated the Tax Reform Bill’s passage and will be signing it into law once the bill has been formally enrolled. Much of the provisions in the Tax Reform Bill will be effective as of January 1, 2018. 

The Tax Reform Bill represents the largest overhaul of the U.S. tax code since the Tax Reform Act of 1986 was signed into law by President Reagan. It profoundly affects the way that corporations and individuals are taxed in the United States. Please visit the RSM Tax Resource Center to see details regarding the provisions of the new U.S. tax law.

RSM US will be hosting a webcast regarding the Tax Reform Bill on February 2. For more information and registration, click here

Contact your RSM Canada representative to learn more about how US tax reform will affect you and your cross-border business.  

AUTHORS


Subscribe to our newsletters

Subscribe


HOW CAN WE HELP YOU?

Contact us by phone +1.855.420.8473 or submit your questions, comments or proposal requests


CONTACT

Maria Severino

National Tax Leader


Recent Tax Alerts

Cross-border debt financing - an overview of Canadian tax implications

Our authors highlight tax rules that businesses often overlook during cross-border debt financing via shareholder loans.

  • January 22, 2020

Annulment or rectification - what can taxpayers do to address an error

A recent case signals how opting to annul versus rectify an error may affect the outcome, cost and timeliness of the tax dispute process.

  • January 15, 2020

How OECD Pillar One could change international tax processes for MNCs

The OECD’s proposal to combat taxation challenges arising from the digital economy could have drastic implications for multinational firms.

  • December 18, 2019

Federal fuel charge: Impact on energy sector and Alberta businesses

The federal fuel charge and the TIER program aim to work in harmony and will become effective on various taxable fuels on January 1, 2020.

  • December 17, 2019

2019 year-end tax planner

An overview of certain key tax planning issues for business owners, individuals, employees, and corporations in preparation for year end.

  • December 12, 2019