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

Tax updates in Canada in response to COVID-19

Our tax alert summarizes the latest tax measures by federal and certain provincial government authorities amid the coronavirus pandemic.

  • April 02, 2020

Federal carbon levy ruled unconstitutional by Alberta Court of Appeal

Alberta becomes first province rule that the Greenhouse Gas Pollution Pricing Act is outside the federal government's legislative scope.

  • March 25, 2020

Canada becomes third country to ratify new NAFTA agreement

With the CUSMA trade agreement changes coming into effect soon, importers should take this opportunity to review their import process.

  • March 16, 2020

Treatment of foreign exchange gains on refund of income tax

The Canada Revenue Agency stated that a functional currency filer’s FX gain on refund are on account of capital.

  • March 02, 2020

Departure tax for individuals emigrating from Canada

Without careful tax planning, taxpayers may be caught off guard with a tax obligation that they do not have the resources to pay.

  • February 12, 2020