On March 28, 2023, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, delivered the Liberal Government’s federal budget, “A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future” (“Budget 2023”). Among other things, Budget 2023 provides details on the proposed 2% tax on equity repurchases by Canadian public corporations (other than mutual fund corporations) and certain other entities whose shares or units are listed on a designated stock exchange, which would apply to transactions that occur on or after January 1, 2024. In addition, Budget 2023 proposes to deny the dividend received deduction in respect of dividends received by financial institutions after 2023 on shares that constitute mark-to-market property.

For a discussion of these tax measures and others in Budget 2023, please see McCarthy Tétrault’s Budget 2023 Commentary.