{"id":46050,"date":"2023-11-22T22:28:27","date_gmt":"2023-11-23T03:28:27","guid":{"rendered":"https:\/\/prefblog.com\/?p=46050"},"modified":"2023-11-22T22:28:27","modified_gmt":"2023-11-23T03:28:27","slug":"financial-institutions-holding-taxable-preferred-shares-get-tax-break","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=46050","title":{"rendered":"Financial Institutions Holding Taxable Preferred Shares Get Tax Break"},"content":{"rendered":"<p>In the 2023 Fall Economic Update, the Government of Canada <a href=\"https:\/\/www.budget.canada.ca\/fes-eea\/2023\/report-rapport\/tm-mf-en.html#a37\">announced<\/a>:<\/p>\n<blockquote><p><b>Dividend Received Deduction by Financial Institutions &#8211; Exception<\/b><\/p>\n<p>The Income Tax Act permits corporations to claim a deduction in respect of dividends received on shares of other corporations resident in Canada. Budget 2023 proposed to deny the dividend received deduction in respect of dividends received by financial institutions on shares that are mark-to-market property.<\/p>\n<p>The 2023 Fall Economic Statement proposes an exception to this measure for dividends received on &#8220;taxable preferred shares&#8221; (as defined in the Income Tax Act). This exception, along with the rest of the measure, would apply to dividends received on or after January 1, 2024.<\/p><\/blockquote>\n<p>So the <a href=\"https:\/\/prefblog.com\/?p=45319\">fears previously expressed<\/a> that property insurers would stop buying (and maybe even sell! They&#8217;re about 12% of the market!) can be laid to rest. Until next time.<\/p>\n<p>Thanks to Assiduous Reader <i>Jason<\/i> for <a href=\"https:\/\/prefblog.com\/?p=46041#comment-209307\">bringing this to my attention<\/a>! And thanks to <i>peet<\/i> for <a href=\"https:\/\/prefblog.com\/?p=45319#comment-208270\">foreshadowing this announcement<\/a>!<\/p>\n<p><b>Update, 2024-5-16<\/b>: See also: <a href=\"https:\/\/www.budget.canada.ca\/fes-eea\/2023\/report-rapport\/FES-EEA-2023-en.pdf\">https:\/\/www.budget.canada.ca\/fes-eea\/2023\/report-rapport\/FES-EEA-2023-en.pdf<\/a><\/p>\n<p><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-insurers-preferred-shares-tax-change\/\">https:\/\/www.theglobeandmail.com\/business\/article-insurers-preferred-shares-tax-change\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the 2023 Fall Economic Update, the Government of Canada announced: Dividend Received Deduction by Financial Institutions &#8211; Exception The Income Tax Act permits corporations to claim a deduction in respect of dividends received on &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-46050","post","type-post","status-publish","format-standard","hentry","category-miscellaneous-news"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46050"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46050\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}