Regulatory Initiative: Amendments to the Income Tax Regulations regarding Agricultural Cooperatives - Forward Regulatory Plan 2017-2019

Title or working title of the regulatory initiative: Regulations Amending the Income Tax Regulations – New Reporting Requirements for Agricultural Cooperatives

Description of the objective: The Income Tax Act currently allows members of agricultural cooperatives to defer the inclusion in income of patronage dividends they received in the form of shares until the disposal of the shares. This temporary tax deferral regime was extended in the 2015 federal budget until the end of 2020.

The proposed amendments would require agricultural cooperatives to issue an information slip in respect of tax deferred cooperative shares at the time of disposition of the shares. The objective of this proposal is to ensure that both the person receiving the shares and the Canada Revenue Agency have the necessary information to determine the correct reporting of income in respect of the shares.

Enabling Act: Income Tax Act

Indication of business impacts: There may be business impacts. The Small Business Lens may apply.

Public consultation opportunities: Given the administrative nature of these regulatory amendments, no public consultation opportunities are planned at this time. Approval by the Treasury Board for an exemption from pre-publication in Part I of the Canada Gazette will be sought.

CRA contact:
Adrian Raghunandan
Director, Third Party Reporting Division
Telephone: 613-941-6826
Email: adrian.raghunandan@cra-arc.gc.ca

For more information

• Government-Wide Forward Regulatory Plans
• Cabinet Directive on Regulatory Management
• Red Tape Reduction Action Plan
• Canada–United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.

Date modified:

2017-03-28