C-298An Act to amend the Income Tax Act (economic substance)
Private member's bill, introduced in the House of Commons on September 23, 2022
- Status
- At second reading in the House of Commons since September 23, 2022
What it does
Amends the Income Tax Act to treat some tax avoidance transactions as misuse when the tax benefit is bigger than the transaction’s real financial benefit.
What it does
- Adds a new rule under section 245 of the Income Tax Act for “economic substance”.
- Deems an avoidance transaction to be a misuse of tax benefit rules if the tax benefit, directly or indirectly, is greater than the transaction’s actual or expected financial benefit, unless proven otherwise.
Who it affects
- Taxpayers using avoidance transactions
- Tax advisers
- Businesses
- Individuals claiming tax benefits
Topics
Background
The bill changes section 245 of the Income Tax Act, which deals with misuse of tax benefit provisions.
Where it is
House of Commons
First reading
Completed.
Second reading
Current stage. Now here
Committee
Not reached.
Report stage
Not reached.
Third reading
Not reached.
Senate
First reading
Not reached.
Second reading
Not reached.
Committee
Not reached.
Third reading
Not reached.
Royal assent
Royal assent
Not reached.
Introduced by an MP who is not a minister. These bills compete in a lottery for debate time, and most do not become law. How a bill becomes law
How the House voted
No recorded votes yet
Read the source
LEGISinfo status: Outside the Order of Precedence. Bill data from LEGISinfo, votes from openparliament.ca and the House of Commons. Last updated October 13, 2026.