Federal Tax Change Could Raise Electricity, Gas Bills in Some Provinces

A proposed income tax change to crack down on cross-border tax avoidance could unintentionally hike power bills and natural gas rates for consumers, Electricity Canada is warning. If Canada tweaks the amount of interest from debt that multinational companies can deduct from their income taxes, the advocacy group says, that could mean some private utilities face tens of millions in new taxes. “If you’re limiting how much interest can be deducted, there is also an obligation to pass those costs on to customers,” said Michael Powell, the organization’s vice-president of government relations. The adjustment is part of the government’s bill to implement its fall economic statement, and comes as Finance Minister Chrystia Freeland tries to bring Canada into better line with international recommendations....