The latest news, updates, and information regarding taxes in BC, Canada, and abroad.
CANADA CHILD BENEFIT TO BE INDEXED STARTING JULY 2018
Details regarding the Canada Child Benefit are discussed.
EMPLOYEE EXPENSES CLAIMED BY SHAREHOLDERS — CRA BACKS DOWN FROM ADLER
The CRA has decided to back down over their very unpopular tax law interpretation.
ARE YOU A DIRECTOR OF A CORPORATION? BEWARE!
Are you the director of a corporation? Beware of the tax risks!
THE INCOME ATTRIBUTION RULES
Details of the Income Attribution Rules are discussed, including exceptions.
CCPC PASSIVE INVESTMENT INCOME PROPOSALS
Changes to the taxation of passive investment income are discussed.
CAREGIVER, SPOUSAL AND EQUIVALENT-TO-SPOUSE CREDITS
Caregiver and other dependent-related tax credits are discussed.
THE GST OR HST COMPONENT IN SETTLING A BUSINESS DISPUTE
Tax consequences of any legal settlement or damages awarded are discussed.
DO YOU HAVE A LARGE BANK ACCOUNT IN ANOTHER COUNTRY?
If you have a foreign bank account, act quickly - consider Voluntary Disclosure to the CRA.
SHOULD YOU FILE IF YOU CAN’T PAY?
The consequences of failing to file your taxes on time are discussed,
LAST CHANCE TO GET AHEAD OF PRESCRIBED RATE INCREASE
Upcoming interest rate changes are discussed.
PRESCRIBED INTEREST RATES
The Federal interest rates remain unchanged (the same as the previous quarter).
CHANGE OF CONTROL OF CORPORATION
Tax restrictions involved in acquisition of corporations are discussed.
LOW PRESCRIBED INTEREST RATES: POTENTIAL TAX PLANNING
Low interest rates and accompanying tax planning is discussed.
PRINCIPAL RESIDENCE EXEMPTION
Tax exemptions regarding your principal residence are discussed.
CCPC INVESTMENT INCOME – STILL SOME TAX SAVINGS OPPORTUNITIES
Taxation on passive investment income is discussed.
CHANGE TO MARKET SETTLEMENT RULE AFFECTS YEAR-END TAX SELLING
Time-sensitive capital losses and gains advantages are discussed.
CRA DROPS PLANS TO REGISTER TAX PREPARERS
New CRA regulations may be coming for tax professionals.
ELECTRONIC DISTRIBUTION OF T4 INFORMATION SLIPS
Employers can now provide T4 slips electronically.
EMPLOYEE LOANS (INCLUDING RECENT CHANGES TO HOME RELOCATION LOANS)
Tax implications for tax-free loans are discussed.
CAPITAL GAINS EXEMPTION AND PROPOSED CHANGES
Capital gains exemptions for Canadian resident individuals are discussed.
LAST YEAR TO USE CHARITABLE DONATION “STRETCH” CREDIT
Consider making charitable donations in 2017, your money will go further
THE JULY 18 PROPOSALS — NEW TAX RULES FOR SMALL BUSINESS
TAX CHANGES WILL HARM FAMILY ENTERPRISE
SECTION 84.1: THE DEEMED DIVIDEND TRAP
Capital gains regarding the sale of corporate shares are discussed.
SMALL BUSINESS CORPORATION GOING PUBLIC
Tax-free capital gains on qualified small business corporation shares are discussed.
SALE OF BUILDING USED FOR BUSINESS OR RENTAL — POSSIBLE DENIAL OF TERMINAL LOSS
Capital Cost Allowance (CCA) for building and land owners is discussed.
ALLOWABLE BUSINESS INVESTMENT LOSSES (ABILS)
Allowable business investment losses are discussed.
TRANSFERRING SHARES TO YOUR RRSP
You can transfer shares to your RRSP to claim a tax deduction, details are discussed.
IN VITRO FERTILIZATION AS A MEDICAL EXPENSE
In Vitro Fertilization is now covered by a federal tax credit, regardless of medical need.
PUBLIC TRANSIT PASS CREDIT ELIMINATED — TIMING
The federal budget has eliminated the 15% credit for buying public transit passes.
CRA ACCESS TO YOUR RECORDS
The CRA has the right to access your financial affairs from anywhere, except from your lawyer.
AROUND THE COURTS
A recent case involving tax-free rollovers is discussed where a surviving spouse was not entitled to elect out of rollover on death
TAXATION ON DEATH
We all know the saying about death and taxes. Although both are certainties in life, your death will often result in additional tax payable for reasons discussed below.
SECTION 85 TAX-FREE ROLLOVER TO CORPORATIONS
Tax consequences related to property transfer are discussed.
FEDERAL BUDGET HIGHLIGHTS
A number of income tax changes from the federal budget are discussed.
AROUND THE COURTS
Tax deductions related to company stock options are discussed in the recent Montminy case.
INTERPLAY BETWEEN CREDITS IN RESPECT OF INFIRM DEPENDENTS
Tax credits related to physical and mental disabilities of dependents are discussed.
WATCH OUT FOR SHORT TAXATION YEARS
Be careful with any corporation changes you make, they could inadvertently change your financial year-end date.
MAKE MONEY VOLUNTEERING FOR A CHARITY
Do you volunteer for a charity? It could make you money and lower your taxes.
RRSP, RRIF AND TFSA FEES WILL HAVE TO BE PAID FROM THE PLAN
Caution: Do you pay your TFSA, RRSP or RRIF annual fees from your personal account? The CRA has made changes that will affect you.
REQUEST A DETERMINATION IF YOU HAVE A LOSS
Have you claimed zero taxable income, due to a business or property loss? If so, read on, this is for you.
“RECTIFICATION” TO FIX TAX MISTAKES WILL NOW BE RARE
Tax rectification rules have tightened: you now need much more convincing evidence to be granted rectification.
2017 AUTOMOBILE RATES FOR TAX PURPOSES
Business Tax Deduction Rates For Work Vehicles Are Discussed.
TAXATION OF TRUSTS AND BENEFICIARIES
There are various tax rules that apply to trusts and their beneficiaries. Below is a summary of some of the main rules.
SHAREHOLDER BENEFITS AND LOANS
Various provisions in the Income Tax Act prevent you from taking money or property from a corporation on a tax-free basis. Two are discussed in detail.
AROUND THE COURTS
A recent court case regarding rectification and Fairmont Hotels is discussed
NON-ARM’S LENGTH TRANSFERS
Special tax rules that apply when transferring property between family
CONTRIBUTE TO YOUR SPOUSE’S RRSP FOR MORE INCOME SPLITTING
Income splitting using your RRSP is discussed
SPLIT PENSION INCOME WITH YOUR SPOUSE
Benefits, mechanics and examples of pension splitting with your spouse.
AROUND THE COURTS
If you disagree with an income tax or GST/HST assessment, you must file a Notice of Objection.
SIMPLIFIED INSTALMENTS IF YOU HAVE THE CASH
CRA income tax instalment strategies to simplify payments are discussed.