OTTAWA TAKES STEPS TO SIMPLIFY UNDERUSED HOUSING TAX COMPLIANCE As discussed in our April 2023 Tax Newsletter, the Underused Housing Tax (UHT) regime was introduced last year to try to combat the underuse of residential property, particularly property owned by non-residents. The regime imposes an annual tax of 1 per cent of the relevant property’s […]
The Canada Revenue Agency has introduced significant changes to trust reporting rules. The new rules apply to trusts with taxation years ending after December 30th, 2023. Specifically, all trusts—except where specific conditions are met—must now file an annual T3 return, along with additional beneficial ownership information (completed in Schedule 15 of the annual T3 return). […]
END-OF-YEAR TAX CONSIDERATIONS With the end of the year fast approaching, the window for taking steps to claim certain deductions, and for planning to minimize your 2023 tax liability, is closing. There are several things that can be done before January 1 to help control your ultimate tax payment, or maximize your tax refund, in April 2024. […]
MOVING EXPENSES—AN OVERLOOKED TAX EXPENSE? Moving expenses can generate a vast array of deductible items that one can use to offset against new employment location income. People often will neglect a portion of moving expense claims, simply because they are unaware of the long list that constitutes possible moving expenses. This is a very useful […]
YOU CAN BE LIABLE FOR A FAMILY MEMBER’S TAX DEBTS! There Beware of getting money, gifts or transfers of property from a family member, including your spouse, if that person owes (or might possibly owe) any money to the Canada Revenue Agency (CRA), for either income tax or GST/HST. The CRA has the ability to […]
SHAREHOLDER REMUNERATION: AN OVERVIEW There are many ways a corporation can get corporate funds into a shareholder’s hands. The inevitable question is what is the most tax-efficient way of achieving this? The answer to this question will differ from corporation to corporation, depending on the source of the corporate funds, the relationship of the shareholder […]
THE FAMILY BUSINESS AND THE CAPITAL GAINS EXEMPTION People wishing to pass on a family business to the next generation have, up until recently, been met with a tax problem – the availability (or more accurately non-availability) of the lifetime capital gains exemption. The lifetime capital gains exemption currently allows for up to $971,190 per […]
AGGRESSIVE TAX PLANNING GETS MORE RISKY The government has been taking more and more measures in recent years to go after “aggressive tax planning” — that is, the use of tax shelters and other schemes to avoid tax in ways not intended by the designers of the tax system. New rules will make it […]
TAX SHELTERS AND RELATED ISSUES – SALIENT POINTS TO KEEP IN MIND Tax Shelters are the stuff of legend. Often times, these instruments are publicized in the media for providing tax evasion strategies to the extraordinarily rich. On the other hand, illegitimate tax shelters’ use of tax law inevitably earn the wrath of the Canada […]
RESIDENTIAL PROPERTY WARNING — HUGE PENALTIES!! Are you involved with a residential property that is not owned directly by a human being who is either a Canadian citizen or a permanent resident of Canada? For example: A cottage is held in a Trust, which the family patriarch set up before his death years ago, so […]
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