The very brief federal election campaign that few Canadians wanted is now over. We know which party will form the next government and which ones will provide the support that the victorious Liberals need to govern. It was no surprise that neither the Liberals nor the Conservatives garnered enough seats to win a majority. Now […]
TAX PLANNING AND ADVANCED LIFE-DEFERRED ANNUITIES (ALDAs) If you own a registered retirement savings plan (RRSP), you must wind it up by the end of the year in which you turn 71. At that point, you have the following options. First, you can take out all the funds in one lump sum. However, since the […]
NON-ARM’S LENGTH PROPERTY TRANSFERS Overview There are special rules under the Income Tax Act (the “Act”) that apply to property transfers to a non-arm’s length person. The rules, discussed below, can override the actual proceeds or sales price received on the property transfers. For most purposes, “related” persons, as defined in the Act, are non-arm’s […]
BUYING PROPERTY FROM A NON-RESIDENT If you are buying real estate — such as a house or condominium, or a commercial property — from a non-resident of Canada, you need to know about your obligation to withhold tax unless the vendor provides you with a “section 116 certificate” from the Canada Revenue Agency. A non-residents […]
ESTATES AND THE “PIPELINE” STRATEGY When a person dies, they are deemed to dispose of most of their capital properties at fair market value. This deemed disposition may trigger capital gains or losses, depending on the tax cost of the properties relative to their current fair market value. The person who acquires the property as […]
TEN COMMON TAX MISTAKES What are the most common areas where Canada Revenue Agency auditors find errors that they can assess? Here are some of the most common tax problems or mistakes that people make, and for which tax assessments or reassessments may be issued. Watch out for them! Meals and entertainment: If you are […]
INCOME SPLITTING AND ATTRIBUTION RULES The Canadian income tax system employs a graduated tax rate system, which means that the higher your taxable income, the higher tax rate or tax bracket that applies to the income. As such, if you are in a high tax bracket and a family member is in a low tax […]
If doing business in Quebec was already tricky for companies residing outside of La Belle Province, it’s now become even more complex thanks to important amendments to provincial tax legislation. Many organizations would be forgiven for missing changes to the Act Respecting the Quebec Sales Tax, which took effect on January 1, 2019. The amendments […]
In recent weeks we saw the publication of a landmark investigation into U.S. President Donald Trump’s business dealings surrounding the sweeping real estate empire built by family patriarch Fred Trump, all the way up to the present-day management of the business under Trump scions Donald Jr. and Eric. Indeed, the venerable New York Times declared […]
Shortly after the release of the report by the Standing Senate Committee on National Finance, which is highly critical of the Department of Finance’s proposals on the taxation of private corporations, Finance Minister Bill Morneau released what he referred to as clarified rules around income sprinkling. Unfortunately, the release came with the same rhetoric used […]
Copyright KRP LLP 2020
KRP LLP is a proud member of Russell Bedford International – a global network of independent professional services firms