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 […]
The Canada Revenue Agency has announced that the prescribed rate for the third quarter of 2023 will hold steady for the first time in a year. The prescribed rate hovered at 1 per cent throughout most of the COVID-19 pandemic, then increased by a percentage point each quarter beginning in the third quarter of 2022. The […]
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 […]
For the fourth consecutive quarter, the Canada Revenue Agency prescribed rate has increased by a percentage point. The rate used to calculate taxable benefits for shareholders and employees from interest-free and low-interest loans is now 5 per cent—up from 4 per cent in the first quarter of the year—for the period ending June 30th, 2023. The […]
The confusion swirling around the implementation and scope of the federal government’s new Underused Housing Tax has resulted in a temporary reprieve from Ottawa, providing taxpayers with extra time to fully understand their compliance obligations under the new law. The Canada Revenue Agency announced this week that the while the deadline for affected owners to […]
TAX-EFFECTIVE PHILANTHROPIC DONATIONS Reaching for your cheque book or credit card to make philanthropic donations is the least tax cost-effective strategy. We’ve identified more than 20 ways to be even more charitable − all of them more tax and cost-effective – encouraging you to look around at your loved ones and consider how you can build […]
The 2023 federal budget was widely projected to be one of balance and reaction: specifically, it would walk a tightrope aimed at keeping inflation under control and preparing for a potential economic downturn ahead. It would respond to the Biden Administration’s sweeping Inflation Reduction Act by offering competitive green innovation and business incentives, all to keep […]
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