The period of relatively low Canada Revenue Agency interest rates on overdue taxes seems like a distant (and fond) memory. Those charges are now hitting an uncomfortably high level that creates potential new challenges for taxpayers. Beginning in January 2024, CRA prescribed interest rates on overdue or outstanding balances will climb to 10 per cent—from […]
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 […]
The Canada Revenue Agency prescribed rate will remain unchanged at 5 per cent for the fourth quarter of 2023 (for the period from October 1st through December 31st). After increasing steadily in the wake of the COVID-19 pandemic, the rate has remained static for several consecutive quarters. The prescribed rate is based on the three-month […]
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 […]
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 […]
SHAREHOLDER AGREEMENTS Whenever a private corporation has shareholders from more than one family (and sometimes even within the same family), shareholder agreements should be considered. A typical situation is where two or three individuals go into business together, and incorporate their business, with each one owning an equal or unequal number of shares of […]
Draft legislation recently tabled by the Department of Finance could significantly complicate transaction reporting requirements for a selection of individuals and businesses across the country. Under newly proposed mandatory disclosure rules that were first introduced in the 2021 federal budget, certain taxpayers may need to report a comprehensive new set of reportable or notifiable transactions […]
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