As part of the Canadian government’s efforts to combat money laundering, aggressive tax avoidance and tax evasion activities relating to trusts, enhanced income tax reporting requirements for certain trusts will be required for the 2021 and subsequent taxation years.  The new rules also contain harsh penalties for knowingly fail to comply with the new trust reporting requirements or non-compliance due to gross negligence…

On July 27, 2020, the Canada Revenue Agency (the “CRA”) announced a further extension to the tax payment and filing due dates for certain taxes from September 1, 2020 to September 30, 2020. The extension applies to current year individual, corporate, and trust tax returns, as well as instalment payments. Interest will not be charged on these amounts if payments are made by the extended deadline of September 30, 2020. Whether or not full payment is required in order to receive this relief is unclear.

The Canada Emergency Wage Subsidy (“CEWS”) legislation has been released and is now law. In general, the CEWS will reimburse eligible employers 75 per cent of the amount of remuneration paid to eligible employees (to a maximum benefit of $847 per week).

The legislation was prepared under less than ideal circumstances so it is not surprising that there are a number of questions and observations we hope the government will address. However, we can now provide more answers than in our April 7, 2020 Tax Tip.

The Federal government recently announced a number of measures to assist Canadians during the current COVID-19 crisis.  Two measures were introduced to assist businesses with retaining, rather than laying off, employees.

The 10% Temporary Wage Subsidy (“TWS”) is a three- measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (the “CRA”).  The subsidy is 10% of remuneration paid by eligible employers (from March 18, 2020 to June 19, 2020) of up to $1,375 per employee, and a maximum of $25,000 per employer.  Given its limited value, Canadians were disappointed with this support program.

It is well understood that qualified donations made by an individual generate donation tax credits in the year the donation is made or the subsequent five taxation years. What are less known are donation “carryback” rules that are available when a donation is made in the year of an individual’s death or some of the subsequent years.

Rectification, in simple terms, is a legal process where an entity petitions the court to change previously executed written documents.  In the tax world, rectification may be used by a taxpayer to change the terms of a legal document to alter the tax results of a transaction, but is generally regarded by practitioners as a bit of a “Hail Mary” as it is an expensive and time consuming exercise with uncertain results.  The fact that the threshold for granting a rectification order is quite high does not help the cause.  This threshold was further elevated by the judgement in Fairmont Hotels, 2016 SCC 56, which narrowed the scope of rectification.  However, it appears that at least one provincial court is showing a willingness to interpret the tests laid out in Fairmont in a taxpayer friendly manner. 

The principal residence exemption allows Canadians to reduce or eliminate Canadian income tax on gains resulting from the disposition of a home or vacation property a Canadian “ordinarily inhabits”.  Eligibility for the exemption is being scrutinized more than in the past, by the CRA.

HWTs must conform to the Private Health Service Plan rules in the Income Tax Act as well as CRA administrative rules. In theory, a HWT allows a company to deduct payments to fund the HWT and the shareholder/employee is not taxable on eligible medical expenses reimbursed to him or her by the HWT.

A non-resident of Canada is subject to Canadian taxation on gains arising from the disposition of taxable Canadian property (“TCP”).  TCP includes many items but the most common one we see in practice is Canadian real estate.  Many non-residents selling Canadian real property often discover the purchaser is withholding 25% of the gross proceeds pending receipt of a “compliance certificate” from the non-resident.  In some cases, the withholding is 50%.  Our discussion today focuses on a non-resident’s reporting and withholding tax requirements under section 116 of the Income Tax Act (the “Act”) upon the sale of TCP and more importantly, how to reduce the withholding tax amounts. 

It is not uncommon for the sale price of a business to be partially based on future events.  In these cases, an earnout is often used as a mechanism to determine a portion of the sale price based on achieving certain results for a period of time after closing of the sale.  For example, the parties may agree to an initial sale price of $5,000,000, with an additional $100,000 per year in any of the subsequent 5 years, if revenues increase by at least 5% in the year.  To keep things “simple” we will assume shares, not assets, are being sold.

Occasionally, a taxpayer moves from his/her principal home into a new home and rents the old home out, or converts part of the home for a different purpose. Alternatively, he/she may move into one of his/her rental properties and turns it into a principal home. While this may not be an issue if the change is short term and temporary, a permanent change could give rise to a deemed disposition of the property for tax purposes. If not carefully managed, this deemed disposition can create undesirable results for these taxpayers.

In accordance with regulation 200(1) of the Income Tax Act, every person paying commissions, fees or other amounts for services shall report these payments on a prescribed information return (i.e., the T4A slip). Over the years, the Canada Revenue Agency (the “CRA”) has not provided clear guidance on how the fees are to be reported on the T4A slip.

The use of creative international structures by multinational corporations to transfer a significant portion of their global profits to low tax jurisdictions led the Organisation of Economic Co-operation and Development (“OECD”) to undertake the Base Erosion and Profit Shifting (“BEPS”) study. The study concluded with 15 proposed initiatives, one of which is to address potentially abusive use of tax treaties between countries to shift profits.

The Income tax act contains a number of anti-avoidance provisions. Subsection 55(2) apples to convert some intercorporate actual or deemed dividends into capital gains or proceeds of disposition, respectively..

This provision was created when capital gains tax rates were higher than dividends. The intent of the section is to allow companies to move their tax paid retained earnings (“Safe Income”) out of, say, an operating company to a holding company, tax free since intercorporate dividends of this nature are often tax free. There is no further tax paid until the amounts are paid out as dividends to a shareholder who is a “natural person” where the amounts are taxed as eligible or “ineligible” dividends.

A Canadian corporation’s first fiscal year can end up to 53 weeks after the date of incorporation. Once the fiscal period has been chosen, it cannot be changed, unless by operation of law, without the permission of the Canada Revenue Agency (“CRA”).

Form T1134, Information Return Relating to Controlled and Non-Controlled Foreign Affiliates is a foreign reporting form which must be filed by all Canadian resident taxpayers (corporations, individuals and trusts), and partnerships for any year in which the taxpayer has an interest in a controlled or non-controlled foreign affiliate, at any time in the year.

“Changes to strategies that have been the basis for shareholder… Read more »

“relief from penalties will be significantly curtailed” The Voluntary Disclosures… Read more »

the CRA views these entities to be corporations for Canadian… Read more »

taxpayers may need to act now  Prior to 2011, upstream… Read more »

“the initial submission can be made quickly, on a no-names… Read more »

“Only new stock options affected by tax changes”, says Minister… Read more »

“The expected increase in personal tax rates is significant and… Read more »

  “In order for the election to be valid each… Read more »

“The re-contribution must be made before March 1, 2016” Generally,… Read more »

“A small change to timing can have a big tax… Read more »

“gains that are treated as income can be taxed at… Read more »

“LLC’s may not be the best vehicles for cross-border planning”… Read more »

“securities held in a Canadian brokerage account or registered plan… Read more »

“The transfer need not be made with the intention of… Read more »

As was mentioned in last week’s Tax Tip, new legislation… Read more »

“We encourage you to speak with your tax advisor regarding… Read more »

“the immigrant trust exemption was withdrawn.” For forty years, Canada… Read more »

“the ability to make this election ends this year.” Typically,… Read more »

“There is no set hierarchy of factors that one can… Read more »

“A DPSP may be a better way to create a… Read more »

“it is a good idea to start the process now.”… Read more »

“After December 31, 2015, all unfiled elections will be invalid.”… Read more »

“It is common for individuals to include charitable bequests in… Read more »

“it is better to start planning now, rather than waiting.”… Read more »

“we expect that the changes will eliminate an important tax… Read more »

On August 29, 2014, the Department of Finance released a… Read more »

“The Transferee can be assessed even if he or she… Read more »

“Capital gains exemption planning is complicated.” A Canadian individual is… Read more »

“the voluntary compliance window is closing.” On June 18, 2014,… Read more »

“If payroll taxes apply, the breakeven point will be even… Read more »

“For tax purposes, the answer is very important.” For tax… Read more »

“Detection is not as hard as it used to be.”… Read more »

“we suggest that… you make note of and track the… Read more »

“we do not think they go far enough and are… Read more »

“there will be fewer places for U.S. persons to hide.”… Read more »

“the Government of Canada is serious about enforcing tax compliance.”… Read more »

“Seriously consider implementing the plan before the end of March… Read more »

“If the charitable tax shelter seems too good to be… Read more »

“Consideration should be given to paying out capital dividends before… Read more »

“If commercially practical structure a partial sale of Qualifying Property… Read more »

“The actual process of classifying an entity for Canadian tax… Read more »

“Consider paying planned dividends by the end of 2013.” This… Read more »

“the CRA is now targeting those who receive payments from… Read more »

“Some Important Points for the Adviser to Consider.” Many individuals… Read more »

“One of the important roles of tax advisors is to… Read more »

“the real benefit is the ability to increase the spread… Read more »

“the tax and estate planning landscape will be significantly changed… Read more »

“the clock is ticking for offshore investors.” The Voluntary Disclosures… Read more »

“The level of detail required has been vastly expanded.” In… Read more »

“The payor need not be resident in Canada.” As discussed… Read more »

“please consult your TSG representative if you have a ‘moving… Read more »

“your assets or earnings may be seized to pay the… Read more »

“as long as Canadian tax rules are followed.” The media… Read more »

“The benefit of this strategy is in the use of… Read more »

“auditors do not seem to be evaluated based on the… Read more »

“if it seems ‘too good to be true’, then it… Read more »

“Congress still has to deal with spending cuts.” Over New… Read more »

“An insurance trust is generally funded outside the estate.” A… Read more »

“the overall cost of EI premiums can be significant.” Family-owned… Read more »

“Immediate action may be necessary to take advantage of the… Read more »

“audits of HNW individuals still remain a high priority.” At… Read more »

“it is a good idea to review upcoming SR&ED expenditures… Read more »

“partnerships are still a useful vehicle.” A partnership is a… Read more »

“The CRA will neither issue a refund nor assess the… Read more »

“It is important to remember the interaction of ABILs and… Read more »

“Rollovers of Retirement Plan funds are not only available to… Read more »

“Generally, bursaries are included in income and a deduction for… Read more »

“this is not the last word on the matter.” Section… Read more »

“in many cases a portion of existing debt can be… Read more »

“the SCC corrected its previous interpretation of the combination test.”… Read more »

“These procedures became effective on September 1, 2012.” In Tax… Read more »

“Residency is based on common law and case law.” Many… Read more »

“a taxpayer can opt out of this “rollover” rule.” When… Read more »

“The ability for a family member to use RRSP funds… Read more »

“it may be beneficial for non-residents to exercise their employee… Read more »

“Identifying eligibility for the DTC can result in thousands of… Read more »

“Tax practitioners often recommend the use of trusts.” Tax practitioners… Read more »

“the small supplier limit is not measured based on taxable… Read more »

“relief from some of the stringent administrative requirements.” We recently… Read more »

“certain alterations to a home or incremental construction costs may… Read more »

“the new procedures should provide some relief.” On June 26,… Read more »

“It is also important to consider the various attribution rules… Read more »

“most countries have legislation permitting the enforcement of foreign judgments.”… Read more »

“These new rules should generally provide greater flexibility.” Since the… Read more »

“In a typical family estate freeze, this anti-avoidance rule will… Read more »

“The ‘prohibited investment’ rules… have significantly impacted RRSP and RRIF… Read more »

“The type of investor can also impact whether an ABIL… Read more »

“Post Mortem Pipeline Transactions.” As discussed in Tax Tip 10-13,… Read more »

“Residence of Trusts.” The Supreme Court of Canada recently confirmed… Read more »

“There are two changes in this revised version of T5013… Read more »

“it is desirable to minimize the employment benefit and increase… Read more »

“Your TSG members will be reviewing and analyzing the 2012… Read more »

“Advisors should review these new rules with clients who are… Read more »

“”The timing of the RRSP deduction can result in significant… Read more »

“CRA Revises Joint Venture Administrative Policy.” The Canada Revenue Agency… Read more »

“These new rules have an impact on remuneration planning for… Read more »

“continuing to delay or ignore any catch up U.S. filings… Read more »

“”non-filers can take some comfort that they will not automatically… Read more »

“If the charitable tax shelter seems too good to be… Read more »

“The tax cost plus interest and penalties for non-reporting can… Read more »

“Often the negative consequences can be avoided by delaying the… Read more »

“To qualify, the plan must be made available to all… Read more »

“The prescribed rate does not fluctuate over the deferral term.”… Read more »

“amounts paid to grandparents could qualify.” The Income Tax Act… Read more »

“technical amendments will eliminate any current deferral opportunities with PSB’s.”… Read more »

“Waiver requests are not usually granted retroactively.” Regulation 102 requires… Read more »

“”non-capital losses often include losses from property”.” The Income Tax… Read more »

“Most tax preparation software does not update instalment schedules..” For… Read more »

“they would appear to apply to crystallization transactions.” The Income… Read more »

“”accessing the exemption through a trust is not always possible”.”… Read more »

“Section 84.1 assessments are a major cause of litigation.” Section… Read more »

“We have found that the CRA is using schedule 91… Read more »

“the guaranteed current use of the donation receipt makes the… Read more »

“”second generation” income is not attributed back to the original… Read more »

““It is uncertain if the IRS will continue to assess… Read more »

“CRA expects taxpayers to comply with draft legislation.”  Proposed changes… Read more »

“an individual will be able to carry forward unused grant… Read more »

“GST/HST may apply to other services provided by a practitioner.”… Read more »

“The employer must calculate, withhold and remit tax based on… Read more »

“This creative estate planning technique can create a legacy of… Read more »

“The ten-year rule refers to the years during which the… Read more »

“Penalties may be eliminated.” In Tax Tip 11-05 we reported… Read more »

“Income earned in a TFSA is taxable on a current… Read more »

“One can never know for sure which way the Tax… Read more »

“These changes will make it easier for the IRS to… Read more »

“The IRS believes the 2011 initiative offers clear benefits.” On… Read more »

“The election is invalid on a go-forward basis.” Canadian residents… Read more »

“It may save time and effort for such a CCPC… Read more »

“it is important to plan in advance.” There are a… Read more »

“If these special deadlines are not met on the wind-up… Read more »

“Experimental procedures that are not available locally can be eligible.”… Read more »

“The Canada Revenue Agency has been attacking claims of Canadian… Read more »

“such trusts provide for incapacity planning” While an earlier Tax… Read more »

“It is uncertain whether the CRA’s policy is correct, as… Read more »

“IFRS would require a previously unnecessary tax adjustment.” All Canadian… Read more »

“Even though late filing of the form is allowed, it… Read more »

“Partnerships that never filed before may now have to.” The… Read more »

“Most employers will not want to elect out of the… Read more »

“relief from one provision of the ITA does not mean… Read more »

“initially structuring the business as a sole proprietorship or partnership…… Read more »

“build flexibility into the deceased’s Will.” People often make their… Read more »

“relief from the tax on departure may be available.” Upon… Read more »

“An ABIL claimed by a corporation reduces the corporation’s CDA.”… Read more »

“the result can be the equivalent of ‘triple tax’.” The… Read more »

“”asset-building” can be particularly effective.” A “spouse trust” can be… Read more »

“Such a trust can provide estate planning benefits” Canadian residents… Read more »

“potential pitfalls can result in unexpected, costly mistakes.” Capital gains… Read more »

“X will lose out on claiming $60 of available losses… Read more »

“sometimes traditional planning techniques become outdated.” As we alluded to… Read more »

“The penalty could apply on a per-item basis.” Over the… Read more »

“”the combined tax bill can be significantly lower than the… Read more »

“The 2010 Federal Budget proposes to repeal the employee stock… Read more »

“If Mr. X had retained and sold the investment, there… Read more »

“Loans to non-residents can cause income inclusions.” Subsection 17(1) of… Read more »

“This withholding tax requirement is often overlooked.” In a recent… Read more »

“Early identification and good documentation are critical.” The Scientific Research… Read more »

“Form T1135 includes a certificate of full disclosure to be… Read more »

“U.S. status could eliminate many Canadian tax benefits.” Canada taxes… Read more »

“The CRA has decided to actively audit domestic inter vivos… Read more »

“Using an RRSP as security for a loan may be… Read more »

“Two deductions may be available to individuals.” Two deductions may… Read more »

“Identifying unreported capital losses from prior years can result in… Read more »

“Part of the gain may be exempt from Canadian tax.”… Read more »

“The decision whether to elect out of the spousal rollover… Read more »

“When assets are jointly titled, they do not pass through… Read more »

“You should consider creating a testamentary trust as part of… Read more »

“It may be advisable for the lender to charge a… Read more »

“The Canada Revenue Agency (CRA) has announced policy changes for… Read more »

“There is no prescribed form for the 50(1) election.” The… Read more »

“‘it is a good idea to start the process now’.”… Read more »

“Businesses that purchase equipment or other capital goods that bear… Read more »

“The transfer need not be made with the intention of… Read more »

“Do not be surprised if the rebate claim is denied.”… Read more »

“The $10,000 penalty will be assessed automatically against corporate taxpayers.”… Read more »

“A taxpayer can object to a notice of assessment even… Read more »

“The IRS announced that it is suspending the expanded definition… Read more »

“The ITN is a nine-digit number issued by the CRA… Read more »

“The eligibility for the higher CCA rate is not automatic.”… Read more »

“The CRA will authorize a reduction in tax withheld if… Read more »

“The credit for foreign taxes will likely be based on… Read more »

“Make sure the correct amount of interest is paid by… Read more »

“Where expenses are significant, the savings outweigh the costs.” Most… Read more »

“If you own more than one property, keeping track of… Read more »

“It may be prudent to consider paying a capital dividend… Read more »

“The rule of thumb is to invest in an RRSP… Read more »

“Equity may include inherent goodwill that is not reflected on… Read more »

“This election will not be available on property held in… Read more »

“The TFSA program offers taxpayers an opportunity to earn investment… Read more »

“You should be aware of the expanded base of those… Read more »

“The failure to elect out of subsection 256(9) can result… Read more »

“Eligible pension income relating to the portion of the year… Read more »

“Don’t Ignore the Proposed Restrictive Covenant Legislation.” The restrictive covenant… Read more »

“The CRA website may refer to the new requirements but… Read more »

“Be sure before concluding that the PSB rules do not… Read more »

“Transfer to the guardian for an incapacitated child will not… Read more »

“Start the clock ticking by filing a T5013.” Partnerships do… Read more »

“Opportunities for your clients.” Many professionals are not well versed… Read more »

“Investment income can reduce a company’s ability to claim refundable… Read more »

“Complicated rules for a simple situation.” When an individual moves… Read more »

“Old rules of thumb need to be re-examined carefully.” The… Read more »

“Sale of sole proprietor can be tax-free with planning.” The… Read more »

“Elimination of withholding tax will apply to interest payments by… Read more »

“Whether an amalgamation or a wind-up is chosen, the tax… Read more »

“The processing time of voluntary disclosures will be increased without… Read more »

“Shares of foreign corporations may render a corporation ineligible for… Read more »

“The revised Protocol provides a mechanism for allocating stock option… Read more »

“Proper planning can result in benefits to both sides.” On… Read more »

“Tax treatment does not automatically follow the accounting treatment for… Read more »

“Filing the appropriate elections is necessary to ensure that an… Read more »

“Proper planning can result in benefits to both sides.” When… Read more »

“Having a business transaction may preclude GAAR when tax is… Read more »

“File early to allow CRA enough time to confirm all… Read more »

“The CRA will use GAAR to overcome a decision they… Read more »

“The CRA can reallocate partnership income allocations when they consider… Read more »

“The transit pass credit is for 2006 and the fitness… Read more »

“The allocation of purchase price is important on the purchase… Read more »

“Attribution can be avoided on spousal loans in certain situations.”… Read more »

“CRA gives guidance on 2006 and 2007 eligible dividend designations.”… Read more »

“Inter-company dividends must be reviewed carefully for years between 2000… Read more »

“Refunds could be unexpectedly withheld.” The CRA recently sent out… Read more »

“Without planning, non-resident employers could be subject to unexpected taxes.”… Read more »

“Taxation of disbursements depends on whether the professional is an… Read more »

“Facts are key to determine tax treatment of share sales,… Read more »

“New rules for income trusts and pension income.” The Federal… Read more »

“In some cases, assets can, or must, be placed in… Read more »

“Capital cost allowance on rental properties can be restricted to… Read more »

“In some cases, meals and entertainment expenses can be 100%… Read more »

“Capital Gains are taxable over five or ten years depending… Read more »

“There can be a high cost to purchasing ineligible investments… Read more »

“You do not need to complete T2091 unless there is… Read more »

“CRA loses landmark case on application of GAAR to an… Read more »

“Can an accountant’s gross negligence transfer to the client?.” In… Read more »

“Ontario has decided to gradually introduce the reduced dividend tax… Read more »

“Bookkeeping errors to the benefit of a shareholder are not… Read more »

“A loss determination cannot be used to claim losses not… Read more »

“An individual’s residency often depends on his ties to a… Read more »

“In determining tax liability under s. 160, non-monetary transfers must… Read more »

“Past History and intention is relevant in determining if company… Read more »

“If you receive tax advice and disregard it, you are… Read more »

“What is required to determine when a debt is uncollectible?.”… Read more »

“Do you need a physical presence to be eligible for… Read more »

“Subsection 60(o) allows for the deductibility of legal payments for… Read more »

“The 2006 Budget has clarified how eligible dividends will be… Read more »

“Do you have clients who have commercial tenants who pay… Read more »

“Holding companies cannot be used to hold shares of a… Read more »

“Late-filing penalties were referred back to CRA because all taxes… Read more »

“Payments to an employment consultant are not permissible deductions from… Read more »

“Using attribution to your benefit is not GAAR.” In the… Read more »

“The due date of corporate taxes depends on many factors.”… Read more »

“There are new changes to the OBCA allowing family members… Read more »

“Payments to individuals on behalf of companies may still be… Read more »

“CDA payments related to ECE cannot be paid until the… Read more »

“The CRA has revised their policy on payments to non-resident… Read more »

“The Evans case clarifies the practical application of GAAR.” A… Read more »

“The new dividend tax rates will affect owner/manager clients.” On… Read more »

“Proposed Amendments to deny stock option benefit in ITC calculation.”… Read more »

“If CRA does not consider all facts, the courts are… Read more »

“Control in fact must be determined by considering all relevant… Read more »

“Can a taxpayer deduct an amount he didn’t pay directly?.”… Read more »

“A change of trustees could result in a change of… Read more »

“Ownership by a spouse does not preclude CCA and related… Read more »

“There is a 90-day limit to disclose the taxpayer’s name.”… Read more »

“Be aware of using U.S. LLC’s to hold shares in… Read more »

“Detailed records are necessary to calculate the cost base of… Read more »

“EPSP’s do not work in all situations.” There have been… Read more »

“Stock option benefit can be used for ITC calculation.” The… Read more »

“The CRA lost their argument that country hotels are lodges.”… Read more »

“CRA lost in its approach that any transactions that reduce… Read more »

“Tax Court forced to take a second look at this… Read more »

“ABULC’s are cost-effective alternatives to NSULC’s.” Until May 2005, US… Read more »

“No-names basis submission that was accepted by CRA cannot be… Read more »

“In-kind payments are acceptable and so are large bonuses to… Read more »

“The health plan must be available to employees, not just… Read more »

“New rules allow for non-family members to be shareholders..” In… Read more »

“Unfortunately, sometimes a case has to go to Court for… Read more »

“The fairness guidelines issued by CRA do not apply to… Read more »

“A taxpayer is required to include the proper amount in… Read more »

“This issue requires a review of all relevant factors..” Whether… Read more »

“In order for a special transfer to be tax-free, the… Read more »

“Terminal losses in the first year of an estate can… Read more »

“Spousal transfers can result in transfer of cost base..” There… Read more »

“If the proper elections and arrangements are made, tax payments… Read more »

“CRA’s interpretation may not be same as the Tax Court’s..”… Read more »

“Treaty protection does not mean there are no US tax… Read more »

“Proposed rules allow post mortem estate planning..” Subsection 40(3.6) is… Read more »

“Donations must be to certain charities only, before January 12,… Read more »

“Un-presented cheques should not be included in taxable capital..” In… Read more »

“CRA has issued a new administrative policy on single purpose… Read more »

“Information available for a notice of objection..” Whenever a taxpayer… Read more »

“Issues To Consider.” A business investment loss (BIL) arises from… Read more »

“All files should be checked..” Generally speaking, the Fairness Rules… Read more »

“RESP’s – a good vehicle to save for a child’s… Read more »

“Tax treaties should be considered in determining whether an individual… Read more »

“Be aware of CRA policy on deductibility of management bonuses..”… Read more »

“A 15% withholding tax may be payable for services rendered… Read more »

“Shares held by trusts or minors could have adverse results… Read more »

“Low Prescribed Rates Allow for Income Splitting.” The third quarter… Read more »

“Sometimes evidence accepted by Courts is different from the CRA..”… Read more »

“There could be shareholder benefits and non-deductible payments for PHSP’s..”… Read more »

“Using a specified class of shares can disassociate companies..” There… Read more »

“For countries other than U.S., the foreign social security taxes… Read more »

“CRA has changed its administrative position for companies owning U.S…. Read more »

“Certain conditions are necessary to claim capital losses on loans… Read more »

“Taxpayers must ensure that they only pay the withholding rate… Read more »

“This Supreme Court case is relevant for the purchase of… Read more »

“Tax-free payments are permitted in certain situations..” There are few… Read more »

“It is important to carefully draft trusts to avoid unwanted… Read more »

“Self Benefit trusts may help those under 65 in dealing… Read more »

“Planning is required before the deemed disposition rules apply.” Most… Read more »

“Filing a Partnership ReturnEnsures Partnership Income becomesStatute-Barred.” A Canadian partnership… Read more »

“Shares or debt of corporations can be claimed as a… Read more »

“It is possible to restructure to allow a professional corporation… Read more »

“When interest is deductible within a partnership and financing fees… Read more »

“Be Aware of Changing a Principal Residence to Investment Property… Read more »

“Klotz Case Reviews Art Flips to Charities.” In a recent… Read more »

“Free Meals and Gifts.” There was a recent case (McGoldrick),… Read more »

“Advantages Received by the Donor.” Further to the recent Tax… Read more »

“Government has limited access to donation receipts..” On Friday December… Read more »

“Year-End Tips.” As we approach December 31st, it is time… Read more »

“Year-End Planning Considerations.” There may be taxpayers who have realized… Read more »

“Living together makes you married for tax purposes..” Being a… Read more »

“Circumstances where reserves cannot be claimed are extended..” In general,… Read more »