Tax Tips

Jan 19, 2022

Deferral of New Trust Reporting Requirements

As we advised in Tax Tip 20-04 , significant additional disclosure and filing requirements for trusts were announced in the 2018 Federal Budget and are scheduled to apply for trust’s 2021 and subsequent tax years.

Nov 16, 2021

Caps Off to the BC Supreme Court

The Disability Tax Credit Promoters Restrictions Act (the “DTCPRA”) was adopted by Parliament allegedly to protect “vulnerable Canadians” from perceived abusive fees some “promoters” were believed to be charging to assist taxpayers in accessing the disability tax credit (“DTC”).

Apr 19, 2021

Meeting the April 30 Tax Deadline

As you may know, we have supported a request to the CRA to extend the April 30 deadline to June 15. But if the deadline is NOT extended, here are some practical tips to reduce the burden of a COVID tax season.

Oct 09, 2020

New Trust Reporting Requirements Starting 2021

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…

Jul 29, 2020

CRA Extensions v1.1

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.

Apr 15, 2020

The Canada Emergency Wage Subsidy – The Cavalry Is Coming

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.

Apr 07, 2020

The Canada Emergency Wage Subsidy – Is The Cavalry On Its Way?

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.

Dec 02, 2019

Carryback of Post Mortem Charitable Donations – Timelines and Conditions

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.

Nov 18, 2019

Post-Fairmont Rectification – A Small Measure of Guidance

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. 

Nov 01, 2019

The Principal Residence Exemption – Some Quirks

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.

Sep 20, 2019

Health Spending Accounts

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.

Sep 09, 2019

Section 116 – A Case Study

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. 

Aug 26, 2019

Earnout – Earn More on Your Way Out

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.

Aug 12, 2019

Change in Use – The Unexpected Change

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.

Jul 26, 2019

T4A: The Compliance Conundrum of Fees Paid for Services

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.

Jul 12, 2019

The Multilateral Instrument – The New Preface to the Tax Treaty Brochure

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.

Jun 27, 2019

When Safe Income Isn’t so Safe

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.

Feb 26, 2019

Changing Your Corporation’s Fiscal Period

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”).

Feb 05, 2019

Changes to the T1134 deadline

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.

Jul 19, 2017

Tax Planning Bomb Shell

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

Jul 10, 2017

Major changes to the Voluntary Disclosures Program

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

Oct 03, 2016

Canadian Tax Treatment of Certain Florida and Delaware Partnerships

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

Jul 20, 2016

Upstream Loans

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

Jan 11, 2016

Voluntary Disclosures – Time is of the Essence

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

Nov 20, 2015

Special Update on Taxation of Stock Options

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

Nov 17, 2015

Back to the Future

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

Sep 22, 2015

Another Reason to Consider the Disability Tax Credit

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

Aug 25, 2015

A TeRRIFic Idea

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

Jul 13, 2015

Stock Options

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

Jun 15, 2015

LLCs for Canadians – Yes, No, Maybe?

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

Feb 24, 2015

US Estate Tax For Canadians?

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

Jan 05, 2015

Inadvertent Transfer of Tax Liability

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

Dec 29, 2014

New Legislation Will Affect Traditional Estate Planning (Part II)

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

Dec 22, 2014

The Deceased’s Estate Will Be Required To Pay The Tax Instead of The Trust

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

Dec 09, 2014

Immigrant Trusts

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

Dec 01, 2014

Last Chance to use Losses on Stock Option Shares

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

Nov 24, 2014

Interprovincial Planning

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

Nov 10, 2014

Employee Savings Plans

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

Nov 03, 2014

Source Deduction Waivers

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

Oct 28, 2014

‘Nil Consideration’ Election for GST and HST

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

Oct 20, 2014

New Rules for Donations by Estates

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

Oct 14, 2014

Year End Planning

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

Oct 06, 2014

Proposed Changes to Eligible Capital Property Regime

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

Sep 22, 2014

Proposed Legislation Could Affect Traditional Estate Planning

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

Sep 16, 2014

When Is A Gift Not A Gift?

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

Jul 03, 2014

The Capital Gains Exemption

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

Jun 27, 2014

IRS Announces Changes to Offshore Programs

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

Jun 20, 2014

Remuneration Strategy

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

Jun 10, 2014

Employee or Independent Contractor?

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

May 28, 2014

Barter Transactions

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

Mar 25, 2014

Unhappy Anniversary

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

Mar 04, 2014

Transitional ‘Relief’ For the New Foreign Reporting Forms T1135

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

Feb 18, 2014

FATCA – The U.S. Wins Hide and Seek

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

Feb 03, 2014

Reporting of International Electronic Funds Transfers

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

Jan 20, 2014

Just What the Doctor Prescribed – The Lowest Rate. Again!

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

Dec 16, 2013

Charitable Tax Shelters – ‘Tis the Season Redux

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

Nov 18, 2013

Timing Is Everything

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

Nov 11, 2013

Increase in Capital Gains Exemption

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

Oct 28, 2013

Foreign Entity Classifications

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

Oct 18, 2013

Dividend Tax Rates Increasing

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

Oct 11, 2013


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

Oct 04, 2013

Immigrating To Canada – A Tax Checklist

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

Sep 06, 2013

Happenings in the Tax World

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

Aug 16, 2013

Prescribed Rate Loans

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

Aug 02, 2013

Possible Changes to Graduated Tax Rates for Testamentary Trusts

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

Jul 26, 2013

The Window is Closing on Some Voluntary Disclosures

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

Jun 28, 2013

Expanded Foreign Reporting Requirements

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

Jun 14, 2013

A REGular Problem

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

May 31, 2013

Moving Expenses

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

May 17, 2013

Tax Collection Across International Boundaries

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

May 03, 2013

‘Offshore’ And ‘Illegal’ Are Not Synonyms

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

Mar 15, 2013

Accumulating Corporate Wealth

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

Feb 22, 2013

Going Rogue

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

Jan 25, 2013

Aggressive Owner-Manager Remuneration

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

Jan 11, 2013

Fiscal Cliff Averted But ‘Fiscal Hill’ Still Remains

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

Dec 28, 2012

Insurance Trusts

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

Dec 21, 2012

Family Employment Insurance

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

Dec 07, 2012

Fiscal Cliff or Fiscal Hill – There is Still a Slope

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

Nov 30, 2012

CRA Update

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

Nov 23, 2012

Despite Proposed Changes, Scientific Research and Experimental Development (SR&ED) Still Provides Big Benefits for Small Businesses

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

Nov 16, 2012

Changes to the ‘Bump’ Rules for Partnership Interests

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

Nov 09, 2012

When It’s Not So Great to Donate

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

Nov 02, 2012

Will You be ABIL to Use Your Capital Gains Exemption?

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

Oct 26, 2012

Uncommon RRSP Rollovers

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

Oct 19, 2012

Bursaries and Scholarships

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

Oct 12, 2012

Third-Party Civil Penalty

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

Oct 05, 2012

Proposed Changes to Thin Capitalization Rules

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

Sep 29, 2012

Farm Losses

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

Sep 21, 2012

IRS Streamlined Filing Procedures

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

Sep 12, 2012

Retiring Outside Canada? Don’t Stay Tax Resident Here

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

Sep 07, 2012

Opting Out of Spousal Rollovers

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

Aug 31, 2012

Home Buyer’s Plan Withdrawals

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

Aug 24, 2012

Coming to Canada with Stock Options

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

Aug 17, 2012

The Disability Tax Credit

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

Aug 10, 2012

Sale of property to a trust

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

Aug 03, 2012

HST or GST and Associated Groups

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

Jul 27, 2012

Allowable Business Investment Losses – Some Good News

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

Jul 13, 2012

Home Renovations and Construction Cost may be Medical Expenses

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

Jul 06, 2012

New U.S. Filing Program

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

Jun 29, 2012

Transfer of Properties on Separation & Divorce

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

Jun 15, 2012

Tax Collection Across International Boundaries

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

Jun 08, 2012

Relief for Eligible Dividends

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

Jun 01, 2012

The Capital Gains Exemption – Share Ownership Is Important

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

May 25, 2012

New Rules Affect RRSP’s and RRIF’s Owning Shares of Private Companies

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

May 18, 2012

Corporate ABIL’s

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

May 11, 2012

Post Mortem Pipeline Transactions

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

May 04, 2012

Residence of Trusts

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

Mar 16, 2012

Changes To Partnership Returns

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

Mar 09, 2012

Early Exercise of Stock Options

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

Mar 02, 2012

The 2012 Federal Budget

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

Feb 17, 2012

New RRSP Investment Rules

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

Feb 10, 2012

RRSP Deductions

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

Feb 04, 2012

Joint Venture Fiscal Period Changes

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

Jan 27, 2012

New CPP Rules

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

Jan 20, 2012

New 2012 OVDI for US Taxpayers

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

Jan 06, 2012

Dual Citizens Receive New Guidance from the IRS

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

Dec 23, 2011

‘Tis the Season for Charitable Tax Shelters – Beware!

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

Dec 09, 2011

Canadian Residents Leaving Canada Permanently – A Key Tax Point

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

Dec 02, 2011

Negative Adjusted Cost of Limited Partnership Interest

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

Nov 25, 2011

Health Care Spending Accounts

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

Nov 18, 2011

Deferred Payment of Tax on Death

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

Nov 11, 2011

Child Care Expenses

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

Nov 04, 2011

Personal Services Business Corporations Under Attack

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

Oct 28, 2011

Foreign Employees Working in Canada

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

Oct 21, 2011

Acquisitions of Control and Losses

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

Oct 14, 2011

Instalments After an Amalgamation or Wind-Up

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

Oct 07, 2011

Expansion of the Kiddie Tax Rules to Capital Gains

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

Sep 30, 2011

Principal Residence in a Trust

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

Sep 16, 2011

Section 84.1 Can Happen To You

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

Sep 12, 2011

Schedule 91- More Than Just a Treaty Based Return

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

Aug 22, 2011

Charitable Remainder Trust

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

Aug 12, 2011

Attribution Rules

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

Aug 05, 2011

Deadline Looms for Non-Compliant US Taxpayers

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

Jul 29, 2011

Relying on Draft Legislation

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

Jul 22, 2011

Registered Disability Savings Plan (“RDSP”)

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

Jul 15, 2011

GST/HST On Medical Fees

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

Jul 08, 2011

Hiring Non-Residents for Temporary Employment in Canada

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

Jun 24, 2011

Testamentary Planning – The Power of a Dollar

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

Jun 17, 2011

A New Playing Field for Waiver of Interest and Penalty

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

Jun 10, 2011

IRS Appears to Be Providing Some Relief to Innocent Non-Filers

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

Mar 18, 2011

U.S. Tax Treatment of Tax-Free Saving Accounts

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

Mar 04, 2011

Failure to Report a Capital Gain

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

Feb 18, 2011

Innocent Non-Compliant U.S. Tax Filers

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

Feb 11, 2011

New IRS Offshore Voluntary Compliance Initiative

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

Feb 04, 2011

Canadian Treatment of U.S. Roth IRA’s Is Changing

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

Jan 28, 2011

Get A Grip

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

Jan 21, 2011

Losing CCPC Status

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

Jan 07, 2011

Payroll Implications of an Amalgamation Are Different From Those of a Wind-Up

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

Dec 17, 2010

Out of Country Medical Expenses

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

Dec 10, 2010

Leaving Canada

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

Dec 03, 2010

Alter Ego Trust as a Will Substitute

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

Nov 12, 2010

Acquisition of Control – Choose Your Trustees Carefully

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

Oct 22, 2010

Impact of IFRS on Canadian Tax

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

Oct 08, 2010

Unpaid Fees

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

Sep 23, 2010

New Filing Requirements for Partnerships

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

Sep 14, 2010

New Rules Regarding Stock Options

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

Aug 31, 2010

Section 116 Certificates & Section 212.1

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

Aug 25, 2010

Accessing The Capital Gains Exemption

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

Aug 13, 2010

Making Maximum Use of Charitable Donations on Death

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

Aug 09, 2010

Capital Gains Realized On Emigrating From Canada

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

Jul 30, 2010

Allowable Business Investment Losses And The Capital Dividend Account

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

Jul 09, 2010

Non-Refundable Dividend Tax On Hand

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

Jul 02, 2010

Spousal Trust Strategy

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

Jun 25, 2010

Alter Ego And Joint Partner Trusts

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

Jun 18, 2010

Traps In Crystallizations

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

Jun 04, 2010

Rental Property CCA Restriction Applies On Aggregate Basis

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

May 28, 2010

Change to Post Mortem Planning

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

May 21, 2010

Expanded Reporting Requirement For Foreign Assets

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

May 14, 2010

Personal Service Businesses

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

May 07, 2010

Stock Option Tax Deferral Election

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

Mar 22, 2010

Transfers of Investments to Corporations

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

Mar 12, 2010

Subsection 17(1) Income Inclusions

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

Feb 26, 2010

Directors’ Fees Paid to Non-Residents

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

Feb 12, 2010

Scientific Research & Experimental Development

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

Feb 05, 2010

Severe Penalties for Not Reporting Foreign Property

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

Jan 29, 2010

U.S. Citizens in Canada

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

Jan 22, 2010

Canada Revenue Agency and Income Splitting Trusts

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

Jan 15, 2010

Using an RRSP as Security

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

Jan 08, 2010

Deductions for Tradespersons’ & Apprentice Mechanics’ Tools

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

Dec 18, 2009

Unclaimed Capital Losses

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

Dec 14, 2009

Tax Savings For U.S. Residents Selling Canadian Capital Property

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

Dec 11, 2009

Electing Out of a Spousal Rollover on Death

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

Nov 16, 2009

Funding The Testamentary Trust

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

Nov 06, 2009

Testamentary Planning

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

Oct 30, 2009

Claiming Capital Losses

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

Oct 23, 2009

CRA Announces Policy Changes for Employee Benefits (AMENDED Dec 17, 2009)

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

Oct 16, 2009

Election to Dispose of Property

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

Oct 09, 2009

Reducing Tax Withheld at Source

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

Sep 25, 2009

HST Planning For Ontario and British Columbia

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

Sep 11, 2009

Inadvertent Transfer of Tax Liability

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

Aug 10, 2009

Possible rebate for GST Paid on Certain Investment Management Fees

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

Jul 24, 2009

Form 5471 Penalty

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

Jun 19, 2009

Notices of Objection for Individuals

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

Jun 08, 2009

Fewer Taxpayers Required to File US Treasury Reporting Form

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

May 15, 2009

Canadian Individual Taxation Numbers

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

May 08, 2009

Election for Accelerated CCA on Buildings

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

Apr 09, 2009

Source Deduction Waivers

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

Apr 03, 2009

Refunds of Withholding Tax

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

Mar 27, 2009

Income Splitting

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

Mar 20, 2009

Health & Welfare Trusts

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

Mar 13, 2009

Principal Residence Exemption

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

Mar 06, 2009

Payment of Capital Dividends

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

Feb 27, 2009

To TFSA or Not To TFSA: That Is The Question

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

Feb 20, 2009

Creditor Proofing

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

Feb 13, 2009

Non-Residents Can Use Subsection 164(6)

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

Feb 06, 2009

The Tax-Free Savings Account

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

Jan 28, 2009

Changes to US Treasury Department Reporting Requirements

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

Dec 05, 2008

Timing of Acquisition of Control

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

Nov 28, 2008

Pension Income Can Be Split in Year of Death

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

Nov 07, 2008

Restrictive Covenants

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

Sep 19, 2008

Child Fitness Amount

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

Aug 15, 2008

Personal Service Businesses

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

Aug 01, 2008

Transfer of Life Insurance to a Child

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

Jul 18, 2008

A Return to Partnerships

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

Apr 11, 2008

Medical and Disability Related Matters

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

Mar 07, 2008

High Investment Income Reduces SR&ED Expenditure Pool

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

Feb 08, 2008

Moving Expenses

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

Jan 25, 2008

Eligible Dividends And Real Estate Companies

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

Jan 18, 2008

The Capital Gains Exemption And Incorporating Professionals

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

Dec 14, 2007

5th Protocol – Canada-US Income Tax Convention – Interest Withholding Tax – Non-Arm’s Length

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

Dec 10, 2007

Wind-Up vs. Amalgamation: A Big Difference

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

Dec 03, 2007

New Info Circular on Voluntary Disclosures

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

Nov 23, 2007

Foreign Operations & The Capital Gains Exemption

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

Nov 09, 2007

Fifth Protocol – Canada-U.S. Tax Treaty – Stock Options

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

Nov 02, 2007

Halloween Tricks ‘n Treats – The Federal Economic Statement

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

Oct 05, 2007

Leasehold Inducements

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

Jun 15, 2007

Attribution of Property on Marital Breakdown

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

Jun 08, 2007

Transfer of Properties on Separation & Divorce

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

Mar 16, 2007

GAAR – Reasons For Transaction

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

Mar 09, 2007

New CRA Receipt Policy Worrisome To SR&ED Filers

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

Mar 02, 2007

When CRA Does Not Like the Results, GAAR Is Applied

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

Feb 23, 2007

Be Careful if You Allocate Partnership Income Only to Reduce Tax

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

Feb 16, 2007

Transit Pass Credit & Fitness Tax Credit

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

Jan 26, 2007

Separate Class for Rental Buildings

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

Jan 19, 2007

Attribution Rules – Spousal Loans

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

Dec 29, 2006

Designation of Eligible Dividends – 2006/2007

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

Dec 22, 2006

Eligible Dividends – Years Prior To 2006

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

Dec 15, 2006

Penalty and Refund Changes

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

Dec 08, 2006

Withholding Tax on Remuneration Paid to Non-Residents of Canada

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

Dec 01, 2006

GST on Disbursements

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

Nov 24, 2006

Sale of Shares Deemed Business Income

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

Nov 10, 2006

Government’s Annoucement on Income Trusts & Pension Income

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

Nov 03, 2006

Capital Cost Allowance – Separate Classes

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

Oct 27, 2006

Rental Property – Capital Cost Restrictions

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

Oct 20, 2006

Meals & Entertainment – 100% Deductible

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

Oct 13, 2006

Capital Gain Reserves

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

Oct 06, 2006

RRSP Ineligible Investments

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

Sep 29, 2006

Principal Residence – What Needs to be Filed

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

Sep 22, 2006

GAAR & International Tax Treaties

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

Sep 15, 2006

163(2) Gross Negligence Penalty

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

Sep 08, 2006

Ontario Response to Federal Dividend Tax Changes

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

Aug 11, 2006

Shareholder Benefits – Bookkeeping Errors

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

Aug 04, 2006

Loss Determinations

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

Jul 21, 2006

Can You Be Resident in More Than One Place?

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

Jul 14, 2006

How Much Are Non-Monetary Benefits Worth?

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

Jul 07, 2006

Active Business Vs.Investment Business

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

Jun 30, 2006

163(2) Ignorance Could Have Been Bliss

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

Jun 23, 2006

When is Debt Uncollectible Debt

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

Jun 16, 2006

Eligibility for the Tuition Credit

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

Jun 09, 2006

Deductibility of Legal Expenses

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

May 05, 2006

Budget 2006 – Dividend Rates as Promised

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

Mar 24, 2006

GST on Property Taxes Paid by Tenants

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

Mar 17, 2006

Professional Incorporation Update

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

Mar 10, 2006

Fairness & Late Filing Penalties

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

Mar 03, 2006

Stock Option Deductions

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

Feb 24, 2006

GAAR – Using Attribution to the Taxpayer’s Benefit

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

Feb 10, 2006

Due Date of Corporate Taxes

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

Feb 03, 2006

Professional Incorporation – Doctors’ & Dentists’ Family Members

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

Jan 27, 2006

Allowable Business Investment Losses – Payments to Individuals in Trust for Companies

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

Jan 20, 2006

Capital Dividend Account (CDA) and Eligible Capital Expenditures (ECE) – Beware

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

Jan 13, 2006

Withholding Tax Rates to Non-Resident Trusts & Their Beneficiaries

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

Dec 16, 2005

First GAAR Case After Supreme Court Decision

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

Dec 02, 2005

New Dividend Rates

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

Nov 25, 2005

SR&ED/Stock Option #2

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

Nov 18, 2005

Fairness Provisions

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

Nov 11, 2005

Association – Control in Fact

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

Nov 04, 2005

When is an Amount Paid in Order to Be a Deduction?

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

Oct 28, 2005

Change of Control – Trustees

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

Oct 21, 2005

CCA & Beneficial Ownership

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

Oct 14, 2005

Voluntary Disclosure – On a No-Name Basis

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

Sep 30, 2005

U.S. Companies Investing in Canada

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

Sep 23, 2005

Stock Option Deferral – Cost Base Calculations

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

Sep 16, 2005

Employees Profit Sharing Plans

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

Sep 09, 2005

SR&ED Claim for Stock Option Benefit

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

Aug 12, 2005

When a Hotel Is Not a Lodge – 18(l)

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

Aug 05, 2005

Analysis of “Arm’s Length”

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

Jul 25, 2005

Residency Test – Allchin Revisited

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

Jul 15, 2005

Alberta Unlimited Liability Company (“ABULC”)

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

Jul 11, 2005

Federal Court Makes Decision on Voluntary Disclosures

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

Jun 16, 2005

Salaries & Bonuses To Family Members

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

Jun 03, 2005

Personal Health Service Plans – The Story Continues

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

May 27, 2005

Professional Corporations – Doctors and Dentists

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

Apr 15, 2005

Dividend Refund in Statute-Barred Years Cannot Be Adjusted

Apr 08, 2005

Were They Thinking?

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

Apr 01, 2005

Application of Fairness Provision in Court

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

Mar 25, 2005

The Price of Not Reporting Stock Options

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

Mar 18, 2005

Contractor Vs. Employee

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

Mar 11, 2005

Tax-Free Spousal Transfer

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

Mar 04, 2005

Terminal Losses For Estates

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

Feb 25, 2005

Using Stop-Loss Rules To Your Benefit

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

Jan 28, 2005

Deferral of Tax Payments on Death

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

Jan 21, 2005

All or Substantially All – What Does It Mean?

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

Jan 14, 2005

U.S. Corporate Filing Requirements

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

Jan 07, 2005

Revised Stop-Loss Rules For Post Mortem Planning

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

Jan 02, 2005

2005 Tsunami Donations Can Be Used in 2004

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

Dec 10, 2004

Large Corporations Tax Issue

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

Dec 03, 2004

Single Purpose Corporations – New Proposals

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

Nov 19, 2004

CRA Disputes

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

Nov 12, 2004

Allowable Business Investment Losses

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

Nov 05, 2004

Fairness Rules – December 2004 Deadline

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

Oct 22, 2004

Registered Education Savings Plans

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

Oct 15, 2004

Residency Test

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

Oct 08, 2004

Deductibility of Management Bonus

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

Sep 24, 2004

Withholding Tax For Services Done – By Non-Residents in Canada

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

Sep 17, 2004

Deemed Association

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

Sep 03, 2004

Attribution That Works

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

Aug 06, 2004

Evidence Required

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

Jul 30, 2004

Personal Health Service Plans and Shareholder Benefits

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

Jul 23, 2004

Disassociating Companies

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

Jul 16, 2004

Foreign Social Security Taxes As Foreign Tax Credits

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

Jul 09, 2004

Single Purpose Corporations

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

Jul 02, 2004

Loans To Family Members

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

Jun 25, 2004

Overpayment of U.S. Taxes May Prohibit Claim of Foreign Tax Credit

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

Jun 18, 2004

Supreme Court Decision – Gifford

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

Jun 11, 2004

Death Benefits

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

Jun 04, 2004

Subsection 75(2) – Planning To Avoid

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

May 28, 2004

Alternative To Alter-Ego Trusts

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

May 21, 2004

Planning For the 21-Year Deemed Disposition Rule

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

Apr 02, 2004

Partnerships – Not Statute-Barred If No T5013 Filed

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

Mar 26, 2004

Claiming Losses on Shares or Debt

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

Mar 19, 2004

Professional Corporations – Year Ends

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

Mar 12, 2004

Financing Fees / Borrowings – Partnership

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

Mar 05, 2004

Change in Use / Principal Residence

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

Feb 24, 2004

Donations Schemes – Some Reasonable Conclusions

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

Jan 23, 2004

Employee Benefits

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

Jan 16, 2004

Proposed Charitable Donation Rules (#2)

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

Jan 09, 2004

Proposed Charitable Donation Rules (#1)

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

Dec 19, 2003

Year-End Tax Planning Considerations

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

Dec 17, 2003

Review of Capital Loss Rules

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

Nov 28, 2003

Definition of Common Law Spouse

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

Nov 21, 2003


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