July 23, 2021
When 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 turn 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.
May 04, 2021
In order to increase the transparency of how trusts are used, and on the persons who have created, control and benefit from trusts, the 2018 federal budget proposed new reporting requirements for trusts. The changes are meant to improve the collection of beneficial ownership information with respect to trusts and to help the Canada Revenue Agency (CRA) assess the tax liability of trusts and their beneficiaries. The budget also proposed penalties for non-compliance with the new requirements.
April 08, 2021
Foreign companies selling goods and services online in Canada will soon need to contend with new GST/HST rules for e-commerce transactions. With many Canadians locked down due to the COVID-19 pandemic in the past year, the number of us shopping online skyrocketed. In fact, the Government of Canada’s recent Fall Economic Statement says that retail e-commerce rose by nearly 70 per cent in the first eight months of 2020. But the current sales tax rules for digital transactions date back to a time when our economy was strictly bricks-and-mortar, and the government is concerned that the existing rules put Canadian businesses at a disadvantage compared to their foreign competitors. In its 2020 Fall Economic Statement, the federal government invited feedback on proposed legislation that aims to ensure the GST/HST applies fairly and effectively to the growing digital economy.
March 05, 2021
There has been speculation ahead of each federal budget in recent years that the Liberal government will increase the so-called capital gains inclusion rate, currently at 50 per cent, which is the percentage of capital gains included in taxable income. However, advisors say the unprecedented spending on COVID-19 programs, which has pushed the projected size of the deficit to almost $400-billion, makes a capital gains tax increase more likely.
January 27, 2021
On December 21, 2020, the Department of Finance Canada released a backgrounder and draft legislation to provide temporary relief in respect of employee automobile benefits for the 2020 and 2021 taxation years. In light of the impact COVID-19 lockdowns and public health measures have had on how employees use their employer-provided vehicles, the government is proposing temporary adjustments to the automobile standby charge.