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CRA Clarifies Tax Deadlines for Taxpayers Affected by Capital Gains
The CRA has delayed the capital gains inclusion rate increase to January 1, 2026, requiring tax form revisions and causing filing delays. Relief from late penalties and interest is granted until June 2, 2025, for impacted T1 filers and May 1, 2025, for T3 slips. T5008 deadlines extend to March 17, 2025.
Have Foreign Bank Accounts? CRA Can Reassess You for Years – And It Could Cost You Big
If you have foreign bank accounts, beware: CRA can reassess you for years and impose hefty penalties. In the case of Azmayesh-Fard v. The King, a taxpayer faced massive fines for not reporting a Swiss account. Protect yourself by reporting all foreign assets to avoid financial nightmares.
Navigating the Capital Gains Tax Changes Amid Parliamentary Uncertainty
This article discusses the federal government’s proposed capital gains inclusion rate increase, the impact of Parliament’s prorogation on its implementation, the CRA’s interim approach, and the potential implications for taxpayers. It also explores political party stances, taxpayer options, and possible administrative relief measures.
Canada’s Proposed Tax on Vacant Land: Is It the Right Approach?
Canada’s proposed tax on vacant land aims to tackle the housing crisis, but could it backfire? While the intention is commendable, experts warn that such measures may distort economic behavior and burden smaller developers. Instead of penalizing real estate developers, a more effective solution might be to offer tax incentives that encourage immediate construction. Drawing lessons from Ireland’s experience with similar policies, this article explores the potential pitfalls of a vacant land tax and advocates for a collaborative approach that benefits both the government and developers. Discover why tax breaks could be the key to solving Canada’s housing shortage.
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Ontario’s Action Plan: Responding to COVID‑19
On March 25, 2020, Rob Phillips, Ontario’s Minister of Finance, put forth the Province’s Economic and Fiscal Update, with a focus on responding to COVID-19. The details and how you can register for these benefits have not been provided yet but we will let you know as soon as these become available. Key Highlights Interest
Canadian Government to give $2,000 per month up to 4 Months – You May Qualify
The Canadian Government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income due to COVID-19 for at least 14 consecutive days within any four-week period from March 15, 2020 until October 3, 2020. You
Small Business Owners and COVID-19: Tax Planning to Preserve Cash
The recent measures released by the government of Canada to combat the negative fallout from COVID-19 provides some relief to owner-managers of small businesses. While these measures do help, owner-managers may also position themselves in a better financial position by considering the following: Stop paying yourself a salary Owner Managers who pay themselves a recurring
Temporary Wage Subsidy Calculator
We developed a simple calculator to help small businesses calculate their Temporary Wage Subsidy. Download Link Click here to download the excel copy. Video on Wage Subsidy and how to use our Calculator Online Calculator Here’s the online version of the calculator. However, for a better experience, please download the excel using the link provided
IRS extends filing & tax payment deadline to July 15th
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This
COVID-19: CRA Provides Clarity on the Temporary Wage Subsidy
On March 21, 2020, the CRA provided some clarity on the Temporary Wage Subsidy. Some details seem to be missing, but this provides a lot of answers we and our clients have been looking for. So here it is. Please refer to our calculator here. Our commentary is in red text. 1. What is the
COVID-19 Financial Measures Summary
We continue to closely follow relevant updates concerning COVID-19. The government has announced the following measures to help alleviate concerns and financial hardships. Tax Relief Individuals T1 filing deadline from April 30, 2020 to June 1, 2020 (self-employed individuals have until June 15, 2020 to file as usual). Those getting the GST and Canada Child
Tax on Split Income (TOSI) and Pre-Marital Employment
CRA recently ruled that where a spouse worked in a company before he or she married the principal shareholder, the work that the spouse put in before marriage counts in assessing whether TOSI applies. In this particular ruling, the spouse, Ms. B, worked as a full-time employee in Opco for approximately 40 hours per week
Ontario Reduces the Corporate Tax Rate for Small Businesses: The Good and the Bad
Last week, the Ontario government proposed to cut Ontario’s small business corporate tax rate from 3.5% to 3.2%, effective January 1, 2020. The rate reduction would be prorated for taxation years straddling January 1, 2020. Corresponding to the rate reduction, the government proposes to reduce the dividend tax credit (DTC) rate on non-eligible dividends from
Possible Anomaly in the Passive Income Small Business Deduction Rules?
Martin Lee and Thanusan Raveendran, in a recent article published in the Canadian Tax Foundation’s Tax Focus publication, discuss a possible anomaly in the small business deduction rules. The authors highlight the anomaly using several examples and highlight several tax planning possibilities. Please click here to read their article.