Latest Posts
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.
Liberal Government Mortgage Reforms: A Double-Edged Sword for Young Canadians?
On September 16, 2024, the federal government unveiled bold mortgage reforms aimed at tackling Canada’s housing crisis and making homeownership more accessible, particularly for younger generations. While these changes seem beneficial at first glance, a closer look reveals a more complex picture, especially for Millennials and Gen Z who are already grappling with high home prices in cities like Toronto and Vancouver.
Canadian Entrepreneurs’ Incentive: A Promising Tax Break Needing Greater Clarity
Are you a Canadian business owner considering selling your company? The new Canadian Entrepreneurs’ Incentive (CEI) could be of benefit. Starting in 2025, this promising tax break will significantly reduce your capital gains tax. With a gradual increase in the lifetime limit to $2 million by 2029, the CEI offers substantial savings for eligible entrepreneurs. However, the draft legislation raises important questions about qualifications and exclusions. Discover how this incentive could impact your business and what clarifications are needed for a smoother implementation.
Tax Filing Relief for Trusts in 2024 and Beyond
Navigating the complexities of trust tax filing can be daunting, but there’s good news for 2024! Recent draft legislation will exempt bare trusts from filing tax returns, easing the burden on many Canadians. The definition of Listed Trusts is also expanding, providing more relief for smaller and family trusts. Discover how these changes can simplify your tax obligations and offer greater flexibility in managing your assets. Stay informed on updates that could impact your financial planning—read on to learn more!
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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.
