Uncategorized

This newsletter discusses new taxes that will be introduced in 2023 that will affect small business owners in Canada. These include the Underused Housing Tax (UHT) which will apply to foreigners who own vacant homes in Canada, a new minimum tax on the rich, and an anti-flipping tax for real estate investors. The tax rules have become increasingly complex and penalties for non-compliance are high, so it is important to stay informed and work with a qualified tax accountant.

Inflation is often thought of as a gradual increase in prices, but it’s important to remember that it’s also a tax. As prices rise, the purchasing power of your income decreases, meaning you can buy fewer goods and services with the same amount of money. This can significantly impact your finances over time, especially if you’re not aware of how it’s affecting you.

Many experts and analysts are bracing for lacklustre returns in 2023. If you are an investor, you may sell some of your investments and trigger capital losses as you rebalance your portfolio. In this article, we outline some tax strategies that can go hand-in-hand with your investment decision that will put more money into your pockets.

The sentiment that a country ought to “tax the rich” has been circulating the airwaves for several years. With record levels of government spending, impending recession, inflation, an increase in immigration, and funding the Ukrainian war, the government needs more money. It seems like 2023 will be an opportune time for the Canadian government to introduce another round of tax on the rich (when the Liberals came to power in 2015, they also introduced a 4% tax hike on people in the top tax bracket).

The year 2022 was a busy year in the tax world. Coming out of the pandemic and dealing with an uncontrollable real-estate market, the government introduced many tax measures to boost the economy while controlling the housing market. We don’t expect as many tax measures in 2023. But we still expect the government to introduce some significant tax measures.

With rising interest and energy costs, more real-estate investors are expected to sell in 2023. These investors need to watch out for the Anti-Flipping Tax that comes into effect on January 1, 2023.

The Department of Finance has announced the 2023 automobile deduction limits and expense benefit rates for businesses. The amounts have generally gone up because of high inflation in Canada.