TSG (Tax Specialist Group)

'Offshore' And 'Illegal' Are Not Synonyms (Friday, May 03, 2013)
Offshore Planning; as long as Canadian tax rules are followed
Accumulating Corporate Wealth (Friday, March 15, 2013)
Owner-Manager Remuneration; The benefit of this strategy is in the use of the excess funds from business
Going Rogue (Friday, February 22, 2013)
CRA Processes; auditors do not seem to be evaluated based on the competence of their performance
Aggressive Owner-Manager Remuneration (Friday, January 25, 2013)
Owner Manager Remuneration; if it seems 'too good to be true', then it often is
Fiscal Cliff Averted But 'Fiscal Hill' Still Remains (Friday, January 11, 2013)
US Tax Update; Congress still has to deal with spending cuts
Insurance Trusts (Friday, December 28, 2012)
Insurance Trusts; An insurance trust is generally funded outside the estate
Family Employment Insurance (Friday, December 21, 2012)
Employment Insurance; the overall cost of EI premiums can be significant
Fiscal Cliff or Fiscal Hill – There is Still a Slope (Friday, December 07, 2012)
U.S. Taxes; Immediate action may be necessary to take advantage of the lower 2012 U.S. tax rates
CRA Update (Friday, November 30, 2012)
audits of HNW individuals still remain a high priority; CRA Update
Despite Proposed Changes, Scientific Research and Experimental Development (SR&ED) Still Provides Big Benefits for Small Businesses (Friday, November 23, 2012)
SR&ED; it is a good idea to review upcoming SR&ED expenditures and accelerate the spending
Changes to the 'Bump' Rules for Partnership Interests (Friday, November 16, 2012)
Partnerships; partnerships are still a useful vehicle
When It’s Not So Great to Donate (Friday, November 09, 2012)
Donation Schemes; The CRA will neither issue a refund nor assess the return
Will You be ABIL to Use Your Capital Gains Exemption? (Friday, November 02, 2012)
ABILs and the Capital Gains Exemption; It is important to remember the interaction of ABILs and the CGE
Uncommon RRSP Rollovers (Friday, October 26, 2012)
Retirement Plans; Rollovers of Retirement Plan funds are not only available to spouses or common-law partners
Bursaries and Scholarships (Friday, October 19, 2012)
Bursaries; Generally, bursaries are included in income and a deduction for the same amount is allowed
Third-Party Civil Penalty (Friday, October 12, 2012)
Penalties; this is not the last word on the matter
Proposed Changes to Thin Capitalization Rules (Friday, October 05, 2012)
Thin Capitalization Rules; in many cases a portion of existing debt can be converted to equity
Farm Losses (Friday, September 28, 2012)
Farm Losses; the SCC corrected its previous interpretation of the combination test
IRS Streamlined Filing Procedures (Friday, September 21, 2012)
Filing Procedures; These procedures became effective on September 1, 2012
Retiring Outside Canada? Don't Stay Tax Resident Here (Friday, September 14, 2012)
Retiring Outside Canada; Residency is based on common law and case law
Opting Out of Spousal Rollovers (Friday, September 07, 2012)
Spousal Rollovers; a taxpayer can opt out of this 'rollover' rule
Home Buyer's Plan Withdrawals (Friday, August 31, 2012)
HBP; The ability for a family member to use RRSP funds to assist a relative with a disability to purchase an accessible home is an opportunity that should not be overlooked
Coming to Canada with Stock Options (Friday, August 24, 2012)
Stock Options; it may be beneficial for non-residents to exercise their employee stock options before becoming resident
The Disability Tax Credit (Friday, August 17, 2012)
Tax Credit; Identifying eligibility for the DTC can result in thousands of dollars in tax refunds
Sale of property to a trust (Friday, August 10, 2012)
Sale of property to a trust; Tax practitioners often recommend the use of trusts
HST or GST and Associated Groups (Friday, August 03, 2012)
HST or GST; the small supplier limit is not measured based on taxable supplies in a fiscal year
Allowable Business Investment Losses – Some Good News (Friday, July 27, 2012)
Allowable Business Investment Losses; relief from some of the stringent administrative requirements
Home Renovations and Construction Cost may be Medical Expenses (Friday, July 13, 2012)
Home Renovations; certain alterations to a home or incremental construction costs may be eligible for METC treatment
New U.S. Filing Program (Friday, July 06, 2012)
U.S. Tax; the new procedures should provide some relief
Transfer of Properties on Separation & Divorce (Friday, June 29, 2012)
Separation and Divorce; It is also important to consider the various attribution rules that could apply
Tax Collection Across International Boundaries (Friday, June 15, 2012)
Tax Collection Across International Boundaries; most countries have legislation permitting the enforcement of foreign judgments
Relief for Eligible Dividends (Friday, June 08, 2012)
Relief for Eligible Dividends; These new rules should generally provide greater flexibility
The Capital Gains Exemption - Share Ownership Is Important (Friday, June 01, 2012)
Capital Gains Exemption - Share Ownership; In a typical family estate freeze, this anti-avoidance rule will not likely apply
New Rules Affect RRSP's and RRIF's Owning Shares of Private Companies (Friday, May 25, 2012)
New Rules Affect RRSP and RRIF's; The 'prohibited investment' rules... have significantly impacted RRSP and RRIF holdings of private company shares
Corporate ABIL's (Friday, May 18, 2012)
Corporate ABIL's; The type of investor can also impact
Post Mortem Pipeline Transactions (Friday, May 11, 2012)
Pipeline Transactions; Post Mortem Pipeline Transactions
Residence of Trusts (Friday, May 04, 2012)
Trusts; Residence of Trusts
Changes to Partnership Returns (Friday, March 16, 2012)
Partnership Returns; There are two changes in this revised version of T5013 that are worth noting
Early Exercise of Stock Options (Friday, March 09, 2012)
Stock Options; it is desirable to minimize the employment benefit and increase the potential capital gain
The 2012 Federal Budget (Friday, March 02, 2012)
Federal Budget; Your TSG members will be reviewing and analyzing the 2012 Federal Budget
New RRSP Investment Rules (Friday, February 17, 2012)
RRSP; Advisors should review these new rules with clients who are contemplating acquiring private company shares
RRSP Deductions (Friday, February 10, 2012)
RRSP; The timing of the RRSP deduction can result in significant tax savings
Joint Venture Fiscal Period Changes (Friday, February 03, 2012)
Joint Ventures; CRA Revises Joint Venture Administrative Policy
New 2012 OVDI for US Taxpayers (Friday, January 20, 2012)
OVDI for US Taxpayers; continuing to delay or ignore any catch up U.S. filings will only become more problematic
Dual Citizens Receive New Guidance from the IRS (Friday, January 06, 2012)
Dual Citizens; non-filers can take some comfort that they will not automatically be assessed late filing penalties if they bring their U.S. filings up to date once they are aware of their obligations
‘Tis the Season for Charitable Tax Shelters – Beware! (Friday, December 23, 2011)
Charitable Tax Shelters; If the charitable tax shelter seems too good to be true, it likely is
Canadian Residents Leaving Canada Permanently - A Key Tax Point (Friday, December 09, 2011)
Leaving Canada; The tax cost plus interest and penalties for non-reporting can be horrendous
Negative Adjusted Cost of Limited Partnership Interest (Friday, December 02, 2011)
Partnership Interest; Often the negative consequences can be avoided by delaying the distributions until after the partnership year-end
Health Care Spending Accounts (Friday, November 25, 2011)
Health; To qualify, the plan must be made available to all employees of the group plan
Deferred Payment of Tax on Death (Friday, November 18, 2011)
Tax on Death; The prescribed rate does not fluctuate over the deferral term
Child Care Expenses (Friday, November 11, 2011)
Child Care Expenses; amounts paid to grandparents could qualify
Personal Services Business Corporations Under Attack (Friday, November 04, 2011)
Personal Services; technical amendments will eliminate any current deferral opportunities with PSB's
Foreign Employees Working in Canada (Friday, October 28, 2011)
Foreign Employees; Waiver requests are not usually granted retroactively
Acquisitions of Control and Losses (Friday, October 21, 2011)
Tax Losses & AOCs; non-capital losses often include losses from property
Instalments After an Amalgamation or Wind-Up (Friday, October 14, 2011)
Instalments; Most tax preparation software does not update instalment schedules
Expansion of the Kiddie Tax Rules to Capital Gains (Friday, October 07, 2011)
Kiddie Tax; they would appear to apply to crystallization transactions
Principal Residence in a Trust (Friday, September 30, 2011)
Principal Residence Exemption; accessing the exemption through a trust is not always possible
Employees Profit Sharing Plan Trusts ("EPSPs") – Department of Finance Consultation Review (Friday, September 23, 2011)
EPSPs; the Department wishes to eliminate any mischief with the use of EPSPs
Section 84.1 Can Happen To You (Friday, September 16, 2011)
Paid-Up Capital; Section 84.1 assessments are a major cause of litigation
Schedule 91- More Than Just a Treaty Based Return (Monday, September 12, 2011)
Tax Exemption; We have found that the CRA is using schedule 91 as a screening tool
Charitable Remainder Trust (Friday, August 19, 2011)
Charitable Remainder Trust; the guaranteed current use of the donation receipt makes the donation to the CRT attractive
Attribution Rules (Friday, August 12, 2011)
Attribution; "second generation" income is not attributed back to the original transferor
Deadline Looms for Non-Compliant US Taxpayers (Friday, August 05, 2011)
US Filings; It is uncertain if the IRS will continue to assess in this manner.
Relying on Draft Legislation (Friday, July 29, 2011)
Proposed Legislation; CRA expects taxpayers to comply with draft legislation
Registered Disability Savings Plan (“RDSP”) (Friday, July 22, 2011)
Saving Plans; an individual will be able to carry forward unused grant and bond entitlements
GST/HST On Medical Fees (Friday, July 15, 2011)
GST/HST; GST/HST may apply to other services provided by a practitioner
Hiring Non-Residents for Temporary Employment in Canada (Friday, July 08, 2011)
Employment; The employer must calculate, withhold and remit tax based on the employee’s Canadian income
Testamentary Planning - The Power of a Dollar (Friday, June 24, 2011)
Testamentary Planning; This creative estate planning technique can create a legacy of significant tax savings
A New Playing Field for Waiver of Interest and Penalty (Friday, June 17, 2011)
Taxpayer Relief Measures; The ten-year rule refers to the years during which the interest accrued.
IRS Appears to Be Providing Some Relief to Innocent Non-Filers (Friday, June 10, 2011)
IRS; Penalties may be eliminated.
U.S. Tax Treatment of Tax-Free Saving Accounts (Friday, March 18, 2011)
Saving Accounts ; Income earned in a TFSA is taxable on a current year basis in the U.S.
Failure to Report a Capital Gain (Friday, March 04, 2011)
Capital Gains ; One can never know for sure which way the Tax Court will rule
Innocent Non-Compliant U.S. Tax Filers (Friday, February 18, 2011)
U.S. Tax Returns ; These changes will make it easier for the IRS to find citizens living in Canada
New IRS Offshore Voluntary Compliance Initiative (Friday, February 11, 2011)
IRS Offshore Voluntary Compliance ; The IRS believes the 2011 initiative offers clear benefits
Canadian Treatment of U.S. Roth IRA's Is Changing (Friday, February 04, 2011)
Roth IRA's; The election is invalid on a go-forward basis
Get A Grip (Friday, January 28, 2011)
CCPC Status; It may save time and effort for such a CCPC to be treated as a non-CCPC
Losing CCPC Status (Friday, January 21, 2011)
CCPC Status; it is important to plan in advance
Payroll Implications of an Amalgamation Are Different From Those of a Wind-Up (Friday, January 07, 2011)
Payroll; If these special deadlines are not met on the wind-up of the subsidiary into the parent, significant penalties can apply
Out Of Country Medical Expenses (Friday, December 17, 2010)
Medical Expenses; Experimental procedures that are not available locally can be eligible
Leaving Canada (Friday, December 10, 2010)
Emigrating; The Canada Revenue Agency has been attacking claims of Canadian non-residence
Alter Ego Trust as a Will Substitute (Friday, December 03, 2010)
Alter Ego Trusts; such trusts provide for incapacity planning
Acquisition of Control - Choose Your Trustees Carefully (Friday, November 12, 2010)
Acquisition of Control; It is uncertain whether the CRA’s policy is correct, as it has not been challenged in court
Impact of IFRS On Canadian Tax (Friday, October 22, 2010)
IFRS; IFRS would require a previously unnecessary tax adjustment
Unpaid Fees (Friday, October 08, 2010)
Fees; Even though late filing of the form is allowed, it comes with a tax cost
New Filing Requirements for Partnerships (Thursday, September 23, 2010)
Partnerships; Partnerships that never filed before may now have to
New Rules Regarding Stock Options (Tuesday, September 14, 2010)
Stock Options; Most employers will not want to elect out of the deduction
Section 116 Certificates & Section 212.1 (Tuesday, August 31, 2010)
S116 Certificate; relief from one provision of the ITA does not mean that other provisions will not still apply
Accessing The Capital Gains Exemption (Wednesday, August 25, 2010)
Capital Gains Exemption; initially structuring the business as a sole proprietorship or partnership... may allow for the $750,000 capital gains exemption
Making Maximum Use Of Charitable Donations On Death (Friday, August 13, 2010)
Charitable Donations; build flexibility into the deceased's Will
Capital Gains Realized On Emigrating From Canada (Monday, August 09, 2010)
Capital Gains; relief from the tax on departure may be available
Allowable Business Investment Losses And The Capital Dividend Account (Friday, July 30, 2010)
ABIL's, CDA; An ABIL claimed by a corporation reduces the corporation’s CDA
Non-Refundable Dividend Tax On Hand (Friday, July 09, 2010)
RDTOH; the result can be the equivalent of 'triple tax'
Spousal Trust Strategy (Friday, July 02, 2010)
Trusts; "asset-building" can be particularly effective
Alter Ego And Joint Partner Trusts (Friday, June 25, 2010)
Trusts; Such a trust can provide estate planning benefits
Traps In Crystallizations (Friday, June 18, 2010)
Crystallizations; potential pitfalls can result in unexpected, costly mistakes
Rental Property CCA Restriction Applies On Aggregate Basis (Friday, June 04, 2010)
Rental Property CCA Restriction; X will lose out on claiming $60 of available losses for the year
Change to Post Mortem Planning (Friday, May 28, 2010)
Post Mortem Planning; sometimes traditional planning techniques become outdated
Expanded Reporting Requirement For Foreign Assets (Friday, May 21, 2010)
Foreign Reporting; The penalty could apply on a per-item basis
Personal Service Businesses (Friday, May 14, 2010)
Personal Service Businesses; "the combined tax bill can be significantly lower than the tax on the salary would be"
Stock Option Tax Deferral Election (Friday, May 07, 2010)
Stock Options; The 2010 Federal Budget proposes to repeal the employee stock option tax deferral election
Transfers of Investments to Corporations (Monday, March 22, 2010)
Transfers; If Mr. X had retained and sold the investment, there would be no tax liability
Subsection 17(1) Income Inclusions (Friday, March 12, 2010)
Subsection 17(1); Loans to non-residents can cause income inclusions
Directors' Fees Paid to Non-Residents (Friday, February 26, 2010)
Directors' Fees; This withholding tax requirement is often overlooked
Scientific Research & Experimental Development (Friday, February 12, 2010)
SR&ED; Early identification and good documentation are critical
Severe Penalties for Not Reporting Foreign Property (Friday, February 05, 2010)
Foreign Reporting; Form T1135 includes a certificate of full disclosure to be signed by the taxpayer
U.S. Citizens in Canada (Friday, January 29, 2010)
Residency; U.S. status could eliminate many Canadian tax benefits
Canada Revenue Agency and Income Splitting Trusts (Friday, January 22, 2010)
CRA Trust Audit; The CRA has decided to actively audit domestic inter vivos trusts
Using an RRSP as Security (Friday, January 15, 2010)
RRSP; Using an RRSP as security for a loan may be a better alternative than cashing in the RRSP
Deductions for Tradespersons' & Apprentice Mechanics' Tools (Friday, January 08, 2010)
Deductions; Two deductions may be available to individuals
Unclaimed Capital Losses (Friday, December 18, 2009)
Capital Losses; Identifying unreported capital losses from prior years can result in significant tax savings
Electing Out of a Spousal Rollover on Death (Friday, December 11, 2009)
Spousal Rollover; The decision whether to elect out of the spousal rollover can be made on a share-by-share basis
Tax Savings For U.S. Residents Selling Canadian Capital Property (Friday, December 04, 2009)
Sale of Capital Property; Part of the gain may be exempt from Canadian tax
Funding The Testamentary Trust (Monday, November 16, 2009)
Testamentary Planning; When assets are jointly titled, they do not pass through the testator’s estate
Testamentary Planning (Friday, November 06, 2009)
Planning; You should consider creating a testamentary trust as part of your overall estate plan
Claiming Capital Losses (Friday, October 30, 2009)
Losses; It may be advisable for the lender to charge a reasonable rate of interest
CRA Announces Policy Changes for Employee Benefits (AMENDED Dec 17, 2009) (Friday, October 23, 2009)
Employee Benefits; The Canada Revenue Agency (CRA) has announced policy changes for taxable employment benefits for 2009
Election to Dispose of Property (Friday, October 16, 2009)
50(1) Election; There is no prescribed form for the 50(1) election
Reducing Tax Withheld at Source (Friday, October 09, 2009)
Source Deductions; 'it is a good idea to start the process now'
HST Planning For Ontario and British Columbia (Friday, September 25, 2009)
HST; Businesses that purchase equipment or other capital goods that bear RST in Ontario or British Columbia should consider strategies to reduce their RST
Inadvertent Transfer of Tax Liability (Friday, September 11, 2009)
Tax Liability; The transfer need not be made with the intention of avoiding a tax liability
Possible rebate for GST Paid on Certain Investment Management Fees (Monday, August 10, 2009)
Possible GST Rebate; Do not be surprised if the rebate claim is denied
Form 5471 Penalty (Friday, July 24, 2009)
Automatic Penalty; The $10,000 penalty will be assessed automatically against corporate taxpayers
Notices of Objection for Individuals (Friday, June 19, 2009)
Objections; A taxpayer can object to a notice of assessment even if the assessment agrees to what was filed
Fewer Taxpayers Required to File US Treasury Reporting Form (Monday, June 08, 2009)
US Treasury Reporting Form; The IRS announced that it is suspending the expanded definition of “a United States Person".
Canadian Individual Taxation Numbers (Friday, May 15, 2009)
ITN; The ITN is a nine-digit number issued by the CRA to non-resident individuals
Election for Accelerated CCA on Buildings (Friday, May 08, 2009)
CCA on Buildings; The eligibility for the higher CCA rate is not automatic
Source Deduction Waivers (Thursday, April 09, 2009)
Source Deductions; The CRA will authorize a reduction in tax withheld if deductions are properly supported.
Refunds of Withholding Tax (Friday, April 03, 2009)
Claiming Refunds of Withholding Tax; The credit for foreign taxes will likely be based on the treaty rate of 7% rather than 10%
Income Splitting (Friday, March 27, 2009)
Income Splitting Between Related Persons; Make sure the correct amount of interest is paid by January 30 each year
Health & Welfare Trusts (Friday, March 20, 2009)
Medical Expenses; Where expenses are significant, the savings outweigh the costs
Principal Residence Exemption (Friday, March 13, 2009)
Principal Residence Exemption; If you own more than one property, keeping track of expenses may help in determining which property to claim as the principal property
Payment of Capital Dividends (Friday, March 06, 2009)
Capital Dividends; It may be prudent to consider paying a capital dividend prior to realizing these losses.
To TFSA or Not To TFSA: That Is The Question (Friday, February 27, 2009)
Tax Credits; The rule of thumb is to invest in an RRSP and use the resultant tax savings to fund a TFSA contribution
Creditor Proofing (Friday, February 20, 2009)
Creditor Proofing; Equity may include inherent goodwill that is not reflected on the balance sheet
Non-Residents Can Use Subsection 164(6) (Friday, February 13, 2009)
Subsection 164(6); This election will not be available on property held in joint tenancy
The Tax-Free Savings Account (Friday, February 06, 2009)
Tax Credits; The TFSA program offers taxpayers an opportunity to earn investment income tax-free
Changes to US Treasury Department Reporting Requirements (Wednesday, January 28, 2009)
Reporting; You should be aware of the expanded base of those who are required to file these forms and the IRS’ stated zero tolerance policy
Timing of Acquisition of Control (Friday, December 05, 2008)
Acquisition of Control; The failure to elect out of subsection 256(9) can result in unintended results
Pension Income Can Be Split in Year of Death (Friday, November 28, 2008)
Pension Income; Eligible pension income relating to the portion of the year in which both spouses were alive can be split
Restrictive Covenants (Friday, November 07, 2008)
Restrictive Covenants; Don’t Ignore the Proposed Restrictive Covenant Legislation
Child Fitness Amount (Friday, September 19, 2008)
Child Fitness Amount; The CRA website may refer to the new requirements but the 2008 guides probably cannot be changed.
Personal Service Businesses (Friday, August 15, 2008)
PSB Rules; Be sure before concluding that the PSB rules do not apply
Transfer of Life Insurance to a Child (Friday, August 01, 2008)
Life Insurance; Transfer to the guardian for an incapacitated child will not be taxable
A Return to Partnerships (Friday, July 18, 2008)
Partnerships; Start the clock ticking by filing a T5013
Medical and Disability Related Matters (Friday, April 11, 2008)
Medical Credits; Opportunities for your clients
High Investment Income Reduces SR&ED Expenditure Pool (Friday, March 07, 2008)
SR&ED; Investment income can reduce a company's ability to claim refundable credits
Moving Expenses (Friday, February 08, 2008)
Moving Expenses; Complicated rules for a simple situation
Eligible Dividends And Real Estate Companies (Friday, January 25, 2008)
Eligible Dividends; Old rules of thumb need to be re-examined carefully
The Capital Gains Exemption And Incorporating Professionals (Friday, January 18, 2008)
Capital Gains Exemption; Sale of sole proprietor can be tax-free with planning
5th Protocol - Canada-US Income Tax Convention - Interest Withholding Tax - Non-Arm's Length (Friday, December 14, 2007)
5th Protocol; Elimination of withholding tax will apply to interest payments by Canadian residents to all non-residents, effective at the date that the similar provisions of the Protocol become effective
Wind-Up vs. Amalgamation: A Big Difference (Monday, December 10, 2007)
Wind-Up vs. Amalgamation; Whether an amalgamation or a wind-up is chosen, the tax consequences may be unintentionally different
New Info Circular on Voluntary Disclosures (Monday, December 03, 2007)
Voluntary Disclosure; The processing time of voluntary disclosures will be increased without the completion of Form RC199
Foreign Operations & The Capital Gains Exemption (Friday, November 23, 2007)
CGE - Foreign Companies; Shares of foreign corporations may render a corporation ineligible for the capital gains exemption
Fifth Protocol – Canada-U.S. Tax Treaty – Stock Options (Friday, November 09, 2007)
Stock Options; The revised Protocol provides a mechanism for allocating stock option income between the countries
Halloween Tricks 'n Treats - The Federal Economic Statement (Friday, November 02, 2007)
Federal Statement; Proper planning can result in benefits to both sides
Leasehold Inducements (Friday, October 05, 2007)
Leasehold Inducements; Tax treatment does not automatically follow the accounting treatment for leasehold inducements
Attribution of Property on Marital Breakdown (Friday, June 15, 2007)
Attribution - Separation & Divorce; Filing the appropriate elections is necessary to ensure that an unexpected result does not occur
Transfer of Properties on Separation & Divorce (Friday, June 08, 2007)
Transfers - Separation & Divorce; Proper planning can result in benefits to both sides
GAAR - Reasons For Transaction (Friday, March 16, 2007)
GAAR; Having a business transaction may preclude GAAR when tax is not the main motivation
New CRA Receipt Policy Worrisome To SR&ED Filers (Friday, March 09, 2007)
SR&ED - Filing; File early to allow CRA enough time to confirm all information has been provided
When CRA Does Not Like the Results, GAAR Is Applied (Friday, March 02, 2007)
GAAR, 84(2), 84.1; The CRA will use GAAR to overcome a decision they do not like
Be Careful if You Allocate Partnership Income Only to Reduce Tax (Friday, February 23, 2007)
Partnership Income - ss 103(1); The CRA can reallocate partnership income allocations when they consider the allocations tax motivated
Transit Pass Credit & Fitness Tax Credit (Friday, February 16, 2007)
Tax Credits; The transit pass credit is for 2006 and the fitness tax credit is for 2007
Separate Class for Rental Buildings (Friday, January 26, 2007)
CCA - Rental Properties; The allocation of purchase price is important on the purchase of rental properties
Attribution Rules - Spousal Loans (Friday, January 19, 2007)
Attribution - Spousal Loans; Attribution can be avoided on spousal loans in certain situations
Designation of Eligible Dividends - 2006/2007 (Friday, December 29, 2006)
Eligible Dividends; CRA gives guidance on 2006 and 2007 eligible dividend designations
Eligible Dividends - Years Prior To 2006 (Friday, December 22, 2006)
Eligible Dividends; Inter-company dividends must be reviewed carefully for years between 2000 and 2006
Penalty and Refund Changes (Friday, December 15, 2006)
Penalties & Refunds; Refunds could be unexpectedly withheld
Withholding Tax on Remuneration Paid to Non-Residents of Canada (Friday, December 08, 2006)
Withholding Tax; Without planning, non-resident employers could be subject to unexpected taxes
GST on Disbursements (Friday, December 01, 2006)
GST - Disbursements; Taxation of disbursements depends on whether the professional is an "Agent."
Sale of Shares Deemed Business Income (Friday, November 24, 2006)
Capital vs. Income - Shares; Facts are key to determine tax treatment of share sales, not the classification on the tax return
Government's Annoucement on Income Trusts & Pension Income (Friday, November 10, 2006)
Income Trusts & Pension Income; New rules for income trusts and pension income
Capital Cost Allowance - Separate Classes (Friday, November 03, 2006)
CCA; In some cases, assets can, or must, be placed in separate CCA classes
Rental Property - Capital Cost Restrictions (Friday, October 27, 2006)
CCA - Rental Income; Capital cost allowance on rental properties can be restricted to net rental income earned
Meals & Entertainment - 100% Deductible (Friday, October 20, 2006)
Meals & Entertainment; In some cases, meals and entertainment expenses can be 100% deductible
Capital Gain Reserves (Friday, October 13, 2006)
Capital Gain Reserves; Capital Gains are taxable over five or ten years depending on the timing of the proceeds and the asset sold
RRSP Ineligible Investments (Friday, October 06, 2006)
RRSP's; There can be a high cost to purchasing ineligible investments in an RRSP
Principal Residence - What Needs to be Filed (Friday, September 29, 2006)
Principal Residence; You do not need to complete T2091 unless there is a taxable gain
GAAR & International Tax Treaties (Friday, September 22, 2006)
GAAR - Treaties; CRA loses landmark case on application of GAAR to an International Tax Treaty
163(2) Gross Negligence Penalty (Friday, September 15, 2006)
Penalties; Can an accountant's gross negligence transfer to the client?
Ontario Response to Federal Dividend Tax Changes (Friday, September 08, 2006)
Dividends; Ontario has decided to gradually introduce the reduced dividend tax rate
Shareholder Benefits - Bookkeeping Errors (Friday, August 11, 2006)
Shareholder Benefits; Bookkeeping errors to the benefit of a shareholder are not always shareholder benefits
Loss Determinations (Friday, August 04, 2006)
Loss Determination; A loss determination cannot be used to claim losses not shown on the original tax return
Can You Be Resident in More Than One Place? (Friday, July 21, 2006)
Residency; An individual's residency often depends on his ties to a country
How Much Are Non-Monetary Benefits Worth? (Friday, July 14, 2006)
Section 160; In determining tax liability under s. 160, non-monetary transfers must be considered
Active Business Vs.Investment Business (Friday, July 07, 2006)
ABI vs. SIB; Past History and intention is relevant in determining if company carries on an active business
163(2) Ignorance Could Have Been Bliss (Friday, June 30, 2006)
Penalties; If you receive tax advice and disregard it, you are far more exposed for penalties
When is Debt Uncollectible Debt (Friday, June 23, 2006)
Bad Debts - 50(1); What is required to determine when a debt is uncollectible?
Eligibility for the Tuition Credit (Friday, June 16, 2006)
Tuition Credit; Do you need a physical presence to be eligible for the tuition credit?
Deductibility of Legal Expenses (Friday, June 09, 2006)
Legal Fees; Subsection 60(o) allows for the deductibility of legal payments for an objection or appeal for another person
Budget 2006 - Dividend Rates as Promised (Friday, May 05, 2006)
Budget; The 2006 Budget has clarified how eligible dividends will be defined
GST on Property Taxes Paid by Tenants (Friday, March 24, 2006)
GST; Do you have clients who have commercial tenants who pay property taxes directly to the municipality?
Professional Incorporation Update (Friday, March 17, 2006)
Professional Incorporation; Holding companies cannot be used to hold shares of a professional corporation
Fairness & Late Filing Penalties (Friday, March 10, 2006)
Penalties; Late-filing penalties were referred back to CRA because all taxes were paid
Stock Option Deductions (Friday, March 03, 2006)
Stock Options; Payments to an employment consultant are not permissible deductions from stock options
GAAR - Using Attribution to the Taxpayer's Benefit (Friday, February 24, 2006)
GAAR/Attribution; Using attribution to your benefit is not GAAR
Due Date of Corporate Taxes (Friday, February 10, 2006)
Corporate Taxes; The due date of corporate taxes depends on many factors
Professional Incorporation - Doctors' & Dentists' Family Members (Friday, February 03, 2006)
Professional Incorporation; There are new changes to the OBCA allowing family members to be non-voting shareholders
Allowable Business Investment Losses - Payments to Individuals in Trust for Companies (Friday, January 27, 2006)
ABIL's; Payments to individuals on behalf of companies may still be ABIL
Capital Dividend Account (CDA) and Eligible Capital Expenditures (ECE) - Beware (Friday, January 20, 2006)
CDA, ECE; CDA payments related to ECE cannot be paid until the next taxation year
Withholding Tax Rates to Non-Resident Trusts & Their Beneficiaries (Friday, January 13, 2006)
Withholding Tax; The CRA has revised their policy on payments to non-resident trusts
First GAAR Case After Supreme Court Decision (Friday, December 16, 2005)
GAAR; The Evans case clarifies the practical application of GAAR
New Dividend Rates (Friday, December 02, 2005)
Dividends; The new dividend tax rates will affect owner/manager clients
SR&ED/Stock Option #2 (Friday, November 25, 2005)
Stock Options; Proposed Amendments to deny stock option benefit in ITC calculation
Fairness Provisions (Friday, November 18, 2005)
Fairness Provisions; If CRA does not consider all facts, the courts are willing to reverse their decisions
Association - Control in Fact (Friday, November 11, 2005)
Association; Control in fact must be determined by considering all relevant factors
When is an Amount Paid in Order to Be a Deduction? (Friday, November 04, 2005)
Deductions; Can a taxpayer deduct an amount he didn't pay directly?
Change of Control - Trustees (Friday, October 28, 2005)
Change of Control; A change of trustees could result in a change of control
CCA & Beneficial Ownership (Friday, October 21, 2005)
Beneficial Ownership; Ownership by a spouse does not preclude CCA and related expenses if paid by the taxpayer
Voluntary Disclosure - On a No-Name Basis (Friday, October 14, 2005)
Voluntary Disclosure; There is a 90-day limit to disclose the taxpayer's name
U.S. Companies Investing in Canada (Friday, September 30, 2005)
US Inbound Investing; Be aware of using U.S. LLC's to hold shares in Canadian companies
Stock Option Deferral - Cost Base Calculations (Friday, September 23, 2005)
Stock Options; Detailed records are necessary to calculate the cost base of stock option deferral shares
Employees Profit Sharing Plans (Friday, September 16, 2005)
Employee Benefits; EPSP's do not work in all situations
SR&ED Claim for Stock Option Benefit (Friday, September 09, 2005)
SR&ED/Stock Option; Stock option benefit can be used for ITC calculation
When a Hotel Is Not a Lodge - 18(l) (Friday, August 12, 2005)
Definition of Lodge; The CRA lost their argument that country hotels are lodges
Analysis of "Arm's Length" (Friday, August 05, 2005)
Arm's Length; CRA lost in its approach that any transactions that reduce taxes must be between non-arm's length taxpayers
Residency Test - Allchin Revisited (Monday, July 25, 2005)
Residency; Tax Court forced to take a second look at this case
Alberta Unlimited Liability Company ("ABULC") (Friday, July 15, 2005)
US Investors; ABULC's are cost-effective alternatives to NSULC's
Federal Court Makes Decision on Voluntary Disclosures (Monday, July 11, 2005)
Voluntary Disclosure; No-names basis submission that was accepted by CRA cannot be disregarded by CRA afterwards if facts have not changed.
Salaries & Bonuses To Family Members (Friday, June 10, 2005)
Salaries & Bonuses; In-kind payments are acceptable and so are large bonuses to non-shareholder family members.
Personal Health Service Plans - The Story Continues (Friday, June 03, 2005)
Health Plans; The health plan must be available to employees, not just shareholders.
Professional Corporations - Doctors and Dentists (Friday, May 27, 2005)
Corporations; New rules allow for non-family members to be shareholders.
Dividend Refund in Statute-Barred Years Cannot Be Adjusted (Friday, April 15, 2005)
Dividend Refund; If a corporate taxpayer received a dividend refund in a statute-barred year, the CRA cannot adjust it.
Were They Thinking? (Friday, April 08, 2005)
Child Tax Benefits; Unfortunately, sometimes a case has to go to Court for the obvious result.
Application of Fairness Provision in Court (Friday, April 01, 2005)
Fairness Provision; The fairness guidelines issued by CRA do not apply to the Courts.
The Price of Not Reporting Stock Options (Friday, March 25, 2005)
Stock Options/Penalties; A taxpayer is required to include the proper amount in income even if no slip has been issued.
Contractor Vs. Employee (Friday, March 18, 2005)
Contractor vs. Employee; This issue requires a review of all relevant factors.
Tax-Free Spousal Transfer (Friday, March 11, 2005)
Spousal Transfer; In order for a special transfer to be tax-free, the assets must vest in the surviving spouse.
Terminal Losses For Estates (Friday, March 04, 2005)
Losses; Terminal losses in the first year of an estate can be applied in a terminal return.
Using Stop-Loss Rules To Your Benefit (Friday, February 25, 2005)
Stop-Loss Rules; Spousal transfers can result in transfer of cost base.
Deferral of Tax Payments on Death (Friday, January 28, 2005)
Tax Payments on Death; If the proper elections and arrangements are made, tax payments on death can be deferred.
All or Substantially All - What Does It Mean? (Friday, January 21, 2005)
Terminology; CRA's interpretation may not be same as the Tax Court's.
U.S. Corporate Filing Requirements (Friday, January 14, 2005)
U.S. Filing; Treaty protection does not mean there are no US tax filings.
Revised Stop-Loss Rules For Post Mortem Planning (Friday, January 07, 2005)
Stop Loss Rules; Proposed rules allow post mortem estate planning.
2005 Tsunami Donations Can Be Used in 2004 (Friday, January 07, 2005)
Charities; Donations must be to certain charities only, before January 12, 2005.
Large Corporations Tax Issue (Friday, December 10, 2004)
Large Corporations Tax; Un-presented cheques should not be included in taxable capital.
Single Purpose Corporations - New Proposals (Friday, December 03, 2004)
Shareholder Benefits, US Estate Tax; CRA has issued a new administrative policy on single purpose corporations that own US property.
CRA Disputes (Friday, November 19, 2004)
CRA Disputes; Information available for a notice of objection.
Allowable Business Investment Losses (Friday, November 12, 2004)
ABIL; Issues To Consider.
Fairness Rules - December 2004 Deadline (Friday, November 05, 2004)
Fairness Rules; All files should be checked.
Registered Education Savings Plans (Friday, October 22, 2004)
RESP's; RESP's - a good vehicle to save for a child's education.
Residency Test (Friday, October 15, 2004)
Residency; Tax treaties should be considered in determining whether an individual is resident in Canada.
Deductibility of Management Bonus (Friday, October 08, 2004)
Management Bonus; Be aware of CRA policy on deductibility of management bonuses.
Withholding Tax For Services Done - By Non-Residents in Canada (Friday, September 24, 2004)
Withholding Tax; A 15% withholding tax may be payable for services rendered in Canada.
Deemed Association (Friday, September 17, 2004)
Association; Shares held by trusts or minors could have adverse results for association purposes.
Attribution That Works (Friday, September 03, 2004)
Attribution; Low Prescribed Rates Allow for Income Splitting.
Evidence Required (Friday, August 06, 2004)
Documentary Evidence; Sometimes evidence accepted by Courts is different from the CRA.
Personal Health Service Plans and Shareholder Benefits (Friday, July 30, 2004)
Shareholder Benefits/PHSP's; There could be shareholder benefits and non-deductible payments for PHSP's.
Disassociating Companies (Friday, July 23, 2004)
Association; Using a specified class of shares can disassociate companies.
Foreign Social Security Taxes As Foreign Tax Credits (Friday, July 16, 2004)
Foreign Tax Credits; For countries other than U.S., the foreign social security taxes are no longer a tax credit.
Single Purpose Corporations (Friday, July 09, 2004)
Loans; CRA has changed its administrative position for companies owning U.S. real estate.
Loans To Family Members (Friday, July 02, 2004)
Loans; Certain conditions are necessary to claim capital losses on loans to family members.
Overpayment of U.S. Taxes May Prohibit Claim of Foreign Tax Credit (Friday, June 25, 2004)
Foreign Taxes; Taxpayers must ensure that they only pay the withholding rate per the treaty
Supreme Court Decision - Gifford (Friday, June 18, 2004)
ECE & Interest Expenses; This Supreme Court case is relevant for the purchase of intangible assets and interest deductibility
Death Benefits (Friday, June 11, 2004)
Death Benefits; Tax-free payments are permitted in certain situations.
Subsection 75(2) - Planning To Avoid (Friday, June 04, 2004)
Trusts; It is important to carefully draft trusts to avoid unwanted results.
Alternative To Alter-Ego Trusts (Friday, May 28, 2004)
Trusts; Self Benefit trusts may help those under 65 in dealing with probate fees
Planning For the 21-Year Deemed Disposition Rule (Friday, May 21, 2004)
Trusts; Planning is required before the deemed disposition rules apply
Partnerships - Not Statute-Barred If No T5013 Filed (Friday, April 02, 2004)
Partnerships; Filing a Partnership Return
Ensures Partnership Income becomes
Statute-Barred
Claiming Losses on Shares or Debt (Friday, March 26, 2004)
Claiming Losses on Shares or Debt; Shares or debt of corporations can be claimed as a loss.
Professional Corporations - Year Ends (Friday, March 19, 2004)
Professional Corporations; It is possible to restructure to allow a professional corporation to use the alternative method.
Financing Fees / Borrowings - Partnership (Friday, March 12, 2004)
Financing Fees; When interest is deductible within a partnership and financing fees wind up after.
Change in Use / Principal Residence (Friday, March 05, 2004)
Change in Use; Be Aware of Changing a Principal Residence to Investment Property or Vice Versa
Donations Schemes - Some Reasonable Conclusions (Tuesday, February 24, 2004)
Donations Schemes; Klotz Case Reviews Art Flips to Charities
Employee Benefits (Friday, January 23, 2004)
Employee Benefits; Free Meals and Gifts
Proposed Charitable Donation Rules (#2) (Friday, January 16, 2004)
Proposed Charitable Donation Rules (#2); Advantages Received by the Donor
Proposed Charitable Donation Rules (#1) (Friday, January 09, 2004)
Proposed Charitable Donation Rules (#1); Government has limited access to donation receipts.
Year-End Tax Planning Considerations (Friday, December 19, 2003)
Year-End Tax Planning Considerations; Year-End Tips
Review of Capital Loss Rules (Wednesday, December 17, 2003)
Review of Capital Loss Rules; Year-End Planning Considerations
Definition of Common Law Spouse (Friday, November 28, 2003)
Definition of Common Law Spouse; Living together makes you married for tax purposes.
Reserves (Friday, November 21, 2003)
Reserves; Circumstances where reserves cannot be claimed are extended.