A recent amendment to the Ontario Business Corporations Act requires Ontario corporations to create and maintain a register of their ownership interests in land in Ontario. Corporations incorporated on or after December 10, 2016, must comply immediately. Other Ontario corporations have a two-year transition period.
On December 8, 2016, the Canada Revenue Agency released “Report on the Voluntary Disclosures Program” (VDP), which sets out recommendations of the Offshore Compliance Advisory Committee. The report states that the 11 recommendations are designed to “enhance and improve” the VDP.
On November 24, 2016, the Organisation for Economic Co-operation and Development (OECD) released the long-awaited Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, also described as the “multilateral instrument.”
The Canada Revenue Agency intends to expand its review of international electronic funds transfers (EFTs); in 2017-18 it will review 100,000 EFTs involving targeted jurisdictions. As a result of this strategic audit initiative, many taxpayers can expect an “EFT letter” next year as part of their increasing compliance burden.
Proposed GST/HST legislation released by the Department of Finance on July 22, 2016, has important implications for pension entities including those that use a master pension entity (i.e. master trust).
On October 27, 2016, the House of Commons Standing Committee on Finance released its report “The Canada Revenue Agency, Tax Avoidance and Tax Evasion: Recommended Actions.” The report summarizes the testimony received by the Committee during three hearings and includes 14 recommendations.
On July 22, 2016, the Department of Finance released draft GST/HST legislative amendments that affect pension plans, including those that use master trusts or master corporations. Although the new rules generally apply to fiscal years starting after July 22, 2016, some are retroactive to September 23, 2009. So, you should assess their implications now.
Two recent Supreme Court of Canada cases are the latest of recent developments reminding taxpayers that communications involving tax risks and strategy can be subject to privilege, and therefore do not have to be disclosed to the Canada Revenue Agency.
On July 1, 2016, Ontario’s rate for certain businesses to recapture the provincial portion of Ontario HST claimed as ITCs in respect of specified property and services will decline from 75% to 50%. The rate is being phased out over four years.
Subsection 55(2) of the Income Tax Act is a specific anti-avoidance rule aimed at "capital gain strips" and has been in the Act for over 30 years.
On March 22, 2016, the Federal Minister of Finance, Bill Morneau, presented the new majority government’s first budget. This Tax Insights discusses the tax initiatives proposed in the budget.
Newfoundland and Labrador’s 2016 budget increases the province’s HST rate to 15% on July 1, 2016, with the provincial portion of the HST increasing from 8% to 10%.
On April 11, 2016, the Honourable Diane Lebouthillier, Minister of National Revenue, outlined measures that the government will implement to combat what it perceives as “aggressive” tax avoidance – strategies that adhere to Canada’s tax laws but may contravene its intention – and tax evasion.
The March 22, 2016 federal budget announced measures concerning the application of GST/HST on reinsurance premiums that are paid to non-arm’s length non-resident insurers. These measures will apply to any year ending after November 16, 2005.
On February 18, 2016, the Ontario Ministry of Finance introduced certain retroactive amendments to Regulation 70/91 under the Land Transfer Tax Act (the Amendments). The Amendments disqualify trusts and partnerships from using the land transfer tax exemption that is available for transfers of a beneficial interest in land by way of certain transfers of partnership interests.
Newfoundland and Labrador’s Premier-designate, Dwight Ball, has confirmed that the province’s HST rate will remain 13%. The former government had planned to increase the rate to 15% on January 1, 2016 (i.e. the provincial portion of the rate was to increase from 8% to 10%).
The authors of this article argue that the Tax Court of Canada’s decision in George Weston Limited v. The Queen is a natural and expected result of 75 years of UK and Canadian jurisprudence on the treatment of foreign exchange gains and losses and gains and losses arising from hedging activity such as currency swaps and commodity futures trading.
Significant QST legislative amendments concerning investment plan managers received royal assent on October 21, 2015.
Distributed investment plans that are a selected listed financial institution are required to obtain information from investors to determine the plan provincial attribution percentage, so that the plan's GST/HST and QST liabilities can be calculated. Exchange-traded funds and exchange-traded series are excluded from this requirement.
This Tax Insights summarizes the changes to the recaptured input tax credit (RITC) reporting requirements.
The upstream loan rules announced on August 19, 2011 and enacted on June 26, 2013 require an analysis of all loans or indebtedness owing to foreign affiliates of a Canadian taxpayer.
This article discusses the treaty shopping proposals in the September 2014 Organisation for Economic Co-operation and Development (OECD) report and Canada’s 2014 federal budget, commenting on the direction that Canada may take to counter treaty shopping.
If you are responsible for your company’s indirect tax obligations, ensure you meet the deadlines discussed in this Tax Insights: Environmental fees, SLFI returns and Financial Institution GST/HST Annual Information Returns (GST 111), Election for nil consideration (Section 156 of Excise Tax Act), VAT refund related to expense report (non resident).
Whether this is the first time you have been selected for an audit, or you have undergone previous audits by the Canada Revenue Agency (CRA), there are a number of key actions by the taxpayer that can minimize the effort and time invested, reduce the potential for reassessment and allow you to exercise some control over the conduct of the audit.
Investment plan managers may need to act now to fix QST reporting errors. This affects investment plan managers that made tax transfer adjustment elections for GST/HST purposes with investment plans that allow the manager to effectively charge the plans a “blended rate” of GST/HST throughout the year.
The Department of Finance (Finance) has clarified its “policy intent” for determining the amount of GST/HST that is payable by Canadian-resident insurers on reinsurance premiums paid to non-arm’s length non-resident insurers.
The GST/HST and QST rules allow members of closely related groups to elect to treat certain taxable supplies made between the members as being made for nil consideration, if certain conditions are met. Generally, making this election gives the group a cash flow benefit.
Distributed investment plans are required to obtain information from investors to determine the plan’s provincial attribution percentage, so that the plan's GST/HST liabilities can be calculated in accordance with the selected listed financial institution (SLFI) GST/HST reporting rules. Exchange-traded funds and exchange-traded series are excluded from this requirement.
On October 20, 2014, the Department of Finance released a Notice of Ways and Means Motion to implement tax relief measures that include proposed amendments to the “trust loss restriction rules.”
Taxpayers engaged in international transactions should be aware of the work of the OECD/G20 Base Erosion and Profit Shifting Project, as well as Canada’s initiatives, to target what is perceived as treaty abuse, so that they can prepare for and respond to these developments.
The Canada Revenue Agency (CRA) is auditing the Goods and Services Tax/Harmonized Sales Tax (GST/HST) reporting of many taxpayers in the real estate sector. However, CRA Notice 284 grants taxpayers temporary relief for a bare trust or nominee that reports GST/HST on behalf of the members of a joint venture, but for periods ending before January 1, 2015 only.
This Tax Insights discusses Goods and Services Tax/Harmonized Sales Tax (GST/HST) compliance issues relevant to employers that have registered pension plans.
Incorrectly structuring the activities of a partnership can cause GST/HST deeming rules to apply; resulting in a GST/HST liability for person’s involved in the partnership’s business.
The Canada Revenue Agency (the “CRA”) has for many years been concerned with taxpayers who transfer commuted pension plan benefits to individual pension plans where such transfers result in significant surplus assets in the new plan and, in the CRA’s view, insignificant amounts of salary earned by the taxpayer.
The Inward Investment and International Taxation Review provides topical and current insights from leading experts on the tax issues and opportunities in their respective jurisdictions.
This Tax Insights highlights Goods and Services Tax/Harmonized Sales Tax (GST/HST) issues relevant to the real estate and construction industries relating to the Retail Sales Tax (RST) Transitional New Housing Rebate, GST/HST reporting (including Canada Revenue Agency (CRA) Notice 284), partnerships, documentary requirements to claim input tax credits (ITCs)
On April 23, 2014, the Federal Court of Appeal (FCA) released an important decision on the scope of paragraph 95(6)(b), an anti‑avoidance rule found in the part of the Income Tax Act (the Act) that governs the tax treatment of ‘foreign affiliates’ of Canadian corporations.
In a judgment (Descarries) rendered on March 7, 2014, under the Informal Procedure, the Tax Court of Canada provided an example of a situation where, in the Court’s view, the object and spirit of section 84.1 had been abused, triggering the application of the general anti-avoidance rule (GAAR).
This edition of Tax Insights looks at four anti-avoidance measures introduced in the 2013 federal budget of particular interest to the financial services industry. The proposed rules create fundamentally new tax concepts not previously seen in the Income Tax Act (Act). Many interpretive issues are likely to arise in the context of applying these rules, once enacted in Bill C-4. Taxpayers will have to make interesting and difficult determinations as to how and in what circumstances the rules are intended to apply.
The Supreme Court of Canada (SCC) ruled in favour of the taxpayer in Daishowa-Marubeni International Ltd. v. The Queen (DMI). The SCC released its unanimous decision today.