Our new periodic newsletter, Tax Insights, will keep you up-to-date on a broad range of corporate and personal tax issues.
With December 31, 2015 just around the corner, we share 10 GST/HST and QST tips that you should consider now.
We are pleased to share with you a letter from the Department of Finance that comments on concerns relating to new tax rules for spousal, common-law, alter ego and joint partner trusts that apply starting January 1, 2016.
The federal Liberal party has pledged to cap the amount that employees can claim through stock option deductions, although “employees with up to $100,000 in annual stock option gains will be unaffected.” Details on how and when this change will be made are not yet known.
On November 2, 2015, Ontario released draft regulations that limit eligibility for the Ontario Interactive Digital Media Tax Credit (OIDMTC).
Significant QST legislative amendments concerning investment plan managers received royal assent on October 21, 2015
On October 27, 2015, Alberta’s President of Treasury Board and Minister of Finance, Joe Ceci, presented the NDP government’s first budget.
Now that the results of Canada’s federal election are in, let’s look at Liberal party promises that can affect taxpayers and steps you can take to save tax
Changes to the tax treatment of trusts that apply starting January 1, 2016, have stimulated a lot of interest. A key change eliminates graduated tax rates for testamentary trusts and estates unless certain conditions are met.
Every time you cross the border into the United States you could be getting closer to a US filing requirement.
This Tax Insights focuses on the Alberta insurance premiums tax, but also considers taxes imposed by other provinces and the territories relating to offshore insurance, which can include insurance purchased through a broker or insurer outside a province or territory, and the federal excise tax.
Distributed investment plans that are a selected listed financial institution are required to obtain information from investors to determine the plan’s 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.
The Canadian mining industry will be affected by draft legislative proposals released by the Department of Finance on July 31, 2015.
As expected, Alberta’s NDP government has not proceeded with the level of personal tax increases, health levy and other tax initiatives proposed by its Conservative predecessors.
On July 31, 2015, the Department of Finance released draft legislative proposals (July 31 proposals), which modify 2015 federal budget measures that provide foreign employers with non-resident employees temporarily working in Canada relief from payroll withholding requirements.
The Canada Border Services Agency (CBSA) recently released its Phase 2 (July) 2015 national trade verification (Audit) priorities. Phase 1 2015 audit priorities were released January 2015.
This Tax Insights summarizes the changes to the recaptured input tax credit (RITC) reporting requirements.
On May 26, 2015, the Tax Court of Canada (TCC) released its decision in Kruger Incorporated v. Her Majesty the Queen. The TCC considered whether Kruger was entitled, in computing its income for the 1998 taxation year, to deduct $91 million relating to a “mark-to-market” adjustment on unrealized foreign exchange option contracts, some of which Kruger had written, and others it had purchased. Kruger also submitted that it held the options as inventory and could therefore carry them at fair market value.
The World Trade Organization’s (WTO) Appellate Body recently released its final report, upholding previous findings that the US Country of Origin Labelling (COOL) measures violate WTO trade rules and unfairly discriminate against beef and hog products imported into the United States.
On April 30, 2015, Nova Scotia’s Finance Minister, Ross Wiseman, delivered the province’s budget.
On April 30, 2015, Manitoba’s Finance Minister, Greg Dewar, delivered the province’s budget.
Overall, with respect to immigration law, the Canadian government announced that it remains committed to reforming the Temporary Foreign Worker Program and ensuring that Canadians are first in line for available jobs.
On April 23, 2015, Ontario’s Minister of Finance, Charles Sousa, presented the province’s budget.
On April 21, 2015, the Federal Minister of Finance, Joe Oliver, presented the majority government’s budget. This Tax Insights discusses the tax initiatives proposed in the budget.
Foreign employers with non-resident employees temporarily working in Canada will welcome a 2015 federal budget proposal that provides relief from payroll withholding requirements.
Our reactions and insights to the Federal Budget, tabled on April 21, 2015 by Federal Minister of Finance, Joe Oliver, are available here.
If you are responsible for your company’s indirect tax obligations, ensure you meet the deadlines discussed in this Tax Insights.
On April 9, 2015, Nova Scotia’s Finance and Treasury Board Minister, Diana Whalen, delivered the province’s budget.
On March 31, 2015, Finance Minister, Roger Melanson, delivered New Brunswick's 2015 budget.
The Minister of Finance, Carlos Leitao, confirmed in his Budget Speech today that fiscal balance will be restored in 2015-2016. Here are the highlights of the 2014-2015 budget.
The honourable Carlos Leitao, Quebec Minister of Finance, delivered today, March 26, 2015, the 2015 2016 Budget of the Government of Quebec. Below are the highlights of the most important tax measures included in the budget.
On March 26, 2015, Alberta’s President of Treasury Board and Minister of Finance, Robin Campbell, presented the province’s budget.
On March 18, 2015, Saskatchewan’s Minister of Finance, the Honourable Ken Krawetz, presented the province’s budget. The budget does not increase corporate or personal income tax rates, but does curtail certain tax incentives.
The CRA recently issued a technical interpretation that clarifies the reporting requirements for Canadian employees who hold awards to acquire shares in foreign corporations. Ensure you comply to avoid penalties.
Draft legislation – introduced as a Private Member’s Bill – would significantly expand the information that labour organizations (including labour trusts) must report to the Canada Revenue Agency.
This <em>Tax Insights</em> outlines some of the more common corporate compliance requirements to be considered at this time of year.
With the substantial depreciation of the Canadian dollar against its American counterpart, many taxpayers have accrued foreign exchange gains or losses on assets or liabilities denominated in US dollars.
The Department of 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 Canada Border Services Agency (CBSA) recently significantly changed its policy with respect to downward price adjustments and how they apply to declared value calculations for imported goods.
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 Canada Border Services Agency (CBSA) recently released its Phase 1, 2015 national trade verification (Audit) priorities. Phase 2, 2015 Audit priorities, will be released summer of 2015.
The Tax Court of Canada’s recent decision in Invesco Canada Ltd. confirms that asset managers can structure fee arrangements with mutual fund trusts and institutional investors in a manner which only requires the asset manager to collect GST/HST (or QST) on the net management fee that is payable by the mutual fund trust to the manager.
On January 1, 2015, the Canadian federal government withdrew the General Preferential Tariff (GPT) treatment benefits from 72 developing countries (including China) on imports into Canada. As a result, Canadian importers may now be paying more duty on certain imports.
This <em>Tax Insights</em> discusses the application of estate tax to US securities and helps you to hold US securities in a tax-effective way, for example, by using a Canadian holding company.
Estate and will planning implications for US family members of Canadian family-owned businesses.
US estate, gift and generation-skipping transfer tax exposure for Canadians transferred to the United States
The interaction of US and Canadian tax rules can have important implications for US citizens living in Canada.
This Tax Insights explains how the United States determines US residency for estate and gift tax purposes.
This Estate tax update considers the exposure of Canadian residents to US estate tax.
If you are a Canadian resident who owns US real estate, learn about your potential estate tax liability and how to reduce it.
On December 19, 2014, the Canadian government amended the Special Economic Measures (Russia) Regulations to broaden Canada’s trade sanctions against Russia.
On October 23, 2014, the Tax Court of Canada (TCC) released its decision in <strong>Les Abeilles Service de Conditionnement Inc</strong> (in French only). The TCC overturned the Canada Revenue Agency’s position that the four projects under dispute were not scientific research and experimental development.
Minister of Finance Carlos Leitão presented his Fall 2014 Economic and Financial Update and states that the government action will help restore sound public finances in Québec.
As required by Canada’s Financial Administration Act, the Department of Finance recently provided Parliament a list of tax proposals that were announced before April 1, 2013, but have not yet been passed into law.
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 GST/HST reporting rules.
Employers who send employees to work in Canada must comply with Canadian payroll regulations. This can involve various processes, such as applying for Canadian tax identification numbers and for tax withholding waivers, remitting taxes and issuing T4 slips.
The Extractive Sector Transparency Measures Act requires public disclosure of government payments made by mining and oil & gas entities engaged in the commercial development of oil, gas and minerals.
Today, the federal government introduced three income tax measures intended to relieve the tax burden for families.
Today, British Columbia introduced the much-awaited Liquefied Natural Gas Income Tax Act (the LNG Act) which provides important new details, including a reduction in the tax rates, an investment allowance for computing net operating income subject to tax, complex transfer pricing rules and deeming provisions.
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.”
A recent US Internal Revenue Service announcement (Rev. Proc. 2014-55) makes it easier for Americans and Canadians who hold interests in registered retirement savings plans or registered retirement income funds to get favourable US tax treatment.
This Tax Insights provides an overview of recent OECD/G20 and domestic initiatives that review and recommend approaches to counter treaty abuse, including “treaty shopping.”
Draft legislative proposals released by the Department of Finance on August 29, 2014, have important implications for estates and testamentary trusts, and for post mortem tax planning.
The Canada Revenue Agency is auditing the GST/HST reporting of taxpayers in the real estate sector.
For many Canadians, the opportunity to avoid a harsh winter by fleeing to the southern United States is irresistible. But some may have overlooked important tax implications.
On July 14, 2014, Ontario’s Minister of Finance, Charles Sousa, presented the majority government's budget. The July 14, 2014 budget reintroduces the tax measures proposed in the province’s May 1, 2014 budget.
The CRA has announced changes for taxpayers required to file Form T1135, ‘Foreign Income Verification Statement.’
This Tax Insights discusses Goods and Services Tax/Harmonized Sales Tax 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.
On June 18, 2014, the US Internal Revenue Service announced changes to its offshore voluntary compliance programs that are expected to significantly increase the number of US persons that can participate in these programs.
The Minister of Finance Carlos Leitao, tabled a budget mainly aimed at economic recovery and restoring sound public finances.
Carlos Leitao, Quebec Minister of Finance, delivered today, June 4, 2014, the 2014/2015 Budget of the Government of Quebec.
This Tax Insights highlights Goods and Services Tax/Harmonized Sales Tax (GST/HST) issues relevant to the real estate and construction industries.
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 that governs the tax treatment of ‘foreign affiliates’ of Canadian corporations.
Cross-border employee travel into Canada raises various Canadian tax withholding and immigration compliance requirements. Multinational companies should consider whether they have the processes and controls in place to manage these requirements and the associated risks.
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).
On March 6, 2014, Manitoba’s Minister of Finance, Jennifer Howard, presented the province’s budget.
Taxpayers required to file Form T1135, Foreign Income Verification Statement, must include additional information on foreign property, starting for taxation years ending after June 30, 2013.
Budget 2014-2015 confirms a return to fiscal balance in 2015-2016.
Nicolas Marceau, Quebec Minister of Finance, delivered today, February 20, 2014, the 2014-2015 Budget of the Government of Quebec.
Canada’s February 11, 2014 federal budget proposes to eliminate the tax benefits of immigration trusts. If you have relocated to Canada, this change could have adverse tax consequences.
On February 18, 2014, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
Today, British Columbia’s budget unveiled its much-anticipated liquefied natural gas (LNG) tax regime.
On February 17, 2015, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
This Tax Insights considers proposals in Canada’s February 11, 2014 federal budget that affect the charitable and not-for-profit sector.
A recent Canada Revenue Agency announcement grants taxpayers a temporary reprieve for a bare trust or nominee that reports the Goods and Services Tax/Harmonized Sales Tax on behalf of the members of a joint venture.
Read our analysis of the 2014 federal budget to learn about the tax implications for you.
Newly enacted trust loss restriction rules may have unintended and adverse tax implications for investment funds established as trusts.
This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
Temporary and final regulations recently issued by the Internal Revenue Service (IRS) and Treasury Department provide guidance for owners of passive foreign investment companies (PFICs).
This <em>Tax Insights</em> updates you on the status of BEPS and what to expect, and helps you deal with the changing environment.
The federal prescribed interest rate for taxable benefits will decrease to 1% on January 1, 2014. The rate – which is subject to change every quarter – is currently 2%. To lock in the 1% rate and save tax, you must not act until January 1, 2014.
Rectification cases are of interest to the tax community because the truth is, mistakes happen. Sometimes the only solution is to attempt to rectify the legal steps. At common law, rectification is an equitable remedy that may be available through the superior courts of the common law provinces.
Newly enacted non-resident trust (NRT) rules will likely create tax liabilities and filing requirements for global equity plans that use foreign trusts and have Canadian-resident participant employees.
This 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.
According to Ontario’s fall economic statement, presented today by Finance Minister Charles Sousa, the government will study an incentive that rewards research and development (R&D) incremental spending and “pay or play” tax incentives.
On October 31, 2013, the Canada Revenue Agency released revised Form T661, Scientific Research and Experimental Development Expenditures Claim, which contains new Part 9 – Claim preparer information. The revised form is required for claims filed starting January 1, 2014.
A recent change announced by the CRA means that some non-residents who perform services in more than one location in Canada may send their Regulation 102 or Regulation 105 waiver applications to a Tax Services Office that has been designated as an International Waivers Centre of Expertise.
Since January 1, 2013, manufacturers, producers and importers of medical devices have been liable for a 2.3% US federal excise tax, known as the Medical Device Excise Tax (MDET), on sales made in the US.
Starting January 1, 2014, large businesses can no longer use the simplified method (5%) to calculate input tax refunds (ITRs) in respect of expense reimbursements and allowances paid to employees.