Our new periodic newsletter, Tax Insights, will keep you up-to-date on a broad range of corporate and personal tax issues.
On July 22, 2016, the Department of Finance released “Consultation paper: Proposals for Consultation concerning the GST/HST treatment of Certain Limited Partnerships and Investment Plans,” which will be of interest to Canada’s asset management industry.
On June 22, 2016, the Federal Court of Appeal (FCA) released its decision in Kruger Incorporated v. Her Majesty the Queen. The FCA reversed the Tax Court of Canada’s decision on two significant issues.
In its recent decision in Gerbro Holdings Company v. The Queen, the Tax Court of Canada (TCC) refused to apply the offshore investment fund tax rules (in section 94.1 of the Income Tax Act (Canada)) to interests held by a Canadian investor in funds based in low- or no-tax jurisdictions—in this case five funds based in the Cayman Islands, the Netherlands Antilles and the British Virgin Islands.
On July 22, 2016, the Department of Finance released draft GST/HST legislative proposals that affect the “drop shipment” provisions in the Excise Tax Act. Most of the changes will apply to transactions occurring after July 22, 2016.
On July 29, 2016, the Department of Finance released for consultation draft legislative proposals implementing the 2016 federal budget measure that is intended to eliminate the tax-deferred switching of different classes of shares issued by a mutual fund corporation – commonly referred to as “switch funds.”
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.
Foreign purchasers of residential property in the Greater Vancouver Regional District will be liable for a new 15% property transfer tax. The new tax will apply on transfers registered after August 1, 2016, regardless of when the contract of purchase and sale was entered into. It will apply in addition to BC’s general property transfer tax.
The Canada Border Services Agency has released its Phase 2 (July), 2016 national trade verification (Audit) priorities.
The Canada Border Services Agency recently announced that many goods exported from Canada have not been reported in accordance with the Customs Act.
On June 20, 2016, Canada’s Finance Ministers have agreed in principle to work on a Canada Pension Plan (CPP) enhancement that would be effective starting January 1, 2019.
Harmonized Sales Tax rates will increase in three provinces – New Brunswick, Newfoundland and Labrador, and Prince Edward Island – in 2016. To be ready, businesses with operations or customers in these provinces should consider how they will be affected.
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.
Newfoundland and Labrador’s April 14, 2016 budget increases the provincial component of Harmonized Sales Tax, on July 1, 2016, from 8% to 10%, resulting in an HST rate of 15%.
On July 1, 2016, Ontario’s rate for certain businesses to recapture the provincial portion of Ontario HST claimed as input tax credits in respect of specified property and services will decline from 75% to 50%. The rate is being phased out over four years.
On May 31, 2016, Manitoba’s Minister of Finance, Cameron Friesen, presented the province’s budget
On April 15, 2016, the Department of Finance released draft legislative proposals to implement the Common Reporting Standard.
On September 17, 2015, the IRS released final and temporary regulations under Section 871(m) of the Internal Revenue Code that prescribe rules for treating “dividend equivalent payments” with respect to US equities as US-source dividend income.
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.
On April 14, 2016, Alberta’s President of Treasury Board and Minister of Finance, Joe Ceci, presented the province’s 2016 budget.
On April 14, 2016, the Minister of Finance and President of Treasury Board, Cathy Bennett, delivered Newfoundland and Labrador’s 2016 budget.
New Brunswick’s February 2, 2016 budget increases the provincial component of Harmonized Sales Tax (HST), on July 1, 2016, from 8% to 10%, resulting in an HST rate of 15%.
The March 22, 2016 federal budget provides relief related to GST/HST reporting of grandparented sales of new housing. This change allows the real estate industry to eliminate exposure to severe penalties for failure to properly report these sales.
On March 22, 2016, the federal government tabled its annual budget, which proposes implementing annual country-by-country reporting for Canadian-parented multinationals.
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.
Canada’s March 22, 2016 federal budget has confirmed the intention to proceed with proposed legislative changes to Canadian payroll withholding compliance requirements for non-resident employers with non resident employees working temporarily in Canada.
This Tax Insights discusses the tax initiatives proposed in the budget.
Our reactions and insights to the Federal Budget, are available here.
The honourable Carlos Leitao, Quebec Minister of Finance, delivered today, March 17, 2016, the 2016-2017 Budget of the Government of Quebec.
Canada’s income tax system encourages gifts by individuals to Canadian charities (and other qualified donees). Depending on your province or territory of residence, you can reduce your tax liability by up to 54% of the total amount you donate to registered charities in a year exceeding $200.
On January 15, 2016, the IRS released a draft of Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting, and draft Instructions for Form W-8BEN-E.
On February 25, 2016, Ontario’s Minister of Finance, Charles Sousa, presented the province’s budget.
On February 18, 2016, the Ontario Ministry of Finance introduced certain retroactive amendments to Regulation 70/91 under the Land Transfer Tax Act.
On February 16, 2016, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
Large corporations will not be required to remit Ontario retirement pension plan (ORPP) premiums until January 2018 – one year later than originally announced. The federal government will work with Ontario to facilitate ORPP administration.
The Ontario Retirement Pension Plan will be phased in starting January 1, 2017. To get ready, employers should determine whether they will be required to make contributions.
On February 2, 2016, Finance Minister, Roger Melanson, delivered New Brunswick's 2016 budget.
On January 15, 2016, the Department of Finance released for consultation draft legislative proposals that would amend the “trust loss restriction rules.” The proposals address certain concerns raised by the asset management industry with the currently enacted rules.
This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
Draft legislative tax proposals released for consultation by the Department of Finance on January 15, 2016, modify the rules for estate donations and spousal and common-law partner (and similar) trusts.
With Canada’s 2016 federal budget looming, we consider what tax measures our new government might have in store for us.
On January 12, 2016, the Canada Revenue Agency released its Non-Resident Employer Certification program for foreign employers with non-resident employees temporarily working in Canada.
The Canada Border Services Agency (CBSA) recently released its Phase 1, 2016 national trade verification (Audit) priorities.
This Tax Insights explains how the United States determines US residency for estate and gift tax purposes.
The interaction of US and Canadian tax rules can have important implications for US citizens living in Canada.
US estate, gift and generation-skipping transfer tax exposure for Canadians transferred to the United States.
This Tax Insights considers the exposure of Canadian residents to US estate tax.
This Tax Insights 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.
If you are a Canadian resident who owns US real estate, learn about your potential estate tax liability and how to reduce it.
Estate and will planning implications for US family members of Canadian family-owned businesses.
A Notice of Ways and Means Motion released by the Department of Finance on December 7, 2015, includes several tax changes that were not previously mentioned.
The Finance Minister confirmed that the top personal tax rate will increase on January 1, 2016. Find out what you might do to reduce the bite.
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%).
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, Manitoba’s Finance Minister, Greg Dewar, delivered the province’s budget.
On April 30, 2015, Nova Scotia’s Finance Minister, Ross Wiseman, 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.
On December 19, 2014, the Canadian government amended the Special Economic Measures (Russia) Regulations to broaden Canada’s trade sanctions against Russia.
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.