Our new periodic newsletter, Tax Insights, will keep you up-to-date on a broad range of corporate and personal tax issues.
Tax Insights: Alberta hikes personal and corporate taxes 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.
Tax Insights: TCC’s decision in Kruger – Valuation of option contracts 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.
Tax Insights: US COOL – Hot topic for Canadian traders 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.
The Top 10 considerations if you're being audited by the CRA Are you are being audited by the Canada Revenue Agency? There are a number of key actions you can take to minimize the effort and time invested.
Tax Insights: Indirect tax deadlines – Ensure you comply If you are responsible for your company’s indirect tax obligations, ensure you meet the deadlines discussed in this Tax Insights.
Tax Insights: 2015 Manitoba budget – Tax highlights On April 30, 2015, Manitoba’s Finance Minister, Greg Dewar, delivered the province’s budget.
Tax Insights: 2015 Newfoundland and Labrador budget – High earners face tax hikes On April 30, 2015, Nova Scotia’s Finance Minister, Ross Wiseman, delivered the province’s budget.
Tax Insights: 2015 Ontario budget – Tax highlights On April 23, 2015, Ontario’s Minister of Finance, Charles Sousa, presented the province’s budget.
2015 Federal budget: A pre-election 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.
Tax Insights: 2015 Federal budget: Good news for foreign employers with frequent business travellers to Canada Foreign employers with non-resident employees temporarily working in Canada will welcome a 2015 federal budget proposal that provides relief from payroll withholding requirements.
2015 Federal Budget - Instant Reactions Our reactions and insights to the Federal Budget, tabled on April 21, 2015 by Federal Minister of Finance, Joe Oliver, are available here.
Tax Insights: 2015 Nova Scotia budget – Tax highlights On April 9, 2015, Nova Scotia’s Finance and Treasury Board Minister, Diana Whalen, delivered the province’s budget.
Tax Insights: 2015 New Brunswick budget – High earners face big tax hikes On March 31, 2015, Finance Minister, Roger Melanson, delivered New Brunswick's 2015 budget.
Tax Insights: 2015 Alberta Budget – Many Albertans to pay more On March 26, 2015, Alberta’s President of Treasury Board and Minister of Finance, Robin Campbell, presented the province’s budget.
Tax Insights: 2015 Quebec budget – Tax highlights 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.
Tax Insights: 2015 Quebec 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.
Tax Insights: 2015 Saskatchewan budget – Tax highlights 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.
Tax Insights: Reporting requirements for Canadians holding stock options in foreign corporations – Ensure you comply 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.
Tax Insights: Reporting obligations for labour organizations – Possible changes 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.
Tax Insights: 2015 Annual tax filing and remittance deadlines for corporations This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
Tax Insights: Consequences of a weak Canadian dollar: Transactions involving foreign affiliates 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.
Tax Insights: CBSA announces Phase 1 2015 audit priorities: What they mean for importers 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.
Tax Insights: QST tax alert for investment plan managers: Act now to fix reporting errors 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.
Tax Insights: GST/HST alert: Reinsurance premiums paid to non-resident related parties — An update 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.
Tax Insights: Valuation adjustments after importation: Bad and good news for importers 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.
Tax Insights – GST/HST and QST alert: Structuring management fee rebates and distributions 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.
Tax Insights: Canadian importers face higher customs duties – General Preferential Tariff (GPT) treatment ends for 72 countries 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.
Tax Insights – Estate tax update: Owning US securities (2015 edition) 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.
Tax Insights – Estate tax update: US family members in the Canadian family-owned business (2015 edition) Estate and will planning implications for US family members of Canadian family-owned businesses.
Tax Insights – Estate tax update: Canadians transferred to the US (2015 edition) US estate, gift and generation-skipping transfer tax exposure for Canadians transferred to the United States
Tax Insights – Estate tax update: Canadians living in the United States (2015 edition) This Tax Insights explains how the United States determines US residency for estate and gift tax purposes.
Tax Insights: Estate tax update – US estate tax exposure for Canadians (2015 edition) This Estate tax update considers the exposure of Canadian residents to US estate tax.
Tax Insights: Estate tax update – Owning a US vacation home (2015 edition) If you are a Canadian resident who owns US real estate, learn about your potential estate tax liability and how to reduce it.
Tax Insights – Estate tax update: US estate tax exposure for US citizens living in Canada (2015 edition) The interaction of US and Canadian tax rules can have important implications for US citizens living in Canada.
Tax Insights: Trading with Russia – Sanctions broadened for Canadian businesses in the oil exploration and production sector On December 19, 2014, the Canadian government amended the Special Economic Measures (Russia) Regulations to broaden Canada’s trade sanctions against Russia.
Tax Insights: TCC rules in taxpayer’s favour in SR&ED case (Les Abeilles) On October 23, 2014, the Tax Court of Canada (TCC) released its decision in Les Abeilles Service de Conditionnement Inc (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.
Fall 2014 Economic and financial update – Quebec 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.
Tax Insights: Outstanding legislative tax proposals announced before April 1, 2013 – Where do they stand? 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.
Tax Insights: GST/HST and QST elections for nil consideration – Form will have to be filed! 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.
Tax Insights: GST/HST and QST alert – Investors must issue notification of investor percentages – November 15, 2014 deadline 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.
Tax Insights: Regulation 102 processes – What has changed? 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.
Tax Insights: Income-splitting and other tax measures for families introduced Today, the federal government introduced three income tax measures intended to relieve the tax burden for families.
Tax Insights: British Columbia releases the Liquefied Natural Gas (LNG) Income Tax Act 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.
Tax Insights: Trust loss restriction rules – Proposed amendments 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.”
Tax Insights: Good news for US taxpayers with RRSPs or RRIFs 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.
Tax Insights: The new Extractive Sector Transparency Measures Act: What it means for you 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.
Tax Insights: New tax rules for testamentary trusts – The bad and the good (and some surprises) 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.
Tax Insights: Recommendations on countering treaty abuse – Where are we now? 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.”
Tax Insights: GST/HST reporting for the real estate sector: Are you compliant? The Canada Revenue Agency is auditing the GST/HST reporting of taxpayers in the real estate sector.
Tax Insights: More changes to Form T1135, ‘Foreign Income Verification Statement’ The CRA has announced changes for taxpayers required to file Form T1135, ‘Foreign Income Verification Statement.’
2014 Ontario budget: Higher taxes for higher earners and some corporations 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.
Tax Insights: GST/HST pension plan compliance obligations This Tax Insights discusses Goods and Services Tax/Harmonized Sales Tax compliance issues relevant to employers that have registered pension plans.
Tax Insights: Structuring a partnership: CRA attacks GST/HST-exempt treatment of partnership distributions 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.
Tax Insights: New IRS relief for US citizens living outside the US 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.
Tax Insights - June 2014 Quebec budget The Minister of Finance Carlos Leitao, tabled a budget mainly aimed at economic recovery and restoring sound public finances.
Tax Insights: June 2014 Quebec budget – Tax highlights Carlos Leitao, Quebec Minister of Finance, delivered today, June 4, 2014, the 2014/2015 Budget of the Government of Quebec.
Tax Insights: GST/HST issues affecting the real estate and construction industries This Tax Insights highlights Goods and Services Tax/Harmonized Sales Tax (GST/HST) issues relevant to the real estate and construction industries.
Tax Insights: Alert for multinational companies: Payroll and immigration compliance 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.
Tax Insights: Federal Court rules on 95(6)(b) in Lehigh 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.
Tax Insights: Tax Court of Canada finds corporate reorganization abuses section 84.1 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).
Tax Insights: 2014 Manitoba budget: Tax highlights On March 6, 2014, Manitoba’s Minister of Finance, Jennifer Howard, presented the province’s budget.
Tax Insights: Foreign Income Verification Statement (Form T1135) – Transitional rules announced 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.
Tax Insights: 2014 federal budget: The demise of immigration trusts 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.
Tax Insights: 2014 Quebec budget Budget 2014-2015 confirms a return to fiscal balance in 2015-2016.
Tax Insights: 2014 Quebec budget – Tax highlights Nicolas Marceau, Quebec Minister of Finance, delivered today, February 20, 2014, the 2014-2015 Budget of the Government of Quebec.
Tax Insights: Bare trusts, nominees and joint ventures: Temporary administrative leniency 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.
Tax Insights: British Columbia unveils its liquefied natural gas (LNG) tax Today, British Columbia’s budget unveiled its much-anticipated liquefied natural gas (LNG) tax regime.
Tax Insights: 2014 British Columbia budget - Tax highlights On February 18, 2014, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
Tax Insights: 2015 British Columbia budget – Tax highlights On February 17, 2015, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
Tax Insights: 2014 Annual tax filing and remittance deadlines for corporations This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
Tax Insights: 2014 Federal budget: How it affects you and the charitable and not-for-profit sector This Tax Insights considers proposals in Canada’s February 11, 2014 federal budget that affect the charitable and not-for-profit sector.
2014 Federal budget: More tightening, few tax breaks Read our analysis of the 2014 federal budget to learn about the tax implications for you.
Tax Insights: Trust loss restriction rules: Implications for funds and asset managers Newly enacted trust loss restriction rules may have unintended and adverse tax implications for investment funds established as trusts.
Tax Insights: New regulations for passive foreign investment companies: What they mean for Canadian mutual fund owners 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).
Tax Insights: BEPS – Where are we? This Tax Insights updates you on the status of BEPS and what to expect, and helps you deal with the changing environment.
Tax Insights: Taxable benefit rate declining to 1%: Don’t act until January 1, 2014 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.
Tax Insights: Supreme Court of Canada rules in favour of taxpayers in Québec ‘rectification’ cases 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.
Tax Insights: Alert for financial services industry: Measures of interest in Bill C-4 (2013 budget bill) 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.
Tax Insights: Canada’s new non-resident trust rules: What they mean for global equity plans 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.
Tax Insights: Improved processing for Regulation 102 and 105 waiver applications 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.
Tax Insights: SR&ED Form T661 revised: Claim preparer information required 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.
Tax Insights: Ontario increases personal taxes on some dividends and studies corporate tax incentives 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.
Tax Insights: New US Medical Device Excise Tax: What it means for your company 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.
Tax Insights: QST: Simplified method eliminated – What this means for large businesses 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.
Tax insights: Introduction of a refundable tax credit for the integration of Information Technologies in manufacturing SMEs (No. 2013-14) The objective of this new program from the Quebec Government is to support Quebec manufacturing companies that want to invest in technology and integrate IT in their business processes by offering a refundable tax credit pertaining to expenditures on qualified management software package.
Tax Insights: The Transalta case: Can stock plans be deductible in Canada? In Transalta Corporation v. The Queen, the Tax Court of Canada (TCC) found that shares issued under a performance share unit plan were a deductible corporate expense.
Tax Insights: Non-resident trust rules enacted: Transitional measures to consider Newly enacted rules for non-resident trusts include relief for NRTs that have property contributed by non-Canadian residents. If an NRT is eligible for this relief, an election must be made to obtain the benefit. Other transitional rules may also be available to an NRT.
Tax Insights: Taxable benefit rate rising to 2%: Act before October 1, 2013 The federal prescribed interest rate for taxable benefits will increase to 2% on October 1, 2013. The rate – which is subject to change every quarter – has been 1% since April 1, 2009. To lock in the 1% rate and save tax, you must act before October 1, 2013.
Tax Insights: Recent CRA practices deny Regulation 102 waiver requests Recent Canada Revenue Agency (CRA) practices have made it difficult for some non-resident employees working in Canada to obtain CRA waiver approval.
Tax Insights: Preventing treaty shopping: Finance seeks input on possible measures – Issue 2013-09 The Department of Finance has released a consultation paper on possible measures to prevent ‘treaty shopping.’ Comments must be submitted to Finance by December 13, 2013.
Tax Insights: More details needed on Foreign Income Verification Statement (Form T1135): Ensure you comply Taxpayers required to file Form T1135, 'Foreign Income Verification Statement,' must include additional information on foreign property, starting taxation years ending after June 30, 2013.
Tax Insights: Extension of and improvement to the TCEB until 2025 Extension of the refundable tax credit for the development of e-business (TCEB) to 2025, raising of the tax credit cap for eligible employees to the amount of $22,500, and clarifications regarding the activities that qualify for the purpose of issuing certificates for employees.
Tax Insights: Bill C-48 gets royal assent — Implications for Canadian companies with foreign affiliates This Tax Insights focuses on foreign affiliate measures in Bill C-48, Technical Tax Amendments Act, 2012, which received royal assent on June 26, 2013. It highlights some important dates.
Tax Insights: July 12, 2013 draft legislative proposals: Important implications for foreign affiliates Canadian corporations with foreign affiliates may be affected by draft legislative proposals released by the Department of Finance on July 12, 2013.
Tax Insights: British Columbia budget — June 2013 (Issue 2013-04) On Thursday, June 27, 2013, British Columbia’s Minister of Finance, the Honourable Michael de Jong, introduced the province’s post-election budget.
Tax Insights: Supreme Court of Canada ruling in Daishowa-Marubeni — Tax treatment of reforestation obligations on sale of forestry assets The Supreme Court of Canada ruled in favour of the taxpayer in Daishowa-Marubeni International Ltd. v. The Queen (DMI).
Tax Insights: Does your documentation reflect the five questions? To support a scientific research and experimental (SR&ED) claim, contemporaneous documentation should reflect the current 5-question assessment approach – a refinement of the three-criterion approach.
Tax Insights: Changes to Quebec's mining tax regime After several months of deliberation and uncertainty, the Quebec government has finally announced changes to its mining tax regime.
Tax memo: US federal payroll tax requirements: Action must be taken by June 30, 2013 (Memo No. 2013-16) Outlines a US program that gives employers a way to reduce US federal payroll tax penalties if they act before June 30, 2013.
2013 Ontario Budget On May 2, 2013, Ontario’s Minister of Finance, Charles Sousa, presented the province’s 2013 budget. The budget does not change corporate or personal income tax rates.
Tax memo: 2013 Manitoba budget (Memo No. 2013-14) On Tuesday, April 16, 2013, Manitoba’s Minister of Finance, Stan Struthers, presented the province’s 2013 budget, raising provincial sales taxes from 7 to 8 per cent.
Tax memo: 2013 Federal budget – Alert for mining companies (Memo No. 2013-13) This Tax memo outlines unexpected proposals in the 2013 federal budget that affect Canada’s mining industry.
Tax memo: Changes to GST/HST rules for pension plans (Memo No. 2013-12) Pension plan tax compliance could be simplified by proposals in the 2013 federal budget.
2013 Federal Budget: Full commentary Read our analysis of the 2013 federal budget to learn about the tax implications for you. The budget does not change corporate tax rates.
Tax memo: OECD paper on aggressive tax planning based on after-tax hedging (Memo No. 2013-10) An OECD report describes aggressive tax planning that is based on after-tax hedging, as well as strategies of tax authorities and the challenges they face.
Tax memo: British Columbia PST regulations released (Memo No. 2013-09) This Tax memo highlights significant provisions of the PST Regulation and the Exemption and Refund Regulation.
Tax memo: Tax-free savings accounts (TFSAs): Making the most of them (Memo No. 2013-08) This Tax memo helps you maximize the benefits and navigate the complexities of TFSAs.
Tax memo: Will your foreign-based transfer pricing documentation withstand CRA scrutiny? (Memo No. 2013-07) How to ensure your Canadian transfer pricing documentation meets CRA standards.
Tax memo: 2013 British Columbia budget (Memo No. 2013-06) Finance Minister Mike de Jong tabled B.C.'s budget on February 19, 2013, increasing both corporate and personal taxes.
Tax memo: RESPs: A user’s guide (Memo No. 2013-01) This Tax memo helps you navigate the complexities and maximize the benefits of RESPs.