Draft Information Circular – IC00-1R6 – Voluntary Disclosures Program (VDP), which was recently released by the Canada Revenue Agency for discussion purposes, proposes numerous changes that would significantly alter the VDP.
The Tax Court of Canada (TCC) in SLFI Group - Invesco Canada Ltd. considered the application of the financial service exemption for GST/HST purposes.
On June 1, 2017, the Minister of National Revenue (Minister) outlined how the government is addressing six of the 14 recommendations in the House of Commons Standing Committee on Finance report “The Canada Revenue Agency, Tax Avoidance and Tax Evasion: Recommended Actions.”
On March 30, 2017, the Federal Court of Appeal ruled that the Minister of National Revenue does not have “general and unrestricted access” to taxpayers’ identification of their uncertain tax positions.
On February 22, 2017, the Minister of National Revenue responded to the 14 recommendations in the House of Commons Standing Committee on Finance report “The Canada Revenue Agency, Tax Avoidance and Tax Evasion: Recommended Actions,” dated October 26, 2016.
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.
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.
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.