The Year-end tax planner is designed primarily for individuals who have accumulated some wealth or own their own businesses (large or small). It includes nine year-end tax planning checklists and several tables of useful information.
Small business deduction – eligibility expanded, for taxation years beginning after April 6, 2022, to Canadian-controlled private corporations (CCPCs) with up to $50 million of taxable capital employed in Canada
CCPCs and substantive CCPCs – a private corporation that is not a CCPC could, in certain cases, be considered a “substantive CCPC” and treated similarly to a CCPC for purposes of its investment income taxation
Mandatory disclosure rules – enhanced rules proposed to apply to taxation years that begin, and transactions entered into, after 2022
Investment tax credit for carbon capture, utilization and storage (CCUS) – new refundable tax credit for eligible expenses relating to the purchase and installation of eligible CCUS equipment, starting 2022
Excessive interest and financing expenses limitation regime – deductibility of interest and financing expenses limited for certain taxpayers, for taxation years beginning after 2022
Tax-free first home savings account – new registered account proposed, starting in 2023
Underused housing tax – new annual 1% tax on the unproductive use of certain Canadian residential property owned by non-Canadians, effective January 1, 2022
Residential property flipping rule – profits arising from certain dispositions of residential properties owned for less than 12 months will be deemed to be business income, starting in 2023
Luxury tax – new tax on luxury vehicles, aircraft and vessels, effective September 1, 2022
Small business corporate rates
Personal income tax rates
Beneficial ownership registries – provincial requirements for certain privately held companies to maintain ownership registries implemented in New Brunswick (effective June 10, 2022), Newfoundland and Labrador (effective April 1, 2022) and Ontario (effective January 1, 2023); already implemented or planned in other provinces
Land transfer tax
Working with your PwC adviser is essential when considering the following year-end tax planning tactics. In addition to tax considerations, your financial plan should reflect investment philosophies, sound business practices and motivational goals. Owner-managers should ensure that sufficient funds are retained to meet business objectives; given the uncertainty in the economic environment, cash flow management is especially important.