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.
COVID-19 response – emergency business supports (e.g. wage and rent subsidies and lockdown support programs) extended, but made more targeted after October 23, 2021; temporary hiring subsidy on eligible incremental remuneration introduced
Employee stock options – limits to restrict beneficial treatment of stock options, effective for options granted after June 30, 2021; the new rules do not apply to options granted by Canadian-controlled private corporations (CCPCs), or by corporations or mutual funds with gross revenue of $500 million or less
Intergenerational transfers – new rules intended to provide tax relief for intergenerational transfers of small businesses and family farm and fishing corporations enacted; legislative amendments (subject to public consultation) are expected to be proposed to prevent unintended tax consequences
Mandatory disclosure rules – enhanced rules for reportable transactions and new rules to report “notifiable transactions” and “uncertain tax treatments” proposed (subject to public consultation; expected to apply to taxation years that begin, and transactions entered into, after 2021)
Immediate expensing of capital property of CCPCs – up to $1.5 million per taxation year for eligible property acquired by CCPCs after April 18, 2021 proposed
Zero-emission technology manufacturers’ income – temporary reduction of corporate income tax rates (general and small business) on this income proposed, starting in 2022
Small business corporate rates
Personal income tax rates
Beneficial ownership registries – provincial requirements for privately-held companies to maintain ownership registries proposed in Newfoundland and Labrador and Ontario; already implemented or planned in other provinces
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.