Year-end tax planner – 2023: Helping individuals and owner-managed businesses save tax

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.

What's new?

Alternative minimum tax (AMT) – changes proposed to the AMT regime (rate and exemption amount increased and base broadened), for taxation years beginning after 2023 

Intergenerational business transfers (IBTs) – additional conditions proposed to ensure that only genuine IBTs are afforded preferential tax treatment, for transactions that occur after 2023 

Employee ownership trusts (EOTs) – new rules define and facilitate the use of an EOT to transfer ownership to employees, starting 2024 

Mandatory disclosure rules – for transactions entered into after June 21, 2023, enhanced rules for reportable transactions and new rules to report “notifiable transactions,” and, for taxation years beginning after 2022, new rules to report “uncertain tax treatments” 

“Green” investment tax credits (ITCs) – new refundable ITCs available for clean technology adoption, clean hydrogen production and clean technology manufacturing 

Electronic filing (e-filing) – mandatory e-filing for information returns filed after 2023, if more than five returns are submitted annually 

Tax-free savings account (TFSA) – annual TFSA contribution limit increased from $6,000 to $6,500 in 2023 

Tax-free first home savings account – new registered account available as of April 1, 2023 

Trusts – new reporting and filing requirements apply to taxation years that end after December 30, 2023 

Underused housing tax (UHT) – 2022 calendar year UHT return and payment deadlines extended to April 30, 2024 

Residential property flipping rule – profits arising from certain dispositions of residential properties owned for less than 12 months (including certain dispositions of a right to acquire a residential property within a one-year period) are deemed to be business income, starting in 2023 

Excessive interest and financing expenses limitation (EIFEL) – deductibility of interest and financing expenses limited for certain taxpayers, for taxation years beginning after September 30, 2023 

Small business corporate rates 

  • Saskatchewan – increased from 0% to 1% on July 1, 2023 and then increasing to 2% on July 1, 2024

Personal income tax rates 

  • Manitoba – taxable income brackets increasing in 2024 and indexed thereafter
  • New Brunswick – income tax rates decreased at all taxable income levels above the lowest taxable income bracket in 2023
  • Prince Edward Island – income tax rates and taxable income brackets changing and surtax to be eliminated in 2024
  • Quebec – lowest two income tax rates decreased in 2023
  • Saskatchewan – non-eligible dividends decreasing gradually from 2023 to 2025

Beneficial ownership registers 

  • provincial requirements for certain privately held companies to maintain ownership registers implemented in Nova Scotia (effective April 1, 2023), Ontario (effective January 1, 2023) and Saskatchewan (effective March 12, 2023); already implemented in most other provinces
  • Quebec requirement for most Canadian and foreign entities to disclose their “ultimate beneficiaries” to the Registraire des entreprises du Québec, effective March 31, 2023

Year-end tax planning checklists

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.

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Sabrina Fitzgerald

Sabrina Fitzgerald

National Leader for Private Clients, PwC Canada

Tel: +1 613 898 2113

Luigi De Rose

Luigi De Rose

Partner, Private Tax, PwC Canada

Tel: +1 905 418 3421

Nadja Ibrahim

Nadja Ibrahim

National Private Wealth Leader, PwC Canada

Tel: +1 403 509 7500

Jean-François Thuot

Jean-François Thuot

Partner, PwC Canada

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Dean Landry

Dean Landry

National Tax Leader, PwC Canada

Tel: +1 416 815 5090