Our new periodic newsletter, Tax Insights, will keep you up-to-date on a broad range of corporate and personal tax issues.
This Tax Insights outlines the three announcements made this week by Finance Minister Bill Morneau on the private company tax proposals. The most recent – made today – is that the government will not proceed with measures “relating to the conversion of income into capital gains.”
On October 18, 2017, Finance Minister Bill Morneau made his second announcement of the week on the private company tax proposals. He confirmed that the government will "move forward with measures to limit the tax deferral opportunities related to passive investments” but added that $50,000 of passive income annually will be exempt.
On October 16, 2017, Prime Minister Justin Trudeau and Finance Minister Bill Morneau made announcements concerning the private company tax proposals. Read this Tax Insights to learn more.
October 2, 2017 was the deadline for submissions on the July 18, 2017 proposals that target tax planning using private corporations. Public response was overwhelming. The Department of Finance (Finance) received over 21,000 submissions, including PwC’s. On October 3, 2017, Finance issued a press release outlining its next steps.
The IRS recently issued Notice 2017-46, which provides guidance to Model 1 IGA financial institutions (FIs) required to obtain and report US taxpayer identification numbers (TINs) related to US reportable accounts, and to FIs required to collect foreign TINs from non-US account holders for accounts maintained at a US office or branch.
On September 26, 2017, Nova Scotia’s Finance and Treasury Board Minister, Karen Casey, delivered the province’s 2017 post-election budget. The budget reintroduces the tax measures that had been in Nova Scotia’s April 27, 2017 budget.
Distributed investment plans (DIP) that are a selected listed financial institution (SLFI) are required to obtain information from investors to determine the plan’s 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.
Draft legislative proposals released by the Department of Finance on September 8, 2017, deem management and administrative services provided by a general partner to an investment limited partnership to be a GST/HST taxable service, requiring the general partner to collect GST/HST on the fair market value of the service.
On September 11, 2017, British Columbia’s Minister of Finance, Carole James, presented the New Democratic Party’s first provincial budget.
On August 14, 2017, Ontario’s Minister of Environment and Climate Change, Chris Ballard, issued a letter directing Stewardship Ontario and the Resource Recovery and Productivity Authority to prepare an amended Blue Box Program Plan by February 15, 2018.
The Canada Border Services Agency has released its 2017 Phase 2 (July) national trade verification (Audit) priorities.
Legislative proposals released on July 18, 2017, target three tax planning strategies that, in the government’s view, use private corporation to gain unfair tax advantages for high-income individuals.
Canada and the European Union have agreed that the Canada-EU Comprehensive Economic and Trade Agreement will provisionally apply starting September 21, 2017.
The Canada-Ukraine Free Trade Agreement will enter into force on August 1, 2017, creating new trade opportunities for Canadian importers and exporters.
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.
The 2017 Spring Reports of the Auditor General of Canada, released May 17, 2017, signals that changes affecting compliance and reporting obligations for the trade community could be looming.
On June 1, 2017, the Minister of National Revenue 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.
Saskatchewan Bill 70, The Provincial Sales Tax Amendment Act, 2017 (royal assent May 17, 2017), implements most of the PST changes introduced in the province’s March 22, 2017 budget, as well as other PST measures that have important implications for the natural resource extractive and construction industries.
The Canada Revenue Agency has revised its position on employer deductions for share plans that settle in stock.
On April 27, 2017, Ontario's Minister of Finance, Charles Sousa, presented the province’s budget.
The Common Reporting Standard (CRS) for automatic information exchange becomes effective July 1, 2017, in Canada. To help you be ready, this Tax Insights discusses recent CRA and Organisation for Economic Co-operation and Development guidance concerning the Foreign Account Tax Compliance Act and the CRS.
Foreign purchasers of residential property in the Greater Golden Horseshoe will be liable for a new 15% non-resident speculation tax.
On April 11, 2017, Manitoba's Minister of Finance, Cameron Friesen, presented the province’s budget.
As a result of legislative amendments, Canadian-resident insurers may be able to recover the GST/HST self-assessed on the “loading” portion of non-arm’s length cross-border reinsurance premiums paid for the 2005 to 2016 fiscal years.
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 March 28, 2017, Quebec's Finance Minister, Carlos Leitao, delivered the province's budget.
If your company concluded a conditional remuneration service agreement with a service provider for preparing a Quebec tax credit claim of $25,000 or more, ensure Form TP-1079.DI-V “Mandatory or Preventative Disclosure of Tax Planning” has been filed for tax operations that were completed after March 25, 2015. If this was not done, you have until April 8, 2017, to file the form and avoid penalties.
Saskatchewan’s March 22, 2017 budget includes important changes for insurers and brokers, including individual health and life policy providers.
On March 22, 2017, Saskatchewan's Finance Minister, Kevin Doherty, presented the province’s budget.
On March 17, 2017, BC announced relief from its 15% foreign buyers’ property transfer tax.
This Tax Insights discusses the tax initiatives proposed in the 2017 Canadian federal budget.
This Tax Insights outlines the current US income tax rules. These rules apply to all Canadians. The immigration proposal contemplates changes to the Internal Revenue Code to accommodate the extended stay.
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.
Quebec Information Bulletin 2017-3, released on February 21, 2017, provides tax relief in three ways. This Tax Insights discusses the details.
On February 21, 2017, British Columbia’s Minister of Finance, Michael de Jong, presented the province’s budget.
On February 7, 2017, New Brunswick's Finance Minister, Cathy Rogers, delivered the province's budget.
This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
This Tax Insights considers the exposure of Canadian residents to US estate tax.
Canada’s reputation as a great place to live and do business attracts immigrants from around the world. If you’re thinking of moving to Canada, this Tax Insights will tell you what you need to know about Canadian income tax.
The Canada Border Services Agency (CBSA) has released its 2017 Phase 1 (January) national trade verification (Audit) priorities
The election of Donald Trump as 45th President of the United States could result in significant changes to U.S. trade policy that may ultimately impact Mexican, Canadian, and U.S. businesses trading with each other.
During the 2016 Canadian Tax Foundation Conference, the CRA stated that the payment of investment management fees in respect of registered plans, such as RRSPs, RRIFs or TFSAs, by a plan annuitant or holder will, in most cases, create an “advantage.”
On December 8, 2016, the CRA released “Report on the Voluntary Disclosures Program,” which sets out recommendations of the Offshore Compliance Advisory Committee.
With Canada’s 2017 federal budget looming, we consider what tax measures our government might have in store for us.
On November 24, 2016, the 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 2016 Fall Reports of the Auditor General of Canada examines whether the Canada Revenue Agency (CRA) has efficiently managed income tax objections.
The CRA 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).
Bill C-29, Budget Implementation Act, 2016, No. 2, which received first reading on October 25, 2016, significantly expands the back-to-back rules for non-resident withholding tax.
Today, Ontario delivered its 2016 Economic Outlook and Fiscal Review.
Alberta’s carbon levy will be imposed starting January 1, 2017. On November 3, 2016, Alberta released regulations that fill in the details on the levy’s administrative regime, including the collection and remittance process and how the levy will apply to various sectors.
The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) was signed on October 30, 2016, in Brussels. The CETA covers a broad ranges of trade issues and has important implications for both EU and Canadian importers, exporters and investors.
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.”
Bill C-29, Budget Implementation Act, 2016, No. 2, which received first reading on October 25, 2016, includes measures that affect the asset management industry
Compliance reviews and other updates.
Starting with the 2016 taxation year, if you sell your principal residence, you will be required to report certain information on your income tax return for the sale to be tax-free.
“To improve tax fairness for Canadian homeowners,” the Department of Finance released a Notice of Ways and Motion today that targets trusts and non-residents owning residential property
On September 16, 2016, the Department of Finance released draft legislative proposals relating to technical amendments to the Income Tax Act and Income Tax Regulations that could have important tax implications for international transactions.
Distributed investment plans that are a selected listed financial institution are required to obtain information from investors to determine the plan’s 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.
On July 22, 2016, the Department of Finance released “Consultation paper: Proposals for Consultation concerning the GST/HST treatment of Certain Limited Partnerships and Investment Plans,” which will be of interest to Canada’s asset management industry.
On June 22, 2016, the Federal Court of Appeal (FCA) released its decision in Kruger Incorporated v. Her Majesty the Queen. The FCA reversed the Tax Court of Canada’s decision on two significant issues.
In its recent decision in Gerbro Holdings Company v. The Queen, the Tax Court of Canada (TCC) refused to apply the offshore investment fund tax rules (in section 94.1 of the Income Tax Act (Canada)) to interests held by a Canadian investor in funds based in low- or no-tax jurisdictions—in this case five funds based in the Cayman Islands, the Netherlands Antilles and the British Virgin Islands.
On July 22, 2016, the Department of Finance released draft GST/HST legislative proposals that affect the “drop shipment” provisions in the Excise Tax Act. Most of the changes will apply to transactions occurring after July 22, 2016.
On July 29, 2016, the Department of Finance released for consultation draft legislative proposals implementing the 2016 federal budget measure that is intended to eliminate the tax-deferred switching of different classes of shares issued by a mutual fund corporation – commonly referred to as “switch funds.”
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.
Foreign purchasers of residential property in the Greater Vancouver Regional District will be liable for a new 15% property transfer tax. The new tax will apply on transfers registered after August 1, 2016, regardless of when the contract of purchase and sale was entered into. It will apply in addition to BC’s general property transfer tax.
The Canada Border Services Agency has released its Phase 2 (July), 2016 national trade verification (Audit) priorities.
The Canada Border Services Agency recently announced that many goods exported from Canada have not been reported in accordance with the Customs Act.
On June 20, 2016, Canada’s Finance Ministers have agreed in principle to work on a Canada Pension Plan (CPP) enhancement that would be effective starting January 1, 2019.
Harmonized Sales Tax rates will increase in three provinces – New Brunswick, Newfoundland and Labrador, and Prince Edward Island – in 2016. To be ready, businesses with operations or customers in these provinces should consider how they will be affected.
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.
Newfoundland and Labrador’s April 14, 2016 budget increases the provincial component of Harmonized Sales Tax, on July 1, 2016, from 8% to 10%, resulting in an HST rate of 15%.
On July 1, 2016, Ontario’s rate for certain businesses to recapture the provincial portion of Ontario HST claimed as input tax credits in respect of specified property and services will decline from 75% to 50%. The rate is being phased out over four years.
On May 31, 2016, Manitoba’s Minister of Finance, Cameron Friesen, presented the province’s budget
On April 15, 2016, the Department of Finance released draft legislative proposals to implement the Common Reporting Standard.
On September 17, 2015, the IRS released final and temporary regulations under Section 871(m) of the Internal Revenue Code that prescribe rules for treating “dividend equivalent payments” with respect to US equities as US-source dividend income.
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.
On April 14, 2016, Alberta’s President of Treasury Board and Minister of Finance, Joe Ceci, presented the province’s 2016 budget.
On April 14, 2016, the Minister of Finance and President of Treasury Board, Cathy Bennett, delivered Newfoundland and Labrador’s 2016 budget.
New Brunswick’s February 2, 2016 budget increases the provincial component of Harmonized Sales Tax (HST), on July 1, 2016, from 8% to 10%, resulting in an HST rate of 15%.
The March 22, 2016 federal budget provides relief related to GST/HST reporting of grandparented sales of new housing. This change allows the real estate industry to eliminate exposure to severe penalties for failure to properly report these sales.
On March 22, 2016, the federal government tabled its annual budget, which proposes implementing annual country-by-country reporting for Canadian-parented multinationals.
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.
Canada’s March 22, 2016 federal budget has confirmed the intention to proceed with proposed legislative changes to Canadian payroll withholding compliance requirements for non-resident employers with non resident employees working temporarily in Canada.
This Tax Insights discusses the tax initiatives proposed in the budget.
Our reactions and insights to the Federal Budget, are available here.
Canada’s income tax system encourages gifts by individuals to Canadian charities (and other qualified donees). Depending on your province or territory of residence, you can reduce your tax liability by up to 54% of the total amount you donate to registered charities in a year exceeding $200.
On January 15, 2016, the IRS released a draft of Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting, and draft Instructions for Form W-8BEN-E.
On February 25, 2016, Ontario’s Minister of Finance, Charles Sousa, presented the province’s budget.
On February 18, 2016, the Ontario Ministry of Finance introduced certain retroactive amendments to Regulation 70/91 under the Land Transfer Tax Act.
On February 16, 2016, British Columbia’s Minister of Finance, the Honourable Michael de Jong, presented the province’s budget.
The Ontario Retirement Pension Plan will be phased in starting January 1, 2017. To get ready, employers should determine whether they will be required to make contributions.
On January 15, 2016, the Department of Finance released for consultation draft legislative proposals that would amend the “trust loss restriction rules.” The proposals address certain concerns raised by the asset management industry with the currently enacted rules.
Draft legislative tax proposals released for consultation by the Department of Finance on January 15, 2016, modify the rules for estate donations and spousal and common-law partner (and similar) trusts.
This Tax Insights outlines some of the more common corporate compliance requirements to be considered at this time of year.
With Canada’s 2016 federal budget looming, we consider what tax measures our new government might have in store for us.
The Canada Border Services Agency (CBSA) recently released its Phase 1, 2016 national trade verification (Audit) priorities.
On January 12, 2016, the Canada Revenue Agency released its Non-Resident Employer Certification program for foreign employers with non-resident employees temporarily working in Canada.