Canada may proceed with a 100% surtax on selected U.S. imports in the first half of 2015.
Finance released draft legislation on the taxation of Canadian banks with foreign affiliates (FA) on February 27, 2014.
Despite dealing with many significant tax changes over the last few years, insurance companies are still facing new GST/HST and QST challenges.
New updated tables current to December 31, 2013 have now been added to the online version of Tax Facts 2013-2014.
British Columbia has re-introduced legislation to bring Pooled Registered Pension Plans (PRPP) to the province.
Despite dealing with many significant tax changes over the last few years, security dealers are still facing new GST/HST and QST challenges.
Despite dealing with many significant tax changes over the last few years, banks are still facing new GST/HST and QST challenges.
The CRA has announced it will stop using cheques by April 2016 and is encouraging businesses to sign up for direct deposit.
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the second quarter of 2014 (April 1- June 30, 2014) will remain unchanged.
The Department of Finance announced proposed GST/HST exemptions for qualifying public hospital parking on January 25, 2014.
The CRA has launched an informant's hotline as part of its Offshore Tax Informant Program, intended to focus on international tax evasion and aggressive tax avoidance.
Many employers that offer registered pension plans to their employees must calculate an amount of deemed GST/HST and QST, if applicable, and remit these amounts, in their monthly December 2013 GST/HST and QST returns.
The CRA recently announced that it would continue its policy of putting on hold the assessments and refunds of returns filed by taxpayers participating in gifting tax shelters until the audit of the gifting tax shelter is complete.
If you have a family income splitting loan, interest must be paid on these loans for 2013 to the lender by January 30, 2014 so that the attribution rules will not apply to investment income earned on the loans.
Ontario's Employer Health Tax Act has been amended to, among other changes, increase the exemption threshold so that it applies to employers with an annual payroll in excess of $450,000, as of January 1, 2014.
Finance released draft legislation to implement 2013 federal budget proposals to require certain financial intermediaries to report international electronic funds transfers of $10,000 or more to the CRA.
The Alberta Treasury Board and Finance recently announced that the 2014 provincial tax rate on non-eligible dividends will remain unchanged at 2013 levels.
Finance announced that there will be no changes to the automobile expense deduction limits and prescribed rates for determining the taxable benefit on auto operating expenses for businesses that will apply in 2014.
The CRA has confirmed that the quarterly prescribed interest rate used to determine the deemed interest income inclusion from a "pertinent loan or indebtedness" (PLOI) will be 4.94% for January 1, 2014 to March 31, 2014.
Bill 7, which increases the tax rate on non-eligible dividends to 38.74% (from 38.56%) effective January 1, 2014, received Royal Assent on December 6, 2013.
Bill C-4 containing the remaining tax measures from the 2013 federal budget, as well as certain other previously announced tax measures, received Royal Assent on December 12, 2013.
Corporations must now report revenue earned from webpages or websites on Schedule 88, "Internet Business Activities", as part of their T2 Corporation Income Tax Return.
Quebec has passed legislation to create voluntary retirement savings plans (VRSP), the province's version of pooled registered pension plans (PRPP).
Taxpayers have until December 31, 2013 to file taxpayer relief provision requests for the 2003 tax year.
Bill 47 to enact Manitoba's 2013 budget measures received Royal Assent on December 5, 2013.
Finance released draft legislation to provide transitional relief for taxpayers affected by the phase-out of the federal Labour-Sponsored Venture Capital Corporations (LSVCC) tax credit by 2017.
Quebec has announced in an information bulletin that it will harmonize with certain research and development (R&D) measures in the 2012 federal budget.
Quebec Bill 59, which enacts items and harmonization measures from various Information Bulletins, received first reading in the Quebec legislature on November 14, 2013.
The CRA has announced its 2014 contribution limits for Money Purchase Registered Pension Plans (RPP), Registered Retirement Savings Plans (RRSP) and Deferred Profit Sharing Plans (DPSP).
Quebec Bill 55, which contains amendments to Quebec's Mining Tax Act, received first reading in the Quebec legislature on November 12, 2013.
P.E.I's Bill 7, which will decrease the tax rate on non-eligible dividends by increasing the province's dividend tax credit applicable to non-eligible dividends effective January 1, 2014, received first reading on November 13, 2013.
British Columbia recently released 12 pages of amendments to the "Provincial Sales Tax Exemption and Refund Regulation" (Regulation).
The CRA recently revised Guide T4068, "Guide for the Partnership Information Return (T5013 Forms) - 2013", for 2013, including changes to the forms, schedules and slips.
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the first quarter of 2014 (January 1 - March 31) will all decrease by 1% as of January 1, 2014.
The CRA announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will increase to $52,500 (from $51,100).
The CRA released a revised version of Form T661, "Scientific Research and Experimental Development (SR&ED) Expenditures Claim", on October 31 2013.
Revenu Quebec has recently released additional information relating to the upcoming elimination of the 5% simplified method used by many large businesses to claim QST input tax refunds (ITRs) for employee expense accounts.
In a recent Information Bulletin, Quebec announces three new temporary refundable tax credits.
Bill C-4 to enact remaining tax measures from the 2013 federal budget, as well as "certain previously announced tax measures", received first reading in the House of Commons on October 22, 2013.
Finance tabled a Notice of Ways and Means Motion on October 18, 2013 to implement remaining tax measures from the 2013 federal budget, as well as "certain previously announced tax measures".
The CRA and provincial tax authorities appear to be increasing their indirect tax audit activities, including "desk audits".
Quebec has announced changes to the refundable tax credit for multimedia titles (general tax credit) and the refundable tax credit for corporations that specialize in the production of multimedia titles.
A recent CRA technical interpretation (TI) serves as a good reminder that amounts received out of a retirement compensation arrangement (RCA) are generally eligible for pension income splitting, effective for 2013 and subsequent taxation years.
The CRA has confirmed that the quarterly prescribed interest rate used to determine the deemed interest income inclusion from a "pertinent loan or indebtedness" (PLOI) will be 5.02% for October 1, 2013 to December 31, 2013.
Revenu Quebec has introduced new Form LM-15-V, "Voluntary Disclosure Application", for taxpayers who wish to rectify their tax situation on or after September 19, 2013.
We understand that the Canada Revenue Agency has started to assess the hefty penalty relating to the GST/HST annual information return that many large businesses and financial institutions (FIs) across Canada must file.
Finance released draft legislative proposals to implement certain outstanding measures originally announced in the 2013 federal budget on September 13, 2013.
Finance has corrected an unintended technical glitch in the credit union legislation in its September 13, 2013 draft legislative proposals.
Many businesses that sell products with packaging or printed paper in BC must provide data reports relating to upcoming new recycling obligations in BC by Sep 20, 2013 if they have signed agreements with the product stewardship agency Multi-Material BC.
Finance Minister Jim Flaherty announced on September 9, 2013 that the Employment Insurance (EI) premium rate for employees will be frozen for three years.
Carlene and Winnie alert us to an unintended technical glitch in the credit union amendments included in Bill C-60 (i.e., 2013 federal budget bill #1) as enacted on June 26, 2013.
The Department of Finance released a 48-page package of amendments that would implement changes to the exemption test and other life insurance policyholder taxation rules on August 23, 2013.
Certain organizations that qualify as a "municipal or public body performing a function of government in Canada", must register with the CRA by December 31, 2013 to begin or continue to be recognized as "qualified donee".
The CRA has officially confirmed that the revised Form T1135 applies to taxation years ending after June 30, 2013 and that, accordingly, old form T1135 will still be accepted for taxation years that ended prior to July 1, 2013.
Bill 2, which implements certain measures in British Columbia's 2013 budget including the increase in both personal and corporate tax rates, received Royal Assent on July 25, 2013.
The due date for the first Reportable Transaction Information Return (Form RC312) required under the new federal aggressive tax planning (ATP) reporting regime is October 23, 2013.
In a recent technical interpretation, the CRA confirms that disaster assistance payments made by the Government of Alberta, a municipality, or a public authority, to individuals for personal losses or expenses.
Quebec has released a new information bulletin that, among other changes, introduces harmonization measures with the 2013 federal budget now partly contained in the first federal budget bill, Bill C-60.
Finance has provided new transitional relief for the character conversion transaction rules that it proposed in the 2013 federal budget.
Quebec's Minister of Finance and Economy, Nicolas Marceau, announced on July 11, 2013 that the refundable tax credit for the development of e-business (TCEB) would be extended and indexed.
Quebec has announced new incentives for cultural donations, including non-refundable credits for significant contributions and measures to encourage taxpayers to donate artworks for display in public or educational spaces.
Importers of certain electronic goods such as MP3 players may be able to import these goods duty-free without the need for retailers to have their individual customers sign certificates about the end-use of these products.
The CRA announced that taxpayers affected by flooding in Alberta will have until August 2, 2013, to file their T2 returns.
The CRA has released a revised version of Form T1135 "Foreign Income Verification Statement" that appears more onerous to complete.
Bill C-48, the "catch-up bill" containing a large backlog of tax legislation, and Bill C-60, which implements certain measures announced in the 2013 federal budget, received Royal Assent on June 26, 2013.
The bills containing the 2013 budget income tax measures for New Brunswick, Nova Scotia and Prince Edward Island all recently received Royal Assent.
The CRA has announced that taxpayers unable to file their T2 returns by July 2, 2013 due to flooding in Alberta can apply to have any related interest and/or penalties waived or cancelled.
The CRA states that it will release a revised version of Form T661, "Scientific Research and Experimental Development (SR&ED) Expenditures Claim", in October 2013.
The federal government has announced the launch of its online consultation process for the 2014 federal budget to allow Canadians to express their views and priorities.
Legislation to enact certain tax measures in Ontario's 2013 budget, tabled as Bill 65, received Royal Assent on June 13, 2013, making these measures enacted for U.S. GAAP as of that date.
Manitoba announced in its 2013 budget on April 16, 2013 that the general rate of its retail sales tax (RST) will increase to 8% (from 7%) effective July 1, 2013.
Quebec has enacted Bill 18, which includes various items mentioned in the former Liberal government's March 2012 Quebec budget.
The Department of Finance has invited interested parties to submit their comments on its proposals to eliminate the tax benefits that arise from among other things, taxing testamentary trusts and certain estates at graduated tax rates.
A bill to enact Manitoba's 2013 budget measures received first reading in the provincial legislature on May 30, 2013.
Many businesses will have to file their first B.C. PST return on May 31, 2013. Are you ready?
The proposed general corporate tax rate increase to 11% (from 10%) announced in the Liberal's 2013 pre-election budget is still not considered substantively enacted for accounting purposes.
Finance has launched public consultations on the tax rules governing Labour-Sponsored Venture Capital Corporations (LSVCC) as part of the upcoming phase-out of the federal LSVCC tax credit, as announced in the 2013 federal budget.
A bill to enact New Brunswick's 2013 budget measures received first reading in the provincial legislature on May 22, 2013.
Large businesses in Ontario may continue to see restricted HST input tax credits past the date they are supposed to be phased out.
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the third quarter of 2013 (July 1 - September 30) will remain unchanged.
The Quebec Minister of Finance presented details of Quebec's new mining tax system on May 6, 2013.
The proposed federal and Ontario personal tax rate hikes on non-eligible dividends beginning on January 1, 2014 will have an important effect on the Ontario integration mechanism in 2014 and Ontario residents.
A bill to enact Prince Edward Island's 2013 budget received first reading in the provincial legislature on April 23, 2013.
Employers and registered pension plans may want to take advantage of two changes to the GST/HST pension plans rules announced in the 2013 federal budget that could reduce some employers' compliance requirements.
Finance released Bill C-60 (Budget Bill #1) on April 29, 2013 to implement certain measures announced in the 2013 federal budget.
The Federal Court of Appeal (FCA) recently made a decision in favour of the taxpayer in CAE Inc. v. The Queen (2013 FCA 92).
Manitoba tabled its 2013 budget on April 16, 2013. The budget increases the provincial sales tax rate to 8% (from 7%), starting July 1, 2013.
A bill to enact Nova Scotia's 2013 budget measures received first reading in the provincial legislature on April 18, 2013.
Companies that allocate their taxable income to permanent establishments in more than one province may need to change their calculations for their 2013 taxation years.
The CRA recently launched its Income Tax Folios publications. This new technical publication product updates information currently found in income tax interpretation bulletins and includes improved web functionality.
Securities dealers are in the midst of another round of changes to indirect tax laws and administrative policies.
In Randy J. Ollenberger v. The Queen (2013 FCA 74), the Federal Court of Appeal (FCA) allowed the taxpayer's appeal to claim an allowable business investment loss (ABIL) of over $300,000 for an uncollectible loan on his 2007 income tax return.
Banks are in the midst of another round of changes to indirect tax laws and administrative policies.
Insurance companies are in the midst of another round of changes to indirect tax laws and administrative policies.
The CRA has released guidance on its new Pooled Registered Pension Plans (PRPP), a new option for tax-effective retirement savings for employees of small businesses and self-employed individuals who don't already have a company pension plan.
The CRA confirmed that the 50% tax on prohibited investments applies where a RRSP or RRIF annuitant acquires a prohibited investment by exercising a warrant that is also a prohibited investment but that was acquired before March 23, 2011.
Taxpayers have only until March 1, 2013 to file an election to have transitional relief apply to advantages earned on prohibited investments held in a registered retirement savings plan (RRSP) on March 23, 2011.
Certain trusts, regardless of residency, may now have to file a Quebec income tax return according to a Quebec announcement.
The Workplace Safety and Insurance Board (WSIB) announced that as of January 1, 2013, new rules apply to companies and individuals doing construction in Ontario.
Business income trusts, resource trusts and REITs, collectively "Public Trusts", are required to post their T3 tax reporting information for unitholders on the CDS website within 60 days of the end of the calendar year.
In a recent technical interpretation (TI), the CRA states that a non-profit organization's (NPO) interest income earned on membership fee payment plans is considered to be income from property), and therefore subject to tax under Part I of the Act.
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the second quarter of 2013 (April 1- June 30, 2013) will remain unchanged.
The CRA has revised Guide T4033, "Completing the Registered Charity Information Return", to require charities to provide more details about their political activities, based on changes announced in the 2012 federal budget.
In Sunrise Realty Investments Limited v. The Queen, the Tax Court of Canada (TCC) allowed the taxpayer's appeal regarding the purchase price allocation of a property with land and a rental building.
Many financial institutions registered for QST purposes will soon have to start filing their QST returns with the CRA instead of the Quebec Revenu Agency (QRA).
Many corporations' tax directors and pension plan administrators working for employers with a December 31 year-end must calculate and remit a deemed GST/HST amount by January 31, 2013.
In a recent technical interpretation, the CRA confirmed that the debt forgiveness rules in section 80 apply on the inter vivos settlement of certain non-arm's length obligations.
The CRA has announced it will send educational and intent-to-audit letters to selected taxpayers as part of its "educational" outreach campaign.
The CRA recently released an internal technical interpretation (TI) in which it considers whether a corporation under CRA audit as part of its NPO project is exempt from income tax.
Labour organizations are now one step closer to being required to file annual information returns to report details of their expenditures and activities with the CRA.
Finance has announced that while the automobile expense deduction limits will not change in 2013, the prescribed rates for determining the taxable benefits on automobile operating expenses or allowances will increase in 2013.