Highlights of the 2013 Ontario BudgetToday Ontario Finance Minister Charles Sousa delivered the province’s 2013 budget. The budget anticipates a deficit of $9.8 billion in 2013 and $11.7 billion in 2014. EU Financial Institutions Face New Reporting RulesFinancial institutions in the European Union will soon have to begin country-by-country reporting of tax payments made to governments, and will also have to comply with stronger bank solvency and liquidity requirements and a cap on bankers' bonuses. FIs — Preview FATCA Registration FormFinancial institutions have an opportunity to review and provide comments on a draft registration-process form for the U.S. Foreign Account Tax Compliance Act (FATCA). OECD Comments on After-Tax Hedging Aggressive Tax PlanningThe OECD's recently released report "Aggressive Tax Planning based on After-Tax Hedging" describes the features of aggressive tax planning schemes based on after-tax hedging as well as strategies used by countries to detect and respond to those schemes. CRA Launches Folio Views — Comments WelcomeThe 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. CRA Issues Guidance on PRPP Options for Small BusinessThe 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. New REIT Rules — Welcome ImprovementsCertain trusts may benefit from recent legislative changes to ease the requirements to qualify as a real estate investment trust (REIT) for income tax purposes. Are All Your Systems Go for New B.C. PST?If your company sells taxable goods and services in British Columbia, you should be ready for the new B.C. PST that takes effect in just six weeks on April 1, 2013. Tax NewsKPMG's Tax professionals are regularly published at seminars and conferences, industry association meetings, and in trade magazines. Below is a selection of these articles, reproduced with permission. Thinking Beyond Borders 2012This publication identifies compliance matters for business travelers doing business in any of the 90 countries in study. Are You Ready for the New R&D Regime?If your company claims tax credits for Scientific Research and Experimental Development (SR&ED), you may be affected by changes to this program coming as soon as January 1, 2013. Latest Wave of Indirect Tax ChangesIn the latest wave of Indirect Tax changes on September 26, 2012, the federal government released more than 30 pages of new GST/HST regulations. Canadian Tax Partners Stand OutKPMG partners Paul Lynch (Ottawa, National Tax), Gerald Grenon (Calgary, Moskowitz & Meredith LLP) and John Bain (Toronto, Indirect Tax) have been recognized by the International Tax Review (ITR) as some of the world's leading tax advisers. Canadian Tax Partners Stand OutKPMG partners Paul Lynch (Ottawa, National Tax), Gerald Grenon (Calgary, Moskowitz & Meredith LLP) and John Bain (Toronto, Indirect Tax) have been recognized by the International Tax Review (ITR) as some of the world's leading tax advisers. frontiers in tax – July 2012This edition discusses how legislators are struggling to translate policymakers' broad prescriptions into detailed rules for a new FS environment. FA Dumping Proposals Ease Burden of RulesThe Department of Finance has released draft legislation that includes revised foreign affiliate (FA) dumping proposals originally introduced in its 2012 federal budget tax measures. Saint Lucia TIEA Now in ForceFinance has announced that its Tax Information Exchange Agreement (TIEA) with Saint Lucia came into force on July 20, 2012. Tax Accounting —Snapshot of Rates on June 30, 2012If you are involved in preparing financial reports for corporations or other organizations, certain 2012 tax changes may need to be reflected in your interim period financial statements under IFRS and U.S. GAAP. Global Transfer Pricing ReviewKPMG's 2012 Global Transfer Pricing Review is designed to help multinational companies stay current with transfer pricing rules worldwide. Partnership Information Returns - Relief Expanded for 2012CRA will not impose penalties on certain T5013 partnership information returns because of incomplete adjusted cost base (ACB) and at-risk amount (ARA) information required to be reported on Schedule 50, according to new information posted on its website. Manitoba RST on Insurance Contracts Starts July 15Insurance companies, brokers and group policy holders now have less than a month to adjust their systems for Manitoba’s new tax measure that will apply Manitoba’s 7% retail sales tax (RST) to many insurance contracts effective July 15, 2012. Bill C-38 - Federal Budget Bill #1 EnactedLegislation to enact certain tax measures announced in the 2012 federal budget, tabled as Bill C-38, received Royal Assent on June 29, 2012, making these measures enacted for U.S. GAAP as of that date. Navigating APAsKPMG International’s Advance Pricing Arrangements: Navigating APAs analyzes the experiences of firms who have engaged in Advance Pricing Arrangements. Ontario's 11.5% Corporate Rate Freeze Now LawOntario's 2012 budget bill (Bill 55) and related legislation in Bill 114 received Royal Assent on June 20, 2012. This means that Ontario's general corporate income tax rate freeze at 11.5% is considered substantively enacted as of June 20, 2012. Time Running Thin for “Thin Cap” PlanningCanadian corporations that owe debt to certain non-residents need to carefully review the impact of the major modifications to Canada’s “thin capitalization” regime announced in the 2012 federal budget. Provincial Budget Legislation - Status UpdateThe following is a summary of provincial budget legislative changes in Ontario, Saskatchewan, Nova Scotia and New Brunswick that discusses whether the legislation is substantively enacted for Canadian GAAP purposes or enacted for U.S. GAAP purposes. B.C. Unrolls Blueprint for New PSTYesterday the British Columbia government introduced legislation (the Provincial Sales Tax Act – PST Act) to implement the new PST effective April 1, 2013. Highlights of the 2012 Newfoundland and Labrador BudgetNewfoundland and Labrador’s Finance Minister tabled the province’s 2012 budget on April 24, 2012. The budget forecasts a surplus of $776.4 million for 2011-12 and projects deficits of $258.4 million for 2012-13 and $432.9 million for 2013-14. 2012 Federal Budget Bill #1 IntroducedFinance tabled a Notice of Ways and Means Motion (NWMM) on April 23, 2012 containing 32 pages of proposed legislation and 35 pages of explanatory notes to implement certain 2012 federal budget measures and other tax proposals. Financial Institutions — More GST/HST Changes and More RisksFinancial institutions have faced significant GST/HST changes in the last few years and now face more changes to address British Columbia transitioning back to GST and PST, Quebec harmonizing its QST to the GST and upcoming legislative amendments. Highlights of the 2012 Manitoba BudgetManitoba’s Finance Minister Stan Struthers tabled the province’s 2012 budget on April 17, 2012. The budget forecasts a deficit of $1 billion for 2011-12 and projects a deficit of $460 million for 2012-13. Highlights of the 2012 Nova Scotia BudgetToday Nova Scotia Finance Minister Graham Steele delivered the province’s 2012 budget. The budget projects deficits of $390 million in 2011-12 and $211 million in 2012-13, and surpluses of $15 million in 2013-14 and $20 million in 2014-15. Highlights of the 2012 Ontario BudgetToday Ontario Minister of Finance Dwight Duncan delivered the province’s 2012 budget. The budget forecasts a deficit of $15.2 billion for 2012-13, $13.3 billion for 2013-14 and $10.7 billion for 2014-15. The budget is expected to be balanced in 2017-18. Highlights of the 2012 New Brunswick BudgetToday New Brunswick Finance Minister Blaine Higgs delivered the province’s 2012 budget.The budget projects a deficit of $183 million in 2012-13, a deficit of $99 million in 2013-14 and a balanced budget by 2014-15 ($6 million surplus). Ollenberger — No "Active Business", No ABILIn Randy J. Ollenberger v. The Queen, the Tax Court of Canada (TCC) denied 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. No Ontario Tax Refunds in 2011 for Low Income EarnersThe Ontario Ministry of Finance has introduced a new "Ontario Trillium Benefit" monthly payment program that offers payouts of several former refundable Ontario tax credits for low- to moderate-income taxpayers in Ontario, beginning in July 2012. CRA Ignores Multiple Testamentary TrustsIn a recent TI, the CRA confirmed that multiple testamentary trusts would be designated to be a single trust where the testator's three children and the testator's spouse are viewed as a "class of beneficiaries" for each of the three trusts. B.C. Announces HST-PST Transitional MeasuresThe British Columbia and federal governments today announced transitional measures for the province’s return to provincial sales tax (PST) and goods and services tax (GST) from harmonized sales tax (HST).
No Change to CRA Prescribed Rate for Q2 of 2012The government has announced that the CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the second quarter of 2012 (April 1-June 30, 2012) will remain the same as the current quarter. Boost Your Savings with Tax-Savvy PlansWith the February 29, 2012 deadline for 2011 tax-deductible RRSP contributions coming up soon, now is a good time to weigh the advantages of tax-assisted savings plan options that may be available to you. The Taxation Treatment of Islamic Finance in CanadaThis paper cuts through the complexity to help you understand the Canadian taxation of Islamic finance in Canada and aims to stimulate discussion among policy makers, regulators and financial service providers. Tax Accounting Round-Up — 2011 Tax ChangesIf you are involved in preparing financial reports for corporations or other organizations, certain 2011 tax changes may need to be reflected in your year-end financial statements under IFRS and U.S. GAAP. A Guide to Canadian Mining TaxationKPMG’s A Guide to Canadian Mining Taxation outlines the provisions of Canada’s federal, provincial, territorial and other income tax legislation applicable to domestic and foreign mining activities. Overhead and Other Expenditures Policy PaperAs part of the CRA’s Scientific Research & Experimental Development (“SR&ED”) Policy Review Project, stakeholders were asked to comment on the CRA’s SR&ED Overhead and Other Expenditures Policy Paper. CRA on Tax Avoidance and Audit TrendsOn Thursday, June 15th, 2011, KPMG’s senior Tax professionals hosted a panel discussion webcast on current CRA audit activities and find out practical tips on how to prepare for your next CRA audit. SR&ED Capital Expenditures PolicyKPMG Canada LLP’s (KPMG) response to this draft policy paper outlines the firm’s views and recommendations for this part of the SR&ED Policy Review Project A World in Transition: Designed to help multinational companies stay current with transfer pricing rules worldwide. SR&ED Shared-Use-Equipment PolicyKPMG Canada LLP’s (KPMG) response to this draft policy paper outlines the firm’s views and recommendations for this part of the SR&ED Policy Review Project. Federal Consultations on Taxation of Corporate GroupsThe Department of Finance launched formal consultations on the taxation of corporate groups. KPMG strongly supports Finance’s stated tax policy objectives for a new system for the taxation of corporate groups as set out in the consultation paper. Global Transfer Pricing Review - 2011 EditionKPMG's Global Transfer Pricing Review, based on a 2010 survey by KPMG International member firms' transfer pricing practices, is designed to help multinational companies stay current with transfer pricing rules worldwide. Transfer Pricing Topics for High-Tech CompaniesThis publication looks at current transfer pricing regulations around the world and how they have been affected by the current economic environment and the way cross-border business is being conducted. Branch Capital Attribution Tax SurveyAn increased focus on the issue of taxation of branches of overseas banking and insurance entities has driven KPMG to update our previous survey of branch capital attribution produced in 2005. Latin America indirect tax country guideLatin American tax payers, tax authorities and tax intermediaries have had to re-focus their objectives to properly address the many challenges, uncertainties and opportunities within the new business climate caused by the economic crisis. Hedge Funds 2010KPMG International’s Hedge Funds 2010 indicates new and extensive regulation that will pose questions as to what the future might hold. Trade MattersTrade Matters is our quarterly newsletter that discusses recent developments in trade and customs. Global Indirect Tax BriefThis publication series aims to look at a selection of local country VAT issues and topics on a pan-global basis. Global Transfer Pricing ReviewKPMG's Global Transfer Pricing review is designed to help multinational companies stay current with transfer pricing rules worldwide. Compiled from information supplied by various KPMG member firm professionals who provide ... Going PublicProvides a practical, realistic perspective on the IPO process for the Canadian IPO market, as well as for markets in the US and UK—from the decision to start, through to the unique demands of public company operations. Share Sale Best Strategy for OwnersThis publication created by KPMG Enterprise looks at the tax implications entrepreneurs face when they make the decision to sell their business. |