CRA 2015 Prescribed Rate Stays at 1% for Q4
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the fourth quarter of 2015 (October 1, 2015 - December 31, 2015) will remain unchanged.
U.K. 2015 Budget Drops Corporate Rate
In its 2015 budget, the United Kingdom announced further corporate tax rate reductions to 18% in 2020 and said that it would abolish corporate tax relief for acquired goodwill and other customer-related intangible assets.
Going Public? - KPMG Can Help
KPMG Canada recently released, "A Guide to Going Public", which outlines the challenges a company may face when going public.
Alberta Hikes 2015 Personal and Corporate Taxes
Alberta has introduced new tax brackets including a personal top marginal bracket of 15% that will be phased in for the 2015 tax year, and increased the corporate income tax rate to 12% (from 10%) effective July 1, 2015, among other changes.
B.C. Contractors' PST Exemption - Are You Exposed?
Some contractors may be erroneously claiming British Columbia PST exemptions on the goods they use to fulfill a supply and install contract while charging PST to their customers on the material components of those contracts.
Are Your Tax-Free Inter-Corporate Dividends in Jeopardy?
Canadian corporations that receive dividends from other Canadian corporations may be adversely affected by the recently expanded anti-avoidance rule that recharacterizes certain tax-free inter-corporate dividends as capital gains subject to tax.
Frontiers in Tax – April 2015
Our latest edition of frontiers in tax examines the new trends and developments that are transforming the financial services sector.
Are you ready for FATCA?
KPMG’s Tax and Advisory professionals are experienced in helping local and multinational Financial Institutions meet FATCA compliance requirements.
Duty Refunds for Importers — CBSA Changes Gears
If you import goods into Canada and the price of those goods is adjusted downwards after importation, you may be eligible for a refund of customs duty due to a change in Canada Border Services Agency (CBSA) policy.
Highlights include an examination of both the external and internal factors affecting the current audit committee risk mandate.
Tax Accounting — Snapshot of Rates for 2014
If you are involved in preparing financial reports for corporations or other organizations, certain 2014 income tax changes may need to be reflected in your year-end financial statements under IFRS, ASPE or U.S. GAAP.
Tax Highlights of Quebec’s Economic Update
Quebec's Minister of Finance and the Economy, Carlos Leitão, delivered the update on the province’s economic and financial situation on December 2, 2014, approximately six months after the Quebec’s 2014-2015 budget.
Australia Considers Bitcoin Taxable
Australia tax authorities confirm that the e-currency Bitcoin may be subject to its GST where it has a cost base of $10,000 or more in Australia.
Tax Accounting — Snapshot of Rates on June 30, 2014
If you are involved in preparing financial reports for corporations or other organizations, certain 2014 Canadian income tax changes may need to be reflected in your interim-period financial statements under IFRS, ASPE or U.S. GAAP.
B.C. Passes PRPP Legislation
British Columbia's legislation to bring Pooled Registered Pension Plans (PRPP) to the province received Royal Assent on May 29, 2014.
India Court Rules Create a PE
India recently held that the employees of a multinational corporation seconded to an Indian affiliate created a Service PE in India.
Tax Facts 2014-2015
Tax Facts 2014-2015 is a convenient tax guide that provides key corporate and personal tax facts and figures in an easy-to-read tabular format.
CRA Extends T1 Deadline to May 5, 2014
The CRA has extended the filing deadline for 2013 personal tax returns to May 5, 2014 after it temporarily shut down its online services to fix a critical security issue.
Bahrain TIEA Now in Force
Finance has announced that its Tax Information Exchange Agreement (TIEA) with Bahrain came into force on April 3, 2014.
OECD’s New Approach to Combat Treaty Abuse
Canadian multinationals and foreign corporations investing in or through Canada will be most interested in the Organisation for Economic Co-operation and Development’s (OECD) new discussion draft on "Prevent treaty abuse" (the paper).
Competitive Alternatives 2014
Competitive Alternatives 2014 compares business costs and other non-cost factors in more than 100 cities, in 10 countries.
NPOs Receive Warning in CRA Audit Report Card
A recent report issued by the CRA indicates that a significant number of incorporated non-profit organizations (NPO) in Canada do not comply with the rules in the Income Tax Act that provide for an exemption from tax on their activities.
Highlights of the 2014-2015 Quebec Budget
The Minister of Finance and the Economy, Mr. Nicolas Marceau, tabled earlier today the 2014-2015 Québec Budget in which he still aims at a balanced Budget for 2015-2016.
Canada Deepens Commitment to BEPS Action Plan
Canada’s 2014 federal budget, delivered on February 11, 2014, made several new announcements and proposals that appear to strengthen Canada’s intentions to address tax base erosion and profit shifting by multinational corporations.
Canada Signs FATCA Agreement with U.S.
Canadian entities that will be treated as Foreign Financial Institutions must now consider their potential requirement to register with the U.S. IRS under the U.S. FATCA now that an IGA between Canada and the U.S. was signed on February 5, 2014.
CRA Prescribed Rate Steady at 1% for Q2 2014
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.
Liechtenstein TIEA Now in Force
Finance has announced that its Tax Information Exchange Agreement (TIEA) with Liechtenstein came into force on January 26, 2014.
Many Employers Must Remit Deemed GST/HST by January 31
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.
Gifting Tax Shelters - CRA Still Not Assessing T1 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.
CRA Confirms Q1 2014 Prescribed Interest Rate for PLOIs
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.
Finance Eases Phase-Out of Labour Tax Credit
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.
India Enacts New GAAR Rules
India has introduced general anti-avoidance rules (GAAR) that may affect investments by Canadians and other foreign entities.
P.E.I. Decreases 2014 Non-Eligible Dividend Tax Rate
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.
New SR&ED Form T661 Released
The CRA released a revised version of Form T661, "Scientific Research and Experimental Development (SR&ED) Expenditures Claim", on October 31 2013.
Federal Budget Bill #2 Receives First Reading
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.
EU Countries Proposing Rules to Comply with BEPS Action Plan
Both Ireland and Norway seem to be proposing legislation to comply with the OECD's intention to limit base erosion via interest deductions as detailed in Action Four of its Action Plan for dealing with Base Erosion and Profit Shifting (BEPS).
Quebec Eases Multimedia Tax Credit Requirements
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.
RCA Income is Eligible For Pension Income Splitting
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.
CRA Confirms Prescribed Interest Rate for PLOIs
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.
Mexico Eyes Tax Reform in Recent Proposals
On September 8, 2013, Mexico's Congress was presented with an economic package for 2014 that includes proposals to repeal the single rate business tax and the tax on cash deposits, and eliminate certain special tax regimes and deductions.
OECD Reports 2012 MAP Caseloads on the Rise
The total number of open Mutual Agreement Procedure (MAP) cases in OECD member countries for resolving cross-border tax disputes has increased to 4,061, a 6% increase from 2011, according to the OECD's latest annual report on MAP statistics for 2012.
Welcome Changes to FA Dumping Rules
The Department of Finance released a 26-page package of amendments to the foreign affiliate (FA) dumping rules in section 212.3 on August 16, 2013.
Canada Moves to Curtail Treaty Shopping
Foreign-based multinationals and foreign corporations investing in or through Canada will want to closely follow developments as Canada kicks off formal consultations on possible measures to combat “treaty shopping” abuses.
2013 B.C. Budget Bill Receives Royal Assent
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.
IRS Extends FATCA Timelines for Withholding Agents and FFIs
The IRS has announced that it will extend the timeline for withholding agents and foreign financial institutions (FFI) to begin their due diligence and withholding and reporting requirements to payments made after June 30, 2014, a six-month extension.
Finance Releases Foreign Affiliate Draft Legislation
The Department of Finance released draft legislation on July 12, 2013 relating to among other things, the taxation of foreign affiliates, non-resident corporations without share capital, and the foreign currency election.
Quebec Enhances E-Business Tax Credit
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 Draws Up New Cultural Donation Incentives
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.
Family Trusts Face Higher Tax Rates
If your estate plan includes creating a trust in your will or you are a trust beneficiary or an estate trustee, you may be affected by the federal government’s proposals to tax certain trusts at a top tax rate
G8 Leaders Pledge Action Plan for Tax Transparency
The G8 leaders have committed to establish the automatic exchange of information between tax authorities as the new global standard, according to a release issued at the conclusion of the G8 summit in Northern Ireland held on June 17-18, 2013.
Quebec Enacts "Old 2012 Budget"
Quebec has enacted Bill 18, which includes various items mentioned in the former Liberal government's March 2012 Quebec budget.
Canada Signs TIEA with Bahrain
Finance has announced that Canada recently signed a new Tax Information Exchange Agreement (TIEA) with Bahrain on June 4, 2013.
Trust Graduated Tax Rates - Beginning of the End
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.
Finance Launches LSVCC Tax Credit Consultations
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.
Highlights of the 2013 Ontario Budget
Today 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.
FIs — Preview FATCA Registration Form
Financial 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).
EU Financial Institutions Face New Reporting Rules
Financial 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.
OECD Comments on After-Tax Hedging Aggressive Tax Planning
The 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 Welcome
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.
CRA Issues Guidance on PRPP Options for Small Business
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.
New REIT Rules — Welcome Improvements
Certain 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.
KPMG'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 2012
This publication identifies compliance matters for business travelers doing business in any of the 90 countries in study.
Frontiers in Tax – July 2012
This edition discusses how legislators are struggling to translate policymakers' broad prescriptions into detailed rules for a new FS environment.
Global Transfer Pricing Review
KPMG's 2012 Global Transfer Pricing Review is designed to help multinational companies stay current with transfer pricing rules worldwide.
Hedge Funds 2010
KPMG International’s Hedge Funds 2010 indicates new and extensive regulation that will pose questions as to what the future might hold.
Trade Matters is our quarterly newsletter that discusses recent developments in trade and customs.
Global Indirect Tax Brief
This publication series aims to look at a selection of local country VAT issues and topics on a pan-global basis.