Tax Alerts
Dec 5, 2011 - Changes to deductions for Canada Pension Plan contributions
The rules for deducting Canada Pension Plan (CPP) contributions are changing effective January 1, 2012 and the changes impact employees, employers and self-employed individuals. In this article, we highlight the changes and the necessary actions to take. Read More
Nov 29, 2011 - Federal government releases report on SR&ED
On October 17, 2011, the expert panel appointed by the federal government issued “Review Of Federal Support To Research And Development”. Read More
Nov 28, 2011 - Québec Sales Tax Rate Increasing – January 1, 2012
The government of Québec announced in the 2009-2010 Budget a 1% increase in the Québec Sales Tax (“QST”) rate of 7.5% to 8.5%, effective January 1, 2011. The government had then indicated that some more measures would be necessary to bring back the deficit to zero. Read More
Oct 4, 2011 - Québec and Federal Government Agree to Further Harmonize the GST and QST
On September 30, 2011, the governments of Québec and Canada agreed in principle to a new coordination agreement on harmonized sales taxes. Since 1992, the Québec Sales Tax (QST) has been operated as a value-added tax that has been similar to the federal Goods and Services Tax (GST). Read More
Aug 29, 2011 - The Demise of HST
Based on results released on Friday August 26, 2011, BC voters have stated that they do not want to keep the HST. After the announcement of the referendum were released, Minister of Finance Kevin Falcon announced a preliminary action plan for BC’s return to a combined GST/PST system. We have summarized some of the key issues to be addressed in a Tax Alert. Read More
Jun 6, 2011 - Revised Federal Budget Released
On June 6, 2011, the Honourable Jim Flaherty tabled his seventh budget as Minister of Finance, his first as Minister of Finance with a majority government in the House of Commons. As expected, this budget is substantively the same as the budget tabled by Mr. Flaherty on March 22, 2011, shortly before the Conservative minority government fell on a non-confidence motion. Read More
May 26, 2011 - British Columbia Government to Reduce HST Rate while Increasing Corporate Tax Revenue
With a public vote to decide the fate of the BC Harmonized Sales Tax (HST) fast approaching, Finance Minister Kevin Falcon announced changes on May 25, 2011 that will benefit families and lessen any negative impact of the HST. Read More
Mar 7, 2011 - Special Canadian election due April 30 if you have
a ROTH IRA
Do you have a ROTH IRA? This is a US savings plan, somewhat similar to the Canadian Tax Free Savings Account, in that earnings in this plan are tax free for US tax purposes. You may have one of these accounts if you lived in the US in previous years, and contributed to such a plan, or converted a regular US Individual Retirement Account (IRA) account to a ROTH IRA. Read More
Nov 30, 2010 -
Sales Tax Rate Increasing - January 1, 2011
The government of Québec announced in the 2009-2010 Budget a 1% increase in the Québec Sales Tax (“QST”) rate effective January 1, 2011. As we quickly approach the end of 2010, it is time to review your accounting systems and procedures to ensure that your business is ready for the rate change. Read more
Oct 27, 2010 - Income Tax Rates to Fall in British Columbia
On October 27, 2010, Premier Gordon Campbell announced that income tax rate reductions will apply in 2011. Read more
Jun 9, 2010 - Getting you Ready for the HST
As the summer quickly approaches, chances are that you have already started to plan for July 1st when the sales tax in Ontario and BC will be harmonized with the federal GST. Before we know it, Ontario and BC will join Nova Scotia, New Brunswick and Newfoundland & Labrador which have already harmonized their sales tax systems with the federal GST. Read more
Dec 22, 2009 - Incorporation Will Become More Beneficial for Alberta Professionals
On November 26, 2009, the Professional Corporations Statutes Amendment Act, 2009 (Bill 53) received Royal Assent. Once the Bill is proclaimed, Alberta professionals will have more flexibility when it comes to using professional corporations (PCs). Read more
Dec 17, 2009 - Government Retroactively Amends GST Rules for Fully Discretionary Investment Services
In July 2009, we alerted you to a Federal Court of Appeal ruling that that stated that fully discretionary investment services were tax exempt for GST purposes. On December 14, 2009, the Department of Finance announced that the GST rules will be amended to specifically exclude certain activities, including discretionary investment services, from the definition of financial services. With this change, these services will again be subject to GST. Read more
Dec 9 , 2009 - The Transition to the HST in Ontario
On October 14, 2009, the Ontario Ministry of Finance released Information Notice #3 (the “Ontario Notice”) outlining the general transition rules in support of its implementation of the Harmonized Sales Tax (HST). The HST is scheduled to come into effect on July 1, 2010 subject to legislative approval. Read more
Dec 9 , 2009 - The Transition to the HST in British Columbia
On October 14, 2009, the British Columbia Ministry of Finance released HST Notice #1 (the “BC Notice”) outlining the general transition rules in support of its implementation of the Harmonized Sales Tax (HST). The HST is scheduled to come into effect on July 1, 2010 subject to legislative approval. Read more
Oct 16, 2009 - B.C. and Ontario Announce HST Transitional Details
Yesterday morning, both B.C. and Ontario released details on the implementation of Harmonized Sales Tax ("HST") in those provinces (to replace their respective provincial sales taxes, or "PST"). Given that both sets of rules were released at the same time, it should come as no surprise that they are identical in most respects. Read more
Jul 2, 2009 - Fully Discretionary Investment Services Held to be Exempt for GST Purposes
A recent court case will be of significant interest to professional investment managers who provide fully discretionary investment management services to clients, as the Federal Court of Appeal recent ruled that these services are exempt for GST purposes. Read more
Jun 23, 2009 - Canada Revenue Agency Announces New Employee Benefit Rules
On June 11, 2009, the Canada Revenue Agency (CRA) announced a number of new administrative rules for employee benefits. Most of the new rules are beneficial, either in terms of the tax treatment of the employee or in terms of simplifying the process. Read more
Jun 9, 2009 - IRS Temporarily Suspends Foreign Bank Account Reporting for non-US Persons
On June 5, 2009, the IRS announced that persons who are not US citizens, US residents or US domestic entities, do not need to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for 2008. This form is due on June 30, 2009. Read more
Mar 11, 2009 - Income Splitting Just Became More Attractive
In the 2009 – 01 edition of The Tax Factor, we discussed the income splitting possibilities that exist due to the current low interest rate environment, and in particular, the concept of making a low-interest “prescribed rate loan” to low-income family members. Where loan interest is charged at the prescribed rate in effect when the loan is made, the proceeds of that loan can be used by the family member to acquire an income producing property without income attribution worries. Read more
