The Government of Canada introduced the Canada Child Benefit (CCB) in 2016 to assist low- and middle-income families with the cost of raising children. To be eligible for the CCB in respect of a child, an individual must live with the child and be either the parent who primarily fulfills the responsibility for the care […]
Highlights of Bill Morneau’s 2018 fiscal update Overview Responding to U.S. Tax Cuts And Jobs Act of 2017 (TCJA): Enhance capital cost allowance (CCA) in the first year; Immediate expensing for manufacturing and processing and clean energy investments Responding to U.S. Tax Cuts and Jobs Act of 2017 (TCJA) In the U.S., businesses can accelerate
2018 Fall Economic Statement A portion of the capital cost of a depreciable property is deductible as capital cost allowance (CCA) each year, with the CCA rate for each class of property prescribed in the Income Tax Regulations. With some exceptions, CCA deductions are claimed by class of property and are calculated on a declining-balance basis.
Notice of Ways and Means Motion November 2018: Accelerated Investment Incentive (CCA) Read More »
Summary of Fall Economic Statement Overview Suggestions to the federal government to address U.S. tax reform Not going along with the federal government’s passive income rules that would limit the small business deduction for CCPCs earning more than $50,000 in passive income A new refundable tax credit: Low-Income Individuals and Families Tax (LIFT) Credit for
T1134 Reporting Requirements Budget 2018 Proposal The Income Tax Act contains specific information reporting requirements in respect of foreign affiliates. In general terms, taxpayers (and certain partnerships) are required to file an information return each year in respect of each of their foreign affiliates in the year T1134). These returns contain, among other things, information about
Budget 2018 At-Risk Rules for Tiered Partnerships The income (or loss) of a partnership for income tax purposes is allocated to its partners, who include (or deduct) the amount in calculating their own income. Limited partners of a partnership may deduct losses of the partnership allocated to them only to the extent of their
Notice of Ways and Means Motion October 2018: At-Risk Rules for Tiered Partnerships Read More »
Part IV Tax – Allocation of Losses ITA 129 New subsections 129(4.1) and (4.2) of the Act are introduced consequential to the introduction of the eligible refundable dividend tax on hand (ERDTOH) and non-eligible refundable dividend tax on hand (NERDTOH) accounts. These new subsections provide an allocation rule for situations in which losses are
Notice of Ways and Means Motion October 2018: Part IV Tax – Allocation of Losses Read More »
Reassessment Period – Non-Resident Non-Arm’s Length Persons Budget 2018 After a taxpayer files an income tax return for a taxation year, the Canada Revenue Agency (CRA) is required to perform an initial examination of the return and to assess tax payable, if any, with all due dispatch. The CRA then normally has a fixed
Foreign Affiliates Budget 2018 Budget 2018 proposes modifications to the foreign affiliate rules as a result of the Government’s ongoing monitoring of developments in this area. A foreign affiliate of a taxpayer resident in Canada is a non-resident corporation in which the taxpayer has a significant interest. A controlled foreign affiliate of a taxpayer
Notice of Ways and Means Motion October 2018: Foreign Affiliates Read More »
Cross-Border Surplus Stripping Using Partnerships and Trusts Budget 2018 The Income Tax Act contains a rule (section 212.1) that is intended to prevent a non-resident shareholder from entering into transactions to extract free of tax (or “strip”) a Canadian corporation’s surplus in excess of the PUC of its shares, or to artificially increase the