In a January 10, 2020 Federal Court of Appeal case, the Court conducted a judicial review of the denial of the taxpayer’s EI benefits. While receiving benefits in 2010 and 2011, the taxpayer had incorporated a corporation and engaged in preliminary work to set up its business. In early 2015, the Canada Employment Insurance Commission (CEIC) was advised by CRA that the taxpayer had applied for a business registration number while collecting EI. A taxpayer can operate a business while collecting EI benefits where his business activity is to such a minor extent that a person would not normally rely on…

This week has brought another program to assist business owners (not sole proprietors), who did not qualify or were turned down for the Canada Emergency Business Account loan ($40K). This is an interest free loan, with a forgivable component (if certain conditions are met). Mind you, the contribution is also taxable. The “Regional Relief and Recovery Fund (RRRF)” is delivered to Western Canadian businesses through the Western Economic Diversification Fund (WD).  The funding available is…

75% wage subsidy program (Canada Emergency Wage Subsidy “CEWS”) Please see the following link to our newsletter provider for important clarifications. Such as what is defined as eligible wages (dividends do not count), periods for the calculation and other items.  https://www.videotax.com/web-tips-articles/cews-faq-updated-partnerships Canada Child Benefit (CCB) Increase Families will receive an additional $300 per child as a one time increase to May’s payment.  https://pm.gc.ca/en/news/news-releases/2020/05/03/families-receive-increased-support-through-canada-child-benefit Province of BC, $1,000 Emergency Benefit for workers On May 1st, applications…

One common planning technique for disabled individuals involves the use of a trust under which the trustees possess ultimate discretion over any distributions to be made. In other words, the beneficiary has no enforceable right to receive any distributions from the trust unless or until the trustees exercise their discretion in the beneficiary’s favour. The intent of such a trust is that the trust assets not be considered assets of the beneficiary, such that they…

A November 5, 2019 Tax Court of Canada case reviewed the deductibility of employment expenses by a manager overseeing the Canadian sales force and operations of a multinational manufacturer of dental instruments and products. The taxpayer’s employer had no Canadian office, and she travelled extensively to meet with sales representatives, dealers and customers throughout Canada. Expense of assistant Almost half of the taxpayer’s claimed expenses, which exceeded $80,000, related to her husband’s role as her…

Canada Revenue Agency uses third parties to get information about other taxpayers to ensure they are complying with their tax responsibilities. This could include obtaining information from a business about its employees, customers or suppliers, without needing to list their specific names. CRA has recently announced that they intend to continue and increase the use of these information gathering methods. In order to obtain such information without providing specific names, CRA must first obtain the…