Director Liability: De Facto Director

Directors can be personally liable for payroll source deductions (CPP, EI, and income tax withholdings) and GST/HST unless they are duly diligent in preventing the corporation from failing to remit these amounts on a timely basis. Individuals can be personally liable as directors for up to two years after their resignation. A July 19, 2023 French Court of Quebec case reviewed whether the taxpayer had resigned as a director of a corporation, thereby protecting the…

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Online Reviews: Employees Must Disclose their Connection to the Business

Under the Competition Act, employees posting reviews online about their employer or the competition must disclose their connection to the business, even if the individual provides their honest opinion. This requirement applies to all types of reviews, including testimonials. A January 18, 2024, Competition Bureau Canada News Release (Online reviews posted by employees: businesses could be liable) recommended that businesses establish policies and provide employee training to reduce the risk of liability. The release also…

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Canada Dental Care Plan (CDCP): New Income-Tested Benefit

On December 11, 2023, Health Canada issued details on the Canada dental care plan that would cover a wide variety of dental services for certain Canadian residents. The plan will be rolled out from late 2023 to 2025.   To be eligible, the individual and their spouse or common-law partner (if applicable) must meet all of the following conditions: have an adjusted family net income (AFNI) of less than $90,000; be a Canadian resident for tax…

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New Trust Reporting: Unexpected Exposure

Changes requiring more trusts (and estates) to file tax returns and more information to be disclosed, first proposed in the 2018 Federal Budget, were delayed several times in the legislative process. The final rules (that are now law) first apply for 2023, with a filing deadline of April 2, 2024. As such, many trusts and estates (including many arrangements not commonly considered “trusts”) will be required to file for the first time in early 2024.…

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Clothing Drive 2023

Thank you for the support for our 2023 Clothing Drive. It was a huge success! This year we supported the Anawim Houses for men and women and the Justice Van Society. We received much needed clothing and warm items. We couldn't have done this without your donations and the support of our volunteer drivers who took the items to the charities! We can't thank you enough for your generosity of time. These donations are distributed…

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First Home Savings Account (FHSA): A New Investment Tool

The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have not lived in a home that they or their spouse owned jointly or otherwise at any time in the year or the preceding four calendar years. Contributions to an FHSA are deductible…

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Employee Time Theft: Some Challenges

A January 11, 2023 BC Civil Resolution Tribunal case addressed a claim for wrongful dismissal. The employer filed a counterclaim in respect of a 50-hour discrepancy between the employee’s timesheets and tracking software data over a period of about a month during which the employee was working remotely. The employee argued that significant hours were spent working from hard copies; however, this was rebutted by records of printer usage and a lack of evidence of…

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Small Business Succession: Many Business Transfers Coming Shortly

The Canadian Federation of Independent Businesses (CFIB) released a report on January 10, 2023, focused on succession expectations for small businesses. It included the following survey responses: 76% of small business owners (constituting $2 trillion in business value) are planning to exit their business in the next 10 years; 9% have a formal business succession plan in place; obstacles to succession planning include: finding a suitable buyer (54%), business valuation (43%), and over-reliance of owner…

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Employment Expenses for Commissioned Employee: Sponsorship

In a January 23, 2023 French Court of Quebec case, a commissioned salesperson deducted nearly $600,000 over2015 and 2016, in sponsorship expenses of a professional cycling team in Canada. The individual was an investment advisor and reported commission income of $1,493,910 and $1,263,360 and taxable capital gains of $2,276,374 and $99,767 in the respective years. The taxpayer argued that the sponsorship promoted his services as an investment advisor. As the main sponsor of the cycling…

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Unreported Capital Trades Included on a T5008: CRA Policy

Traders or dealers in securities must report to CRA the disposition of securities, such as publicly traded shares, mutual fund units, bonds and T-bills, of their clients on a T5008. A November 4, 2022 French Federal Court case summarized CRA’s administrative policy where a taxpayer has not filed a tax return, but a T5008 was issued, reporting the disposition of property that does not include the cost of the property disposed. In this case, CRA…

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