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…

Post published:May 23, 2024
Post category:Special Interest

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…

Post published:May 23, 2024
Post category:Special Interest

GST/HST Returns: Mandatory Electronic Filing

For reporting periods that begin in 2024 and onwards, GST/HST registrants (except charities and selected financial institutions) must file all GST/HST returns with CRA electronically.Registrants who file their GST/HST returns on paper are subject to a penalty of $100 for the first offense and $250 for each subsequent return not filed electronically. While CRA waived these penalties for monthly and quarterly filers who failed to file returns electronically for periods beginning before March 31, 2024,…

Post published:May 23, 2024
Post category:Business – Taxes Tax Planning

Working From Home Expenses: Employment Expenses

The $2/day flat rate method available to claim expenses for employees working from home was a temporary administrative measure only available from 2020 to 2022; it is no longer available in 2023. As such, employees working from home can only use the detailed calculation when claiming expenses. For 2023 and subsequent years, a deduction can only be claimed where one of the following criteria is met: i. the work space was the place where the…

Post published:January 29, 2024
Post category:Tax Planning

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…

Post published:January 29, 2024
Post category:Individual – Taxes Personal Taxes Special Interest Tax Planning

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.…

Post published:January 29, 2024
Post category:Special Interest Tax Planning

CEBA Repayment Deadline Extended: Some Issues

On September 14, 2023, the Department of Finance provided details on extending the deadline for Canada Emergency Business Account (CEBA) repayments, including the following key elements: the deadline to qualify for partial loan forgiveness (by paying the non-forgivable portion) has been extended from December 31, 2023 to January 18, 2024; if a refinancing application is made with the financial institution that provided the CEBA loan by January 18, 2024, the deadline to qualify for partial…

Post published:January 5, 2024
Post category:Tax Planning

Surcharge To Accept Payment Via Credit Card: GST/HST?

As of October 2022, merchants could charge an additional fee for accepting payment via creditcard. In a March 28, 2023 Technical Interpretation, CRA opined that the additional fee would be a separate exempt supply of a financial service and, therefore, not subject to GST/HST if all of the following conditions are met: the fee is charged to the cardholder solely for the acceptance of the use of the credit card as a payment method and…

Post published:January 5, 2024
Post category:Tax Planning

Enhanced First-Year CCA: Phase-Out After December 31, 2023

Over the past several years, several incentives permitting enhanced CCA claims in the year property first becomes available for use have been implemented. Claiming the enhanced first-year CCA provides a tax deferral by accelerating the deduction. The phase-out of these incentives will begin for assets that become available for use after December 31, 2023. Immediate expensing property (IEP)Many capital assets, other than those with particularly long lives (such as buildings), are eligible IEP. This includes…

Post published:December 18, 2023
Post category:Business – Taxes Personal Taxes

Enhanced GST Residential Rental Rebate: Increased Incentives

On September 14, 2023, the Department of Finance provided details on a proposal to enhance the existing GST rental rebate. In general, the existing rebate provides a 36% rebate of the GST component of the price paid by landlords to construct, or purchase newly constructed, rental property. The existing rebate begins to be phased out for properties valued at over $350,000 and is eliminated at $450,000. The proposal would increase the rebate from 36% to…

Post published:December 18, 2023
Post category:Business – Taxes Contractor

Tax Articles