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Canada Dental Benefit: Support for those with Young Children

The Canada dental benefit, announced in September 2022, provides up-front tax-free payments to cover dental expenses for children under age 12 without dental coverage. The program began December 1, 2022, with expenses retroactive to October 1, 2022 being covered. The program is available for two periods: December 1, 2022 to June 30, 2023, and July 1, 2023 to June 30, 2024. While the program expires in mid-2024, the government has stated that it is committed…

Post published:February 17, 2023
Post category:Covid Tax Planning

Witnesses For Legal Documents: Choose them Wisely

A June 17, 2022 Ontario Superior Court of Justice case considered whether a will had been appropriately witnessed. In 2020, the owner of an insurance agency was diagnosed with terminal cancer and drafted a final will and testament. As it was the height of the COVID-19 pandemic, she chose two of her employees to meet her outside of the agency to sign the document as witnesses. She left everything to two children and nothing to…

Post published:February 10, 2023
Post category:Special Interest Wills

Employee Gifts and Parking: Updated CRA Policies

CRA updated several administrative policies in respect of employment benefits, effective January 1, 2022. Two of the key changes relate to employee gifts and parking. These updates were released in late 2022. Gifts, awards and long-service awards Under CRA’s existing gifts and awards administrative policy, the first $500 of annual gifts and awards provided to arm’s length employees is non-taxable. This policy does not apply to cash or near-cash gifts. Historically, CRA had considered all…

Post published:February 3, 2023
Post category:Tax Planning

Photo: Petru Mateas (Pexels)

Unreported Real Estate Dispositions: Multiple Issues

A September 12, 2022 Tax Court of Canada case reviewed the gain on a residential property purchased in 2007 and disposed of in 2011. The property was substantially rebuilt during the ownership period. The proceeds, cost and gain were all determined by CRA as the sale was unreported. These amounts were largely unchallenged by the taxpayer and accepted by the Court. The Court noted that the taxpayer’s tumultuous relations with her ex-husband, whom she divorced…

Post published:January 26, 2023
Post category:Individual – Taxes Special Interest Tax Planning

Covid Benefits: Review / Audit Activity

Covid Benefits: Review/Audit Activity On December 6, 2022, the Auditor General of Canada released its report on COVID benefit compliance enforcement. The report reviewed a total of $210.7 billion in payments with the following breakdown among programs. Canada Worker Lockdown Benefit (CWLB) – $0.9 billion Canada Emergency Wage Subsidy (CEWS) – $100.7 billion Canada Recovery Sickness Benefit (CRSB) – $1.5 billion Canada Recovery Childcare Benefit (CRCB) – $4.4 billion Canada Recovery Benefit (CRB) – $28.4 billion Canada Emergency Response Benefit (CERB) and related EI program – $74.8 billion…

Post published:January 20, 2023
Post category:Tax Planning

Unreported Real Estate Dispositions: Multiple Issues

A September 12, 2022 Tax Court of Canada case reviewed the gain on a residential property purchased in 2007 and disposed of in 2011. The property was substantially rebuilt during the ownership period. The proceeds, cost and gain were all determined by CRA as the sale was unreported. These amounts were largely unchallenged by the taxpayer and accepted by the Court. The Court noted that the taxpayer’s tumultuous relations with her ex-husband, whom she divorced…

Post published:January 19, 2023
Post category:Individual – Taxes

Year-end Tax Planning

See below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2022 YEAR-END TAX PLANNING TIPS INCLUDE: 1) Certain expenditures made by individuals by December 31, 2022 will be eligible for 2022 tax deductions or credits, including digital news subscriptions, moving expenses, labour mobility tax credit expenditures (NEW), child care expenses, charitable donations, political contributions, registered journalism organization contributions,…

Post published:December 15, 2022
Post category:Tax Planning

Tips Collected Electronically: Withholding Requirements

Where tips are “paid” by an employer, they are pensionable and insurable. In such cases, the employer must also withhold income tax and report the amounts on the employee’s T4. CRA’s current administrative policy is that if the tip is controlled by the employer (controlled tips) and then transferred to the employee, it is considered to be paid by the employer. In contrast, direct tips are considered to have been paid directly by the customer…

Post published:November 16, 2022
Post category:Business – Taxes Corporate Taxes

GST/HST Input Tax Credits: Reasonable Expectation of Profit

A July 28, 2022 Tax Court of Canada case considered whether input tax credits (ITCs) in respect of a farming operation’s expenditures were available. The farming activity consisted of breeding and racing various horses and involved at least four full-time employees at one point. Over a nine-year period (2007-2015), the operations never experienced positive net earnings and more than $4 million in losses were accumulated. The owner partially financed operations with earnings from his law…

Post published:November 16, 2022
Post category:Individual – Taxes Personal Taxes Special Interest Tax Planning

Executor: Whether to Accept This Role

Individuals may be asked to take on various roles in respect of loved ones, friends, clients or others. One role that is particularly riddled with challenges is that of an estate executor. While an individual may carry out their duties in an appropriate manner, it is important to consider the risks of unhappy beneficiaries and any other undesirable outcomes, including litigation and/or strained relationships. A March 4, 2022 Tax Court of Canada case reviewed whether…

Post published:November 16, 2022
Post category:Individual – Taxes Special Interest

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