Principal Residence
On October 3, 2016, the Government of Canada announced an administrative change to the reporting requirements on the sale of a principal residence. When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and […]
RDTOH
The Income Tax Act indicates that if a corporate’s tax return is filed 3 years after the return was to be filed, no dividend refund is allowed. The CRA was denying the claim for the refund for future years. Two recent court cases have indicated that the dividend refund can be carried forward to subsequent […]
Management Fees
Ms. Bessette is a member of the Order of Dentists and carries on business under a name since 1992, Dental Centre Nathalie Bessette. In 2002 she met Pierre Senez, accountant, being in search of a more favorable corporate structure. M. Senez creates two (2) companies, Les Nathalie Bessette Services inc. whose shares are held by Bright Eyes Management […]
Voting Shares
(The document below has been translated from French to English). Date: December 18, 2013 2013 – 0511101E5 interest Substantial – Part VI.1 Please note that this document, although correct at the time of release, may not represent the current position of the CRA. MAIN issues: 1 Whether paragraphs 191 (3) (a) and (b) apply in […]
Stock Options
Michel Mathieu (Appellant) v. Her Majesty the Queen (Respondent) Court: Tax Court of Canada Date: June 27, 2014 Neutral Citation: 2014 CCI 207 Court File Number: 2010-1972(IT)G Inclusions in income — Stock option benefits — Whether taxpayer at arm’s length with his corporate employer from whom he acquired and took up stock option benefits — […]
Executor Fees
The following is a ruling from the Canada Revenue Agency. PRINCIPAL ISSUES: An executor who does not act in the course of a business may incur expenses for the administration of an estate and the expenses may be reimbursable by the estate. Where estate is wound up before the expenses are reimbursed, can the executor […]
Future Income Tax
Income Tax Act: 110.1 (6) (This is a translation from the French document) Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Please note that this document, although correct at the time of release, may not represent the current […]
Personal Services Business
In many industries, it is common practice for a company to hire independent contractors who have incorporated, to perform work related duties. This is especially true in the oil and gas industry. Recently, the Canada Revenue Agency (“CRA”) has reassessed many of these corporations and declaring them to be personal services businesses (“PSB”). As a […]
Subsection 74.5(11) Artificial Transactions
Subsection 74.5(11) of the Income Tax Act (the “Act”) is an anti-avoidance provision that prevents the attribution rules in sections 74.1 to 74.4 of the Act from applying where it is determined that one of the main reasons for the transfer or loan that gives rise to the income or gains being attributed is to […]
Income Sprinkling
The Federal Government released their draft legislative on the measures to address income sprinkling on December 13, 2017. The new draft legislative proposals will extend the tax on slip income (“TOSI”) to individuals aged 18 and over. The technical backgrounder on measures to address income sprinkling from the Department of Finance Canada is below. http://www.fin.gc.ca/n17/data/17-124_2-eng.pdf […]