Tax Bulletins

US Tax Reform - Potential for a Huge US Tax Bill in April 2018

March 6, 2018

It seems like everyone is against the Canadian business owner these days.  First, the Canadian government imposes the new private company income splitting and passive income rules and then the US government imposes new taxes in that country on foreign corporations.  As the US taxes its citizens and permanent residents on their worldwide income, Canadian resident US persons that own shares in Canadian corporations may be caught by these new US tax measures.

As part of its Tax Reform, the US government has imposed two new taxes, a “transition tax” and a tax on income earned in a foreign corporation with little tangible assets.  The transition tax is the most pressing matter as it potentially imposes a large tax bill due in April 2018.  The latter tax is called “GILTI” and we understand it is not effective until the 2018 taxation year. 

While the provisions appear to be aimed at multinational corporations, they also affect non-resident US citizens and green card holders.

We are not US tax experts and this Bulletin is only intended to provide awareness of these issues and highlight the possible implications to our clients.  It is not intended to be a detailed examination of these provisions nor should it be considered professional advice.  We strongly recommend that you discuss these changes with a cross-border expert.  We have relationships with cross-border specialists that we will work with to guide you through these new provisions.

Learn more in the document below.

2018 Federal Budget

February 27, 2018

Finance Minister Bill Morneau delivered the Liberal Government’s third budget on February 27, 2018 (“Budget Day”) titled Equity and Growth.  The Budget anticipates a deficit of $19.4 billion for 2018-2019 and projects that by 2023 the deficit will drop to $12.3 billion. 

The major spending announcements in the budget include amounts for gender equality provisions, indigenous communities and investments in science and innovations.

The tax changes again did not include an increase in the capital gains inclusions rate or the taxation of stock option benefits.  Clarifications on plans for the taxation of corporate passive income which are to be effective for taxation years after 2018 were provided. The budget does not include any previously unannounced changes to personal or corporation tax rates or changes enhancing asset tax write-off rates in reaction to recent US tax reform announcements.

Learn more in the document below.

Update on Private Corporation Proposals

January 11, 2018

Just in time for the winter holiday season (and only a few weeks before the effective date of certain parts of the proposals), the Department announced revisions to certain aspects of the proposals affecting the taxation of private companies as a response to a number of criticisms.  These proposed revisions are in addition to statements made by the Minister of Finance throughout the past few months.

Redefining the Taxation of Private Corporations

August 10, 2017

When Finance Minister Bill Morneau delivered the Liberal Government’s second budget on March 22, 2017 it included an announcement that the Department of Finance intended to review various tax planning strategies commonly utilized by private corporations.

2017 Federal Budget

March 23, 2017

Finance Minister Bill Morneau delivered the Liberal Government’s second budget on March 22, 2017 (“Budget Day”).

2016 Federal Budget Report

March 22, 2016

Finance Minister Bill Morneau delivered the new Liberal Government’s first budget on March 22, 2016.

2016 Ontario Provincial Budget

February 25, 2016

On February 25, 2016, Ontario’s Finance Minister Charles Sousa delivered this year’s provincial budget. Among some of the significant changes proposed are new grants to cover the tuition costs of post-secondary education for low-income households, new taxes on cigarettes and alcohol and a carbon “cap-and-trade” system as a push towards green initiatives, which is anticipated to increase the cost of gas and heating fuel.

New Trust Rules

June 15, 2015
The federal government has made some changes to the taxation of trusts, which will come in to effect beginning January 1, 2016.

Phasing out RITCs

June 15, 2015

Information on phasing out restrictions on input tax credits (RITCs).

Federal Budget 2015

April 22, 2015

Details of the tax highlights of the Government’s 2015 Federal Budget.

Family Trust Benefits

December 1, 2014

This bulletin outlines the general income tax principles of income splitting and corporation income tax, and the potential tax benefits available.

Estate Freeze

November 3, 2014

Your successful corporation has grown in value, and you’re now thinking of your exit strategy. How will you pass the torch to the next generation of business owners? How will they be able to afford purchasing your shares at their fair value?

Corporate Purification

October 1, 2014

A successful business corporation can generate a healthy amount of excess cash or investments that accumulate over time. A “corporate purification” provides a tax efficient way to separate this cash from your active business.

Incorporating Your Business

September 2, 2014

Have you ever considered incorporating your business?

Ontario Budget 2014

May 14, 2014
On May 1st the Ontario government presented its 2014 budget. Review our summary of the key tax matters presented in the budget.

Federal Budget 2014

February 12, 2014

Federal Budget 2013

March 22, 2013

The Canada Revenue Agency Audit – Businesses

January 17, 2013
Information to help you understand the general audit process, and provide steps you can take to ensure the audit goes as smoothly as possible.

Incorporating your Medical Practice

December 20, 2012

Incorporating your medical practice can offer a great deal of potential tax deferral, savings and planning opportunities.

Taxation of Non Profit Organizations

May 2, 2012

Non Profit Organizations (NPO’s) do not pay income tax on their income. Learn more.

Federal Budget 2012

March 30, 2012

Ontario Budget 2012

March 27, 2012

The budget proposes no new tax increases and few spending reductions.

CPP/QPP Payroll Changes for 2012

November 30, 2011

This Bulletin addresses the requirement of employers to withhold and remit CPP/QPP premiums from an employee’s pensionable earnings in 2012 and beyond.

Federal Budget, June 2011

Succession Planning for Private Business Owners

Federal Budget, March 2011

HST - Frequently Asked Questions

HST - Real Estate

HST - Home Builders

CRA AND CHARITIES Presentation

October 26, 2009

On June 11, 2009, Canada Revenue Agency released a 32-page document providing comprehensive guidance to charities on acceptable fundraising expenditures and practices. Douglas M. Parker, CA, CFP delivered a seminar to several clients in the Quinte and Kingston areas on these new guidelines. The topic was entitled "CRA and Charities - The War is On" and the presentation covered three main areas - the revocation of charitable status of registered charities; the reassessment of donors for investing in "tax shelter" donation programs; and the new guidance on fundraising expenses.

The Power of Dividends

July 30, 2009

In May, 2009, Douglas M. Parker, CA, CFP delivered a seminar to several clients and investors in the Quinte area. The topic was entitled "The Power of Dividends" and the presentation covered three main areas - the attraction of the after-tax income earned on dividends paid by Canadian publicly-traded securities; income splitting between family members using the low 1% prescribed rate; and the pending taxation of income trusts.

2009 Home Renovation Tax Credit

June 15, 2009

On January 27, 2009 the Federal government introduced the "Home Renovation Tax Credit", or HRTC. This is a one-year program available only in the 2009 taxation year that provides a non-refundable tax credit of up to $1,350 per family for eligible expenses made between January 27, 2009 and February 1, 2010. Although the government has not yet released the legislation relating to the HRTC, Canada Revenue Agency ("CRA") has provided some guidance on what would be eligible under the program.