Monthly Archives: October 2018

How Complete Is Complete?: DONATION RECEIPTS

Charities should ensure that any donation receipts issued are fully compliant with the tax rules. Failure to do so may result in the donor being denied a charitable donation if reviewed by CRA. This could cause operational and goodwill problems for the charity.Receipts for cash gifts must have the following: a statement that it is… Read more »

Can They Be Liable for Corporate Income Taxes?: DIRECTORS

A December 11, 2017 Tax Court of Canada case examined whether a taxpayer was liable for unpaid income taxes of the corporation of which he was a director. CRA’s assessment was based on the assertion that the taxpayer was a legal representative of the corporation and had distributed assets of the corporation without having first… Read more »

How Big of a Taxable Benefit Is It?: PERSONAL USE OF BUSINESS AIRCRAFT

A CRA communication dated March 7, 2018 provided updated commentary on taxable benefits arising from the personal use of a business aircraft.CRA categorized the types of flights into three groups, as follows: Mixed-use flights – If a shareholder or employee takes a flight which has a clear business purpose, they would not generally be subject… Read more »

After the Party: EMPLOYER-SPONSORED SOCIAL EVENTS

In an April 9, 2018 French Technical Interpretation, CRA clarified their position on taxable benefits arising from employer-sponsored social events, such as a holiday party or other event.Where the cost of the social event does not exceed $150/person (previously the limit was $100), excluding incidentals such as transportation, taxi fares and accommodations, there would be… Read more »