Davidow & Nelson Blog

Clawback Planning: Old Age Security (OAS)

Individuals who normally receive OAS are occasionally surprised when some OAS is subject to a special tax (commonly referred to as a “clawback”) with their T1 tax filings due to high earnings. In particular, OAS is clawed back at a rate of 15% of adjusted income (AI) received in that year over an indexed threshold… Read more »

Modified Support for Individuals: Canada Worker Lockdown Benefit (CWLB)

The CWLB provides a $300 per week benefit to employees and self-employed persons unable to work due to a public health restriction lasting at least seven consecutive days. It will apply only to regions designated by the federal government as eligible in the period. This would be in regions where provincial or territorial governments have… Read more »

Expanded Access to Tax Credit: Teachers and Early Childhood Educators

The eligible educator school supply tax credit is a refundable tax credit that allows teachers and early childhood educators to claim up to $1,000 for amounts expended (for which no allowance or reimbursement was provided) for supplies and some durable goods used to teach or facilitate students’ learning. Individuals must have a certificate from their… Read more »

CRA Increasing Reviews: Corporate Advertising and Promotion Expenses

Over the past few years, CRA has taken a targeted approach in reviewing amounts claimed under specific lines (based on the type of claim) of a corporate tax return. Various projects conducted included reviews of professional fees, travel expenses and the purchase of certain vehicles. CRA has recently focused their efforts on advertising and promotion… Read more »

The Penalties Can be Large: Falsified Employment Records

With numerous COVID-19 benefits being based on employment and remuneration levels, the federal government has likely become increasingly concerned with falsified employment records. However, this is not a new issue. In particular, the government already has experience dealing with false records used to increase access to employment insurance (EI) benefits. Employers can face penalties of… Read more »

Targeted Measures: COVID-19 Business Supports

In the Fall of 2021, the government revised several business supports provided due to the COVID-19 pandemic. The changes include extending the Canada Recovery Hiring Program (CRHP) to May 7, 2022 and increasing the subsidy rate to 50%. The wage and rent subsidies under the previous Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency… Read more »

Could Your Business Benefit? : Small Business Air Quality Improvement Tax Credit

The December 14, 2021 Economic and Fiscal Update proposed a temporary refundable small businesses air quality improvement tax credit of 25% on eligible air quality improvement expenses incurred by small businesses to make ventilation and air filtration systems safer and healthier. The credit will be available for qualifying expenditures between September 1, 2021 and December… Read more »

Tax Tidbits

Some quick points to consider… – The annual TFSA limit for 2022 remains at $6,000. As such, if an individual has never contributed and has built room since the program’s inception in 2009, up to $81,500 can be contributed. – Employees working from home in 2021 due to the COVID-19 pandemic will again have the… Read more »


For the 2020 year, many employees were required to work from home due to the COVID-19 pandemic. Those employees generally had two deduction possibilities: using the flat method of claiming $2/day the individual worked from home, or doing a detailed calculation to claim the actual costs associated with working from home. While the first option… Read more »

Flexible Planning Possibilities: WITHDRAWING FROM FAMILY RESPs

A July 21, 2021 Money Sense article (My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes?, Allan Norman) considered some possibilities and strategies to discuss when withdrawing funds from a single RESP when children have different financial needs for their… Read more »