Davidow & Nelson Blog

More People Are Now Eligible: GUARANTEED INCOME SUPPLEMENT

As many individuals had lower income in the 2020 year, some may be surprised that they are eligible to receive the Guaranteed Income Supplement (GIS). In addition, changes in July 2020 allow individuals to earn more without eroding benefits. For those who have been eligible for some time, GIS (and OAS) can be applied for… Read more »

Financial Hardship: TAXPAYER RELIEF

In a January 14, 2021 Federal Court case, the taxpayer sought a judicial review of CRA’s denial to provide interest and penalty relief on a tax debt of nearly $400,000. The taxpayer argued that relief should be granted due to financial hardship and inability to pay. While the taxpayer provided information demonstrating that monthly expenses… Read more »

Period Extensions: COVID-19 BENEFITS FOR INDIVIDUALS

The eligibility periods for several personal income replacement COVID-19 benefits have been extended: – the previous limit of 26 weeks for the Canada Recovery Benefit (CRB) and Canada Recovery Caregiver Benefit (CRCB) will be extended by 12 weeks to 38 weeks; – the previous limit of two weeks for the Canada Recovery Sickness Benefit (CRSB)… Read more »

Major Repair Expenses: RENTAL PROPERTIES

In a February 11, 2021 Tax Court of Canada case, the deductibility of rental expenses for a condo unit that underwent major repairs was considered. In 2010, major structural repairs (the exterior repairs) commenced on an entire condo complex. As a result, the taxpayer lost the tenants for his particular unit, and was unable to… Read more »

More Information to Be Disclosed: BENEFICIAL OWNERSHIP OF CORPORATIONS

There is a global trend emerging focused on requiring corporations to disclose the identity of their beneficial owners. Beneficial owners are generally individuals that either directly or indirectly exercise ultimate ownership or control over a corporation. The 2021 Federal Budget in Canada provided $2.1 million to support the implementation of a publicly accessible corporate beneficial… Read more »

Details Released: EXTENDED WAGE AND RENT SUBSIDIES

On March 3, 2021, the Department of Finance announced details on the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) for the March 14 – June 5 periods. Later, the Federal Budget (April 19, 2021) announced an extension of these programs to September 25, 2021. Revenue comparison reference periods The reference periods… Read more »

New Hiring Subsidy: CANADA RECOVERY HIRING PROGRAM (CRHP)

The 2021 Federal Budget introduced the new CRHP which would provide eligible employers with a subsidy of up to 50% of the incremental remuneration paid to eligible employees in respect of June 6, 2021 to November 20, 2021. The higher of the Canada Emergency Wage Subsidy (CEWS) or CRHP may be claimed for a particular… Read more »

Budget 2021: IMMEDIATE CAPITAL ASSET WRITE-OFF

The 2021 Federal Budget proposed to allow immediate expensing of certain property acquired by a Canadian- controlled private corporation (CCPC) on or after April 19, 2021 (Budget Day) and before 2024. Up to $1.5 million per taxation year is available (shared among associated CCPCs, and prorated for short taxation years), with no carry-forward of excess… Read more »

TAX TICKLERS… some quick points to consider…

– The Canada Emergency Business Account (CEBA) application deadline (for either the $20,000 extension, or the full $60,000) has been extended from March 31 to June 30, 2021. – If you missed out on the 2020 COVID-19 enhanced GST credit or Canada child benefit, because no 2018 tax return was filed, you can file it… Read more »

CRA Focus on Video Game Streamers and Online Influencers:ONLINE ACTIVITY

It has recently been reported that CRA is reviewing social media accounts to see whether video game streamers’ and online influencers’ income is consistent with paid endorsements and other signs of income online. Video game streamers earn money by playing video games online. Influencers are those who have built a reputation online for their expertise… Read more »