Davidow & Nelson Blog

Misconduct: Employment Insurance

An August 24, 2023 Federal Court of Canada case reviewed whether the taxpayer’s employment had ceased due to misconduct, which would render the taxpayer ineligible for employment insurance. The taxpayer worked at a community health care centre that required all employees to provide proof of full vaccination against COVID-19 unless they provided evidence of a… Read more »

Tax Collection: Revival of a Corporation

A June 12, 2023 Court of King’s Bench of Alberta case reviewed CRA’s application to revive a corporation dissolved in 2020. The former sole shareholder opposed the application. The corporation’s capital losses (as quantified during an audit of the 2013 and 2014 years) were used in 2017 and 2018. CRA sought to revive the corporation… Read more »

Increased CRA Disclosures: Mandatory Disclosure Rules

The requirement for taxpayers and their advisors to disclose reportable transactions to CRA has been expanded for transactions entered into after June 21, 2023. This change is part of a broader suite of changes requiring the disclosure of tax strategies considered aggressive by the government. Similar requirements exist in other countries, including the United States,… Read more »

GST/HST?: Businesses Purchasing from Non- Residents

Certain non-resident vendors are required to register for and collect GST/HST under a new simplified GST/HST registration regime that commenced July 1, 2021. While the rules are very complex under the simplified regime, GST/HST is not required to be collected on the supply of goods or services to customers registered for GST/HST. To avoid being… Read more »

Phase-Out After December 31, 2023: Enhanced First-Year CCA

Over the past several years, several incentives permitting enhanced CCA claims in the year property first becomes available for use have been implemented. Claiming the enhanced first-year CCA provides a tax deferral by accelerating the deduction. The phase-out of these incentives will begin for assets that become available for use after December 31, 2023. Immediate… Read more »

Increased Incentives: Enhanced GST Residential Rental Rebate

On September 14, 2023, the Department of Finance provided details on a proposal to enhance the existing GST rental rebate. In general, the existing rebate provides a 36% rebate of the GST component of the price paid by landlords to construct, or purchase newly constructed, rental property. The existing rebate begins to be phased out… Read more »

2023 YEAR-END TAX PLANNING

YEAR-END TAX PLANNING December 31, 2023 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2023 YEAR-END TAX PLANNING TIPS INCLUDE: Certain expenditures made by individuals by December 31, 2023 will be eligible for… Read more »

Some Issues: CEBA Repayment Deadline Extended

On September 14, 2023, the Department of Finance provided details on extending the deadline for Canada Emergency Business Account (CEBA) repayments, including the following key elements: – the deadline to qualify for partial loan forgiveness (by paying the non-forgivable portion) has been extended from December 31, 2023 to January 18, 2024; – if a refinancing… Read more »

More Housing Support: Multigenerational Home Renovation Tax Credit

The multigenerational home renovation tax credit is a refundable tax credit applicable to the costs of constructing a secondary suite for an eligible person (generally a relative either age 65 or over, or eligible for the disability tax credit) to live with a qualifying relation. The tax credit is available on up to $50,000 of eligible expenditures incurred after 2022 at a rate of 15%. In a March… Read more »

Electronic Applications: Disability Tax Credit (DTC)

The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently, CRA updated their services so that this application can be completed and… Read more »