Davidow & Nelson Blog

YEAR-END TAX PLANNING

December 31, 2019 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 2019 YEAR-END TAX PLANNING TIPS INCLUDE: 1)     Certain expenditures made by individuals by December 31, 2019 will be eligible for 2019 tax deductions… Read more »

Comments from CRA: PROTECTING YOUR TAX INFORMATION

CRA released a Tax Tip (Protecting your personal information) on August 6, 2019 which provided various suggestions to safeguard tax information, including the following: Signing up for My Account or My Business Account and registering for email notifications. Notifications will be sent when paper mail is returned to CRA, or when certain other changes are… Read more »

Could Christmas Come Early?: UNCLAIMED BANK DEPOSITS OR PROPERTY

Unclaimed property refers to accounts at banks, financial institutions, and other organizations where there has been no activity generated or contact with the owner for a period. Typical forms of unclaimed property can include chequing or savings accounts, term deposits, Guaranteed Investment Certificates (GICs), bank drafts, traveller’s cheques, money orders, and certified cheques. A number… Read more »

Income or Capital?: PROPERTY FLIPPING

In an August 14, 2019 Tax Court of Canada case, at issue was whether the sales of four properties in B.C. were on account of income (fully taxable) or capital (half taxable), and whether they were eligible for the principal residence exemption (potentially tax-free) as claimed by the taxpayer, a real estate agent. Essentially, the… Read more »

Parking Pass: TAXABLE BENEFIT

In a June 10, 2019 Federal Court of Appeal case, the Court upheld the previous Tax Court decision which classified an employer-provided parking pass as a taxable benefit to an employee of an airline. However, in doing so, the Court provided differing reasons which may affect employees in all sectors.Taxpayer loses In the previous Tax… Read more »

TAX TICKLERS… some quick points to consider…

The Government of Canada estimates that the difference between the taxes that would be paid if all corporate tax obligations had been fully met, and the tax actually paid and collected in 2014, was between $9.4 and $11.4 billion ($2.7 to $3.5 billion for small and medium enterprises, and $6.7 to $7.9 billion for large… Read more »

Canada Business Corporations Act: TRACKING OF OWNERSHIP INFORMATION CHANGES

Over the past few years there has been much discussion at both the federal and provincial levels in respect of increased disclosure and tracking requirements of beneficial owners (those who may be considered owners even if not on title) of various types of property.Recent changes to the Canada Business Corporations Act , which came into… Read more »

CRA’s Abilities: DEMAND FOR CLIENT INFORMATION

CRA uses third parties to get information about other taxpayers to ensure they are complying with their tax responsibilities. This could include obtaining information from a business about its employees, customers or suppliers, without needing to list their specific names. CRA has recently announced that they intend to continue and increase the use of these… Read more »

Replacement Payouts by Employer: WORKERS COMPENSATION

In a March 29, 2019 Tax Court of Canada case, the taxpayer had been injured on the job and was held eligible for workers’ compensation (WC) payments by the relevant provincial authority. However, in accordance with the collective agreement setting out his terms of employment, he was paid 100% of his salary by his employer… Read more »

Disability Tax Credit: ANXIETY, DEPRESSION & PHOBIAS

In an April 3, 2019 Tax Court of Canada case, at issue was whether the impact of an individual’s mental impairment entitled her to the disability tax credit (DTC). The taxpayer suffered from social anxiety, depression and phobias.A taxpayer may be eligible for the DTC if the impairment(s) represents a marked restriction in the ability… Read more »