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 replace them. As the property was empty, the taxpayer… Read more »
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 ownership registry by 2025. Some provinces have also commenced… Read more »
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 will continue to use either of the two months… Read more »
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 qualifying period, but not both. Eligible employers Employers… Read more »
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 capacity. Property eligible for this immediate… Read more »
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 now to get retroactive benefit payments…. Read more »
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 in a certain area. CRA has stated they have conducted some initial… Read more »
CRA recently discussed one of their top priorities; identifying those involved in the underground economy and ensuring that they are satisfying their tax obligations. They specifically noted that they are using data analytics to predict industry sectors where tax evasion or non-compliance is more likely. Further, they will send unnamed person requests for information (to sources such as cheque-cashing companies),… Read more »
The Canada Emergency Business Account (CEBA) program is intended to support businesses incurring non-deferrable expenses by providing partially forgivable interest-free loans. Originally, applicants could receive a loan of up to $40,000, with 25% of it being forgivable if the other 75% was repaid by December 31, 2022. On December 4, 2020, CEBA loans for eligible businesses increased to $60,000. Those who previously received a CEBA… Read more »
Due to the COVID-19 pandemic, many employees worked from home during a portion of 2020. On December 15, 2020, CRA released guidance on two new options available for employees claiming expenses related to working from home on their personal tax return. While this will clearly impact an employee’s personal tax filing, it should also be… Read more »