Davidow & Nelson Blog

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 »

Personal and Corporate Incentives: ZERO-EMISSION VEHICLES

On April 17, 2019, Transport Canada released details on the purchase incentive of up to $5,000 for zero-emission vehicles as originally proposed in the 2019 Budget.The incentive will apply to new purchases or leases on or after May 1, 2019. To receive the incentive, the manufacturer’s suggested retail price must be less than $45,000 for… Read more »

Taxable: REIMBURSEMENT FOR WORK CLOTHING

In an April 17, 2019 Technical Interpretation, CRA was asked whether clothing reimbursements paid to maintenance employees were taxable benefits. Employees were not required to wear specific uniforms and were reimbursed based on receipts, to an annual maximum.CRA referred to Guide T4130 Taxable Benefits and Allowances, which states that clothing is generally a personal expense,… Read more »

Home Base Needed: SPECIAL WORK SITE ALLOWANCE

In a January 29, 2019 Technical Interpretation, CRA discussed the criteria for tax-exempt allowances for board and lodging received for periods an employee was working at a special work site.To be a special work site, the following criteria must be met: the work performed at the location must have been of a temporary nature; the… Read more »