Some quick points to consider… – The government has proposed to reduce the tax rate on the lowest bracket to 14% (from 15%) effective July 1, 2025, resulting in reduced tax for many individuals. This change would be implemented as a 14.5% rate for 2025 and 14% for 2026 onwards. However, the rate for personal… Read more »
A December 20, 2024 Tax Court of Canada case reviewed the denial of losses from two activities, a dog breeding business and the short-term rental of properties in the Okanagan region of BC. The operation had been carried on by a married couple in the taxation years 2004 to 2010. Dog activities The Court undertook… Read more »
In response to the tariffs, the federal government has announced several measures to support businesses and individuals. In accordance with a March 21, 2025 Release from the Prime Minister, CRA will implement the following measures: – deferring GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025; – waiving interest on… Read more »
A June 18, 2024 Technical Interpretation discussed the tax treatment of losses resulting from a personal scam, as opposed to an investment scam. Two examples of personal scams were provided, as follows: – a grandparent scam that generally involves the fraudster impersonating a grandchild, claiming that they are in trouble and require financial assistance (e.g…. Read more »
Have you received a call claiming to be from CRA but are unsure if it is legitimate? CRA has launched a webpage (https://www.canada.ca/en/ revenue-agency/corporate/scams-fraud/verify-cra-contact.html) to assist taxpayers in determining whether the call is actually from CRA. Taxpayers can go to the webpage and enter the 10-digit number that they were given to call back. The… Read more »
The Canada disability benefit is a new monthly payment for working-age persons with disabilities who have low income. The first payments will be made in July 2025. To be eligible for this benefit, individuals must meet the following criteria: – be a resident of Canada (for tax purposes); – have a valid disability tax credit… Read more »
Some quick points to consider… – CRA has been significantly delayed in posting several tax slips to its online portal this year. Adjustments to filed personal tax returns may be needed to report income that was missed. – Individuals reporting capital gains have until June 2, 2025 to file their income tax returns and make… Read more »
A March 30, 2023 Tax Court of Canada case reiterated the importance of the trustee of a trust properly understanding the terms of the trust. In this case, the trust had paid $100,000 to two beneficiaries, both under age 18, from capital gains eligible for the capital gains exemption. However, the terms of the trust… Read more »
Details on the new Canada disability benefit were included in regulations that were released on June 29, 2024. This benefit is intended to provide support to low-income working-age individuals with a disability. To be eligible for the benefit, the taxpayer would be required to: – be a resident of Canada (for tax purposes); – have… Read more »
A June 17, 2024 Tax Court of Canada case reviewed a commission salesperson’s deduction for remuneration paid to their spouse (L) for general administrative services as a self- employed contractor. Taxpayer loses The annual deductions of $20,000 for services, including arranging appointments with prospective clients (who completed preprinted forms at a kiosk to express interest… Read more »