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Canada Revenue Agency sign that depicts prescribed rate

Canada Revenue Agency prescribed rate remains at 6% for Q2 2024

The Canada Revenue Agency prescribed rate will remain at 6 per cent for the second quarter of 2024 (which extends from April 1st, 2024 to June 30th, 2024). The prescribed rate last reached 6 per cent in the second quarter of 2001; it hovered at only 1 per cent during the COVID-19 pandemic. The current […]

Houses illustrating how CRA has simplified Underused Housing Tax

December tax news: Simplified Underused Housing Tax rules, capital gains or income—and more

OTTAWA TAKES STEPS TO SIMPLIFY UNDERUSED HOUSING TAX COMPLIANCE As discussed in our April 2023 Tax Newsletter, the Underused Housing Tax (UHT) regime was introduced last year to try to combat the underuse of residential property, particularly property owned by non-residents. The regime imposes an annual tax of 1 per cent of the relevant property’s […]

advisor discussing new CRA trust reporting rules

Understanding the CRA’s new trust reporting rules—including changes to bare trusts

The Canada Revenue Agency has introduced significant changes to trust reporting rules. The new rules apply to trusts with taxation years ending after December 30th, 2023. Specifically, all trusts—except where specific conditions are met—must now file an annual T3 return, along with additional beneficial ownership information (completed in Schedule 15 of the annual T3 return). […]

CRA interest rates on outstanding taxes increasing

Tax Bulletin: CRA interest rate on outstanding taxes will soon reach 10%

The period of relatively low Canada Revenue Agency interest rates on overdue taxes seems like a distant (and fond) memory. Those charges are now hitting an uncomfortably high level that creates potential new challenges for taxpayers. Beginning in January 2024, CRA prescribed interest rates on overdue or outstanding balances will climb to 10 per cent—from […]

House of Commons and flag of Canada

What to expect when you’re expecting a spring federal budget

As surely as Ottawa’s chillingly-cold winters will soon shift to warmer spring weather, professionals and media are eagerly speculating about the potential contents of the upcoming federal budget—the spring 2022 installment of which is expected to be tabled in early April. A number of factors, both domestic and foreign, will strongly influence measures included in […]

Property purchase

June tax news: Buying property from a non-resident, HST rules–and more

BUYING PROPERTY FROM A NON-RESIDENT If you are buying real estate — such as a house or condominium, or a commercial property — from a non-resident of Canada, you need to know about your obligation to withhold tax unless the vendor provides you with a “section 116 certificate” from the Canada Revenue Agency. A non-residents […]

woman working from her home office

CRA signals a willingness to simplify home office tax deductions for employees

  Almost overnight, the COVID-19 crisis launched many Canadian businesses into the most ambitious remote-work/home office experiment ever attempted. Widespread lockdowns forced businesses to either shutter or have their employees work from home until further notice. Many still are—and have no plan to return to the office. Indeed, many a CFO and accounting department embraced […]

CRA employs aggressive new laws designed to catch terrorists in crackdown on tax evaders

The days of the Canada Revenue Agency taking a kinder, gentler approach to its relations with taxpaying business owners are long gone. From employing sophisticated algorithms to tightening rules around its own Voluntary Disclosure Program, Ottawa has become accustomed to using increasingly aggressive tactics to collect overdue taxes and punish alleged tax cheats. In some […]

Why business owners should think twice before shredding old tax records

There are a few questions that chartered accountants get asked all the time. They include (but are in no way limited to): What’s the key to growing a successful business? What’s the most tax-efficient way to draw profits from a corporation? Should I lease or buy my company car? What’s the minimum amount of time […]