How CRA’s crackdown is becoming even more targeted, aggressive

Entrepreneurs hoping that Canada Revenue Agency would eventually ease its audit-focused crackdown after a recent uptick in enforcement activity may be dismayed to learn that the exact opposite is playing out. In fact, the agency is becoming even more targeted and aggressive in its activities. What we’re seeing now are a new range of enforcement […]

Changes to ECP tax rules create urgency for sale-minded entrepreneurs

A change to the treatment of eligible capital property (ECP) for Canadian-controlled private corporations (CCPCs) could have a significant impact on business owners planning a sale of their business in the next year. That is, of course, unless they act now to take advantage of the existing tax rules. Before we explore these changes, let’s […]

Long-time KRP partner Vazken Izakel calls it a career

It’s a bittersweet moment here at Kestenberg Rabinowicz Partners LLP as we wish a happy and prosperous retirement to one of our longest-serving partners. Vazken Izakel, our friend and colleague who began his career at KRP in 1989, has officially retired from active service with the firm. He will continue managing several key projects in […]

Entrepreneurs on alert after new round of bogus CRA calls

The stream of fraudulent ‘Canada Revenue Agency’ (CRA) calls continues. After notifying entrepreneurs just last year about a spate of bogus phone solicitations and threats from callers purporting to be CRA representatives, it’s clear that the fraudsters are up to their old tricks again. Last week one of our clients received a call claiming to […]

CRA changes treatment of U.S. LLPs, LLLPs

Canadian investors received some bad news from the Canada Revenue Agency (CRA) recently. Ottawa announced that it is changing the treatment of U.S. limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs). Moving forward subject to transitional relief for structures currently in place, LLPs and LLLPs will be taxed as corporations in Canada. The […]

A KRP Case Study: Section 160 of the Income Tax Act and why proper documentation matters

Many aspects of the Income Tax Act are difficult for taxpayers to understand and navigate, but Section 160 is perhaps one of the most obscure. In fact, most taxpayers are not aware that this section exists, let alone do they understand its full implications. That’s because Section 160  gives the Canada Revenue Agency (CRA) broad […]

The 5 revealing (yet overlooked) balance sheet metrics you need to know

Most entrepreneurs are not accountants. That statement is as obvious as it is revealing. Despite not having the letters ‘CA’ or ‘CPA’ on their business cards, however, entrepreneurs are still expected to understand the finer details of financial management and balance sheet analysis. It’s an unfair expectation for any business owner who, most of the […]

Positive news on tax rules for spousal, common-law, alter ego, joint partner trusts

Effective January 1, 2016 there will be significant changes to the taxation of trusts and estates, including alter ego, joint spousal / common-law partner and spousal / common-law partner trusts. There has been significant uncertainty in the tax community as a result of the impending legislation. Specifically, the new subsection 104(13.4) of the Federal Income […]

RRIF rule and re-contribution changes present new retirement planning opportunities

Typically, a Registered Retirement Income Fund (RRIF) is created on the conversion of a Registered Retirement Savings Plan (RRSP) before the end of the year in which an individual turns 71. A RRIF is beneficial as it allows an individual to accumulate tax-deferred growth. However, unlike an RRSP, there is a requirement to withdraw a […]

Tax benefits abound when entrepreneurs make charitable donations

Canadian entrepreneurs make millions of dollars in donations to a wide range of charitable organizations each year. What many don’t realize is that giving back can have some very positive tax implications. But before we get into the details, let’s examine a few interesting facts. Did you know that according to the Canada Revenue Agency […]