Underused Housing Tax condo

Why you may need to file an Underused Housing Tax return

The federal government’s new Underused Housing Tax came into effect on January 1st, 2022. It introduced a 1 per cent annual tax on the ‘specified value’ of a vacant or ‘underused’ residential property owned in whole or in part by non-resident, non-Canadian citizens. Despite the legislation’s many exemptions, it is very broad and ensnares several […]

condominium under construction to assign residential purchase agreement

January Tax News: ‘Assigning’ residential purchase agreements, tax instalments–and more

“ASSIGNING” A RESIDENTIAL PURCHASE AGREEMENT Purchasers of new homes and condominiums sometimes sell their rights to the property before the closing. This happens frequently with new homes or condos that take years to be built. It may happen because of a change in circumstances, or simply because the buyer wants to profit from an increase […]

Documents for mandatory disclosure rules

New mandatory disclosure rules pose administrative challenge for some businesses

Draft legislation recently tabled by the Department of Finance could significantly complicate transaction reporting requirements for a selection of individuals and businesses across the country. Under newly proposed mandatory disclosure rules that were first introduced in the 2021 federal budget, certain taxpayers may need to report a comprehensive new set of reportable or notifiable transactions […]

transport truck and personal services businesses

CRA is scrutinizing personal services businesses. Here’s why

As devastating as the global pandemic has been, it did create a new way of thinking for businesses large and small. Remote work became common, Zoom calls the norm and businesses of all sizes shifted their workflow, both to accommodate lockdown restrictions and the evolving work preferences of their employees. At the same time, a […]

Canada Revenue Agency

CRA prescribed rate to increase in early 2023

Rising interest rates have touched virtually every corner of Canada’s economy. Accordingly, the Canada Revenue Agency’s prescribed interest rate is set to increase in lockstep yet again. It will jump to 4 per cent in the first quarter of 2023, up from the current 3 per cent. This is the third consecutive quarter that the prescribed […]

residential property flipping

November tax news: Property flipping, rules around investment income in a corporation–and more

RESIDENTIAL PROPERTY FLIPPING If you buy a home or condo, and then sell it soon after you get title — certainly if it’s within 18 months or so — the CRA will usually consider that you have “flipped” the property, and that any gain is fully taxed as business profit, not half-taxed as a capital […]

trust reporting rules delayed

Changes to federal trust reporting rules delayed again

In a recent blog, we detailed the government’s proposed new trust reporting rules that were due to come into effect in 2021, before being pushed back until later this year. Now, the implementation date of those new reporting requirements has been delayed yet again. To recap, in the 2018 federal budget, Ottawa outlined plans that […]

disability parking space

October tax news: Qualified disability trusts, gifts of property–and more

QUALIFIED DISABILITY TRUSTS A qualified disability trust (“QDT”) is a testamentary trust that can be set up for disabled beneficiaries who are eligible for the disability tax credit. A testamentary trust basically means a trust that is set up under your will, and takes effect after you die. You might consider setting up a QDT […]