END-OF-YEAR TAX CONSIDERATIONS With the end of the year fast approaching, the window for taking steps to claim certain deductions, and for planning to minimize your 2023 tax liability, is closing. There are several things that can be done before January 1 to help control your ultimate tax payment, or maximize your tax refund, in April 2024. […]
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 […]
In the 2023 Fall Economic Statement tabled yesterday, the federal government was keen to boast about maintaining its ‘fiscal anchor’—the budget guardrails that seek to limit spending and deficits. Yet its recent policy commitments suggest otherwise. With debt-servicing costs skyrocketing, the fiscal picture is anything but pleasant. While the 2023 Fall Economic Statement is light […]
MOVING EXPENSES—AN OVERLOOKED TAX EXPENSE? Moving expenses can generate a vast array of deductible items that one can use to offset against new employment location income. People often will neglect a portion of moving expense claims, simply because they are unaware of the long list that constitutes possible moving expenses. This is a very useful […]
The federal government announced late last week that it is once again extending the repayment deadline for outstanding Canada Emergency Business Account (CEBA) loans. Organizations with outstanding balances will now have until January 18, 2024 (extended from December 31st, 2023), to repay their loans and still qualify for partial loan forgiveness. Ottawa last extended the CEBA […]
The Canada Revenue Agency prescribed rate will remain unchanged at 5 per cent for the fourth quarter of 2023 (for the period from October 1st through December 31st). After increasing steadily in the wake of the COVID-19 pandemic, the rate has remained static for several consecutive quarters. The prescribed rate is based on the three-month […]
SHAREHOLDER REMUNERATION: AN OVERVIEW There are many ways a corporation can get corporate funds into a shareholder’s hands. The inevitable question is what is the most tax-efficient way of achieving this? The answer to this question will differ from corporation to corporation, depending on the source of the corporate funds, the relationship of the shareholder […]
THE FAMILY BUSINESS AND THE CAPITAL GAINS EXEMPTION People wishing to pass on a family business to the next generation have, up until recently, been met with a tax problem – the availability (or more accurately non-availability) of the lifetime capital gains exemption. The lifetime capital gains exemption currently allows for up to $971,190 per […]
AGGRESSIVE TAX PLANNING GETS MORE RISKY The government has been taking more and more measures in recent years to go after “aggressive tax planning” — that is, the use of tax shelters and other schemes to avoid tax in ways not intended by the designers of the tax system. New rules will make it […]
The Canada Revenue Agency has announced that the prescribed rate for the third quarter of 2023 will hold steady for the first time in a year. The prescribed rate hovered at 1 per cent throughout most of the COVID-19 pandemic, then increased by a percentage point each quarter beginning in the third quarter of 2022. The […]
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