Traders or dealers in securities must report to CRA the disposition of securities, such as publicly traded shares, mutual fund units, bonds and T-bills, of their clients on a T5008. A November 4, 2022 French Federal Court case summarized CRA’s administrative policy where a taxpayer has not filed a tax return, but a T5008 was …
Unreported Capital Trades Included on a T5008: CRA Policy (part 1) Read More »
Please see the beginning of the article here Taxpayer wins The Court found a sufficient link between the advertising from the sponsorship and the taxpayer’s investment advisory services from which he generated his commission income. In addition, the Court opined that the taxpayer’s sponsorship expenses constituted a much lower portion of his total income (e.g. …
Employment Expenses for Commissioned Employee: Sponsorship (part 2) Read More »
In a January 23, 2023 French Court of Quebec case, a commissioned salesperson deducted nearly $600,000 over 2015 and 2016, in sponsorship expenses of a professional cycling team in Canada. The individual was an investment advisor and reported commission income of $1,493,910 and $1,263,360 and taxable capital gains of $2,276,374 and $99,767 in the respective …
Employment Expenses for Commissioned Employee: Sponsorship (part 1) Read More »
The Canadian Federation of Independent Businesses (CFIB) released a report on January 10, 2023, focused on succession expectations for small businesses. It included the following survey responses: 76% of small business owners (constituting $2 trillion in business value) are planning to exit their business in the next 10 years; 9% have a formal business succession …
Small Business Succession: Many Business Transfers Coming Shortly Read More »
A January 11, 2023 BC Civil Resolution Tribunal case addressed a claim for wrongful dismissal. The employer filed a counterclaim in respect of a 50-hour discrepancy between the employee’s timesheets and tracking software data over a period of about a month during which the employee was working remotely. The employee argued that significant hours were …
(Please see the beginning of the article here) Budget 2023 proposes to introduce an increase to the maximum GSTC amount for January 2023 that would be known as the Grocery Rebate. Eligible individuals would receive an additional GSTC amount equivalent to twice the amount received for January. The Grocery Rebate would be paid as soon …
The Goods and Services Tax Credit (GSTC) helps to offset the impact of the GST on low- and modest-income individuals and families. The GSTC is non-taxable, income-tested, and indexed to inflation. For the 2022-23 benefit year (July 1, 2022 to June 30, 2023), the current rules provide (without regard to the November 2022 top-up) the …
(Please see the beginning of the article here) Allowing divorced or separated parents to open joint RESPs At present, only spouses or common-law partners can jointly enter into an agreement with an RESP promoter to open an RESP. Parents who opened a joint RESP prior to their divorce or separation can maintain this plan afterwards, …
(Please see the beginning of the article in our previous post) Deductions and Expenses Under the new rules, the AMT base would be broadened by disallowing 50 per cent of the following deductions: • employment expenses, other than those to earn commission income; • deductions for Canada Pension Plan, Quebec Pension Plan, and Provincial Parental …
ALTERNATIVE MINIMUM TAX FOR HIGH-INCOME INDIVIDUALS (PART 2) Read More »
The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer deductions, exemptions, and tax credits than under the ordinary income tax rules, and that currently applies a flat 15-per-cent tax rate with a standard $40,000 exemption amount instead of the usual progressive rate structure. The taxpayer pays the AMT or regular tax, …
ALTERNATIVE MINIMUM TAX FOR HIGH-INCOME INDIVIDUALS (PART 1) Read More »