The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently, CRA updated their services so that …
Disability Tax Credit (DTC): Electronic Applications (part 1) Read More »
Please see the beginning of the article here The Court then noted that the withholding requirement exists regardless of whether or not the taxpayer knows that the landlord is non-resident. Further, there is no due diligence defence in respect of the tax withholding. As such, the taxpayer was liable for the tax not withheld. The …
Paying Rent to Non-Residents: Withholdings Required (part 2) Read More »
In a March 30, 2023 Tax Court of Canada case, the taxpayer was assessed for failing to withhold taxes on rent paid on Canadian real estate to a non-resident. Penalties and interest were also assessed. The information known to the taxpayer was limited to an Italian telephone number on the lease document (with a Canadian number), …
Paying Rent to Non-Residents: Withholdings Required (part 1) Read More »
In some situations, a registered charity may be asked to receive donations on behalf of another organization or cause. While this may seem like a good way to generate funds and reward donors with charitable contribution receipts, it can have serious implications for the charity. A February 1, 2023 Technical Interpretation considered a charity that …
Gifts Directed to Other Donees: Loss of Charitable Status (part 1) Read More »
Please see the beginning of the article in our previous posts. Multiple returns to file. One return must be filed for each of the properties owned by the person, potentially resulting in multiple filings by a person. Likewise, if multiple persons are on title for a single property, each has their own filing obligation. Private …
Underused Housing Tax (UHT): Increased Disclosures and Taxes (part 3) Read More »
Please see the first part of the article here Some of the more common questions and concerns related to the UHT are noted below. Is my property a “residential property”? In general, a “residential property” is a property that contains a building with one to three dwelling units under a single land registry title. A …
Underused Housing Tax (UHT): Increased Disclosures and Taxes (part 2) Read More »
UHT is a 1% federal tax intended to apply to the value of vacant or underused residential real property owned by non-resident non-Canadians. However, many Canadian individuals and other entities are also required to file UHT returns and may even be liable for the tax. Numerous exemptions from the tax itself exist, but significant penalties …
Underused Housing Tax (UHT): Increased Disclosures and Taxes (part 1) Read More »
Please see the first part of the article here Taxpayer loses The Court noted that TFSAs are one of several statutory schemes, each with its own detailed provisions. Their components are not interchangeable. In comparing TFSAs to RRSPs specifically, the Court cited ten significant differences between the two schemes other than the treatment of business …
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 »