Newsletters
Below is a list of our most current newsletters.
The most recent release of Statistics Canada’s Consumer Price Index shows a slight increase in the rate of inflation for the month of February 2021. That rate stood at 1.1%, as compared to the rate ...
The Minister of Finance has announced that the federal Budget for the upcoming 2021-22 fiscal year will be delivered on Monday April 19, 2021. This year’s Budget will be the first one delivered sinc...
Over the past month, the Canada Revenue Agency (CRA) identified a large number of individual taxpayer online accounts for which user IDs and passwords had been obtained by unauthorized third parties. ...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant increase in employment during the month of February. During that month, employment rose by 259,000 jobs, and th...
As expected, the Bank of Canada announced on March 10 that no changes would be made to current interest rates. Accordingly, the Bank Rate remains at 0.5%. In the press release announcing its decision,...
The Canada Revenue Agency (CRA) has announced that targeted interest relief will be provided to Canadians who received pandemic income support benefits during 2020. Specifically, qualifying individual...
The most recent release of Statistics Canada’s Consumer Price Survey shows a slight increase in the rate of inflation for January 2021. The inflation rate for that month, as measured on a year-over-...
The Canada Revenue Agency’s (CRA) NETFILE service for the filing of individual income tax returns for the 2017, 2018, 2019, and 2020 tax years is now available 21 hours a day, 7 days a week. The ser...
The Canada Revenue Agency (CRA) has issued the guide to be used by taxpayers who are reporting business or professional income, commission income, and income from farming and fishing received during 2...
The Canada Revenue Agency (CRA) has announced that, beginning February 27, 2021, its Individual Tax Enquiries line will be available on Saturdays, from 9 a.m. to 5 p.m. That service is also available ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has announced that its individual income tax enquiries line will be open for extended hours during the upcoming tax filing season. That line — reachable at 1-800-959-...
The Canada Revenue Agency’s (CRA) NETFILE service for the online filing of individual income tax returns for the 2020 taxation year will be available starting Monday, February 22, 2021. In order to ...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant decline in employment during the month of January, and a corresponding increase in the overall unemployment rat...
The Canada Revenue Agency (CRA) has issued the individual income tax forms and guides to be used by Canadian residents in filing an income tax return for the 2020 taxation year. The particular form to...
The federal government has launched the consultation process leading to the release of the 2021-22 federal Budget. This year, there are three components to the consultation process. The government wil...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its regularly scheduled interest rate announcement made on January 20 the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 0....
The Canada Revenue Agency (CRA) has issued an updated version of Guide T4044, Employment Expenses 2020, which outlines the tax treatment of various employment expenses, and will be used by taxpayers i...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate inflation rose by 0.7% during the month of December 2020, as measured on a year-over-year basis. The rate for...
The Canada Revenue Agency (CRA) has released the automobile expense deduction limits and benefit rates which will apply during the 2021 taxation year. Most of the rates and limits which applied during...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of December 2020 increased to 8.6%. The comparable rate for the month of Nov...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first quarter of 2021, as well as the rates that will apply for the purpose ...
The Canada Revenue Agency’s (CRA) NETFILE service for the filing of individual income tax returns for the 2016, 2017, 2018, and 2019 taxation years will be available until Friday, January 22, 2021. ...
Post-secondary students in Canada are eligible for a range of tax credits and deductions, including a tuition tax credit, deductions for moving expenses, and a claim for qualifying student loan intere...
The Canada Revenue Agency (CRA) has announced that a new temporary home office tax credit may be claimable by qualifying individuals who worked from home during 2020. Taxpayers are eligible to use thi...
The Canada Revenue Agency (CRA) permits taxpayers to designate another person, firm, or business to communicate with the CRA on the taxpayer’s behalf, where a written authorization has been provided...
Taxpayers may apply to the Minister of National Revenue for administrative relief from interest and penalty charges imposed or, in some cases, for permission to late-file tax elections. In order to be...
In its regularly scheduled interest rate announcement made on December 9, the Bank of Canada announced that no change would be made to current interest rates. Accordingly, the Bank Rate remains at 0.5...
The most recent release of Statistics Canada’s Labour Force Survey shows that the rate of unemployment declined by 0.4% during the month of November. The unemployment rate for the month was 8.5%. Fu...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
On November 30, the Minister of Finance released the Fall Economic Statement, which included updated deficit projections for the current and future fiscal years. The deficit is now projected to reach ...
The federal government has announced that the program providing a wage subsidy to eligible businesses experiencing a pandemic-related revenue loss has been extended to be available until June 2021. Th...
The federal government has announced that its Fall Economic Statement for the 2020-21 fiscal year will be released on Monday November 30, 2020. The press release announcing the date and time of the St...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate of inflation for the month of October rose by 0.7%, as measured on a year-over-year basis. The comparable inc...
The federal government has released the premium rates and amounts which will apply in 2021 for purposes of the Employment Insurance (EI) program. For 2021, the EI premium rate will be 1.58% and maximu...
The Canada Revenue Agency (CRA) has announced upcoming changes in the allowable contribution limits for a range of retirement savings programs. For registered pension plans, the 2021 money purchase l...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall rate of unemployment stood at 8.9% for the month of October. While the unemployment rate for the month was l...
The tax treatment of non-monetary benefits provided by employers to their employees can vary widely. Some such benefits must be included in the employee’s taxable income for the year, while others a...
The Canada Revenue Agency (CRA) has announced the contribution rates and amounts which will apply for purposes of the Canada Pension Plan during 2021. For 2021, the employer and employee contribution ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its October 28 announcement, the Bank of Canada indicated that, in its view, no change to current interest rates was needed. Accordingly, the Bank Rate remains at 0.5%. The press release announcing...
The Bank of Canada has released its schedule for policy interest rate announcements to be made during the 2021 calendar year, and that schedule is as follows: Wednesday, January 20 Wednesday, March 10...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation rose 0.5% on a year-over-year basis in September, up from a 0.1% increase in August. While pric...
In September, the Canada Emergency Response Benefit program came to an end, and three new programs to provide financial assistance to individuals impacted by the pandemic were launched. One of those p...
The most recent release of Statistics Canada’s Labour Force Survey shows that Canada’s overall unemployment rate declined by 1.2% during the month of September. For the month, that rate stood at 9...
The federal government has created three separate benefits which can be claimed by qualifying Canadians, following the end of the Canada Emergency Response Benefit (CERB) program. Applications for two...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers with respect to a tax scam currently operating, which involves claims for bad debt write-offs. While bad debts can be written off for ...
The federal government has created three separate benefits which can be claimed by qualifying Canadians, following the end of the Canada Emergency Response Benefit (CERB) program. Applications for two...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for 2020, as well as the rates that will apply for the purpose of calculating employ...
The Old Age Security benefit received by Canadians over the age of 65 is indexed quarterly to changes in the Consumer Price Index. The federal government has announced that the basic OAS benefit of $6...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
As part of its pandemic relief plan, the federal government provided eligible post-secondary students and recent post-secondary and high school graduates who were unable to find work for pandemic-rela...
Canadian taxpayers who pay income tax by instalment usually make four instalment payments each year, by the 15th day of March, June, September, and December. Earlier this year, the federal government ...
Earlier this year, the Canada Revenue Agency (CRA) announced that the deadline for payment of individual income tax balances for the 2019 tax year, which is usually April 30, was being extended to Wed...
The September release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of August stood at 10.2%. That rate represented a decrease of 0.7% from the ra...
The federal government has announced an increase in the amount of any overtime meal allowance, or meal portion of a travel allowance, that employers can provide to employees on a non-taxable basis. Th...
Eligibility for a number of refundable tax credits and benefits, including the harmonized sales tax/goods and services tax credit and the child tax benefit is based in part on a taxpayer’s income fo...
The pandemic emergency benefit program provided by the federal government for post-secondary students and recent secondary and post-secondary graduates ended on August 29, 2020. Those eligible for suc...
Since March 15 of this year, Canadians who have lost income as a result of the pandemic have been able to receive $500 per week from the Canada Emergency Response Benefit (CERB). The CERB program will...
Earlier this month, a cyberattack on the Canada Revenue Agency (CRA) and other agencies of the federal government compromised the personal tax and financial information of approximately 5500 taxpayers...
On July 17, the federal government announced that the existing Canada Employer Wage Subsidy (CEWS) program would be extended to be available until November 21, 2020, and that eligibility criteria for ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of July, as measured on a year-over-year basis, stood at 0.1%. The comparable rate ...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for July was 10.9%. The change means that the unemployment rate has fallen by 1.4 percentage poi...
Individual taxpayers who pay income tax by instalment are required to make four such instalment payments each year. The usual deadlines for such payments are the 15th day of March, June, September, an...
The Canada Revenue Agency (CRA) has posted a notice on its website indicating that it is experiencing delays in the processing of paper-filed individual income tax returns for the 2019 taxation year. ...
The Canada Revenue Agency (CRA) has announced that an interest waiver period will be provided to individual taxpayers with respect to income taxes owed. That waiver period will run from April 1 to Sep...
Earlier this year, the deadline for payment of individual income tax amounts owed for the 2019 taxation year was extended from April 30 to September 1, 2020. The federal government has now indicated t...
In its regularly scheduled interest rate announcement made on July 15, the Bank of Canada indicated that, in its view, no change to current interest rates was required. Accordingly, the Bank Rate rema...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
Canadian employers whose businesses have been affected by the pandemic may be eligible for a federal government wage subsidy – the Canada Emergency Wage Subsidy (CEWS). The CEWS, which pays the empl...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight decline in the rate of unemployment during the month of June. The unemployment rate for June stood at 12.3%, a decli...
On July 8, the federal government provided an update of its fiscal position for the current (2020-21) fiscal year, taking in account expenditures made in connection with the pandemic. That “Economic...
Earlier this year, the federal government announced that, as part of its pandemic relief measures, recipients of Old Age Security would receive an additional one-time payment. Such payment is intended...
The Canada Revenue Agency (CRA) has issued a Tax Tip reminding Canadians that its online filing services for the filing of individual income tax returns for the 2019 tax year are still open. Such indi...
The Old Age Security benefit received by Canadians over the age of 65 is indexed quarterly to changes in the Consumer Price Index. The federal government has announced that, as the rate of inflation d...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2020, as well as the rates that will apply for the p...
The federal government has announced that the Canada Emergency Response Benefit (CERB) program has been extended to be available for a further eight weeks in some circumstances. As originally designed...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate of inflation fell by 0.4% during the month of May, as measured on a year-over-year basis. Prices were up in f...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate rose slightly during the month of May, from 13% to 13.7%. The StatsCan analysis indicates that une...
In its regularly scheduled interest rate announcement made on June 3 the Bank of Canada, as anticipated. made no change to current rates. Accordingly, the Bank Rate remains at 0.5%. In its announcemen...
Self-employed Canadians and their spouses must file an individual income tax return for the 2019 tax year on or before June 15, 2020. As part of the federal government’s pandemic response plan, howe...
Individual Canadians who pay income tax by instalments would normally be required to make the second instalment payment for this year on June 15, 2020. The Canada Revenue Agency (CRA) has indicated, h...
The Canada Revenue Agency (CRA) has announced that the deadline for filing of T2 returns by corporations and T3 returns by trusts has been extended. That announcement provides that all businesses and ...
Each year community organizations across Canada operate a number of tax clinics at which individual income tax returns are prepared and filed free of charge to the taxpayer. Due to concerns surroundin...
The benefit year for many federal benefits, like the Canada Child Benefit and the Goods and Services Tax Credit runs from July 1 to June 30. Eligibility for and the amount of such benefits are based, ...
The Canada Revenue Agency has issued a reminder to Canadians that there are circumstances in which the Canada Emergency Response Benefit (CERB) must be repaid. In particular, individuals who return to...
The federal government has announced that, in order to help seniors with additional costs resulting from the pandemic, a one-time supplement will be provided to Canadians who already receive Old Age S...
The Canada Revenue Agency (CRA) has issued an alert on its website warning Canadians of a scam operating with respect to the Canada Emergency Response Benefit (CERB). That Benefit, for which more than...
As part of its pandemic response, the federal government is providing eligible employers with a partial wage subsidy through the Canada Emergency Wage Subsidy (CEWS) program. The CEWS program provides...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2020, as well as the rates that will apply for the purpose ...
The April release of Statistics Canada’s Consumer Price Index shows a sharp decline in the rate of inflation for the month of March. That rate stood at 0.9%, as measured on a year-over-year basis. T...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant increase in the rate of unemployment during the month of March. The April release of the Labour Force Survey, w...
The federal government has announced that required repayments of Canada Student Loans will be suspended until September 30th, 2020. Where payments are usually made by pre-authorized debit, such paymen...
In its regularly scheduled interest rate announcement made on April 15, the Bank of Canada indicated that, in its view, no change to current interest rates was required. Accordingly, the Bank Rate rem...
The federal government will be providing a wage subsidy program to eligible employers who have experienced a recent reduction in revenues of 30% or more. That program—the Canada Emergency Wage Subsi...
As of April 6, 2020, Canadians can apply for the federal Canada Emergency Response Benefit (CERB), which provides eligible individuals with $500 per week for a maximum of 16 weeks. The benefit is gene...
The federal government will be providing businesses with an extension with respect to remittance deadlines related to goods and services tax (GST) and harmonized sales tax (HST). The deferral will app...
In an unscheduled announcement made on March 27, the Bank of Canada lowered interest rates for the third time this month. In that announcement, the Bank reduced current rates by one-half percentage po...
The federal government has announced that, for the current benefit year only, the amount of Canada Child Benefit will be increased by a one-time payment of $300 per child. The $300 additional benefit ...
The deadline for filing of most 2019 individual income tax returns, as well as payment of any balance of tax owed for the 2019 taxation year by individual taxpayers would usually be April 30, 2020. Th...
Citing the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent drop in oil prices, the Bank of Canada has announced a further reduction in interest rates. The unsch...
The federal government has announced that the filing deadline for individual Canadian tax filers who would usually be required to file by April 30 has been extended to June 1, 2020. (Returns for 2019 ...
Canadian taxpayers who buy or sell a property during the year may be subject to requirements to report that transaction on their annual return and, in some cases, to pay tax on sale proceeds. The CRA ...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in the overall unemployment rate during the month of February. That rate rose by 0.1%, to 5.6%. During the mont...
The Canada Revenue Agency’s individual income tax enquiries telephone service will be available for extended hours during tax filing season. That enquiries service, which can be reached at 1-800-959...
In its regularly scheduled interest rate announcement made on March 4 the Bank of Canada indicated that, in its view, a reduction to current interest rates was required. Accordingly, the bank rate was...
The Canada Revenue Agency (CRA) has released its 2019 Guide to Self-Employed Business, Professional, Commission, Farming and Fishing Income for 2019. That Guide is used by taxpayers who are reporting ...
The Canada Revenue Agency’s NETFILE service for the filing of individual income tax returns for the 2019 taxation year is now available. The current NETFILE service, which can be found on the CRA we...
The Canada Revenue Agency (CRA) has announced that contributions to a registered retirement savings plan (RRSP), in order to be deducted on the return for 2019, must be made on or before Monday March ...
The most recent release of Statistics Canada’s Consumer Price Index shows an increase in the rate of inflation for the month of January. That rate stood at 2.4%, as measured on a year-over-year basi...
The most recent release of Statistics Canada’s Labour Force Survey shows that that unemployment rate dropped slightly during the month of January, from 5.6% to 5.5%. During that month, employment in...
The rates and limits for deduction and credit claims for meal and travel expenses are now posted on the Canada Revenue Agency (CRA) website. Such rates and limits apply to meal and travel expense clai...
In the 2019 Budget, the federal government introduced a new tax credit for digital news subscription costs incurred by individuals. That tax credit is available starting in the 2020 tax year. Individu...
In the 2019 Budget, the federal government introduced a new tax credit for digital news subscription costs incurred by individuals. That tax credit is available starting in the 2020 tax year. Individu...
The Canada Revenue Agency (CRA) publishes a guide for post-secondary students which outlines the rules governing typical tax situations for such students. Those rules include the tax treatment of tuit...
The Canada Revenue Agency (CRA) has announced that the NETFILE service for online filing of individual income tax returns for the 2019 tax year will be available beginning Monday, February 24, 2020. M...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide for all provinces and territories for the 2019 tax year, and those forms and guides are posted on its website at...
In its regularly scheduled interest rate announcement made on January 22, 2020, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remain...
The Canada Revenue Agency has announced the rates and limits which will apply for purposes of automobile-related benefits and deductions in 2020. Most such rates and limits are unchanged, as follows: ...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the first quarter (January 1 to March 31) of 2020. OAS payments are indexed quarterly to c...
The most recent release of Statistics Canada’s Labour Force Survey shows that employment increased by 35,000 jobs during the month of December and that the overall unemployment rate fell by 0.3%, to...
The federal government has announced that the basic personal tax credit, the spousal credit, and the eligible dependant credit amounts will increase, in four stages, from $12,298 to $15,000. The first...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first quarter of 2020, as well as the rates that will apply for the purpose ...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The federal government has announced the amounts which will be paid under the climate action incentive program during 2020. Such amounts are claimed when filing the individual income tax return for 20...
Taxpayers who have not yet filed their individual income tax returns for 2018 (or the three prior years) can file those returns on NETFILE until Friday, January 24, 2020. Until that date, the Canada R...
The 2019 Economic and Fiscal Update released on December 16 by the Minister of Finance shows a significant increase in the projected deficit for the current fiscal year. In the 2019-20 Budget announce...
Canadians who pay income tax by instalments are required to pay the fourth and final instalment payment of 2019 on or before Monday December 16, 2019. Taxpayers subject to the instalment payment requi...
Under the federal government’s Taxpayer Relief Program, the Minister of National Revenue can provide relief to taxpayers from interest or penalty charges which have been assessed. Such taxpayer reli...
In its regularly scheduled interest rate announcement made on December 4, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 2...
The Canada Revenue Agency has announced that personal income tax brackets and credit amounts for the 2020 taxation year will increase by 1.9%. Each year, such individual income tax brackets and cred...
The most recent release of Statistics Canada’s Consumer Price Index indicates that there was no change in the rate of inflation recorded for the month of October. That rate stood at 1.9%, as measure...
The Canada Revenue Agency has issued the 2020 version of Guide T4127, Payroll Deduction Formulas, which is intended for use by payroll software providers or companies which develop their own in-house ...
On Wednesday November 27, the Canada Revenue Agency (CRA) will be hosting a webinar on payroll requirements for Canadian employers. The webinar, which will start at 1:00 p.m. EST, is free of charge fo...
The Canada Revenue Agency (CRA) has updated and re-issued its tax guide for post-secondary students. That guide (P105, Students and Income Tax) reviews the tax treatment of common deductions and credi...
The federal government has announced the Employment Insurance (EI) premium rates which will be levied during 2020. For 2020, maximum insurable earnings for the year will be $54,200. The premium rate f...
The most recent release of Statistics Canada’s Labour Force Survey shows that there was no change in the overall unemployment rate for the month of October 2019, with that rate remaining at 5.5%. Am...
The Canada Revenue Agency has issued its Employer’s Guide: Payroll Deductions and Remittances for 2020 (T4001(E)). That guide provides employers with information on the deductions which must be made...
The federal government has announced the contribution rates and amounts and maximum pensionable earnings which will apply for purposes of the Canada Pension Plan in 2020. Employee and employer contrib...
Employers are required, by the end of February 2020, to issue T4 slips for their employees for the 2019 taxation year. Those T4s will summarize the amount of remuneration received by the employee duri...
In its regularly scheduled interest rate announcement made on October 30, 2019, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate will r...
As previously announced, changes are to be made to the Canada Pension Plan over the next 5 years, with the goal of increasing the amount of CPP retirement benefits available to contributors. The next ...
The federal government provides a detailed online retirement income calculator which can be used by taxpayers planning retirement. The online calculator allows users to input income amounts from vario...
The overall inflation rate was unchanged for the month of September, with that rate matching the 1.9% year-over-year increase posted for the month of August 2019. The greatest contributor to the infla...
The most recent release of Statistics Canada’s Labour Force Survey shows a sharp increase in job creation for the month of September. During that month employment rose by 54,000, mainly in full-time...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The federal government has announced the Employment Insurance premium rates and amounts which will be levied during the 2020 calendar year. For 2020, the Employment Insurance premium rate is decreased...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the fourth quarter (October 1 to December 31) of 2019. OAS payments are indexed quarterly ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for 2019, as well as the rates that will apply for the purpose of calculating emp...
The Canada Revenue Agency (CRA) has updated and re-issued its publication on the conduct of tax audits. The updated publication (RC4188E)) outlines the process by which the CRA chooses a file for audi...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of August stood at 1.9%, as measured on a year-over-year basis. The inflation rate ...
Finance Canada has released the Annual Financial Report of the Government of Canada for 2018-19, which provides an overview of the federal government’s financial results for the 2018-19 fiscal year ...
Each September thousands of international students move to (or return to) Canada to attend Canadian secondary or post-secondary educational institutions. Depending on their residency status, those stu...
The most recent release of Statistics Canada’s Labour Force Survey shows that employment increased by 81,000 positions during the month of August 2019. Notwithstanding that increase, the unemploymen...
In its regularly scheduled interest rate announcement made on September 4, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at ...
Individual taxpayers who make quarterly instalment payments of tax must make the third such instalment payment for the year on or before September 15. As that date falls on a Sunday this year, payment...
The Bank of Canada has released a listing of the eight dates on which it will make regularly scheduled interest rate announcements during 2020. That listing is as follows: Wednesday, January 22 Wednes...
The Canada Revenue Agency has issued a Tax Tip warning owners of self-directed RRSPs about a current tax scheme which they may encounter. Promoters of such schemes falsely promise owners of self-direc...
The Canada Revenue Agency has updated and re-issued its Information Circular outlining the rules and requirements which apply to taxpayers who keep business and tax books and records in electronic for...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation recorded for the month of July was unchanged from the previous month. For both June and July, tha...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, which includes the applicable rate for the upcoming month, as well as the rates in ...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight increase in the unemployment rate for the month of July, as measured on a year-over-year basis. For that month, the ...
The Canada Revenue Agency (CRA) has issued a Tax Tip reminding taxpayers of the procedures which it utilizes to protect their personal information, particularly with respect to contacts between taxpay...
Individuals who are required to pay income tax by instalments must make their third quarterly instalment for 2019 on or before September 15, 2019. As that date is a Sunday, such payments are considere...
The federal government provides tax relief to livestock producers who are experiencing severe weather or climate conditions during the year. Such relief is provided through the livestock tax deferral ...
The Bank of Canada has released the listing of dates on which it will make scheduled interest rate announcements during calendar year 2020. There will be 8 such scheduled interest rate announcements d...
Prospective mortgage borrowers in Canada are subject to a “stress test” as part of the assessment of their credit-worthiness. Under that test, such borrowers are required to qualify for a mortgage...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation during the month of June 2019 stood at 2%. The comparable rate for May was 2.4%. The decr...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The most recent release of Statistics Canada’s Labour Force Survey shows that, although the unemployment rate for the month of June rose by 0.1%, employment increased by 132,000 positions during the...
In its regularly scheduled interest rate announcement made on July 10, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the bank rate remains at 2%. ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first three quarters of 2019, as well as the rates that will apply for th...
July 1, 2019 is the start of the 2019-20 benefit year for many provincial and federal child and tax benefits, including the federal GST/HST credit and the Canada Child Benefit. As of that date, the pa...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the third quarter (July 1 to September 30) of 2019. OAS payments are indexed quarterly to ...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of July 2019. The prescribed rate for July is 2.75%. A chart showi...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of May 2019, as measured on a year-over-year basis, stood at 2.4%. Inflation during...
Under the Canadian tax system, employee stock options receive preferential tax treatment. In this year’s Budget the federal government indicated that, in its view, the existing rules on stock option...
In this year’s federal Budget, a new program was announced to benefit first-time home buyers. Under that program, the First-Time Home Buyer’s Incentive, the Canada Mortgage and Housing Corporation...
Effective as of July 2019, the amount of Canada Child Benefit (CCB) payable to eligible Canadian families will be increased to account for inflation. Starting with the July payment (which will be made...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in the overall unemployment rate recorded for the month of May. The unemployment rate for that month stood at...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the month of June 2019. The prescribed rate for that month will be increase...
Individual taxpayers who pay income tax by instalments must make their second instalment payment for 2019 on or before June 17, 2019. Such taxpayers will have received an instalment notice setting out...
Self-employed taxpayers (and their spouses) have until Monday June 17, 2019 to file their income tax returns for the 2018 tax year. Returns filed after that date will be subject to late-filing penalti...
In its regularly scheduled interest rate announcement made on May 29, the Bank of Canada indicated that, in its view, no change was needed to current interest rates. Consequently, the Bank Rate remain...
The federal government and many of the provinces provide benefit programs for which both entitlement and benefit amount are based, at least in part, on the income of the recipient taxpayer. Those bene...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of April stood at 2%, as measured on a year-over-year basis. Seven of the eight maj...
The Canada Revenue Agency (CRA) has issued a Tax Tip confirming that the filing deadline for individual income tax returns filed for the 2018 tax year by self-employed individuals and their spouses is...
The most recent release of Statistics Canada’s Labour Force Survey shows growth in employment during the month of April for nearly all demographic groups. The overall unemployment rate for the month...
The Canada Revenue Agency (CRA) has issued a warning about a current tax scheme involving Health Spending Accounts (HSAs) which are being marketed to small businesses. HSAs are self-insured health pla...
The federal government has announced that, effective with the July 2019 payment, Canada Child Benefit rates will increase.As of July, the maximum benefit for a child under the age of 6 will increase t...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the month of May 2019. The prescribed rate for that month will be reduced t...
The Canada Revenue Agency (CRA) has issued a press release reminding taxpayers who have been affected by this spring’s floods of the availability of relief with respect to their obligation to file a...
The most recent release of Statistics Canada’s Consumer Price Index shows a significant increase in the rate of inflation recorded for the month of March 2019. During that month, the CPI rose 1.9%, ...
The Bank of Canada, in its regularly scheduled interest rate announcement made on April 24, determined that no change was needed to current rates. The Bank Rate therefore remains at 2%. The press rele...
The federal government has announced the Old Age Security payment rates which will be in effect for the second quarter (April 1 to June 30) of 2019. OAS payment rates are indexed quarterly to inflatio...
All payments of individual income tax owed for the 2018 taxation year must be received by the Canada Revenue Agency (CRA) on or before Tuesday April 30, 2019. There are a number of means by which paym...
The Canada Revenue Agency (CRA) has issued an updated guide to be used by taxpayers who are claiming medical expenses on their income tax returns for 2018. Individual taxpayers are entitled to claim a...
The most recent release of Statistics Canada’s Labour Force Survey indicates that there was no change in the overall unemployment rate for the month of March. That rate remained at 5.8%. Employment ...
The Canada Revenue Agency has announced the prescribed interest rates for leasing rules which will be in effect during the month April 2019. The prescribed rate for the upcoming month is 3.1%. A chart...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2019, as well as the rates that will apply for the purpose of cal...
The Canada Revenue Agency (CRA) has posted a number of Tax Tips for seniors and students on its website. Those Tax Tips list and explain particular credits, deductions, or benefits which are most like...
The most recent release of Statistics Canada’s Consumer Price Survey indicates that the rate of inflation for the month of February, as measured on a year-over-year basis, stood at 1.5%. The compara...
Budget 2019 is proposing that the excise duty framework for cannabis products be amended to more effectively apply the excise duty on new classes of cannabis products, as well as to cannabis oils, whi...
Budget 2019 proposes to expand health-related tax relief under the Goods and Services Tax/Harmonized Sales Tax (GST/HST) system to better meet the health care needs of Canadians by: providing GST/HST ...
Budget 2019 announces the Government’s intent to limit the use of the current employee stock option tax regime and move toward aligning the tax treatment with the United States for employees of larg...
Budget 2019 proposes that the Canada Revenue Agency (CRA) will be allowed to send requirements for information electronically to a bank or credit union only if the bank or credit union notifies the CR...
Budget 2019 proposes that the joint and several liability for tax owing on income from carrying on a business in a TFSA be extended to the TFSA holder. The joint and several liability of a trustee of ...
Budget 2019 proposes to introduce a new rule that would deny a mutual fund trust a deduction in respect of the portion of an allocation made to a unitholder on a redemption of a unit of the mutual fun...
Budget 2019 proposes to prohibit Individual Pension Plans (IPPs) from providing retirement benefits in respect of past years of employment that were pensionable service under a defined benefit plan of...
To bring the Specified Multi-Employer Plan (SMEP) rules in line with the pension tax provisions that apply to other defined benefit RPPs, Budget 2019 proposes to amend the tax rules to prohibit contri...
Amounts paid for cannabis products may be eligible for the medical expense tax credit where such products are purchased for a patient for medical purposes in accordance with the Access to Cannabis for...
A recent court decision related to the interpretation of “national importance” has created uncertainty about the availability of these tax incentives. Budget 2019 proposes to introduce legislative...
Budget 2019 proposes to amend the Income Tax Act to clarify that financial assistance payments received by care providers under a kinship care program are neither taxable nor included in income for th...
Budget 2019 proposes to amend the Income Tax Act to clarify that an individual may be considered to be the parent of a child in their care for the purpose of the Canada Workers Benefit, regardless of ...
To ensure that the Registered Disability Savings Plan (RDSP) continues to respond to the needs of Canadians with disabilities, Budget 2019 proposes two changes that will better protect the long-term s...
Budget 2019 proposes to amend the tax rules to permit PRPPs and defined contribution RPPs to provide a variable payment life annuity (VPLA) to members directly from the plan. A VPLA will provide payme...
Budget 2019 proposes to amend the tax rules to permit an advanced life deferred annuity (ALDA) to be a qualifying annuity purchase, or a qualified investment, under certain registered plans. An ALDA w...
To improve the consistency of the tax treatment of owners of multi-unit residential properties in comparison to owners of single-unit residential properties, Budget 2019 proposes to allow a taxpayer t...
Budget 2019 proposes to increase the Home Buyers’ Plan (HBP) withdrawal limit to $35,000. This would be available for withdrawals made after March 19, 2019. Budget 2019 also proposes to extend acces...
Budget 2019 proposes this new, non-taxable credit that would help Canadians pay for training fees. Every year, eligible workers between the ages of 25 and 64 would accumulate a credit balance of $250 ...
Budget 2019 proposes to: extend the foreign affiliate dumping rules in the Income Tax Act to prevent a corporation resident in Canada that is controlled by a non-resident individual or trust from redu...
In Budget 2019, the Government proposes further amendments to the Income Tax Act to make the beneficial ownership information maintained by federally incorporated corporations more readily available t...
Budget 2019 proposes an amendment that introduces an additional qualification for the commercial transaction exception in the definition “derivative forward agreement” as the exception applies to ...
Budget 2019 proposes to add The Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-speaking Communities of the Kingdom of Bel...
Budget 2019 proposes to repeal the use of taxable income as a factor in determining a CCPC’s annual expenditure limit for the purpose of the enhanced SR&ED tax credit. As a result, small CCPCs w...
Budget 2019 proposes to eliminate the requirement that sales be to a farming or fishing cooperative corporation in order to be excluded from specified corporate income. As such, this exclusion will ap...
Budget 2019 proposes that these vehicles be eligible for a full tax write-off in the year they are put in use. Qualifying vehicles will include electric battery, plug-in hybrid (with a battery capacit...
Budget 2019 proposes to introduce three new tax measures to support Canadian journalism: allowing journalism organizations to register as qualified donees; a refundable labour tax credit for qualifyin...
The most recent release of Statistics Canada’s Labour Force survey shows that, while the rate of unemployment for the month of February was unchanged, employment grew by 56,000 positions. The unempl...
In its regularly scheduled interest rate announcement made on March 6, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 2% I...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows a drop in the rate of inflation for the month of January. That rate, as measured on a year-over-year basis, was 1.4%. ...
The first instalment payment of individual income taxes for the 2019 tax year is due on or before Friday March 15, 2019. Individuals who have previously paid tax by instalments will have received an i...
The Canada Revenue Agency (CRA) has announced that its Individual Income Tax Enquiries line (1-800-959-8281) is now available for extended hours. Until April 30, 2019, telephone agents will be availab...
The Minister of Finance has announced that the 2019-20 federal Budget will be brought down on Tuesday, March 19, 2019. Once the Budget is released, at around 4 p.m., the Budget Papers will be posted o...
The 2018 T1 Individual Income Tax Return and Guide package is now available on the Canada Revenue Agency (CRA) website at https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packag...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for the filing of individual income tax returns is available as of Monday, February 18, 2019. The current NETFILE service (which ...
The Canada Revenue Agency (CRA) has issued a Tax Tip for post-secondary students and graduates who will be filing an income tax return for the 2018 tax year. That Tax Tip, which can be found on the CR...
During the month of January, the number of people employed in Canada rose by 67,000, with that figure attributable for most part to increased employment of those aged 15 to 24 and those working in the...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of March 2019. That prescribed rate for the month of March will be...
The Canada Revenue Agency (CRA) has posted a Tax Tip which lists the tax deductions and credits which are most relevant to seniors, and which can be claimed by eligible seniors when preparing and fili...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for the filing of individual income tax returns for the 2018 tax year will be available online on Monday February 18, 2019. The N...
Effective as of February 11, 2019, the Canada Revenue Agency (CRA) will be merging its online mail and account alerts services. Notification of the change is being sent to users of those services, and...
Finance Canada has issued a reminder that the current consultation process with respect to the upcoming 2019-20 federal Budget will end on Tuesday, January 29, 2019. Interested stakeholders can make t...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation, as measured on a year-over-year basis, stood at 2% during the month of December 2018. The equiva...
Finance Canada has announced the automobile deduction limits and expense benefit rates which will apply to businesses and their employees during the 2019 taxation year. Most of the limits which applie...
In its regularly scheduled interest rate announcement made on January 9, 2019, the Bank of Canada indicated that no change would be made to current interest rates. The Bank Rate therefore remains at 2...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the months of January and February 2019.The prescribed rate for January is ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2019, as well as the rates that will apply for the purpo...
Over the next seven years, significant changes will be made to the Canada Pension Plan. Those changes will result, overall, in an increase of about 50% in the maximum retirement benefit. The first suc...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of November, as measured on a year-over-year basis, stood at 1.7%. The comparable r...
Taxpayers who have not yet filed their individual income tax returns for 2017 (or the three prior years) can file those returns on NETFILE until Friday, January 25, 2019. Until that date, the Canada R...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of January 2019. The prescribed rate for that month will be 3.39%....
Where taxpayers fail to meet their tax filing or payment obligations, penalties and interest are usually levied for that failure. However, the Minister of National Revenue has the authority to forgive...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for the month of November was the lowest recorded since 1976. The unemployment rate for the month,...
In its regularly scheduled interest rate announcement made on December 5, the Bank of Canada indicated that, in its view, no change to current interest rates was needed. Accordingly, the Bank Rate rem...
The federal government will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $12,069 Spouse or common law partner amount …...
The most recent release of Statistics Canada’s Consumer Price Index shows a slight increase in the rate of inflation rate for the month of October. That rate rose 2.4%, following a 2.2% increase for...
Finance Canada has announced details of the consultation process leading up the release of the 2019-20 Federal Budget next spring. The budget consultation process will include both in-person and digit...
In the 2018-19 Fall Economic Statement, the Minister of Finance announced that three new tax initiatives would be introduced to support both traditional and digital news organizations. Those changes w...
In the Fall Economic Statement issued on November 21, the Minister of Finance announced new tax measures that would: allow businesses to immediately write off the cost of machinery and equipment used ...
Some of the non-monetary benefits which employers provide to their employees must be included in the employee’s income and taxed as such. Each year, employers must include the amount of any such tax...
The Canada Revenue Agency (CRA) provides a mobile web app for small business owners and sole proprietors which enables them to manage their business tax accounts on any browser-enabled mobile device. ...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in unemployment during the month of September. That rate stood at 5.8%, down 0.1% from the rate posted for Au...
The Canada Revenue Agency has announced the contribution rates and amounts for the Canada Pension Plan which will apply during the 2019 calendar year, and that announcement can be found at https://www...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of November. The prescribed rate for that month will be 3.43%. A c...
The Canada Revenue Agency (CRA) (as well as other federal government departments and agencies) has issued information indicating how government payments will be handled during the current postal disru...
The most recent release of Statistics Canada’s Consumer Price Index shows that the inflation rate for the month of September stood at 2.2%, as measured on a year-over-year basis. The comparable rate...
In its regularly scheduled interest rate announcement made on October 24, the Bank of Canada once again increased the bank rate, which now stands at 2%.In the press release announcing the increase, wh...
The federal government has announced the maximum Old Age Security (OAS) benefit amount which will be paid to eligible recipients in the last quarter — October, November, and December — of 2018. Th...
In some circumstances, taxpayers are entitled to request a reduction in the amount of tax being deducted at source from their income. An employee can request that the amount of income tax being deduct...
A number of changes have been made over the past few years to the Canada Pension Plan (CPP), with those changes generally providing greater flexibility to CPP contributors. Some of those changes parti...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decrease in the overall unemployment rate for the month of September. That rate decreased from the 6% rate recorded f...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of October. The prescribed rate for that month will be 3.33%. A ch...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the fourth quarter of 2018, as well as the rates that will apply for the purp...
While the deadline for filing of individual income tax returns for the 2017 tax year (for both employees and the self-employed) has passed, the Canada Revenue Agency’s (CRA’s) NETFILE service thro...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of August 2018 stood at 2.8%, as measured on a year-over-year basis. The comparable...
Canada’s tax system is one based on residency, and individuals who are considered to be residents of Canada are subject to federal and provincial tax. The federal government has issued a fact sheet ...
The Minister of Finance has announced that the employment insurance premium rate payable by employees and the self-employed for the 2019 tax year will be reduced. The premium rate for that year will b...
The federal government has updated and re-issued its guide to child benefits paid by the federal and several provincial governments. The updated guide (T4114), which is available on the Canada Revenue...
The most recent release of Statistics Canada’s Labour Force Survey shows a small increase in the unemployment rate posted for the month of August. That rate rose by 0.2%, from 5.8% to 6%. Most of th...
The Canada Revenue Agency (CRA) can provide interest and penalty relief to taxpayers who are unable to meet their tax filing or payment obligations due to circumstances beyond their control, including...
In its scheduled interest rate announcement made on September 5, the Bank indicated that no change would be made to current interest rates. Accordingly, the Bank Rate remains at 1.75%. The Bank acknow...
Each year the Canada Revenue Agency (CRA) sends a letter and questionnaire to approximately 350,000 taxpayers, seeking to determine whether such taxpayers are receiving the correct tax credits and ben...
The due date for the third instalment payment of 2018 income taxes by individuals falls on September 15, 2018. As that date is a Saturday, instalment payments will be considered to be made on time if ...
The federal government has announced that changes will be made to the administrative rules governing the extent to which charities can engage in non-partisan political activities. The intended amendme...
The most recent release of Statistics Canada’s Consumer Price Survey shows a significant increase in inflation for the month of July. That rate, as measured on a year-over-year basis, stood at 3%. T...
The most recent release of Statistics Canada’s Labour Force Survey indicates that the overall rate of unemployment was down slightly for the month of July. That rate stood at 5.8%, down by 0.2% from...
The Minister of Finance has announced that two major payment card networks have agreed to lower costs charged to small and medium-sized businesses. Both VISA and Mastercard have agreed to reduce domes...
The Canada Revenue Agency (CRA) prepares and posts on its website a number of podcasts and webinars covering tax and tax-related issues of particular interest to small businesses. There are currently ...
The Bank of Canada has issued a listing of the dates on which it will make announcements during the 2019 calendar year with respect to current interest rates. There are eight such interest rate announ...
The Canada Mortgage and Housing Corporation (CMHC) has announced that, effective as of October 1, 2018, changes will be made to the process by which self-employed taxpayers are assessed for mortgage f...
The Canada Revenue Agency (CRA) has updated and re-issued its Form RC366, which allows businesses to have amounts owed to them deposited directly to a bank account. The updated form can be used to eit...
The Canada Revenue Agency (CRA) has updated and re-issued its publication RC4092(E) on Registered Education Savings Plans. The updated publication incorporates changes, originally announced as part of...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of June, as measured on a year-over-year basis, stood at 2.5%. That change ...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will apply during the months of July and August 2018. Those prescribed rates will be 3.28% for July ...
The Canada Revenue Agency has updated and re-issued its publication outlining the tax treatment of funds held in a RRIF on the death of the RRIF annuitant. The updated publication (RC4178(E)) also rev...
While employment rose by 32,000 during the month of June, the unemployment rate was also up, by 0.2%, a result attributed by Statistics Canada an increase in the number of individuals seeking to enter...
In its regularly scheduled interest rate announcement made on July 11, the Bank of Canada indicated that it was increasing its benchmark interest rate by one-quarter of a percentage point. Accordingly...
Each year, the Canada Revenue Agency reviews approximately 3 million returns which have already been filed and assessed. Generally, such reviews are carried out to confirm income amounts reported, and...
Old Age Security (“OAS”) benefits received by Canadians are indexed to changes in the overall Consumer Price Index, and are adjusted each quarter to reflect increases in that Index.The federal gov...
The most recent release of Statistics Canada’s Consumer Price Index indicates the rate of inflation for the month of May stood at 2.2%. The same rate was recorded for the month of April, and both ra...
The Canada Revenue Agency (CRA) has re-issued the payroll deductions online calculator to be used by employers in calculating employee source deductions as of July 1, 2018. The updated version of that...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of July. The prescribed rate for that month will be 3.28%. A chart...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the third quarter of 2018, as well as the rates that will apply for the purpo...
The Canada Revenue Agency has updated and re-issued its standard form for filing an objection to a Notice of Assessment or Reassessment. The 2018 T-400A E, Notice of Objection, can be found on the CRA...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in unemployment during the month of May. For the fourth consecutive month, that rate stood at 5.8%. There was s...
The filing deadline for individual income tax returns for the 2017 year for self-employed individuals and their spouses is midnight Friday June 15, 2018. Returns can be filed using the Canada Revenue ...
For Canadians who make quarterly instalment payments of personal income tax, the next due date for such payment is Friday June 15, 2018. The Canada Revenue Agency has posted a notice on its website in...
The Canada Revenue Agency (CRA) has issued a reminder to taxpayers who have been affected by this spring’s floods of the availability of administrative tax relief. Under the federal government’s T...
In its regularly scheduled interest rate announcement made on May 30, the Bank of Canada indicated that, in its view, no change was needed to current interest rates. Accordingly, the Bank Rate remains...
The Canada Revenue Agency (CRA) has issued updated payroll deduction formulas for use by employers for payroll periods beginning after July 1, 2018. The updated formulas reflect changes in provincial ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of April stood at 2.2%, as measured on a year-over-year basis. The rate for...
The Canada Revenue Agency (CRA) will be making changes to its distribution method for GST/HST reporting and remittance forms for small businesses, with those changes generally directed toward reducing...
The most recent release of Statistics Canada’s Labour Force Survey indicates that there was no change during the month of April to either employment figures or the overall unemployment rate. That un...
The Canada Revenue Agency prepares and posts podcasts on a number of different tax topics, both individual and corporate. Those podcasts are available for download from the CRA website. The current se...
The Canada Revenue Agency has announced the prescribed interest rates for leasing rules which will be in effect during the months of May and June 2018. Those prescribed rates will be 3.22% during the ...
Taxpayers who have filed their return for the 2017 tax year and are expecting to receive a refund can track the status of that refund payment through a toll-free telephone line. That line, the CRA’s...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers of the need to be particularly vigilant with respect to fraudulent text, telephone, and e-mail communications, which increase during t...
The most recent release of Statistics Canada’s Consumer Price Index indicates that the rate of inflation stood at 2.3% during the month of March 2018, as measured on a year-over-year basis. The year...
The Canada Revenue Agency (CRA) has issued a reminder that all individual income tax balances owed for the 2017 tax year must be paid on or before Monday April 30, 2018. April 30 is also the deadline ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the rate of unemployment for the month of March 2018 stood at 5.8%. The same rate was recorded for February 2018. Employ...
In its regularly scheduled interest rate announcement made on April 18, the Bank of Canada indicated that no change was required to current interest rates. Accordingly, the Bank Rate will remain at 1....
It is not uncommon for taxpayers to discover an error or omission in an already-filed return, and the usual means by which such error can be corrected is the filing of a T1-Adjustment form. While a co...
The Canada Revenue Agency (CRA) has issued a reminder to taxpayers who receive income from the “sharing economy” that such income is taxable and must be reported on the annual tax return. Although...
The Bank of Canada’s regularly scheduled interest rate announcement dates for the remainder of calendar year 2018 are as follows: April 18, 2018; May 30, 2018; July 11, 2018; September 5, 2018; Octo...
Proceeds received from the sale of one’s principal residence are, in most circumstances, not taxable, as such sales are eligible for the principal residence exemption. However, as of the 2016 tax ye...
The most recent release of Statistics Canada’s Consumer Price Index shows a sharp increase in inflation for the month of February. That rate stood at 2.2%, while the rate for January 2018 was 1.7%. ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the second quarter of 2018, as well as the rates that will apply for the purpose...
While taxpayers fall victim to tax scams year-round, such scams are more prevalent during and just following tax filing season. During that time, taxpayers expect to hear from the tax authorities, a...
In December 2017, the Canada Revenue Agency (CRA) announced that substantive changes would be made to the Agency’s Voluntary Disclosure Program (VDP). That program enables taxpayers who are in defau...
The Canada Revenue Agency has issued its Guide RC4018, Electronic Filers Manual for 2017 Income Tax and Benefit Returns. That guide is for use by certified e-filers in filing individual income tax ret...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in the overall unemployment rate for the month of February 2018. That rate declined from 5.9% in the month of...
The most recent release of Statistics Canada’s Consumer Price Index indicates that the rate of inflation for the month of January 2018 stood at 1.7%. The rate for the previous month was 1.9%. Inflat...
In its regularly scheduled interest rate announcement made on March 7, the Bank of Canada indicated that no change would be made to current interest rates. Accordingly, the bank rate remains at 1.5%. ...
Budget 2018: No personal tax credits have been repealed, and there are no new personal tax rate changes....
Budget 2018: Foreign-born Status Indians may now be eligible for child benefits, retroactive to 2005....
Budget 2018: Eligibility of specially trained service animals will be expanded for the purposes of the medical expense tax credit....
Budget 2018: Taxpayers will no longer need to apply when filing their return in order to receive the Canada Workers Benefit....
Budget 2018: The Working Income Tax Benefit amounts are enhanced as of 2019, and the credit is renamed the Canada Workers Benefit...
Budget 2018: The non-resident surplus stripping rules are tightened to address the use of partnerships and trusts....
Budget 2018: Where a CRA compliance order or information requirement is contested, a new rule will “stop the clock” to prevent the tax year from being statute barred....
Budget 2018: A corporation will have two RDTOH accounts going forward: eligible and non-eligible RDTOH....
Budget 2018: A corporation with $100,000 of investment income will have its small business limit reduced to $250,000....
Budget 2018: A corporation’s small business limit will be reduced where the corporation earns investment income exceeding $50,000....
The Canada Revenue Agency (CRA) provides a 1-800 telephone service to provide tax information to Canadian taxpayers. Such information can be general in nature, or can involve the specific tax affairs ...
The Canada Revenue Agency’s NETFILE service for filing of individual income tax returns will be available starting Monday February 26, 2018. Taxpayers do not need to obtain an access code to file th...
The most recent release of Statistics Canada’s Labor Force Survey shows a slight increase in the overall unemployment rate for the month of January. That rate rose by 0.1%, from 5.8% to 5.9%. That c...
The Federal Minister of Finance has announced that the 2018-19 federal Budget will be brought down on Tuesday, February 27, 2018. The Budget will be released at around 4 p.m. and the full Budget Paper...
This year, the Canada Revenue Agency (CRA) will be providing taxpayers with hard copies of the 2017 Income Tax and Benefit package through a variety of means, and at various dates. Individuals who pap...
The Canada Revenue Agency (CRA) has announced the date on which NETFILE service for the filing of individual income tax returns for the 2017 tax year will be available. NETFILE service will be availab...
While the majority of Canadians now file their individual income tax returns electronically, there is still a significant minority of tax filers who file using a printed return. The Canada Revenue Age...
The Canada Revenue Agency (CRA) has posted a notice on its website that an “update” has been made to individual 2017 tax forms. Those forms are to be used by individual Canadians to file their ret...
For a number of years, taxpayers whose tax situation was relatively straightforward were able to file their return by telephone. That service, which was called TELEFILE, was withdrawn a few years ago....
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2018, as well as the rates that will apply for the purpo...
As widely expected, the Bank of Canada indicated, in its regularly scheduled interest rate announcement made on January 17, that an increase in the bank rate was required. The Bank’s announcement, w...
Finance Canada has announced that the consultation process leading to the release of the 2018-19 federal Budget will conclude on Friday January 26, 2018. Canadians can provide input by submitting thei...
The Canada Revenue Agency has released the T1 Individual Income Tax Return and Benefit form to be used by individual Canadian taxpayers in filing their return for the 2017 tax year. The T1 form is ava...
The most recent release of Statistics Canada’s Labour Force Survey indicates that the unemployment rate for the month of December 2017 stood at 5.7%. The last period for which that rate was recorded...
As previously announced, the federal small business tax rate is reduced to 10.0%, effective as of January 1, 2018. There is no change in the federal small business limit, which remains at $500,000. Th...
Finance Canada has announced the limits and thresholds which will apply for purposes of determining automobile benefits and deductions during 2018. Most such deduction limits and thresholds are unchan...
Planned changes to the federal income tax rules governing the taxation of small incorporated Canadian businesses are to take effect for 2018. One of those changes will include greater restrictions on ...
The Canada Revenue Agency (CRA) provides an administrative program under which taxpayers who have failed to file returns or pay taxes on a timely basis can bring their tax affairs into compliance, usu...
Taxpayers who are turning age 71 during the year and who have available contribution room are entitled to make a final RRSP contribution for that year. Such contributions must be made by the end of th...
Taxpayers who have not yet filed their return for the 2016 tax year will have until January 19, 2018 to file that return using NETFILE. Until that date, returns for the 2013, 2014, 2015, and 2016 tax ...
In its regularly scheduled interest rate announcement made on December 6, the Bank of Canada indicated that, in its view, no change is required to current rates. Accordingly, the bank rate remains at ...
The most recent release of Statistic’s Canada’s Labour Force Survey shows a slight decline in the overall unemployment for the month of November. That rate declined by 0.4%, to 5.9%. The November ...
The Canada Revenue Agency has issued the 2018 version of its publication T4127(E), Payroll Deductions Formulas. The guide is intended for use by payroll software providers and by employers which manag...
The Canada Revenue Agency has issued the federal TD1 Form and Worksheet which will be used by taxpayers and their employers to determine required federal income tax source deductions for the upcoming ...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows an inflation rate of 1.4% for the month of October, as measured on a year-over-year basis. The equivalent rate for the...
Finance Canada has begun the consultation process leading to the release of the 2018-19 federal Budget. As part of that budget consultation process, the Minister of Finance is holding in-person public...
Effective as of January 8, 2018, administrators and representatives of qualifying Canadian trusts will be able to file trust income tax and information returns online, through the Canada Revenue Agenc...
The federal government has announced the premium rates and maximum insurable earnings amount which will be in place for the 2018 calendar year. The premium rate for the year for employees has been set...
The Canada Revenue Agency (CRA) has announced the contribution rates and amounts for both employers and employees which will apply for 2018. Maximum pensionable earnings for the year will be $55,900 (...
The provincial government has issued a reminder to eligible Alberta residents that the deadline for applying for the Working Parents Benefit is March 31, 2021. Parents who used childcare from April to...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta Tax and Revenue Administration has issued a detailed guide to claiming the provincial Innovation Employment Tax Grant. That Grant generally provides eligible corporations with a tax credit equ...
The 2021-22 provincial Budget brought down on February 25 projects that Alberta will be in a deficit position at least until the end of the 2023-24 fiscal year. The Budget projects a deficit of $18.2 ...
The Alberta government has announced that it will be making grants of up to $20,000 available to small and medium-sized businesses in the province which experienced significant revenue loss due to the...
The Alberta Innovation Employment Grant (IEG) program, which provides a refundable tax credit to qualified corporations that incur eligible expenditures in respect of IEG activities carried out in Alb...
During the 2021 taxation year, the province of Alberta will impose personal income tax using the following taxable income brackets and tax rates. Tax Rate ...
The province of Alberta will provide the following personal tax amounts for 2021. Basic personal amount ……………………………… $19,369 Spouse or common law partner amount …… $19,36...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Effective as of January 1, 2020, the existing Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit was eliminated. However, as of January 1, 2021, businesses in the province...
The province of Alberta levies a tax on purchases of a number of types of fuel, including gasoline, diesel, and aviation fuel. The Alberta Tax and Revenue Administration (TRA) recently updated and re-...
The Alberta government has announced that the Small and Medium Enterprise Relaunch Grant program which was announced earlier this year has been expanded. The existing Program provides financial assist...
On November 24, the provincial Minister of Finance released Alberta’s Mid-Year Fiscal Update, which included some good financial news. Figures contained in the update indicated that the provincial g...
Taxpayers in Alberta can request relief from interest and penalties imposed under a variety of tax statutes and programs, including provincial corporate income tax, fuel tax, tobacco tax, and the tour...
Alberta Tax and Revenue has updated and re-issued three Information Circulars dealing with the Alberta Indian Tax Exemption Program (AITE). Those updated Information Circulars are as follows: AITE-1R5...
The Alberta Tax and Revenue Administration (TRA) has issued updated consent forms to be used for purposes of the province’s corporate income tax, fuel tax, tobacco tax, tourism levy, and Internation...
The provincial government has launched the consultation process for Alberta’s 2021-2022 Budget, to be brought down next spring. The consultation process begins with an online survey, which can be fo...
The Alberta Tax and Revenue Administration (TRA) has announced that the filing deadlines with respect to claims for the provincial Scientific Research and Experimental Development (SR&ED) tax cred...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta Finance has updated and re-issued a number of publications relating to provincial corporate income tax filing and payment obligations, as well as the conduct of audits carried out in relation ...
Earlier this year, the province announced that the payment deadline for certain provincial corporate income tax balances payable would be deferred. Consequently, Alberta businesses with such income ta...
The province has issued a report on its first quarter (April 1 to June 30) results for the 2020-21 fiscal year and the fiscal news is not good. First-quarter projections show a significant increase to...
Alberta Finance has updated and re-issued the tax forms required for filing of provincial corporate income tax returns, as well as the guide to preparing those returns. Those forms and the guide are a...
Alberta Finance has issued an updated notice (Special Notice Vol. 7, No. 10) confirming that temporary accommodation operators in the province are not required to remit tourism levy amounts collected ...
Alberta Finance has issued an updated Corporate Income Tax Special Notice (Vol. 5, No. 59) indicating that Alberta corporations with income tax balances owing on or after March 18, 2020, or installmen...
Earlier this year, the provincial government announced that Alberta businesses with corporate income tax balances that become owing on or after March 18, 2020, or installment payments coming due betwe...
The government of Alberta has announced that eligible small and medium-sized businesses in the province may receive a grant to help offset re-launch costs. The Small and Medium Enterprise Relaunch Gra...
During the current pandemic, the Alberta Tax and Revenue Administration (TRA) has requested that taxpayers pay any amounts due through electronic means. The TRA recently announced that, to further fac...
Earlier this year, in conjunction with the provincial state of emergency, the provincial government temporarily suspended all registration and credential requirements with respect to the International...
The Alberta government released its Recovery Plan on June 29, 2020, which included the announcement of an immediate cut to the provincial general corporate income tax rate. Effective July 1, 2020, tha...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Effective July 1, 2020, the current Alberta Child Benefit and the Alberta Family Employment Tax Credit will be replaced by a single benefit, the Alberta Child and Family Benefit. The first quarterly p...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The Alberta government is providing one-time emergency financial assistance for spring flood evacuees to help them with costs while they were evacuated. Adults can receive $1,250, plus $500 for each c...
The province had previously announced that the deadline for income tax returns to be filed by corporations between March 18 and June 1, 2020 would be deferred until June 1, 2020. That deferral announc...
Alberta imposes a tourism levy which must be collected and remitted by operators of tourist accommodations in the province. The provincial government had previously announced that the remittance deadl...
As originally announced in the 2019 provincial Budget, the current Alberta Family Employment Tax Credit and the Alberta Child Benefit will be combined into the new Alberta Child and Family Benefit, ef...
Earlier this year, the province announced that corporate income tax filing and payment deadlines occurring after March 18, 2020 and before June 1, 2020 would be extended. The Alberta Tax and Revenue A...
The provincial government has announced that rent relief will be provided to small businesses in the province through the Canada Emergency Commercial Rent Assistance (CECRA) program. That program will...
The Alberta Tax and Revenue Administration (TRA) has issued a Special Notice (Vol.10, No. 4) indicating that the filing deadline for returns under the International Fuel Tax Agreement (IFTA) has been ...
The Alberta Tax and Revenue Administration has issued a corporate income tax Special Notice (Vol. 5, No. 57) providing that filing deadlines for provincial corporate income tax returns have been exten...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The provincial government has announced that temporary accommodation providers in Alberta with tourism levy remittances coming due between March 27, 2020 and August 31, 2020 may defer making these pay...
The provincial government has announced that Alberta businesses with corporate income tax balances that become owing on or after March 18, 2020, or instalment payments coming due between March 18, 202...
The province of Alberta imposes a levy of 4% on most types of temporary accommodation rentals in the province. Under current legislation an exemption from that levy is provided for rentals in establis...
The 2020-21 provincial Budget brought down on February 27 included the announcement of further cuts to Alberta’s general corporate income tax rate. That rate was reduced from 11% to 10% effective Ja...
In the 2019-20 Budget, the Alberta government announced that its grant-based program for the province’s film industry would be eliminated and replaced with a tax credit program. That new corporate t...
The Alberta Treasurer has announced that the province’s Budget for the upcoming (2020-21) fiscal year will be released on Thursday February 27, 2020, at approximately 3:15 p.m. The announcement of t...
Alberta Finance has posted on its website the corporate income tax forms to be used by Alberta corporations for fiscal years ending after July 1, 2019. The new forms posted are as follows: AT1 – Alb...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Alberta as of December 31, 2019. That return and guide can be fo...
The province has launched the budget consultation process leading to the release of the 2020-21 provincial Budget this spring. That consultation process will include an online survey and two telephone...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta will provide the following personal tax credit amounts for 2020:Basic personal amount ……………………………… $19,369Spouse or common law partner amount …… $19,369 l...
During the 2020 taxation year the province of Alberta will levy individual income tax using the following income brackets and tax rates. Tax Rate ...
The province of Alberta has provided a Community Economic Development Corporation (CEDC) tax credit to encourage rural economic development and, under that program, individual or corporate investors i...
The Alberta Investor Tax Credit (AITC) offered a 30% tax credit to investors in the province who provided equity capital to Alberta small businesses doing research, development, or commercialization...
The province has announced that it is carrying out an online consultation process as part of a review of the province’s employment standards laws. That online survey will be available until Thursday...
In the recent provincial Budget, it was announced that the Interactive Digital Media Tax Credit (IDMC) was being eliminated. That program offered a 25% refundable tax credit for labour costs associate...
Alberta's Scientific Research and Experimental Development Tax Credit (SR&ED) program provides a refundable tax credit to corporations for SR&ED expenditures carried out in Alberta by the corp...
In the 2019 Budget released on October 24, the government of Alberta announced that it will be eliminating the existing provincial tuition and education tax credits claimable by post-secondary student...
The Alberta Tax and Revenue Administration (TRA) has posted information on its website on how to renew an International Fuel Tax Agreement (IFTA) licence for 2020. Such renewals can be done online, th...
The Alberta government has announced the rates which will apply for purposes of the International Fuel Tax Agreement during the third quarter (July 1 to September 30) of 2019. IFTA is an agreement am...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Most corporations having a permanent establishment in the province of Alberta are required to file a provincial corporate income tax return by a specified deadline each year. The Alberta Tax and Reven...
The province provides eligible corporations which carry on scientific research and experimental development (SR&ED) work within Alberta with a refundable tax credit generally equal to 10% of the c...
As part of its general review of the province’s employment standards rules, the Alberta government has made changes to the rules governing the payment of wages for work done on holidays. A summary o...
The Alberta government has announced that it has appointed an expert panel to study and make recommendations with respect to the province’s minimum wage structure. The panel will, in particular, be ...
The general corporate provincial income tax rate imposed by the province was reduced, effective as of July 1, 2019, from 12% to 11%. That change was the first in a multi-step reduction of the provinci...
The Alberta Tax and Revenue Administration has issued a Corporate Income Tax Special Notice (Vol. 5, No. 53) confirming that the province has adopted the measures announced in the 2018 Federal Economi...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
Alberta motor carriers which operate in multiple jurisdictions and are members of the International Fuel Tax Agreement (IFTA) must file returns quarterly. The next such return is due on June 30, 2019....
The provincial carbon tax was eliminated by the Alberta government, effective as of May 30, 2019. As a consequence of the elimination of the tax, a number of transitional rules are required, and the p...
The government of Alberta has repealed the province’s carbon tax, effective as of May 30, 2019. In order to obtain a refund of carbon tax paid on fuel held in inventory on May 30, fuel sellers must ...
Corporations in the province of Alberta are required to file provincial corporate income tax returns, with such returns due within 6 months after the corporation’s taxation year end. That deadline m...
The government of Alberta has confirmed that it will be introducing legislation to reduce the general business provincial income tax rate. The current rate is 12%. The legislation, once enacted, will ...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Tax and Revenue Administration has announced that, effective as of March 18, 2019, most fuel tax returns and claims can be filed through the province’s TRACS (Tax and Revenue Administrat...
Through the Alberta Indian Tax Exemption (AITE), the province of Alberta provides eligible consumers with an exemption from fuel tax and carbon levy, tobacco tax, and the provincial tourism levy. The ...
The third quarter fiscal update issued by the Provincial Treasurer on February 27 shows a decreased deficit for the current (2018-19) fiscal year. The deficit for the current year was forecast to reac...
Residents of Alberta who use fuel for eligible activities may apply for an exemption certificate in order to obtain such fuel exempt from the carbon levy at the time of purchase. Those who were charge...
Taxpayers whose livestock farming operations are affected by adverse weather conditions during a particular taxation year can benefit from a tax deferral program. That Livestock Tax Deferral provision...
The province of Alberta has started the consultation process for the upcoming 2019-20 provincial Budget. A budget consultation webpage on which submissions can be made is available on the Alberta gove...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of Alberta during the 2019 tax year.The supplement, which can be found on the CRA website at ...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The second quarter update of provincial finances which was recently announced by the Alberta government shows that the province’s deficit for the current (2018-19) fiscal year is now forecast to be ...
The province of Alberta will provide the following personal tax credit amounts for 2019: Basic personal amount ………………………………… $19,369 Spouse or equivalent to spouse amount …...
The Alberta Tax and Revenue Administration has issued a Special Notice (Vol. 5, No. 50) on the province’s Community Economic Development Corporation (CEDC)Tax Credit. The tax credit program is avail...
As previously announced, the province will be making changes to its online tax service (TRACS), and those changes will take effect as of Monday November 19, 2018. On that date, current user IDs and pa...
The provincial government has announced that, as of January 1, 2019, motor carriers will be allowed to carry their IRP cab cards and IFTA licences in electronic format, and that they will have the cho...
The provincial government has announced that applications are now being accepted for the 2018-19 intake period of the Community Economic Development Corporation (CEDC) tax credit program. In order to ...
The Alberta Tax and Revenue Administration has posted information on its website with respect to a possible postal service disruption. The TRA information indicates that all taxpayers will continue to...
As previously announced, the Alberta general minimum wage increased, effective as of October 1, 2018, from $13.60 per hour to $15 per hour. The general minimum wage applies to most employees in the pr...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The province of Alberta provides individual and corporate residents with the option of carrying out their tax filing and payment obligations online, through the province’s Tax and Revenue Administra...
The Alberta Tax and Revenue Administration (TRA) has updated and re-issued a required form under the International Fuel Tax Agreement (IFTA). The new form, which is required in order to register for I...
The provincial government recently announced the province’s fiscal results for the first quarter (April 1 to June 30) of the 2018-19 fiscal year. Those results show that the 2019 economic forecast h...
As previously announced, the general minimum wage payable in Alberta will increase, effective October 1, 2018, to $15 per hour. The general hourly minimum wage applies to most employees in the provinc...
The province provides a Capital Investment Tax Credit (CITC) to qualifying Alberta companies which make capital investments in qualifying assets, including machinery, equipment, and buildings. The non...
Following an earlier consultation process, the provincial government has drafted new regulations that govern certain rights of condominium owners. Those draft regulations cover such matters as improve...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Tax and Revenue Administration (TRA) administers a Voluntary Disclosure Program (VDP) under which the Minister can provide corporate taxpayers with relief from provincial interest and pena...
The province of Alberta provides two tax credits intended to encourage investment by individuals and corporations in the manufacturing and processing, tourism, and new technology sectors. The Alberta ...
Under Alberta’s fuel and carbon tax regimes, no fuel tax or carbon tax is generally payable where fuel sales are for export from the province in bulk. The Alberta Tax and Revenue Administration has ...
Energy Efficiency Alberta administers a number of programs which enable consumers who purchase energy efficient equipment and appliances to qualify for rebates. The Agency has recently posted a warnin...
Earlier this year the provincial government announced the creation of a new Interactive Digital Media (IDM) Tax Credit. The credit is available in respect of eligible labour costs paid after April 1, ...
Last year, the Alberta government announced that residential builders in the province would be required to be licenced, effective as of December 1, 2017. Temporary licences which were obtained on that...
The Alberta Tax and Revenue Administration has updated and re-issued its Tobacco Tax Information Circular (TTA-4R6) which summarizes the licensing, reporting, and remitting requirements imposed by the...
The Alberta Tax and Revenue Administration (TRA) has added additional topics to its FAQ document providing information with respect to a variety of issues which can arise under the province’s carbon...
The Alberta Tax and Revenue Administration has issued updated forms for use by companies in filing their provincial corporate income tax returns. The following new forms have been posted on the TRA we...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Minister of Finance brought down the province’s 2018-19 Budget on March 22, 2018. There were no changes to personal or corporate tax rates announced in the Budget, and no changes to the ...
The Alberta Tax and Revenue Administration (TRA) provides online tax services to individuals and businesses through its TRACS program. TRA has announced that new online services for a number of differ...
The Alberta Tax and Revenue Administration (TRA) has issued a Special Notice (Vol. 1, No. 40) with respect to the expiry date of current Tax Exempt Fuel User Numbers. Current numbers are scheduled to ...
The 2017-18 Third Quarter Fiscal Update announced by the provincial government at the end of February indicates that the province’s projected deficit for the 2017-18 fiscal year is down significantl...
The province of Alberta currently provides a rebate program for businesses which make investments in energy efficiency. The provincial government recently announced that that energy efficiency rebate ...
For the 2018 tax year, individuals resident in the province of Alberta will be able to claim the following non-refundable personal tax credit amounts: Basic personal amount ………………….…...
For the 2018 tax year, the province of Alberta will levy personal income tax at the following individual income tax rates and brackets: 10% on taxable income between $18,915 and $128,145; 12% on taxab...
The provincial government has announced the start of the consultation process leading to the release of the 2018-19 Budget. That process has several components, including an online survey, which will ...
The Alberta Tax and Revenue Administration (TRA) has issued a warning to Alberta taxpayers of a tax scam which is currently operating in the province. That tax scam involves fraudulent text messages s...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Alberta at the end of that year. The T1 form package (w...
Effective as of January 1 2018, changes have been made to Alberta’s carbon levy program. Those changes include an increase in the carbon levy, from $20 per tonne to $30 per tonne. That change will b...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which Alberta employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension P...
As of December 1, 2017, residential builders in Alberta require a license to build homes and secure warranty coverage. In order to be licensed, builders must provide information about their finances, ...
The Alberta Tax and Revenue Administration has issued a Special Notice advising corporations of upcoming changes to filing requirements for income tax returns. The new requirements are effective for r...
The Canada Revenue Agency has issued the Alberta TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income tax sourc...
The Alberta Tax and Revenue Administration (TRA) has announced the Carbon Levy Rates which will apply as of January 1, 2018. A listing of those rates can be found at www.finance.alberta.ca/publication...
Alberta corporations which fail to file corporate income tax returns by the required deadline, or which fail to remit corporate income tax amounts owed on time or in full may be subject to penalties a...
British Columbia provides a refundable tax credit to eligible Canadian-controlled corporations that carry on a qualifying book publishing business in the province. The amount of the refundable tax cre...
The B.C. government has announced that the deadline for applications for the Small and Medium Sized Business Recovery Grant program has been extended, and that the qualifying criteria for that program...
The provincial government has announced that changes to provincial carbon tax rates which were originally scheduled to take effect as of April 1, 2020 will now be implemented on April 1, 2021. B.C. Fi...
The provincial government has announced that it plans to extend the current residential rent freeze until December 31, 2021. The planned changes will include measures to limit illegal “renovictions...
The province provides qualifying B.C. homeowners with a grant to help with the cost of annual property taxes. A retroactive grant application process is now open for B.C. residents who qualified for b...
The provincial government has announced that it will be providing a new B.C. Recovery Benefit to eligible individuals and families resident in the province. The Recovery Benefit is a one-time benefit,...
The province of British Columbia imposes a speculation and vacancy tax on some residential properties located in major urban areas of the province. Residential property owner(s) in the designated taxa...
The British Columbia government has announced that, effective as of 2021, changes have been made to process by which residents of the province apply for the Home Owner Grant. That Home Owner Grant red...
The province of British Columbia will provide the following personal tax amounts for 2021. Basic personal amount …………………………………… $11,070 Spouse or common law partner amount ...
During the 2021 taxation year the province of British Columbia will levy individual income tax using the following income brackets and tax rates. Tax Rate ...
The province of British Columbia provides rebates in varying amounts to homeowners who convert their home energy equipment from fossil-fuel-based systems. The province recently announced that such reb...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
On December 17, the provincial Minister of Finance released British Columbia’s Fall Fiscal Update for the 2020-21 fiscal year. B.C. is now forecast to end the 2020-21 fiscal year with a deficit of $...
British Columbia provides a program under which eligible individuals may be able to defer payment of property taxes owed on a principal residence located in the province. That program is available to ...
The province will be providing B.C. residents with a B.C. Recovery Benefit of up to $500 per eligible individual and up to $1,000 per eligible family or single parent. Eligibility for the benefit is b...
The federal government has issued the payroll deduction formulas to be used by employers in British Columbia during the 2021 taxation year. Those formulas are outlined in Canada Revenue Agency publica...
The farmers' food donation tax credit is a non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products that they produce in B.C. to register...
The provincial government has announced that the current residential rent freeze will be extended until July 10, 2021. The extension is effective immediately, such that increases set to happen on Dece...
Employers and apprentices in the province who take part in eligible apprenticeship programs can claim a training tax credit. Programs eligible for that credit include both Red Seal and non-Red Seal tr...
The B.C. government previously announced an increase in the provincial carbon tax rate, which was to be implemented in April 2020. The implementation of that change was subsequently deferred until at ...
Businesses in British Columbia which have an annual payroll of $500,000 or more are subject to the provincial Employer Health Tax (EHT). Businesses subject to EHT are also required to make instalment ...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that it will be providing incorporated British Columbia businesses with a rebate of provincial sales tax (PST) paid on acquisitions of qualifying equipment and ...
The province of British Columbia provides a number of refundable and non-refundable tax credits to corporations doing business in the province. Each of those tax credit programs has a different deadli...
The provincial government has announced that qualifying employers in British Columbia who increase the amount of remuneration paid during the fourth quarter of 2020 may be eligible for a new 15% refun...
As part of its pandemic relief measures, the province announced earlier this year that it would provide an interest relief period with respect to payments owed under a wide range of provincial tax pro...
The provincial government has announced that, under British Columbia’s rent control legislation, the maximum allowable rent increase for 2021 has been set at 1.4%. In addition, to protect tenants wh...
The provincial government has released the full Public Accounts for the 2019-2020 fiscal year which ended on March 31, 2020, and those figures confirm the economic impact of the current pandemic. The ...
B.C. Small Business and Revenue has announced that the filing and payment deadline for Employer Health Tax (EHT) returns for 2019 has been extended. Following the change, such returns and final paymen...
The province of British Columbia imposes an employer health (payroll) tax, and employers subject to that tax must make instalment payments throughout the year. Employers required to make instalment pa...
British Columbia Small Business and Revenue has updated the webpages for the provincial tobacco tax, to eliminate outdated information and to correct errors. The updated webpages can be found at Buyi...
British Columbia Small Business and Revenue has updated and re-issued its bulletin on the application of provincial sales tax to various types of goods sold in grocery and drug stores in the province....
On July 14, the British Columbia government provided an updated report on the province’s finances as of the end of the 2020-21 fiscal year. That Economic and Fiscal Update indicates that the costs o...
As announced in this year’s provincial Budget, real property contractors who supply and affix — or install — goods so that they become part of real property situated outside British Columbia are...
As announced in this year’s provincial Budget, changes were made to the registration requirements for purposes of provincial sales tax (PST), effective as of July 1, 2020. B.C. Small Business and Re...
Earlier this year, the provincial government announced the creation of the B.C. Emergency Benefit for Workers, a one-time, tax-free payment of $1,000. This benefit was payable to B.C. workers who had ...
The province provides a property tax deferral program for qualifying residents, as well as a Home Owner Grant program to help offset property tax costs. Applications under both the property tax deferr...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that the consultation process for the 2021-22 Budget will be held this month, and will be conducted entirely online. The next B.C. Budget will be brought down i...
The provincial government has announced that corporations that have a B.C. logging tax return due between the periods of March 18, 2020 to August 31, 2020 must file that return on or before September ...
The benefit year for many federal and provincial benefits, including the B.C. Climate Action Tax Credit and the Early Childhood Tax Benefit runs from July 1 to June 30. Eligibility for and the amount ...
As previously announced, the general minimum wage payable in British Columbia will increase by 75 cents, from $13.85 to $14.60 per hour. The change is effective as of June 1, 2020. The general minimum...
The provincial government has announced that Disaster Financial Assistance (DFA) is now available for eligible British Columbians in the Cariboo Regional District and the Fraser-Fort George Regional D...
Residents of British Columbia who are eligible for the federal Canada Emergency Response Benefit may also receive the B.C. Emergency Benefit for Workers (BCEBW), and the online application process for...
The provincial government previously announced that, effective as of March 23, 2020, filing and payment due dates for provincial sales taxes had been deferred until September 30, 2020. That notice (20...
British Columbia provides a program under which qualifying homeowners in the province can defer payment of their property taxes. Homeowners can apply for the deferment as soon as they receive their pr...
The provincial government has announced that it will be providing a temporary rental supplement for eligible residents of British Columbia, and that applications for that rental supplement can now be ...
The provincial government has announced that it will be providing a one-time tax-free payment of $1,000 to B.C. residents who are unable to work due to the pandemic. Details of how the payment will be...
The British Columbia government has announced that changes to the province’s carbon tax rates which were scheduled to take effect as of April 1, 2020 will not be implemented, and that such rates are...
The provincial government has announced that, effective as of March 23, 2020, filing and payment deadlines for most provincial payroll, consumption, and commodity taxes have been extended to September...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that B.C.’s carbon tax rates will increase, effective as of April 1, 2020. In addition, changes will be made to those rates to align them with “federal carb...
The 2020-21 provincial Budget brought down on February 18 included an announcement of a new post-secondary student grant program which will take effect for the fall 2020 semester. Eligibility for the ...
The province provides a training tax credit for employers and apprentices who take part in eligible apprenticeship programs. There are three main elements to the training tax credit, as follows: Basic...
The 2020-21 provincial Budget, which was brought down on February 18, included the announcement of a tax increase for high-income residents of the province. The Minister of Finance announced that a ne...
The province provides a property tax deferment program which enables qualifying residents of British Columbia to defer payment of their property taxes to a future date, through a low-interest loan pro...
The B.C. Ministry of Finance has announced that its Tax Interpretation Manual (TIM) for provincial consumption tax statutes is now available online. The TIM describes how the Ministry of Finance inter...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of British Columbia as of December 31, 2019. That return and guide ...
Between January 24 and February 21, British Columbia homeowners living in communities where the speculation and vacancy tax applies will receive, by mail, a package which includes the required declara...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province of British Columbia provides a grant program – the Home Owner Grant – to help offset property taxes payable by eligible B.C. homeowners. The grant ranges from $570 to $1,045 and is re...
Effective as of January 1, 2020, B.C. residents will no longer be required to make Medical Services Plan premium payments. In 2017, the provincial government announced that such premium payments would...
The province of British Columbia will provide the following personal tax credit amounts for 2020: Basic personal amount ……………………………… $10,949 Spouse or common law partner ...
As previously announced, the province’s tobacco tax will increase by 2 cents per cigarette, to 29.5 cents, effective as of January 1, 2020. As a consequence of that increase, all retail and wholesal...
The provincial government has released the figures summarizing British Columbia’s revenue and expenditure picture as of the end of the second quarter of the 2019-20 fiscal year. The second quarter o...
The provincial government has announced that the provincial sales tax (PST) rate applied to vaping products will increase from 7% to 20%, effective as of January 1, 2020. The government also indicated...
Effective as of January 1, 2019, the province introduced a new Employer Health (payroll) Tax (EHT). All employers in the province who are subject to the tax (generally, for for-profit employers, those...
Qualifying homeowners in the province may receive a Home Owner Grant to help offset the cost of property taxes payable on their principal residence. The terms and qualifications for this grant differ,...
The province has issued a reminder to holders of International Fuel Tax Agreement licences that current licences will expire at the end of the calendar year. In order to receive a licence for 2020 pri...
A press release issued by the provincial government indicates that the credit rating agency Standard & Poor’s has affirmed British Columbia’s AAA long-term rating. The province will, as a resu...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The British Columbia government has released figures summarizing the province’s fiscal position as of the end of the first quarter of 2019-20 (June 30, 2019). Those figures show that the province is...
As of January 1, 2019, the province of British Columbia imposes an Employer Health (payroll) Tax (EHT) to help fund the province’s health care system. The EHT generally applies to companies within t...
British Columbia provides individual taxpayers in the province with a Small Business Venture Capital Tax Credit, the purpose of which is to encourage equity capital investments in B.C. small businesse...
The provincial government provides B.C. farmers (whether individuals or corporations) with a tax credit for qualifying food donations made. For both individuals and corporations, the credit is equal t...
B.C. Small Business and Revenue has issued information on the application of the provincial employer health tax to First Nations employers and employees. The update, which can be found at https://www2...
Effective as of January 1, 2019, the province levies an employer health (payroll) tax on annual remuneration over $500,000 paid in British Columbia. Employers whose annual EHT liability is more than $...
B.C. Small Business and Revenue has updated and re-issued the provincial tax bulletin (Bulletin PST 311) which outlines the provincial sales tax (PST) treatment of materials purchased and provided for...
The province has announced the final revenue, expenditure, and surplus/deficit figures for its fiscal year ended March 31, 2019. Those Public Accounts indicate that provincial revenue for the year was...
The province of British Columbia provides training tax credits which may be claimed by both apprentices and by their employers. Such credits are paid to qualifying apprentices upon the completion of e...
Effective July 1, 2019, the dedicated tax on clear gasoline and clear diesel sold inside the Greater Vancouver area was increased by 1.5¢ per litre. To reflect that change, the following tax bulletin...
Each of the three major credit rating agencies has provided British Columbia with a triple-A rating. In providing those ratings, Moody’s, DBRS, and Standard & Poor’s cited British Columbia’s...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province imposes a Speculation and Vacancy tax on owners of certain residential properties in specified areas of the province. All residential property owners in those areas, in order to be exempt...
The province of British Columbia provides a climate action tax credit to eligible B.C. residents, to help offset the impact of carbon tax. The amount of climate action tax credit will be increased, ef...
The province provides a program through which eligible B.C. homeowners can defer payment of their property taxes. An application is required to participate in the program and, before applying, the hom...
Taxpayers in the province have the right to appeal assessments, disallowed refunds, and other decisions made by the provincial Minister of Finance under a broad range of taxing statutes. Those statute...
British Columbia implemented an employer health (payroll) tax effective January 1, 2019. B.C. Small Business and Revenue recently posted updated information with respect to the tax on the EHT website....
The international credit rating agency Moody’s Investors Services has affirmed British Columbia’s AAA credit rating, with a stable outlook. In its rating decision, Moody’s cited the province’s...
Effective as of June 1, 2019, the British Columbia general minimum wage will increase from $12.65 per hour to $13.85 per hour. As of the same date, minimum wage rates payable to workers in specific ty...
British Columbia provides a program — Clean B.C. — in which homeowners who purchase new energy-efficient products and equipment can receive a rebate to help offset a portion of the purchase price....
Effective as of April 1, 2019, increases in provincial carbon tax rates took effect. Bulletin MFT-CT 005, Tax Rates on Fuels, has been updated to reflect those changes. Consequential changes have bee...
B.C. Small Business and Revenue has announced that it has updated and redesigned its website for the provincial tobacco tax. As part of that redesign, the following tobacco tax bulletins have been ret...
The provincial government imposes a Speculation and Vacancy tax intended to target foreign and domestic speculators who own residences in B.C. but who do not pay taxes in the province. Property owners...
As of June 1, 2019, the general minimum wage payable in the province will increase by $1.20 per hour, from $12.65 to $13.85. Different minimum wage rates apply to liquor servers, live-in camp leaders,...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
In this year’s Budget, the province announced that its program of training tax credits, which was scheduled to end on December 31, 2018, has instead been extended and will be available until the end...
The province provides a Venture Capital Tax Credit (VCC) program, under which individual investors can claim a tax credit for qualifying investments made during the year or within 60 days after year e...
The province of British Columbia provides a non-taxable climate action tax credit to help offset the impact of the carbon taxes paid by provincial residents. That credit is paid four times a year, com...
As announced in the recent provincial Budget, and effective as of October 1, 2020, the existing early childhood tax benefit will be combined with the new Child Opportunity Benefit to provide a single ...
In the 2019-20 B.C. Budget brought down on February 19, the provincial government announced that it was eliminating interest charges on all student loans, effective immediately. The change means that ...
As of January 1, 2019, the province implemented a payroll tax — the Employer Health Tax (EHT). B.C. Small Business and Revenue has now issued a Notice providing information on the remittance of EHT ...
The B.C. Ministry of Finance has updated and re-issued its provincial sales tax bulletin with respect to sales of cannabis in the province. The updated bulletin (Bulletin PST 141), which applies to sa...
The 2019-20 British Columbia Budget is, by law, brought down on the third Tuesday of February. Consequently, this year’s B.C. Budget will be announced on Tuesday February 19, 2019. When the Budget i...
The provincial government has announced that registration for the B.C. Employer Health Tax (EHT) is now open. Employers having an annual B.C. payroll of more than the basic exemption amount of $500,00...
In 2018, the provincial government announced the creation of a speculation and vacancy tax (SVT), as part of its housing affordability initiative. All owners living in areas subject to the SVT must re...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of British Columbia during the 2019 tax year.The supplement, which can be found on the CRA we...
The B.C. Minister of Finance has announced that the province is operating debt-free for the first time in more than 40 years. The announcement was made as part of the Province’s Second Quarterly Rep...
The province of British Columbia will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $10,682 Spouse or equivalent to spous...
In its 2018-19 Budget, the province announced a 30-Point Housing Plan through which a number of measures would be implemented to address housing affordability in the province. As part of that Plan, an...
As previously announced, the province will be implementing an employer health (payroll) tax, effective as of January 1, 2019. At the same time, Medical Service Plan premiums payable by B.C. residents ...
Consumers in the province can claim a refund of provincial sales tax (PST) paid, where such tax was overpaid or paid in error. The B.C. Ministry of Small Business and Revenue has updated and re-issued...
The provincial government has announced the contingency plans which will apply for purposes of payments to and from the province in the event of a postal disruption. That announcement indicates that q...
In September 2018, the province introduced a new Affordable Child Care Benefit for eligible residents of the province. It has now issued a warning to such residents about online services which purport...
British Columbia levies both provincial sales tax (PST) and a separate Municipal and Regional District Tax (MRDT) accommodation tax on sales of short-term accommodation in the province. Effective as o...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
Individual and corporations which generate revenue from logging on private or Crown land in British Columbia are subject to the provincial logging tax. That tax applies to such individuals and corpora...
The provincial government has announced the start of the pre-budget consultation process for the 2019-20 B.C. Budget, which will be brought down on Tuesday, February 19, 2019. To assist in that the pr...
Effective as of September 1, the province replaced its existing child care subsidy with the Affordable Child Care Benefit. That new benefit will, in most cases, be paid to child care providers, with t...
B.C.’s Minister of Finance has released the Public Accounts for the fiscal year ended March 31, 2018. Those accounts confirm that the province recorded a surplus for the 2017-18 fiscal year. The aud...
As previously announced, the province will be joining Petrinex, effective as of November 5, 2018. The purpose of the change is to improve how information about the oil and gas industry is recorded and...
British Columbia provides farm corporations in the province with a tax credit for donations to registered charities (such as food banks or school meal programs) of certain agricultural products which ...
The provincial government has announced that significant changes will be made to the provincial automobile insurance program administered by ICBC. Key proposed changes to basic insurance through ICBC ...
The province provides a refundable tax credit equal to 17.5% of the wages and salaries paid in a tax year in relation to the development of eligible interactive digital media tax products, which inclu...
Effective as of September 17, 2018, the province will require additional information to be disclosed where real estate in the province is purchased through a trust or a corporation. In such circumstan...
Effective as of November 2018, reporting requirements for oil and gas activities in the province will be changing. Those changes include the implementation of Petrinex, as well as new revenue administ...
B.C. Small Business and Revenue has updated and re-issued a number of provincial sales tax bulletins. The purpose of each update is to indicate that, effective as of April 1, 2018, delivery charges ar...
As previously announced, the province will be implementing an employer health (payroll) tax, or EHT, effective as of January 1, 2019. Details of that payroll tax have now been released. The payroll ta...
The B.C. government has announced that new regulations will apply to payday loan businesses and cheque cashing services operating in the province. Those new regulations will take effect as of Septembe...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province announced, in this year’s Budget, that the existing B.C. Infirm Dependant and In-Home Care of Relative Tax Credits would be replaced by a new B.C. Caregiver Tax Credit. The new credit i...
Effective as of June 1, the general minimum wage payable in the province of British Columbia increased to $12.65 per hour. The change is part of a planned series of increases which will result in a $1...
Qualifying homeowners in the province can take advantage of a program which allows them to defer payment of their property taxes, through a low-interest loan from the province. There are two component...
The province announced, as part of this year’s (2018-19) Budget, that it would be eliminating the provincial education tax credit, effective as of January 1, 2019. That credit is claimable by part-t...
B.C. Small Business and Revenue has updated and re-issued a number of tax bulletins to reflect the application of sales tax to certain gift cards and gift certificates. The updated bulletins cover the...
The provincial government has announced the creation of a Small Business Tax Force, which will be holding consultation sessions throughout the province for interested stakeholders. An online consultat...
Standard and Poor’s (S&P) Global Ratings has affirmed British Columbia’s ‘AAA’ long-term credit rating, with the Agency’s report indicating that it expects “the provincial economy will...
As announced in the province’s 2018-19 Budget, changes have been made to the provincial caregiver tax credit, effective for the 2018 and subsequent taxation years. Those changes will see the former ...
As previously announced, B.C.’s tobacco tax and carbon tax rates were increased, effective as of April 1, 2018. Updated tobacco tax return forms and carbon tax refund forms which reflect the new rat...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
In its 2018-19 Budget, the province announced that a land speculation tax would be imposed, in specified areas of the province, on housing units which were neither owner-occupied nor used as a qualify...
The B.C. Ministry of Small Business and Revenue has updated and re-issued a number of sales tax bulletins. Those updates correct an error in previous versions, which incorrectly indicated that provinc...
In this year’s Budget, the provincial government announced that changes would be made to impose a higher provincial sales tax (PST) rate on the sale of some passenger vehicles in the province. Under...
The 2018-19 B.C. Budget included a number of changes to the province’s property transfer tax regime. Such tax is imposed when property is bought or sold and the tax payable is based on the fair mark...
The province of British Columbia will provide the following personal tax credit amounts for 2018: Basic personal amount ………………………………… $10,412 Spouse or equivalent to spouse...
In its 2018-19 Budget, the provincial government introduced a new real estate speculation tax, which will be effective for the 2018 and subsequent tax years. The new tax will target foreign and domest...
In the 2018-19 provincial Budget brought down on February 20, 2018, the B.C. government announced that the existing 15% additional property transfer tax rate has been increased to 20%, and that such t...
British Columbia Budget legislation provides for a fixed annual budget date of the third Tuesday of February. Consequently, the 2018-19 B.C. Budget will be announced at around 1:30 p.m. on Tuesday, Fe...
For the 2018 tax year, the province of British Columbia will levy personal income tax at the following individual income tax rates and brackets. 06% on taxable income between $10,412 and $39,676; 7% o...
As announced in the 2017 Budget Update, the province has reduced Medical Service Premiums (MSP) by one half, effective as of January 1, 2018. As well, the income threshold for full exemption from MSP ...
As announced in the 2017 Budget Update last fall, the provincial general corporate income tax rate was increased, effective as of January 1, 2018, from 11% to 12%. The general corporate income tax rat...
The provincial government has announced that the threshold for British Columbia’s Homeowner Grant program has been increased, for 2018, to $1.65 million. Homeowners must apply for the grant each yea...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of British Columbia at the end of that year. The T1 form p...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which B.C. employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension Plan...
A number of changes to the province’s rent control legislation took effect on December 11, 2017. One of the changes effective on that date limits the ability of landlords of rental residential units...
British Columbia’s fiscal report for the second quarter of the 2017-18 fiscal year shows that the province is on track to post a balanced budget for the year. That balanced budget is expected notwit...
The Canada Revenue Agency has issued the British Columbia TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income ...
The B.C. Ministry of Finance has issued a provincial sales tax (PST) notice dealing with the application of PST to sales of clean energy vehicles in the province. That notice (Notice 2017-005) address...
The provincial government, which previously announced its intention of raising the minimum wage to $15 per hour, will be holding public consultations on the timeline and process for that change. The c...
The Manitoba government has announced that the province’s Budget for the upcoming 2021-22 fiscal year will be brought down on Wednesday April 7, 2021. Once the Budget is released, the Budget papers ...
Manitoba Finance has announced that small and medium-sized businesses with monthly retail sale tax (RST) remittances of no more than $10,000 per month will be eligible for an interest and penalty-free...
Beginning in 2021, a number of changes were made to the province’s health and post-secondary education (payroll) tax. The thresholds for application of the tax were increased and a new online filing...
Beginning with the 2021 taxation year, Health and Post Secondary Education Tax Levy tax returns and tax payments must be completed using TAXcess, the provincial online tax filing and payment system. P...
Effective as of January 2021, monthly filers of Retail Sales Tax returns must file those returns and make any required payments online. The first monthly RST return and payment that is required to be ...
The province of Manitoba will provide the following personal tax amounts for 2021. Basic personal amount …………………………………… $9,936 Spouse or common law partner amount ………...
During the 2021 taxation year, the province of Manitoba will levy individual income tax using the following income tax brackets and tax rates. Tax Rate ...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2021 is as foll...
On November 10, the provincial government announced the creation of the Manitoba Bridge Grant, which provides a grant of up to $5,000 to businesses, not-for-profits, and charities which were required ...
The province imposes a Health and Post-Secondary Education Tax Levy (payroll tax) on Manitoba employers. The tax is imposed, at varying rates, on annual payrolls which exceed a specified threshold. Ef...
The province has announced that eligible small and medium-sized businesses which are required to fully close their premises under COVID-19 public health orders in effect as of November 12 may be provi...
Both individuals and corporations in Manitoba can claim a refundable tax credit for eligible investments made in community enterprises. The tax credit rate for such investments is 45%, and the maximum...
The province provides eligible corporations which acquire manufacturing plant and equipment for first-time use in manufacturing or processing operations in the province with a tax credit which is part...
Earlier this year, the provincial government announced that changes would be made to the application of the Manitoba retail sales tax (RST) to certain accounting services. Manitoba Finance has now upd...
Manitoba Finance has issued two new information notices providing updated information on filing deadlines with respect to the province’s Health and Post-secondary Education (payroll) Levy and retail...
Effective as of Thursday October 1, 2020, the Manitoba general minimum wage will increase by 25 cents, from $11.65 to $11.90 per hour. The adjustment to the minimum wage is based on Manitoba’s 201...
Through its Back to Work Manitoba Wage Subsidy program, the province provides private-sector and non-profit employers with a subsidy of up to 50% of employee wages. The maximum per employer subsidy am...
Earlier this year, the provincial government launched a program to assist employers in bringing back laid-off employees or hiring new ones. That program — the Back to Work Manitoba Initiative — pr...
Manitoba businesses which are required to pay the province’s health and education levy (payroll tax) must file monthly returns and remit amounts due at that time. Earlier this year, the province ann...
Effective as of the end of June 2020, certain types of insurance contracts relating to real estate in Manitoba are exempt from provincial sales tax. The exemption applies to the following types of ins...
The provincial government has announced that the existing employer wage subsidy program — the Back to Work program — has been expanded.The enhanced Back to Work program will reimburse up to $5,000...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rates payable for 2020 are as follows: ...
The province of Manitoba provides a Film and Video Production Tax Credit, under which qualifying producers of eligible Manitoba productions may receive a tax credit of up to 65% of the cost of eligibl...
Manitoba Finance has issued an Information Notice (TAMTA 20-02) outlining details of the temporary extension of the usual 90-day time period for the filing of appeals from provincial tax assessments. ...
Manitoba Finance has issued Notice RST 20-04, announcing that as of July 1, 2020, provincial retail sales tax will no longer be levied on property insurance, for both residential and business properti...
The Manitoba government has announced that it will be providing financial support, by way of a non-interest bearing forgivable loan, to small businesses in the province which do not qualify for any ma...
The provincial government has announced that, effective as of April 1, it has suspended all repayments of loans under the Manitoba Student Aid Program. The suspension of such payments will continue un...
Small and medium sized businesses in the province will be provided with an extension of current filing and remittance deadlines related to provincial sales tax and the Health and Post-Secondary Educat...
The provincial government has announced that the threshold amounts which determine the payroll tax liability of Manitoba employers will be increased, effective January 1, 2021. As of that date, the fo...
The province has announced that it will be implementing a flat $25 per tonne Green Levy, effective as of July 1, 2020. At the same time, the provincial general sales tax rate, which is currently 7%, w...
The provincial government has announced that Manitoba’s Budget for the 2020-21 fiscal year will be brought down on Wednesday March 11, 2020. Once the Budget is released, the Budget papers will be po...
Manitoba Finance has updated and re-issued its Bulletin (No. 056) on the application of provincial sales tax to legal services provided in the province. The major change outlined in the updated Bullet...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Manitoba as of December 31, 2019. That return and guide can be f...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2020 is as follo...
Manitoba Finance has announced the dates, times, and locations of ten budget consultation public meetings which will be held throughout the province during the month of January. A listing of those dat...
The province of Manitoba will provide the following personal tax credit amounts for 2020: Basic personal amount ……………………………… $9,838 Spouse or common law partner amount ...
The Manitoba government has announced the launch of the consultation process for the 2020-21 provincial Budget. That consultation process will include a number of public meetings and telephone town ha...
The Manitoba government provides individuals and corporations in the province who acquire equity capital in eligible Manitoba enterprises with a non-refundable provincial tax credit of up to 45%. The ...
Manitoba Finance has issued a new sales tax bulletin (No. 063) on the application of PST to sales of cannabis in the province. That application will differ, depending on whether cannabis products are ...
Manitoba Finance has announced that businesses in the province which were affected by recent storm-related power outages can obtain a waiver of interest and penalty charges which would otherwise resul...
The Manitoba government has announced that Standard and Poor’s credit reporting agency has, in its most recent release, revised the province’s outlook from stable to positive. In changing that rat...
The provincial government has issued a reminder to Manitoba residents that the minimum wage is increased, effective as of October 1, 2019. As of that date, the general minimum wage increased from $11....
Manitoba provides book publishers that incur eligible Manitoba labour costs with a refundable Book Publishing Tax Credit equal to 40% of those eligible labour costs. Such eligible labour costs include...
The provincial government has announced that percentage rent increase guideline which will take effect as of January 1, 2020 and apply during the 2020 calendar year will be 2.4%. The rent increase gui...
Effective as of October 1, 2019, the Manitoba general minimum wage will increase from $11.35 per hour to $11.65 per hour. The general minimum wage is payable to most employees in the province, regardl...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rates payable for 2019 are as follows: ...
The province of Manitoba imposes a number of taxes affecting businesses operating in the province, and each such tax imposes separate registration, filing and payment obligations. Manitoba Finance has...
Effective as of July 1, 2019, the general retail sales tax rate imposed by the province was reduced from 8% to 7%. As a consequence of the change, Manitoba Finance has revised and re-issued a number o...
Effective as of July 1, 2019, the general provincial retail sales tax rate will be reduced from 8% to 7%. The old rate of 8% will apply to purchases of taxable goods where such goods are purchased and...
The province offers a Small Business Venture Capital Tax Credit (SBVCTC), which provides a non-refundable provincial tax credit of up to 45% to individuals and corporations who acquire equity capital ...
The province of Manitoba provides printers with a 35% refundable Cultural Industries Printing Tax Credit on salary or wages paid to its employees who are residents of the province at year end and who ...
The provincial government has announced that the international credit rating agency Dominion Bond Rating Service (DBRS) has confirmed Manitoba’s existing credit rating. In its May 2019 report, DBRS ...
The province of Manitoba has, since 1997, provided a Film and Video Production Tax Credit, which is based on eligible salaries paid to residents of the province and to qualifying non-residents, for wo...
The province of Manitoba provides a Manufacturing Investment Tax Credit, under which corporations can earn a 9% credit for eligible property acquired on or after April 12, 2017. In order to be eligibl...
The provincial government has announced that, effective as of 2020, Manitoba businesses will be required to file, remit, and pay fuel tax, tobacco tax, and health and post-secondary education (payroll...
As announced in the recent provincial Budget, Manitoba’s sales tax rate will be reduced, effective as of July 1, 2019. As of that date, the general sales tax rate will drop from 8% to 7%. Rates redu...
The provincial government has announced that the provincial minimum wage will increase by 30 cents per hour, effective October 1, 2019. The change which is based on the provincial inflation rate of 2....
Since 1997, the province has provided a refundable tax credit for certain expenditures incurred with respect to qualifying film and video productions. That credit is based on eligible salaries paid to...
In its 2019-20 Budget, the provincial government announced that the Manitoba general retail sales tax rate would be reduced, effective as of July 1, 2019, from 8% to 7%. Changes will also be made, as ...
The Manitoba government has announced that it will not be levying provincial sales tax on the federal government’s carbon tax on home heating fuels. That federal carbon tax is composed of a base amo...
Taxpayers whose livestock farming operations are affected by adverse weather conditions during a particular taxation year can benefit from a tax deferral program. That Livestock Tax Deferral provision...
The provincial government has announced that Manitoba’s Budget for the 2019-20 fiscal year will be brought down on Thursday March 7, 2019. When the Budget is released, the Budget papers will be post...
Since 1997, the province of Manitoba has provided a refundable film and video production tax credit, based on qualifying amounts expended in relation to eligible film and videos produced in the provin...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2019 is as f...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of Manitoba during the 2019 tax year.The supplement, which can be found on the CRA website at...
The provincial government has issued a reminder for consumers in the province of the rules which apply to the purchase and use of retailer gift cards. Those rules provide that purchasers cannot be cha...
The province of Manitoba will provide the following personal tax credit amounts for 2019: Basic personal amount ………………………………… $9,626 Spouse or common law partner amount …...
Manitoba Finance has issued information for taxpayers in the province who must file returns or make payments, particularly with respect to retail sales tax (RST), health and education levy (HE), and t...
The Manitoba government has announced that consultations with respect to the province’s 2019-20 Budget have commenced. That budget will be brought down in the spring of 2019. There will be a series ...
The provincial government has announced that Manitoba’s rent increase guideline for 2019 has been set at 2.2%. The guideline, which is based on the Manitoba Consumer Price Index, applies to most ren...
The province imposes an 8% retail sales tax on the sale of goods and some services in Manitoba, and its general guide to that tax for vendors in the province was recently updated and re-issued. The gu...
The province has deferred, to December 1, 2018, the implementation date of the $25 per tonne carbon tax which was announced in this year’s Budget. The original implementation date was September 1, 2...
As previously announced, Manitoba’s general minimum wage will be increased, effective as of October 1, 2018. As of that date, the provincial minimum wage will increase by 20 cents per hour, from $11...
The Manitoba Minister of Finance has announced that the province is now ahead of schedule with respect to its deficit reduction objectives. That announcement, which can be found on the provincial gove...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rates payable for 2018 is are as follows: ...
The province of Manitoba offers a tax credit to corporations which construct five or more new residential rental units in the province. Certain costs incurred in respect of the acquisition and convers...
As announced in this year’s Budget, the province has introduced a new tax credit for private corporations that create new child care centres. The total credit claimable is equal to $10,000 per new i...
The province has announced that, effective as of this year’s Budget date of March 12, 2018, the process by which an application is made for the provincial Primary Caregiver Tax Credit has been strea...
The province of Manitoba provides a Small Business Venture Capital Tax Credit, which enables investors in eligible businesses to receive a 45% non-refundable credit against provincial income tax other...
Effective September 1, 2018, a carbon tax equal to $25 tax per tonne of greenhouse gas emissions will apply to gas, liquid, and solid products used in Manitoba. Manitoba Finance has issued an Informat...
Current provincial tax rules provide taxpayers who invest in a registered labour-sponsored venture capital corporation any time during the taxation year or within 60 days after the end of that year wi...
The Manitoba government has announced that the general minimum wage payable in the province will increase by 20 cents per hour, effective as of October 1, 2018. The increase will bring the minimum wag...
The province of Manitoba has announced that the provincial minimum wage will be increased, effective as of October 1, 2018. As of that date, the minimum wage will increase by 20 cents per hour, from $...
As part of the 2018-19 Manitoba Budget, it was announced that the provincial small business limit would be increased, effective as of January 1, 2019. As of that date, the small business limit will in...
This year’s provincial Budget included details of the provincial carbon tax that will be implemented effective September 1, 2018. As of that date, a $25 tax per tonne of greenhouse gas emissions wil...
The 2018-19 provincial Budget brought down on March 12, 2018 included the announcement of an increase in the provincial small business limit. Qualifying corporate income below that small business limi...
The province of Manitoba will provide the following personal tax credit amounts for 2018: Basic personal amount ………………………………… $9,382 Spouse or equivalent to spouse amount …...
The Manitoba Finance Minister has announced that the 2018-19 provincial Budget will be presented on Monday, March 12, 2018. Once the Budget is released, Budget papers will be posted on the Manitoba Fi...
For the 2018 tax year, the province of Manitoba will levy personal income tax at the following individual income tax rates and brackets. 8% on taxable income between $9,382 and $31,843; 75% on taxable...
The province of Manitoba levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2018 is as f...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Manitoba at the end of that year. The T1 form package (...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which Manitoba employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension ...
As part of its pandemic response, the Ontario government provided small businesses in the province with a grant program — the Ontario Small Business Support Grant. That grant provided direct payment...
The Ontario government has announced that the province’s Budget for the upcoming 2021-22 fiscal year will be brought down on Wednesday March 24, 2021. When the Budget is released, the budget papers ...
The provincial government has released the revenue, expenditure, and projected deficit figures for the third quarter (October 1 – December 31) of the 2020-21 fiscal year. Based on those figures, the...
The province of Ontario provides a grant of between $10,000 and $20,000 for eligible small businesses which were affected by the province-wide shutdown which began on December 26, 2020. The applicatio...
The Ontario government has launched its consultation process with respect to the upcoming 2021-22 provincial Budget. That Budget will be brought down by March 31, 2021. The Budget consultation process...
During the 2021 taxation year the province of Ontario will levy individual income tax using the following income brackets and tax rates. Tax Rate ...
The province of Ontario will provide the following personal tax amounts for 2021. Basic personal amount ………………………………… $10,880 Spouse or common law partner amount …… $9,...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each quarter of the calendar year. The rates presc...
The province of Ontario provides a number of tax credits for companies in the film, television, and digital media industries. Those credits included the Film and Television Tax Credit, the Ontario Pro...
In the Economic Statement announced in March 2020, the provincial government announced that a number of filing deadlines relating to provincial corporate tax credits would be extended. One of the affe...
In early November the Ontario government announced that a subsidy would be provided to families with children up to age of 12 (or age 21 in the case of children with special needs).The purpose of the ...
Ontario taxpayers who disagree with an assessment of their tax liability under a range of provincial tax programs are entitled to object to that assessment. The Ontario government has updated and re-i...
The Employer Health Tax (EHT) is a payroll tax paid by employers based on their total annual Ontario remuneration in excess of a remuneration threshold. The EHT has a top rate of 1.95%. In March 2020 ...
In the 2020-21 Budget brought down on November 5, the government of Ontario projected a deficit of $38.5 billion for the current fiscal year. That deficit amount is unchanged from the figure projected...
In the 2020 Budget brought down on November 5, the province introduced a new refundable tax credit for seniors. That credit will be claimable by senior homeowners, renters, or people who live with rel...
The Ontario government has announced that the 2020-21 provincial Budget will be brought down on Thursday November 5, 2020. In the announcement of the Budget date, which is available on the provincial ...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each quarter of the calendar year. The rates presc...
Ontario has released the province’s final fiscal results for the fiscal year ended March 31, 2020. The 2019-20 Public Accounts compare those final fiscal results with the figures projected in the 20...
The Ontario government has announced that a rent freeze will be imposed for the 2021 calendar year for most residential rental accommodation in the province. While Ontario already has rent control leg...
As part of its pandemic response measures, the Ontario government provided businesses with relief from penalties and interest charges related to late filings or remittances, for a six-month period. Th...
Under Ontario labour laws, where a non-unionized employee is laid off for more than 13 weeks, said layoff can trigger termination and severance payment obligations for the employer. However, earlier...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers of a current tax scam relating to claims for Ontario tax benefits — specifically, claims for the Ontario Senior Homeowners Property ...
On October 1, 2020, the Ontario general minimum wage will increase by 25 cents, to $14.25 per hour. That increase is based on changes to the Ontario Consumer Price Index. Different minimum wage rates ...
In March 2020, the Ontario government announced that, as part of its pandemic response plan, it would provide an interest and penalty relief period for Ontario taxpayers with respect to specific tax p...
The provincial government has announced that its commercial rent assistance program — Canada Emergency Commercial Rent Assistance (CECRA) — has been extended to be available until the end of Augus...
In March 2020 the provincial government announced that, as part of its pandemic response plan, a five-month interest and penalty relief period would be provided to Ontario businesses which failed to f...
The provincial government has announced that it will be moving to impose limits on the rate of interest and certain fees which can be levied by payday loan companies. The proposed changes would cap th...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute at the beginning of each calendar quarter. The rates set for the third quarter...
Applications can now be made by commercial landlords in Ontario for forgivable loans to assist with pandemic-related losses of rental income. Under the Canada Emergency Commercial Rent Assistance (CEC...
As part of its pandemic response plan, the province is providing interest relief and payment deferrals on existing Ontario Student Assistance Program (OSAP) loans. Under that plan, OSAP borrowers will...
The Ontario government will be providing forgivable loans to eligible commercial property owners in the province who are experiencing rent shortfalls due to the pandemic, through the new Ontario-Canad...
As part of its recent Economic and Fiscal Update, the province announced that interest and penalty relief would be provided to Ontario businesses with respect to their obligations under specified tax ...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
Ontario imposes an Employer Health (payroll) Tax which is levied on employers having an annual payroll over $490,000. As part of the tax relief measures announced in the recent Economic and Fiscal Up...
In the Economic and Fiscal Update brought down on March 25 Ontario’s Minister of Finance announced that, beginning April 1, 2020, penalties and interest will not be imposed on Ontario businesses tha...
The Ontario government had announced that the province’s 2020-21 Budget would be brought down on March 25, 2020. The Ontario Minister of Finance has indicated that, in light of recent developments, ...
The Ontario government has announced that the province’s Budget for the upcoming (2020-21) fiscal year will be brought down on Wednesday March 25, 2020. Once the Budget is released, the Budget paper...
The Ontario Ministry of Finance has announced the province’s financial results for the third quarter (October to December 2019) of its 2019-20 fiscal year. As of December 31, 2019, the government is...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Ontario as of December 31, 2019. That return and guide can be fo...
The corporate income tax rate levied on active business income of eligible Ontario corporations was reduced to 3.2%, effective as of January 1, 2020. The rate change will be pro-rated for non-calendar...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The province of Ontario will provide the following personal tax credit amounts for 2020: Basic personal amount ……………………………… $10,783 Spouse or common law partner amount ...
As announced in the 2019 Economic Outlook and Fiscal Review, the provincial small business corporate income tax rate will be reduced, effective as of January 1, 2020. As of that date, the rate will dr...
In the 2019 Ontario Economic Outlook and Fiscal Review released by the provincial government on November 7, the Minister of Finance confirmed the government’s commitment to balance the budget by 202...
In the fall Economic Outlook and Fiscal Review released on November 6, the Minister of Finance announced that the provincial corporate income tax rate applied to Ontario small businesses will be reduc...
The Ontario Minister of Finance has announced that the 2019 Fall Economic Statement will be brought down on Wednesday November 6, 2019. That economic statement will update the revenue, expenditure, an...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Ontario government has released the Public Accounts which summarize the province’s financial position at the end of the 2018-19 fiscal year, which ended March 31, 2019. The related press release...
The province of Ontario levies an Estate Administration Tax (formerly known as probate fees) on the total value of the estate of a deceased person. In this year’s budget, the provincial government a...
The Ontario government has released the province’s financial results for the first quarter (April 1 – June 30) of the 2019-2020 fiscal year. Those results indicate that the deficit projection for ...
The province of Ontario levies a land transfer tax (LTT) on each purchase and sale of property in the province. The province also provides first-time homebuyers in Ontario with a refund of LTT which w...
The province of Ontario provides residents with a number of refundable tax credits, with eligibility for those credits based on age, income, and type and place of residence. The current benefit year f...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
Ontario imposes a 15% non-resident speculation tax (NRST) on purchases of residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent res...
In its 2019-20 Budget, the Ontario government announced a new non-refundable tax credit for lower-income working residents of the province. That credit, the Low-income Individuals and Families Tax (LI...
The province of Ontario levies an Estate Administration Tax (EAT), which is more commonly known as probate fees. In the 2019-20 Budget, the province announced that changes would be made to the EAT, as...
The 2019-20 Ontario Budget released on April 11, 2019 indicates that the province will not achieve a balanced budget until the 2023-24 fiscal year. The Budget papers show that the province expects the...
The 2019-20 provincial Budget brought down on April 11 included the announcement of a new refundable child care tax credit, claimable for the 2019 and subsequent taxation years. The new credit will be...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Ontario government has announced that the province’s Budget for the upcoming (2019-20) fiscal year will be brought down on Thursday April 11, 2019. Once the Budget is released, the Budget papers...
The provincial government has issued its fiscal update for the Third Quarter of the 2018-19 year, and that update shows a $1 billion reduction in the province’s deficit. That deficit is now projecte...
The Ontario government has announced that it will be carrying out a consultation process with respect to the laws which govern real estate professionals in Ontario. The process will address a broad ra...
The provincial government has announced that it will be holding a consultation process with respect to changes to the provincial automobile insurance program. Both consumers and businesses can provide...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of Ontario during the 2019 tax year. The supplement, which can be found on the CRA website at...
The Ontario Minister of Finance has announced the start of the consultation process leading to the release of the province’s 2019-20 Budget next spring. There are several options for Ontario residen...
In the recent Economic Outlook and Fiscal Review, the Ontario Minister of Finance announced that the annual payroll threshold for the province’s Employer Health (payroll) Tax (EHT) would be increase...
The province of Ontario will provide the following personal tax credit amounts for 2019: Basic personal amount ………………………………… $10,582 Spouse or equivalent to spouse amount …...
The Ontario government has reversed the minimum wage increase which had been scheduled to take effect on January 1, 2019. On that date, the minimum wage was scheduled to increase from $14 to $15 per h...
In the 2018 Economic Outlook and Fiscal Review issued on November 15, the provincial government announced that, beginning with the 2019 tax year, low-income individuals and families will be eligible f...
The province provides a program under which low-income seniors and low-income persons with disabilities can obtain a partial deferral of property tax and education tax. The tax deferral applies to the...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The government of Ontario has announced that planned fee increases with respect to licensing fees for drivers in the province, which were to have taken effect on September 1, 2018, have been cancelled...
The Ontario government provides an online service – ONT-TAXS, through which Ontario businesses can file and amend returns, make tax payments, and track the status of such returns and payments. The s...
The new benefit year for the Ontario Trillium Benefit (OTB) began in July 2018 and will run until June 2019. The OTB is a refundable tax credit which is claimed on the annual tax return and paid to ta...
As announced in this year’s provincial Budget, Ontario has altered its personal tax rate structure. The changes announced include the elimination of the provincial surtax and the replacement of the ...
The Ontario government has announced that the existing cap-and-trade carbon tax system will be eliminated, effective as from July 3, and that provincial government programs which were funded under tha...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Canada Revenue Agency (CRA) has re-issued the payroll deductions online calculator to be used by Ontario employers in calculating employee source deductions starting July 1, 2018. The updated vers...
The province provides eligible Ontario residents with a number of refundable tax credits and benefits. Those benefits are paid on a monthly basis, and eligibility for most benefits is based, in part, ...
The Ontario Research and Development Tax Credit (ORDTC) is a 3.5% non-refundable tax credit earned on eligible R&D expenditures. As announced in this year’s provincial Budget, eligible busines...
The Ontario government recently enacted legislation to implement announcements made in this year’s provincial budget. Those announcements include two changes affecting seniors in the province, as fo...
The provincial government has announced changes that will provide Ontario residents with increased access to personal information held by credit reporting agencies. Under the new rules, certain credit...
The province of Ontario provides a number of tax credits to individual residents of the province, and those benefits are paid on monthly basis. The next benefit year will start in July 2018 and run un...
In this year’s Budget, the provincial government announced that the non-refundable tax credit provided to taxpayers who make qualifying donations to charity would be increased. The credit is a two-l...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Ontario Budget for the 2018-19 fiscal year, which was brought down on March 28, included the announcement of changes to the province’s personal income tax rate structure, with such changes havin...
Previously announced changes to Ontario’s employment standards laws will take effect on April 1, 2018. The upcoming changes will, for the most part, affect temporary, part-time, and seasonal employe...
The provincial government has announced that Ontario’s 2018-19 Budget will be brought down by the Minister of Finance on Wednesday, March 28 at around 4 p.m. Once the Budget is announced, the Budget...
The province of Ontario will provide the following personal tax credit amounts for 2018: Basic personal amount ………………………………… $10,354 Spouse or equivalent to spouse amount ...
The provincial government has announced that, effective as of March 1, 2018, unsolicited door-to-door sales of the following appliances will no longer be permitted: air cleaners, air conditioners, a...
The release of Ontario’s Third Quarter Finances report indicates that the province remains on track to balance the budget for the 2017-18 fiscal year, although the amount of the projected surplus ha...
The provincial government has announced that, effective for leases signed on or after April 30, 2018, residential landlords in Ontario will be required to use a new standard-form, plain-language lease...
For the 2018 tax year, the province of Ontario will levy personal income tax based on the following tax rates and brackets. 05% on taxable income between $10,354 and $42,960; 15% on taxable income bet...
The province of Ontario provides a number of refundable tax credits to individual residents of the province. Several of those credits are combined and paid as a single monthly benefit — the Ontario ...
The government of Ontario has announced the launch of its pre-budget consultation process leading to the release of the province’s 2018-19 Budget. That budget consultation process has several compon...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Ontario at the end of that year. The T1 form package (w...
The province of Ontario charges and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid f...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which Ontario employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension P...
The Canada Revenue Agency has issued the Ontario TD1 form and worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income tax sourc...
The Ontario government has enacted a number of changes to the province’s employment standards laws, and those changes include the following: the Ontario minimum wage will increase to $14 per hour on...
The province of Ontario provided employers who hired and trained eligible apprentices in designated construction, industrial and motive power, and certain service trades with a refundable tax credit, ...
In the 2017 Economic and Fiscal Review issued on November 14, Ontario’s Minister of Finance announced that the provincial small business tax rate would be reduced, effective as of January 1, 2018, f...
Residents of Saskatchewan who carry out qualifying home renovations between October 1, 2020 and the end of 2022 may claim a tax credit with respect to eligible expenses incurred.The non-refundable tax...
The provincial government has announced that the 2021-22 Saskatchewan Budget will be brought down on Tuesday April 6, 2021. The press release announcing the Budget date can be found on the provincial ...
During the 2021 taxation year, the province of Saskatchewan will levy individual income tax using the following income tax brackets and tax rates. Tax Rate ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2021 ...
In the recent Speech from the Throne, the provincial government announced that it would be providing Saskatchewan homeowners with a Home Renovation Tax Credit. Homeowners will be able to claim a credi...
On November 27, the provincial government released its Mid-Year Report on the province’s finances for the current (2020-21) fiscal year. That forecast showed a deficit of $2 billion, which represent...
The government of Saskatchewan has announced Phase 2 of its existing wage supplement program, which is effective as of November 19. The extension will provide a further wage supplement to full-time, p...
The province of Saskatchewan offers manufacturing companies in the province with a Manufacturing and Processing (M&P) Exporter Tax Incentive. That Incentive provides non-refundable tax credits to ...
Effective April 1, 2020, the province provides new home purchasers in Saskatchewan with a rebate of up to 42% of provincial sales tax paid on the purchase of a newly constructed home. To qualify for t...
The province has released its First Quarter Budget Update for the 2020-21 fiscal year, and that Update includes both a projection of a reduced current year deficit, and of a return to surplus in 2024-...
Effective as of October 1, the provincial general minimum wage will increase by 13 cents, to $11.45 per hour. That increase is based on changes to the Saskatchewan Consumer Price Index. Some groups of...
Saskatchewan provides a wage supplement for qualifying essential workers in the province, equal to $400 for each four-week period between March 15 and July 4, 2020. The supplement is generally availab...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rates payable for 2020 are as follows ...
The 2020-21 Saskatchewan Budget recently brought down by the provincial government included an announcement of a provincial sales tax rebate on new housing construction. Under the new rebate program, ...
The provincial government previously announced that taxpayers who file returns and make payments electronically for purposes of Provincial Sales Tax, Liquor Consumption Tax, and the Beverage Container...
The province of Saskatchewan brought down its 2020-21 Budget on June 15 and that Budget included a projection of a deficit of $2.4 billion for the year. For 2020-21, revenue is forecast to be $13.6 bi...
The provincial government has announced that Saskatchewan’s minimum wage will increase from $11.32 to $11.45 per hour on October 1, 2020. The provincial minimum wage is revised annually, based on c...
Earlier this month, the province announced that a temporary wage supplement would be made available to qualifying essential care workers in the province. Saskatchewan Finance has now issued Informatio...
The provincial government has announced that a new wage supplement of $400 per month will be provided to lower income essential workers in the province for a period of 16 weeks (March 15 to July 4).Wo...
The Saskatchewan government will be providing eligible small and medium-sized businesses in the province which are directly affected by government public health orders related to COVID-19 with a one-t...
The province has announced relief measures for Saskatchewan businesses with respect to their provincial sales tax payment obligations. While businesses which are able to do so are still required to fi...
The provincial government has announced that, effective as of March 20, 2020, Saskatchewan businesses which are unable to remit their Provincial Sales Tax (PST) due to cashflow concerns will have reli...
The provincial government has announced that businesses directly impacted by the COVID-19 virus that are unable to file their provincial tax return(s) by the due date may submit a request for interest...
Saskatchewan Finance has announced that taxpayers filing returns or making payments electronically for purposes of Provincial Sales Tax, Liquor Consumption Tax and the Beverage Container Program will ...
The provincial government has announced that changes will be made, effective April 1, 2020, to the tax payable thresholds which determine the frequency with which businesses must file returns under ce...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Saskatchewan as of December 31, 2019. That return and guide can ...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and June 1. The rate payable for the first half of 2020 is as f...
The province of Saskatchewan will provide the following personal tax credit amounts for 2020: Basic personal amount ………………………………… $16,065 Spouse or equivalent to spouse...
As announced in this year’s Budget, the province will be providing a new tax credit for volunteer emergency responders, effective for the 2020 and subsequent tax years. The $3,000 tax credit amount ...
The provincial government has released the financial results for the first half of the province’s 2019-20 fiscal year. Those results forecast an increased surplus for the year — up $3 million from...
Saskatchewan Finance has updated and re-released its tax bulletin (PST-74) on the application of provincial sales tax to sales of cannabis. The updated Bulletin, which is available at https://www.sets...
Saskatchewan Finance has issued two updated Bulletins providing information on the application of provincial sales tax where complimentary or tax-included meals or meal tokens are provided in particul...
Effective as of October 1, 2019, the general minimum wage payable in the province of Saskatchewan will increase from $11.06 to $11.32 per hour. Saskatchewan’s minimum wage is indexed, increasing on ...
The province of Saskatchewan has issued the revenue and expenditure figures for the first quarter (April 1 – June 30) of its 2019-20 fiscal year. Those figures indicate that the province is on track...
Saskatchewan Finance has updated and re-issued its Information Bulletin (PST-58) on the application of provincial sales tax to sales of used goods in the province. The changes to the Bulletin include ...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and June 1. The rates payable for 2019 are as follows. ...
Saskatchewan Finance has updated and re-issued its provincial sales tax (PST) bulletin (PST-58) with respect to the application of PST to sales of used goods. Where a business sells used assets, it is...
Final figures for the province’s 2018-19 fiscal year show that Saskatchewan ended that year in a better than expected financial position. During that year, total revenue was $14.45 billion, which wa...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rates payable for 2019 are as follows. ...
The Saskatchewan government has announced that the general minimum wage payable in the province will be increased, effective as of October 1, 2019. As of that date, the provincial general minimum wage...
In this year’s Budget, the province has announced that, beginning in 2020, a new non-refundable $3,000 tax credit amount will be claimable by Volunteer Emergency Medical First Responders and Volunte...
The 2019-20 Budget brought down on March 19 indicates that Saskatchewan will have a balanced Budget for the upcoming (2019-20) fiscal year, with a surplus of $34.4 million. There were no new taxes or ...
The Saskatchewan government has announced that the 2019-20 provincial Budget will be brought down on Wednesday, March 20, 2019. Once the Budget is released, the Budget Papers will be posted on the pro...
Taxpayers whose livestock farming operations are affected by adverse weather conditions during a particular taxation year can benefit from a tax deferral program. That Livestock Tax Deferral provision...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rate payable for the first half of 2019 is ...
The mid-year fiscal update announced by the Saskatchewan Finance Minister indicated that the province’s projected deficit for the 2018-19 will be less than was forecast in the Budget. That deficit i...
The province of Saskatchewan will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $16,065 Spouse or equivalent to spouse am...
Applications are now being accepted for a new incentive to help encourage mineral exploration in targeted areas of Saskatchewan. That new incentive, the Targeted Mineral Exploration Incentive, is desi...
The province has announced the procedures which will be in place with respect to consumption tax fillings, payments and refunds by and to businesses in the event of a postal disruption. The announceme...
Effective as of October 1, 2018, individuals and corporations can apply for the Saskatchewan Technology Startup Incentive (STSI). The STSI is a non-refundable 45% tax credit for individuals or corpora...
The province has instituted a “Tip Line” which provides an anonymous, fully confidential way for the public to report businesses or individuals who are participating in tax fraud. The Tip Line is...
The province’s Finance Minister has announced that Moody’s Investors Service has confirmed Saskatchewan’s AAA credit rating. Saskatchewan and British Columbia are the only two Canadians province...
The first quarter (2018-19) fiscal results released by the provincial government show a reduction in the projected deficit for the current year. The 2018-19 Budget had projected a full-year deficit of...
Effective as of October 1, 2018, the provincial general minimum wage will increase by $0.10 per hour, from $10.96 to $11.06. More information on Saskatchewan’s minimum wage and minimum wage payment...
The Minister of Finance has announced that the province achieved a significant reduction in its overall deficit during the 2017-18 fiscal year. The Minister’s announcement indicates that the provinc...
As announced in this year’s budget, the province will be providing a tax credit for investments made in Saskatchewan technology start-ups. That non-refundable tax credit, the Saskatchewan Technology...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rates payable for 2018 are as follows. ...
The minimum wage in Saskatchewan will increase to $11.06 an hour from $10.96 an hour, effective as of October 1, 2018. Saskatchewan’s legislation provides for an annual review of the minimum wage, b...
In this year’s Budget, the province announced that it would be eliminating the existing provincial sales tax (PST) exemption provided for purchases of certain Energy Star rated products. Consequentl...
Saskatchewan Finance has announced that residents of the province who are over the age of 65 will be eligible for a new property tax deferral program, which came into effect as of April 10, 2018. To t...
As announced on February 26, 2018, provincial sales tax is no longer levied on certain types of insurance policies, including individual and group life policies, health, disability, accident and sickn...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rate payable for the first half of 2018 is ...
The province of Saskatchewan will provide the following personal tax credit amounts for 2018: Basic personal amount ……………………………… $16,065 Spouse or equivalent to spouse amount...
For the 2018 tax year, the province of Saskatchewan will levy personal income tax at the following individual income tax rates and brackets: 5% on the first $45,225 of taxable income; 5% on taxable in...
Effective as of January 1, 2018, the Saskatchewan general corporate income tax rate increased from 11.5% to 12%. That rate was reduced to 11.5% from 12% from July 1 to December 31, 2017. The general c...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Saskatchewan at the end of that year. The T1 form packa...
The provincial government has issued a press release reminding small businesses in Saskatchewan that the provincial small business limit has been increased, effective as of January 1, 2018, from $500,...
The Canada Revenue Agency has issued the Saskatchewan TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income tax ...
Saskatchewan imposes a Liquor Consumption Tax (LCT) equal to 10% of the selling price of beer, wine, and spirits in the province. Authorized vendors of such products are issued a non-transferable Spec...
Effective as of January 1, 2018, changes will be made to the taxation of both large and small corporations in the province. Small businesses will benefit from an increase in the small business thresho...
Most taxpayers sit down to do their annual tax return, or wait to hear from their tax return preparer, with some degree of trepidation. In most cases taxpayers don’t know until their return is completed what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst.
Most taxpayers sit down to do their annual tax return, or wait to hear from their tax return preparer, with some degree of trepidation. In most cases taxpayers don’t know until their return is completed what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst.
Most taxpayers are, of course, hoping for a refund — the bigger the better. A lot would be happy to find that at least nothing is owed to the Canada Revenue Agency (CRA), or that an amount owing is not significant.
The worst-case scenario, for all taxpayers, is to find out that they are faced with a large tax bill and an imminent payment deadline, and that they just don’t have the money to make the required payment by that deadline. For those who don’t have the means to pay a tax bill out of existing resources, that likely means borrowing the needed funds. And, while that will mean paying interest on the borrowing, the interest cost incurred will likely be less than that which would be levied by the CRA on the unpaid tax bill.
If a tax bill can’t be paid in full out of either current resources or available credit, the CRA is open to making a payment arrangement with the taxpayer. While, like most creditors, the CRA would rather get paid on time and in full, its ultimate goal is to collect the full amount of taxes owed. Consequently, the CRA provides taxpayers who simply can’t pay their bill for the year on time and in full with the option of paying an amount owed over time, through a payment arrangement.
There are two avenues available to taxpayers who want to propose such a payment arrangement. The first is a call to the CRA’s automated TeleArrangement service at 1-866-256-1147. When making such a call, it is necessary for the taxpayer to provide his or her social insurance number, date of birth, and the amount entered on line 150 of the last tax return for which the taxpayer received a Notice of Assessment. For taxpayers who are up to date on their tax filings, that will be the Notice of Assessment for the return for the 2019 tax year. The TeleArrangement Service is available Monday to Friday, from 7 a.m. to 10 p.m., Eastern Time.
Taxpayers who would rather speak directly to a CRA employee can call the Agency’s debt management call centre at 1-888-863-8657, or can complete an online form (available at https://apps.cra-arc.gc.ca/ebci/iesl/showClickToTalkForm.action) requesting a callback from a CRA agent.
The CRA also provides on online tool, in the form of a Payment arrangement calculator (available at Payment Arrangement Calculator — Canada.ca), which allows the taxpayer to calculate different payment proposals, depending on his or her circumstances). That calculator includes interest charges since, no matter what payment arrangement is made, the CRA levies interest charges on any amount of tax owed for the 2020 tax year which is not paid on or before April 30, 2021. Interest charges levied by the CRA tend to add up quickly, for two reasons. First, the interest charged by the CRA on outstanding tax amounts is, by law, higher than current commercial rates — the rate charged from April 1 to June 30, 2021 is 5%. Second, interest charges levied by the CRA are compounded daily, meaning that each day interest is levied on the previous day’s interest charges. It is for these reasons that a taxpayer is, where at all possible, likely better off arranging private borrowing in order to pay any taxes owing by the April 30 deadline.
This year, there is one exception to the usual rules with respect to interest charges levied on late or insufficient tax payments. During 2020, millions of Canadian taxpayers applied for and received pandemic-related benefits. And, although those benefits represent taxable income to the recipients, no tax was deducted from the payments when they were made. Consequently, many benefit recipients will be facing a larger than expected tax bill when they complete their return for 2020. And, given the continuing economic and employment fallout from the pandemic, it’s likely that many of them will be unable to pay those taxes on time and in full. In recognition of that fact, the CRA has indicated that it will be providing relief from the resulting interest charges in the form of a one-year interest holiday. Specifically, taxpayers who received pandemic-related benefits during 2020 and whose income for that year was $75,000 or less, will not have to pay any interest charges on 2020 tax amounts owed until May 1, 2022. More information on the interest relief program can be found on the CRA website at https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes/interest-relief.html.
Finally, regardless of the taxpayer’s circumstances, there is one strategy which is a bad one. Taxpayers who can’t pay their tax bill by the deadline sometimes conclude that there is no point in filing if payment can’t be made. Those taxpayers are wrong. Where an amount of tax is owed and the return isn’t filed on time, there is an immediate tax penalty imposed of 5% of the outstanding tax amount — and interest charges start accruing on that penalty amount (as well as on the outstanding tax balance) immediately. For each month that the return isn’t filed, a further penalty of 1% of the outstanding tax amount is charged, to a maximum of 12 months. Higher penalty amounts are charged, for a longer period, where the taxpayer has incurred a late-filing penalty within the past three years. In a worst-case scenario, the total penalty charges can be 50% of the tax amount owed — and that doesn’t count the compound interest which is levied on all penalty amounts, as well as on all unpaid taxes. In all cases, no matter what the circumstances, the right answer is to file one’s tax return on time. This year, for most taxpayers, that means filing on or before Friday April 30, 2021. For self-employed taxpayers (and their spouses) the filing deadline is Tuesday June 15, 2021. However, for all taxpayers, the payment deadline for all 2020 income tax owed is Friday April 30, 2021.
Detailed information on the options available to taxpayers who can’t pay their taxes on time and in full can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-taxes-owing.html#toc2.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Our tax system is, for the most part, a mystery to individual Canadians. The rules surrounding income tax are complicated and it can seem that for every rule there is an equal number of exceptions or qualifications. There is, however, one rule which applies to every individual taxpayer in Canada, regardless of location, income, or circumstances, and of which most Canadians are aware. That rule is that income tax owed for a year must be paid, in full, on or before April 30 of the following year. This year, that means that individual income taxes owed for 2020 must be remitted to the Canada Revenue Agency (CRA) on or before Friday April 30, 2021. No exceptions and, absent extraordinary circumstances, no extensions.
Our tax system is, for the most part, a mystery to individual Canadians. The rules surrounding income tax are complicated and it can seem that for every rule there is an equal number of exceptions or qualifications. There is, however, one rule which applies to every individual taxpayer in Canada, regardless of location, income, or circumstances, and of which most Canadians are aware. That rule is that income tax owed for a year must be paid, in full, on or before April 30 of the following year. This year, that means that individual income taxes owed for 2020 must be remitted to the Canada Revenue Agency (CRA) on or before Friday April 30, 2021. No exceptions and, absent extraordinary circumstances, no extensions.
It is very much in the CRA’s interest to make paying taxes as simple and as straightforward as it can be and so the Agency offers individual taxpayers a wide range of choices when it comes making that payment. There are, in fact, no fewer than eight separate options available to individual residents of Canada in paying their taxes for the 2020 tax year. The first five options outlined below involve payment by electronic means, while the last three describe those available to taxpayers who would prefer to make their payments in person, or by sending a cheque to the CRA.
Pay using online banking
Millions of Canadians transact most or all of their banking using the online services of their particular financial institution. The list of financial institutions through which a payment can be made to the CRA is a lengthy one (available at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-online-banking.html), and includes all of Canada’s major banks and credit unions.
The specific steps involved in making that payment will differ slightly for each financial institution, depending on how their online payment systems are configured. What’s important to remember is that the nature of the payment (i.e. current year tax return, as distinct from current year tax instalment payments) must be specified, and the taxpayer’s social insurance number must be provided, in order to ensure that the payment is credited to the correct account, for the correct taxation year.
It is not necessary to access any particular CRA form in order to make an online payment of taxes through one’s financial institution.
Using the CRA’s My Payment
The CRA also provides an online payment service called My Payment. There is no fee charged for the service, and it’s not necessary to be registered for any of the CRA’s other online services in order to use My Payment.
What is necessary is that the taxpayer have a debit card with a VISA Debit, Debit MasterCard, or Interac logo from a participating Canadian financial institution, as My Payment is set up to accept payment using only those cards. Anyone intending to use My Payment should also confirm that the amount of any payment to be made is within the daily or weekly transaction limits imposed by the particular financial institution.
A list of participating financial institutions for each type of card, and more details on this payment method can be found at https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html.
Payment by credit card, PayPal, or Interac e-transfer
While it’s possible to pay one’s taxes using a credit card, PayPal, or Interac e-transfer, such payments can only be made through third-party service providers (that is, payments by those methods cannot be made directly to the CRA), and such third party service providers will impose a fee for the service.
There are only two such service providers — Pay Simply and Plastique — listed on the CRA website, and links to each such service are available at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-credit-card.html.
Payment through a service provider
There are a number of third-party service providers which will accept payments and remit them on the taxpayer’s behalf to the CRA. However, the majority of such services are more oriented toward providing services to businesses, and most of those listed on the CRA website do not handle payments of individual income tax amounts owed.
The full listing of third-party service providers, and the types of payments they handle, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-a-service-provider.html.
Payment by pre-authorized debit
It’s possible to set up a pre-authorized debit (PAD) arrangement with the CRA, authorizing them to debit the account for an amount of taxes owed, on dates specified by the taxpayer.
Individuals who make instalment payments of tax throughout the year may already have such an arrangement in place and can certainly use that existing arrangement to arrange a PAD of any balance of taxes owed for the 2020 tax year. However, any such arrangement must be made at least five business days before the payment due date of April 30. A taxpayer who makes a payment of taxes only once a year is likely better off using another of the available payment methods.
There is also another option for taxpayers who have their return prepared and E-FILED by an authorized electronic filer. Such taxpayers can have that E-FILER set up a PAD agreement on their behalf in order to make a “one-time” payment for a current year tax amount owed. Such an arrangement is only for the payment of a current-year tax balance, and can’t be used for other payments like instalment payments of tax. Details on how to set up a pre-authorized debit arrangement, whether for a single payment or for recurring payments, are outlined on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-authorized-debit.html.
Paying in person at your financial institution
For those who don’t use online banking, or simply prefer to make a payment in person, it’s possible to pay a tax amount owed at the bank. Doing so, however, requires that the taxpayer have a specific remittance form.
If the taxpayer has not received the required remittance from the CRA, it is possible to download and print that form from the CRA website. Instructions on how to do so can be found on that website at https://www.canada.ca/en/revenue-agency/services/forms-publications/request-payment-forms-remittance-vouchers.html.
Paying at a Canada Post outlet
All Canada Post outlets can receive payments of individual income tax balances owed, in cash or by debit card. Once again, however, it is necessary to have a specific form to do so.
In this case, the taxpayer must have a QR code which contains the information needed for the CRA to credit the amount paid to the taxpayer’s account.
While a QR code is sometimes included on remittance forms sent to the taxpayer by the CRA, it’s also possible to generate a QR code online, through the CRA website. The link to do so can be found on that website at https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/pay-canada-post.html.
Paying by cheque
While it’s not common anymore, it’s still possible to pay any tax balance owed on filing by cheque, as outlined on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-cheque.html.
Such cheques are made payable to the Receiver-General of Canada, and are mailed, together with the required remittance form, to the CRA, using the address found on the back of the payment remittance form. As is the case with payments made at a financial institution, the taxpayer can print such a remittance form from the CRA’s website. Instructions on how to do so can be found at https://www.canada.ca/en/revenue-agency/services/forms-publications/request-payment-forms-remittance-vouchers.html.
The CRA also suggests that, where payment of taxes owing is made by cheque, the taxpayer should include his or her social insurance number on the memo line found on the front of the cheque. Doing so will help ensure that the payment is credited to the correct account.
It’s important for all taxpayers to realize that, whatever form of payment is used, the payment deadline of April 30 requires that the CRA receive payment by that date. The CRA considers that a payment has been made only when it actually receives that payment, or the payment is received by a member of the Canadian Payments Association (which would include most Canadian financial institutions).
The majority of payment options now available to Canadians involve online transactions or the use of third party service providers. Both such methods can mean some delay in receipt of the payment by the CRA, as a result of the time required for processing of the payment by the financial institution or third party. Consequently, taxpayers who make their tax payments online or using a third party service provider are well advised to consider that time lag in deciding when to make their payment – waiting until April 30, especially late in the day, to do so isn’t a good idea.
Those who make their payment in person at a financial institution (using a remittance form, as outlined above) can make their payment on April 30, as the date stamped on the remittance form is considered to be the date on which such payment is received by the CRA.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
By the time most Canadians sit down to organize their various tax slips and receipts and undertake to complete their tax return for 2020, the most significant opportunities to minimize the tax bill for the year are no longer available. Most such tax planning or saving strategies, in order to be effective for 2020, must have been implemented by the end of that calendar year. The major exception to that is, of course, the making of registered retirement savings plan (RRSP) contributions, but even that had to be done on or before March 1, 2021 in order to be deducted on the return for 2020.
By the time most Canadians sit down to organize their various tax slips and receipts and undertake to complete their tax return for 2020, the most significant opportunities to minimize the tax bill for the year are no longer available. Most such tax planning or saving strategies, in order to be effective for 2020, must have been implemented by the end of that calendar year. The major exception to that is, of course, the making of registered retirement savings plan (RRSP) contributions, but even that had to be done on or before March 1, 2021 in order to be deducted on the return for 2020.
The fact that the clock has run out on most major tax planning opportunities for 2020 doesn’t mean, however, that there are no tax-saving strategies left. At this point, there are a couple of ways to minimize the tax hit for 2020 — by claiming all available deductions and credits on the return and also by making sure that those deductions and credits are claimed in the way which will give the taxpayer the most “bang for the buck”.
Everyone’s tax situation — and, therefore, tax return — is different, but most taxpayers make claims on their annual returns for medical expenses incurred and/or charitable donations made. It may seem counterintuitive or even illogical to not claim every available deduction and credit in order to obtain the best possible tax result for the year. However, for both medical and charitable tax credit claims, albeit for different reasons, there are situations in which it makes sense to defer an available claim until a future year, or to transfer the claim to another person.
Claiming charitable donations
Taxpayers are entitled to make a claim on the annual tax return for charitable donations made in the current (2020) year or any of the previous five years. The reason it can sometimes makes sense not to claim a charitable donation in the year it was made arises from the way in which the charitable donations tax credit is structured to encourage higher donations.
That credit, at both the federal and provincial/territorial levels, is a two-tier credit. Federally, the first $200 in donations receives a credit of 15% of the total donation, or $30. However, donations above the $200 level receive a credit equal to 29% of the donation amount over $200.
Take, for example, a taxpayer who makes a regular contribution to a favourite charity of $100 each month, or $1,200 per year. Where he or she claims that donation on the annual return each year, that claim will result in a federal credit of $320 ($200 × 15%, + $1,000 × 29%). Where, however, the same taxpayer defers the claim to the following year and claims a total of $2,400 in donations on a single return, he or she will receive a federal credit of $668. ($200 × 15%, + $2,200 × 29%). Where the donations are accumulated and claimed once every five years, the federal credit received will be $1,712 ($200 × 15%, + $5,800 × 29%). Under each scenario, the total charitable donation made is the same, but the amount of credit received increases with each year that the claim is deferred. Since each of the provinces and territories provide a two-tier credit (at different rates, depending on the jurisdiction), the same result will be seen when calculating the provincial/territorial credit.
Medical expense tax credit
Notwithstanding our publicly funded health care system, there are a great (and increasing) number of medical and para-medical expenses for which coverage is not provided and which must be paid on an out-of-pocket basis. In many instances, it’s possible to claim a medical expense tax credit for those out-of-pocket costs.
The federal credit for such expenses is 15% of allowable expenses. As is usually the case, the provinces and territories also provide a credit for the same expenses, albeit at different rates.
Many taxpayers, with some justification, find the rules on the calculation of a medical tax credit claim confusing. First, there is an income threshold imposed. Medical expenses eligible for the credit are qualifying expenses which exceed 3% of net income, or (for 2020) $2,397, whichever is less. Put more practically, for 2020 taxpayers who have net income of $79,900 or more can claim medical expenses incurred over $2,397. Those with lower incomes can claim medical expenses which exceed 3% of that lower net income. For instance, a taxpayer having $35,000 in net income could claim qualifying medical expenses incurred over $1,050 (3% of $35,000).
The other aspect of the medical expense tax credit which can be confusing is the calculation of the optimal time period. Unlike most credit claims, the medical expense tax credit can be claimed for qualifying expenses which were paid in any 12-month period ending during the tax year. While confusing, such rule is beneficial, in that it allows taxpayers to select the particular 12-month period during which medical expenses (and therefore the resulting credit claim) is highest. The only restrictions are that the selected 12-month period must end during the calendar year for which the return is being filed and, of course, any expenses which were claimed on a previous return cannot be claimed again.
While only expenses which exceed the $2,379/3% threshold may be claimed, it’s also possible to aggregate expenses incurred within a family and make a single claim for those expenses on the return of one spouse. Specifically, the rules allow families to aggregate medical expenses incurred for each spouse and for all children born in 2003 or later. While medical expenses incurred by a single family member might not be enough to allow him or her to make a claim, aggregating those expenses is very likely (especially for a family that does not have private medical insurance coverage) to mean that total expenses will exceed the applicable threshold.
In determining who will make the medical tax credit claim for a family, there are two points to remember. Since total medical expenses claimable are those which exceed the 3% of net income/$2,379 threshold, whichever is less, the greatest benefit will be obtained if the spouse with the lower net income makes the claim for total family medical expenses. However, the medical expense credit is a non-refundable one, meaning that it can reduce tax otherwise payable, but cannot create (or increase) a refund. Therefore, it’s necessary that the spouse making the claim have tax payable for the year of at least as much as the credit to be obtained, in order to make full use of that credit.
Finally, there are a huge number and variety of medical expenses which individuals and families may incur, and the rules governing which can be claimed and in what circumstances, are very specific. In some cases, for instance, a doctor’s prescription will be required, while in others it will not. The very long list of medical expenses eligible for the credit, and any ancillary requirements, such as a prescription, can be found on the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
When the pandemic was declared just over a year ago, the federal government announced a wide range of benefits to help mitigate the financial stress experienced by those who lost jobs or saw their hours (and income) reduced.
When the pandemic was declared just over a year ago, the federal government announced a wide range of benefits to help mitigate the financial stress experienced by those who lost jobs or saw their hours (and income) reduced.
The most broad-based of those programs was the Canada Emergency Relief Benefit (CERB), which was received by nearly 9 million Canadians. The rollout of the program was rapid—generally speaking, recipients could obtain benefits by direct deposit within days after completing an online application questionnaire. Inevitably, the rapid rollout of CERB gave rise to some confusion, among recipients and those who were administering the program. That confusion meant that some individuals who were not actually eligible for the CERB nonetheless received benefit payments—in some cases substantial benefit payments.
A year later, such recipients are faced with the requirement that benefits which they received but to which they were not entitled must be repaid. Nonetheless, the federal government has announced that as a matter of administrative policy, relief from such repayment obligations may be provided, mainly in circumstances where erroneous information was provided to applicants.
The beneficiaries of the relief measure announced are self-employed individuals. When the CERB program was rolled out, one of the criteria for benefit eligibility was that the applicant must have had income of at least $5,000 during the previous 12 months. For most individuals determining that figure is straightforward, but for the self-employed, the calculation is more complex.
Information given to some self-employed applicants last spring was the $5,000 threshold referred to gross self-employment income, not net income. That information was incorrect, and self-employed individuals who indicated on the application form that they had at least $5,000 in income from self-employment in the previous 12 months generally received the CERB (assuming all other criteria were met). Where, however, they had less than $5,000 in net self employment income during the qualifying period, such individuals were subsequently found not to been eligible, after all, and were required to repay CERB amounts received.
In February of this year, the federal government determined that, in light of the fact that such individuals had acted in reliance on information provided by CERB program administrators, repayment should not be required. Consequently, the government announced that:
“ … self-employed individuals who applied for the Canada Emergency Response Benefit (CERB) and would have qualified based on their gross income will not be required to repay the benefit, provided they also met all other eligibility requirements. The same approach will apply whether the individual applied through the Canada Revenue Agency or Service Canada.
"This means that, self-employed individuals whose net self-employment income was less than $5,000 and who applied for the CERB will not be required to repay the CERB, as long as their gross self-employment income was at least $5,000 and they met all other eligibility criteria.”
Of course, many self-employed individuals who would be eligible for that relief had already repaid CERB amounts received, after being advised of their ineligibility. The federal government announcement (which can be found at https://www.canada.ca/en/revenue-agency/news/2021/02/government-of-canada-announces-targeted-interest-relief-on-2020-income-tax-debt-for-low--and-middle-income-canadians.html) indicates that such amounts repaid to the federal government will be returned to those individuals. No details have yet been released on how and when that will occur.
To date, the relief to be provided to qualifying self-employed CERB recipients is the only broad-based repayment forgiveness program which has been announced by the federal government. In any other circumstances, relief of any kind may be provided only on a case-by-case basis.
Those who believe that they are required to repay CERB amounts received (or have received a communication indicating that they must do so) should also be aware of the existence of CERB repayment scams, and know to recognize such a scam. Sadly, but predictably, individuals have been contacted by scammers purporting to be from the federal government who insist that repayment of CERB amounts received must be made immediately, often by unconventional means, like pre-paid credit cards. The federal government has issued a warning with respect to such scams, advising Canadians to beware of fraudulent emails, texts or calls claiming to be from the CRA about repaying the CERB or requesting personal information. The best way to avoid becoming a victim of such scams is to be knowledgeable about the ways in which the CRA does and does not communicate with taxpayers on such matters. For instance, the CRA will never demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards, or gift cards from retailers such as iTunes or Amazon, and will never threaten a taxpayer with arrest or a prison sentence. As well, the CRA never uses text messages or instant messaging such as Facebook Messenger or WhatsApp to communicate with taxpayers about tax-related issues under any circumstance. Any text or instant message purporting to be from the CRA is a scam.
More information on how to avoid falling victim to a CERB repayment scam (or any other kind of tax scam) is outlined in detail on the CRA website at https://www.canada.ca/en/revenue-agency/corporate/security/protect-yourself-against-fraud.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
While the obligation to file a tax return recurs annually, that return form is never exactly the same from year to year. Tax brackets and allowable deduction and credit amounts change each year and, more significantly, new deductions are provided for and new credits allowed or eliminated.
While the obligation to file a tax return recurs annually, that return form is never exactly the same from year to year. Tax brackets and allowable deduction and credit amounts change each year and, more significantly, new deductions are provided for and new credits allowed or eliminated.
The changes on the individual income tax return for 2020 are perhaps not as numerous or as significant as in some prior years, but there are new credits and deductions which may be claimed, and changes to some existing filing procedures. What follows is an outline of some of the more important changes affecting individual tax filers for 2020, and where those changes can be found on the T1 return form.
Home office expense deduction claims by employees — line 22900 and Form T777S
For many years, employees who work from home more than 50% of the time or who use their home as a place to hold client meetings on regular basis have been able to deduct certain expenses when calculating taxable income for the year.
Obviously, during 2020, the number of employees who work from home increased dramatically, and the Canada Revenue Agency (CRA) has made changes to the rules governing home office expense deductions to accommodate that reality.
In previous years, a home office expense deduction was calculated by totalling all eligible expenses and claiming the percentage of those expenses which corresponded to the size of the home office relative to the entire home. For example, an individual whose home work space used 15% of the total square footage of his or her home would be able to claim 15% of eligible home office expenses.
The CRA has added a new cost to the list of eligible home office deduction expenses. Effective for the 2020 and subsequent tax years, eligible employees can include reasonable monthly home internet access fees in tallying home office expenses.
While it’s still possible to calculate and claim home office expenses for 2020 using the detailed method outlined above, the CRA has also made available a simpler method for those who don’t wish to do all of the required calculations involved in the detailed method. Using the CRA’s “quick method”, taxpayers who are eligible to claim home office expenses can simply claim $2 per day, for a maximum of 200 days. The total allowable claim using the quick method is, therefore, a deduction of $400.
Home office expenses are claimed on line 22900 of the return, and taxpayers making this claim must also complete Form T777S.
For anyone who claims home office expenses for 2020, regardless of the method used, there are rules with respect to who is eligible to make such a claim, what expenses can be claimed and what documentation is required to support those claims. Those rules, together with information on how to calculate the claim under various scenarios, are set out on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/work-space-home-expenses/work-space-use.html.
Non-refundable digital news subscription tax credit — line 31350
It’s common knowledge that the field of publishing, especially the publication of news, is in a state of flux, as traditional print media adapts to the online dissemination of such news. In recognition of this reality, the federal government will be providing (for the years 2020 to 2024) a digital news subscription tax credit.
For 2020, individual taxpayers can claim up to $500 for amounts paid for qualifying subscription expenses. Generally, such qualifying expenses are those paid to Canadian print journalism organizations (i.e., not broadcast media) for a digital news subscription to content that is primarily original news.
While the maximum amount which can be claimed for such a subscription is $500 per year, that amount can be split between taxpayers, as long as the total claim does not exceed $500.
The digital news subscription tax credit is claimed on line 31350 of the 2020 tax return.
Refundable training tax credit — line 45350
Canadian taxpayers aged between 26 and 66 years of age may be able to claim a refundable tax credit for eligible tuition and other fees paid in 2020 in relation to occupational, trade, or professional training.
To qualify for the credit, such tuition fees must generally have been paid to a Canadian university or college, or to a certified Canadian institution offering occupational training. Individuals wishing to claim the credit must also have been resident in Canada throughout 2020 and must meet certain income requirements and limitations for 2020.
Each of those requirements is outlined in more detail on the CRA website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-training-credit/who-can-apply.html.
Providing the NETFILE access code
The vast majority of Canadian taxpayers file their returns electronically, using NETFILE or E-FILE. At one time it was necessary, in order to NETFILE, to obtain an access code from the CRA in order to file electronically. That’s no longer the case, as the CRA now uses a taxpayer’s date of birth and social insurance number to satisfy their online filing security requirements.
This year, however, taxpayers who are using NETFILE have the option of including an access code as part of the return filed, for a different purpose. Some background is required to understand that purpose.
Taxpayers frequently contact the CRA (often through the individual’s income tax enquiries line at 1-800-959-8281) with questions about their particular tax situation. CRA representatives must, of course, confirm the identify of the person they are speaking to, in order to establish that that person is entitled to the information sought. To do so, the caller is required to answer questions beginning with their name, social insurance number, and date of birth, followed by questions which are specific to the information provided in their tax returns filed for previous years.
This year, taxpayers who include their particular access code in their return filings will be able to use information from the 2020 return as identifying information in any future contacts with the CRA, while those who choose not to provide the access code will not. (Note that such taxpayers should still be able to fulfill information security requirements by providing information filed in returns from other tax years.)
The access code which taxpayers can choose to include with the 2020 return filed was provided by the CRA on the taxpayer’s 2019 Notice of Assessment. That eight-digit alpha-numeric code can be found on page 1 of that Notice of Assessment, in the top right-hand corner.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Each year, the Canada Revenue Agency (CRA) publishes a statistical summary of the tax filing patterns of Canadians during the previous filing season. Those statistics for the 2020 filing season show that the vast majority of Canadian individual income tax returns — nearly 90%, or almost 28 million returns were filed online, using one or the other of the CRA’s web-based filing methods, or by telephone. The remaining 10% of returns were paper-filed.
Each year, the Canada Revenue Agency (CRA) publishes a statistical summary of the tax filing patterns of Canadians during the previous filing season. Those statistics for the 2020 filing season show that the vast majority of Canadian individual income tax returns — nearly 90%, or almost 28 million returns were filed online, using one or the other of the CRA’s web-based filing methods, or by telephone. The remaining 10% of returns were paper-filed.
Clearly, electronic filing is the overwhelming choice of Canadian taxpayers, and those who choose electronic filing this year have two choices — NETFILE and E-FILE. The first of those, NETFILE (used last year by just under 33% of tax filers), involves preparing one’s return using software approved by the CRA and filing that return on the Agency’s website, using the NETFILE service. The second method, E-FILE, involves having a third party file one’s return online. Almost always, the E-FILE service provider also prepares the return which they are filing. And, it seems that most Canadians want to have little to do with the preparation of their own returns, as last year 57% of all the individual income tax returns filed came in by E-FILE.
The majority of Canadians who would rather have someone else deal with the intricacies of the Canadian tax system on their behalf can find information about E-FILE on the CRA website at http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/fl-nd/menu-eng.html. That site will also provide a listing (searchable by postal code) of authorized E-FILE service providers across Canada, and that listing can be found at https://apps.cra-arc.gc.ca/ebci/efes/epcs/prot/ntr.action.
Those who are able and willing to prepare their own tax returns and file online can use the CRA’s NETFILE service (which is available as of February 22, 2021), and information on that service can be found at http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/netfile-impotnet/menu-eng.html. While there are some kinds of returns which cannot be NETFILED (for instance, a return for a non-resident of Canada, or for someone who declared bankruptcy in 2019 or 2020), the vast majority of Canadians who wish to do so will be able to NETFILE their return.
At one time, it was necessary to obtain and provide an access code in order to NETFILE. While such a code is no longer a requirement, the CRA has provided tax filers with a taxpayer-specific code which can be included with the return for 2020. That 8-digit alpha-numeric code is found (in very small type) in the top right-hand corner of the first page of the 2019 Notice of Assessment, just under the Date Issued line for that Notice of Assessment. Including the code with your return is not mandatory; however, the taxpayer will be able to use information from the 2020 return when confirming their identity with the CRA only if the code was provided on that return.
A return can be filed using NETFILE only where it is prepared using tax return preparation software which has been approved by the CRA. While such software can be found for sale just about everywhere at this time of year, approved software which can be used free of charge, or for a nominal charge, is also available. A listing of free and commercial software approved for use in preparing individual returns for 2020 can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview/certified-software-netfile-program.html.
Copies of the 2020 tax return and guide package can also be ordered online, at https://apps.cra-arc.gc.ca/ebci/cjcf/fpos-scfp/pub/rdr?searchKey=ncp%20, to be sent to the taxpayer by regular mail. Taxpayers can also download and print hard copy of the return and guide from the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package.html. In previous years, the CRA made some tax packages available in hard copy at Service Canada offices and post offices across the country. This year, however, there is no reference on the CRA website to such a distribution. Finally, the CRA will send, by regular mail, hard copy of the 2020 tax return and guide package to anyone who paper-filed a return for 2019 before November 30, 2020.
A minority of taxpayers will have the option of filing their returns using a touch-tone telephone. That option, called File my Return service will be available to eligible low-income Canadians whose returns are relatively simple and whose tax situation remains relatively unchanged from year to year. For such taxpayers, it is important to file, even if there is no income to report, so that they receive the benefits and credits to which they are entitled. The telephone filing option is, however, available only to taxpayers who are advised by the CRA of their eligibility for the File my Return service, and those individuals will have been notified by letter during the month of February.
Finally, taxpayers who are not comfortable preparing their own returns, but for whom the cost of engaging a third party to do so is a financial hardship, have another option. During tax filing season, there are a number of Community Volunteer Tax Preparation Clinics where taxpayers can have their returns prepared free of charge by volunteers. This year, most such clinics have had to change their usual in-person operation and adopt alternate methods. Volunteers can prepare an individual’s return, for free, by videoconference, by phone, or through document drop-off. A listing of the available clinics (which is updated regularly throughout the filing season) and their method of operation this tax season can be found on the CRA website at https://www.canada.ca/en/revenue-agency/campaigns/free-tax-help.html.
While there are a number of filing options available to Canadian taxpayers, there’s no element of choice when it comes to the filing and payment deadlines for 2020 tax returns. All individual Canadians must pay the balance of any taxes owed for 2020 on or before Friday April 30, 2021 — no exceptions and, absent very unusual circumstances, no extensions.
For the majority of Canadians, the tax return for 2020 must also be filed on or before Friday April 30, 2021. Self-employed taxpayers and their spouses have until Tuesday June 15, 2021 to file their returns for 2020 (but they too must pay any balance of 2020 taxes owing on or before Friday April 30, 2021).
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Income tax is a big-ticket item for most retired Canadians. Especially for those who are happily free of the requirement to make mortgage payments, the annual tax bill may be the single biggest annual expenditure they are required to make. Fortunately, the Canadian tax system provides a number of tax deductions and credits available only to those over the age of 65 (like the age credit) or only to those receiving the kinds of income usually received by retirees (like the pension income credit), in order to help minimize that tax burden. And, in most cases, the availability of those credits is flagged, either on the income tax form which must be completed each spring or on the accompanying income tax guide.
Income tax is a big-ticket item for most retired Canadians. Especially for those who are happily free of the requirement to make mortgage payments, the annual tax bill may be the single biggest annual expenditure they are required to make. Fortunately, the Canadian tax system provides a number of tax deductions and credits available only to those over the age of 65 (like the age credit) or only to those receiving the kinds of income usually received by retirees (like the pension income credit), in order to help minimize that tax burden. And, in most cases, the availability of those credits is flagged, either on the income tax form which must be completed each spring or on the accompanying income tax guide.
There is, however, another income tax saving strategy which is not nearly as well-known. Even more unfortunate is the fact that the benefits of that strategy (and the ease with which it can be accomplished) aren’t readily apparent from either the tax return form or the annual income tax guide. That tax saving strategy is pension income splitting, and it’s likely the case that many taxpayers who could benefit aren’t familiar with the strategy, especially if they are not receiving professional tax planning or tax return preparation advice.
That’s a particularly unfortunate reality because pension income splitting has the potential to generate more tax savings among taxpayers over the age of 65 (and certainly those over the age of 71, for whom RRSP contributions are no longer possible) than just about any other tax planning strategy available to retirees. In addition, it’s one of the very few tax planning strategies which require no expenditure of funds on the part of the taxpayer and which can be implemented after the end of the tax year, at the time the return for that tax year is prepared and filed.
When described in those terms, pension income splitting can sound like one of those “too good to be true” tax scams, but that’s not the case. Essentially, what pension income splitting offers is a government-sanctioned opportunity for Canadian residents who are married (and, usually, where recipient spouse is aged 65 or older) to make a notional reallocation of private pension income between them on their annual tax returns, and to benefit from a lower overall family tax bill as a result.
Pension income splitting, like all forms of income splitting, works because Canada has what is called a “progressive” tax system, in which the applicable tax rate goes up as income rises. For 2020, the federal tax rate applied to about the first $48,000 of taxable income is 15%, while the federal rate applied to the next $49,000 of such income is 20.5%. So, an individual who has $97,000 in taxable income would pay federal tax of about $17,320; however, if that $97,000 was divided equally between said individual and his or her spouse, each would have $48,500 in taxable income and the total federal family tax bill would be $14,550 — a federal tax savings of almost $2,800.
The general rule with respect to pension income splitting is that a taxpayer who receives private pension income during the year is entitled to allocate up to half that income (without any dollar limit) to his or her spouse for tax purposes. In this context, private pension income means a pension received from a former employer and, where the income recipient is age 65 or older, payments from an annuity, a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF). Government source pensions, like the Canada Pension Plan or Old Age Security payments, do not qualify for pension income splitting, regardless of the age of the recipient.
The mechanics of pension income splitting are relatively simple. There is no need to transfer funds between spouses or to make any change in the actual payment or receipt of qualifying pension amounts, and no need to notify a pension administrator. Taxpayers who wish to split eligible pension income received by either of them must each file Form T1032, Joint Election to Split Pension Income for 2020, with their annual tax return. That form, which is not included in the annual tax return package, can be found on the Canada Revenue Agency (CRA) website at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1032.html, or can be ordered by calling 1-800-959 8281.
On the T1032, the taxpayer receiving the private pension income and the spouse with whom that income is to be split must make a joint election to be filed with their respective tax returns for 2020. Since the splitting of pension income affects the income and therefore the tax liability of both spouses, the election must be made and the form filed by both spouses — an election filed by only one spouse or the other won’t suffice. In addition to filing the T1032, the spouse who is actual recipient of the pension income to be split must deduct from income the pension income amount allocated to his or her spouse. That deduction is taken on Line 21000 of his or her 2020 return. And, conversely, the spouse to whom the pension income amount is being allocated is required to add that amount to his or her income on the return, this time on Line 11600. Essentially, to benefit from pension income splitting, all that’s needed is for each spouse to file a single form with the CRA and to make a single entry on his or her 2020 tax return.
By the end of February or early March, taxpayers will have received (or downloaded) the information slips which summarize the income received from various sources during 2020. At that time, couples who might benefit from this strategy can review those information slips and calculate the extent to which they can make a dent in their overall tax bill for the year through a little judicious income splitting.
Those wishing to obtain more information on pension income splitting than is available in the 2020 General Income Tax and Benefit Guide should refer to the CRA website at http://www.cra-arc.gc.ca/pensionsplitting/, where more detailed information is available.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Over the past month, millions of Canadians have received what was probably an unexpected (and unwelcome) communication from the Canada Revenue Agency (CRA), in the form of a T4A slip. That T4A slip lists the amount of pandemic benefits which were received by the individual in 2020 and represents, more significantly, the amount which must be reported on that individual’s income tax return for 2020 — and on which tax must be paid.
Over the past month, millions of Canadians have received what was probably an unexpected (and unwelcome) communication from the Canada Revenue Agency (CRA), in the form of a T4A slip. That T4A slip lists the amount of pandemic benefits which were received by the individual in 2020 and represents, more significantly, the amount which must be reported on that individual’s income tax return for 2020 — and on which tax must be paid.
When a public health emergency was declared in March of 2020, the focus for both the federal government and benefit recipients was getting benefits into the hands of eligible recipients as quickly as possible, to help mitigate the sudden financial crisis faced by so many. No income tax was deducted from the first round of benefit payments made, and it’s likely that not many recipients were focused on the fact that tax would eventually have to be paid on the amounts received.
However, tax filing time is now upon us, and the general rule is that all benefits received during 2020 under any of the following federal programs must be reported as taxable income on the return for 2020, and tax paid on that income:
- Canada Emergency Response Benefit (CERB)
- Canada Emergency Student Benefit (CESB)
- Canada Recovery Benefit (CRB)
- Canada Recovery Caregiving Benefit (CRCB)
- Canada Recovery Sickness Benefit (CRSB)
The first program — the Canada Emergency Response Benefit — was utilized by nearly one quarter of the Canadian population, as nearly 9 million Canadians applied for partial or full CERB benefits. CERB was payable at a flat rate of $500 per week for a maximum of 28 weeks between March and September of 2020, meaning that the maximum benefit which could be received by one individual during 2020 was $14,000.
The Canada Emergency Student Benefit paid $1,250 every four weeks, for a maximum of 16 weeks, to post-secondary students who were unable to find summer or post-graduation employment due to the pandemic. The total amount payable to any one individual under the CESB program was generally $5,000, although higher amounts were paid to students who were disabled or who had dependants.
No income tax was deducted from any payments made under the CERB or CESB programs.
The last three programs — the Canada Recovery Benefit (CRB), the Canada Recovery Caregiving Benefit (CRCB) and the Canada Recovery Sickness Benefit (CRSB) — replaced the CERB and CESB benefit programs, starting in September 2020. The benefit payable under each of those programs is $500 per week, but the amount of time for which that benefit is paid varies by program. Under the CRB, which is an income replacement program, the $500 per week benefit can be paid for up to 26 weeks. Benefits can be paid for a similar time period to those who must stay home for at least 50% of the week because they must care for a child under the age of 12 or other family member because schools, daycares, or care facilities are closed due to the pandemic, or because the child or family member is sick and/or required to quarantine, or is at high risk of serious health implications. Since these benefits became available starting on September 27, 2020, the maximum benefit which could have been paid to an individual in 2020 under either program was $7,000.
The final benefit — the CRSB — is available to individuals who are ill or who are required to quarantine, but only for a two-week period, meaning that the maximum CRSB benefit payable is $1,000.
The tax treatment of CRB, CRCB, and CRSB benefits paid out does differ slightly from CERB or the CSRB, in that the federal government deducted 10% withholding tax from CRB, CRCB, and CRSB benefits paid.
Whatever the source or amount of pandemic benefit received, the tax consequences are the same. All such benefits must be reported on line 13000 of the income tax return for 2020, and included in taxable income for that year. On that line of the tax return, there is a space provided in which the kind of benefit received should be specified.
The amount of tax payable on those benefit amounts will depend on the province of residence of the recipient and the amount of other income he or she received during 2020. As a basic rule of thumb, the federal tax on benefit amounts received will be at least 15%, while provincial tax payable can range from 4% (for residents of Nunavut) to 15% (for residents of Quebec). Where the total 2020 income of benefit recipients exceeds approximately $45,000, those tax rates will be higher.
Of course, the pandemic and the resulting financial stresses and losses have not yet ended. Many Canadians are still in a precarious financial position and it’s entirely possible that paying tax on benefits received during 2020 will be difficult for such taxpayers. Where paying such tax poses a real financial hardship, there are alternatives. The CRA is willing to enter into a payment arrangement with Canadians to pay their taxes over a period of time (generally through monthly instalments) where, owing to financial hardship, those taxes can’t be paid in full as required on April 30, 2021. In addition, the federal government has announced that interest relief on late tax payments will be provided to individuals who received pandemic benefits during 2020 and have income for that year of less than $75,000.
More information on the taxation of pandemic benefits, and the relief which may be available to those who can’t pay their 2020 taxes on time and in full can be found on the CRA website at https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Two quarterly newsletters have been added—one dealing with personal issues, and one dealing with corporate issues.
Two quarterly newsletters have been added—one dealing with personal issues, and one dealing with corporate issues.
They can be accessed below.
Corporate:
Personal:
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.