March 13, 2023 by John F. Oakey
The 2023 federal budget is just around the corner. What new tax measures can we expect to see from Finance Minister Chrystia Freeland? Without a crystal ball, we are left with educated guesses, informed speculation and, in some cases, open questions. Here, we take a look at what the budget may hold and break down some possible outcomes.
March 21, 2022 by John F. Oakey
It’s time to get out the Magic 8-ball, shake it feverishly, stare into the depths of the swirling black mist and ask the question:
“Will the capital gains inclusion rate increase in the 2022 federal budget?”
Before the Magic 8-ball provides us with its mystical answer, let’s review what information we do have to see if we can predict the outcome on our own.
March 12, 2018 by John F. Oakey
If you listened closely on budget day, you could hear a sigh of relief across Canada after the federal government announced new rules on passive investment income. Largely considered a fair improvement from previous iterations of the rules, many tax practitioners welcomed the changes. However, not all were pleased. And some were far from relieved.
February 16, 2017 by Bill Camden
Some taxpayers utilize corporate groups, which have been structured to multiply their access to the small business deduction (SBD). The SBD allows a company to pay a lower tax rate on the first $500,000 of income each year. Access to the SBD is sometimes limited as it must be shared by associated corporations and corporate partners. To avoid having to share the SBD, some businesses that naturally work in groups, have structured their affairs in a way that allows more than one $500,000 small business deduction. In reaction to this multiplication strategy, the government introduced legislation in the 2016 federal budget to end the effectiveness of such structures and, in effect, increase tax rates for companies in such groups.
For multinationals with branches in both Canada and the United States, there’s one big tax challenge that’s impossible to ignore: U.S. tax rates are generally higher than Canadian tax rates. Companies wrestling with this issue are always looking for ways to reduce U.S. income and maximize Canadian income (within the existing rules), lowering their overall tax burden. Some strategies include financing, transfer pricing, inter-company charges, and reducing tax liability through tax planning. To make the most of these options, it’s important to take the following steps.
Expanding your company’s operations into a different province or even country can be a significant step in your growth trajectory, but the process itself can be overwhelming.
August 16, 2016 by Mike Hayward
If you are a Canadian planning to work abroad, you need to find out whether your residency will change, because if it does, it may affect your Canadian tax burden. Will you remain a Canadian resident during the period of your assignment or will you break Canadian residency? When you cease to be a Canadian resident, you normally aren’t subject to Canadian tax anymore. However, if you remain a Canadian resident during your assignment, you still have to file a Canadian tax return and will be subject to taxation on your worldwide income.
March 18, 2016 by Scott Dupuis
Those of us in financial services in Canada are holding our breath for March 22, when Trudeau’s Liberal government is set to unveil the 2016 federal budget.
The budget comes on the heels of two major tax bracket changes already in motion and amid buzz of the deficit potentially ranging in the tens of billions.