<p>In the recent decision <em>Gervais v. R.</em>, the Tax Court of Canada denied a taxpayer&rsquo;s attempt to multiply the capital gains exemption with his spouse.</p> <p>Mr. Gervais owned shares, worth approximately $2,000,000, of a family owned business. In contemplation of a sale, Mr. Gervais carried out a series of transactions seeking to use his own capital gains exemption <em>and</em> his spouse&rsquo;s capital gains exemption. His strategy involved three steps:</p>

<p>A well thought out formal plan for transferring the ownership of a family farm sets out how you will do it on your terms.&nbsp; However, what happens in the case of premature death or a severe disability that incapacitates you and you are no longer capable of making decisions?</p>

<p>When it comes to administering a deceased&rsquo;s estate, it&rsquo;s common and sometimes necessary for a friend or relative to be appointed the executor, but not many are aware of the proper steps to take for tax filing obligations. Read on to learn the essential requirements that need to be met.</p>

<p>When a farm is sold as a going concern, it is fairly common for the family home to be situated on the same parcel of land and also form part of the sale transaction.&nbsp; An important consideration in these circumstances involves the allocation of proceeds between the farming assets and principal residence of the taxpayer.&nbsp; Absent this determination, the gain ultimately attributed to the residence may be subject to income tax or at the least utilize a portion of any available capital gains exemption (capped at $800,000 / individual) should the property be &ldquo;qualified farm property.&rdquo;</p>

<p>Canadian-controlled private corporations earning business income can enjoy significant tax advantages.</p> <p><strong>Small business deduction</strong></p> <p>The small business deduction is the most significant advantage. The federal tax rate on the first $500,000 of business net income is reduced to 11 per cent from a general rate of 15 per cent. In addition, all provinces assess a general business tax rate ranging from 10 to 16 per cent, depending on the province. Each province also provides a significant rate reduction on the first $500,000 of business income (with the exception of Manitoba and Nova Scotia, which have lower thresholds).</p>

<p>Effective December 1, 2014, FedDev Ontario will re-open the&nbsp;SMART program, a grant benefitting small businesses in the manufacturing sector.&nbsp;The SMART program&nbsp;will fund up to 35 per cent of eligible costs to a maximum contribution of $100,000 for advancements focused on improving productivity through the adaption or adoption of new or upgraded advanced technologies, materials or processes.</p>

<p>In December 2014, the Canada Revenue Agency (CRA) issued a letter to a sample of taxpayers to remind them of the criteria for filing a T1135-Foreign Income Verification Statement and to review their income tax filings to ensure they have been properly reporting the relevant assets and income.</p>

<span class="post-content">This technical bulletin covers the various developments from October to December 2014. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada</span><br /> <p></p> <strong></strong>

PART TWO: <span class="post-content">This technical bulletin covers the various developments from October to December 2014. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada</span>

While the majority of Canadians will not notice any impact as a result of the Affordable Health Care Act, commonly known as Obamacare, a select few may need to comply with its rules. Read on to determine if and how Obamacare affects you.

The Ontario government announced this fall that the Ontario Interactive Digital Media Tax Credit (OIDMTC) program is under review as the program has seen a rapid increase in the number of claims in recent years, with a 40 percent annual growth rate in support claims processed.