<p>We continue to see Canada Revenue Agency (CRA) auditors aggressively challenge GST/HST registrants with the documentary requirements under subsection 169(4) of the <em>Excise Tax Act</em> (ETA).</p>

<p><span class="post-content">This technical bulletin covers the various developments from July to September 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></p>

PART 2:&nbsp;This technical bulletin covers the various developments from July to September 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.

<p>Even though Canada does not have an inheritance tax, a significant and unexpected tax liability can be left behind by a farmer at death without proper planning and preparation.</p>

<p>From time to time, many Canadians find themselves considering a permanent move to the United States. Whether it is a business executive seizing an extraordinary career opportunity or a retired entrepreneur simply in search of warmer climates, it is important to understand the tax implications that may result.</p>

<p>U.S. persons looking to catch up on required U.S. income tax filings may now be able to take advantage of an updated set of &ldquo;taxpayer friendly&rdquo; rules introduced in June 2014: the Streamlined Filing Compliance Procedures (Streamlined Program), and the Offshore Voluntary Disclosure Program (OVDP). These programs are integral parts of the ongoing Internal Revenue Service initiative to encourage U.S. taxpayers, particularly those located outside the U.S., to become compliant.</p>

<p>Despite the objections of The Canadian Bar Association (CBA), the Chartered Professional Accountants of Canada (CPAC) and the Society of Trust and Estate Practitioners (STEP), the 2014 Federal Budget introduced legislation to eliminate the graduated rate of taxation for testamentary trusts.</p>

A government-sponsored program, the Registered Disability Savings Plan (RDSP) assists eligible Canadians in building long-term savings. Contributions to an RDSP qualify for matching government grants and bonds. With an RDSP, beneficiaries can realize a return on investment of up to 300 per cent.

<p>A life interest in real estate provides an exclusive right to use a property during the lifetime of the holder of the interest. Often, an individual will incorporate a life interest on a transfer of a property by way of gift to a relative in order to ensure that the individual has use of the property during their lifetime, to know for certain who will own the property when they die, and to avoid probate fees upon death.</p>

<p>Provinces have legislation that allows for the creation of not-for-profit entities to collect fees from owners of certain real property to pay expenses for the upkeep and maintenance of the property. These entities are often known as condominium corporations. The issue then arises as to whether or not GST/HST applies to the fees being charged.</p>

<p>There comes a time eventually when every farm will need be sold. Often, farms are sold by the owner&rsquo;s choice, upon retirement or to transfer to the next generation. In other cases the sale is forced, as in the case of death, disability or financial difficulty. Whether the sale is made to the neighbour down the road or to the farmer&rsquo;s children, perhaps at less than fair market value, planning is necessary to ensure the sale takes place in a tax-efficient manner. A farm owner has several options.</p>