Introduction: Appeals to assessments under section 160 of the Income Tax Act Helen Schonberger v. HMK was an appeal to the Tax Court of Canada (“Tax Court”) heard jointly with the appeal of Tommy Schonberger. The two appeals were made in respect of the Notice of Assessments from the...
What is a Land Transfer Tax? A land transfer tax is a tax imposed on the buyer of a property during the purchase process. It is typically calculated based on the property’s purchase price and must be settled before ownership can be transferred. In Ontario, the rate of this...
Introduction – The Canada Child Benefit (“CCB”) Where it applies, subsection 122.61(1) of the Income Tax Act entitles an “eligible individual” to the Canada Child Benefit (“CCB”). The CCB is defined as an overpayment to ensure it remains a tax-free payment to the recipient. Many provinces in Canada (including...
The CRA reversed $246 million in COVID benefit debts after taxpayers challenged their decisions The Canadian government has had to annul debts totalling over $246 million for numerous citizens initially deemed ineligible for pandemic benefits. Since 2022, the Canada Revenue Agency (CRA) has been reclaiming funds from individuals who allegedly...
Introduction: Dealing with Tax Residence When Claiming a Deduction for a Dependant Several provisions of Canada’s Income Tax Act (the “Tax Act”) allow individuals to claim medical expenses as a deduction. This includes subsection 118.2 of the Tax Act, which allows a taxpayer to claim medical expenses for a...
Introduction: Statute-Barred Taxation Years Canada’s Income Tax Act generally bars the Canada Revenue Agency from reassessing a taxpayer’s taxable income or tax payable after the expiry of the “normal reassessment period.” For most taxpayers, the normal reassessment period expires three years from the date that the CRA issued the...
Entering the housing market is not easy these days and this is true in many communities across Canada. Prices are high, competition is stiff and market conditions seem to shift quickly. A lot of Canadian Taxpayers wonder how they can break into the market, and how they can stretch...
What is an alter ego trust An alter ego trust is an inter-vivos trust, which means it’s created during your lifetime, established after 1999. To qualify as an inter-vivos trust, you (the settlor) must be a Canadian resident aged 65 or older and the sole beneficiary of all income...
Introduction – The Canadian Foreign Tax Credit System An individual who is a Canadian tax resident is liable to pay Canadian income tax on worldwide income. This could result in double taxation where that Canadian taxpayer is also subject to income tax in another jurisdiction on any part of...
What is a retiring allowance? A retiring allowance is a payment made by an employer to an employee when their employment is terminated. This payment is typically based on the employee’s length of service and their position within the organization. While the terms “retiring allowance” and “severance package” are...