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...
Introduction: Mr. Cassidy’s Request for Taxpayer Relief Taxpayers may, under subsection 220(3.1) of the Income Tax Act (“Tax Act”), request relief for penalties and interest in what is referred to as a taxpayer relief application (formerly known as fairness application). Granting this application is at the Canada Revenue Agency’s...
Introduction: Statute-Barred Tax Years & Statute-Barred Tax Audits Canada’s Income Tax Act sets out a “normal reassessment period,” after which the Canada Revenue Agency generally cannot reassess a person’s taxable income or tax payable. For most individual taxpayers, the normal reassessment period expires three years from the date that...
Introduction – CERB and CRB claims before the Federal Court The Canada Revenue Agency (“CRA”) has been assessing, and often denying, Canada Emergency Response Benefit (“CERB”) and Canada Revenue Benefit (“CRB”) claims. Recourse for those individual taxpayers denied CERB and CRB is to request a second review from the...
Introduction – Tax Exemptions for Charities To promote philanthropic ventures, the Canadian income tax regime offers generous tax benefits for people and organizations engaging in charitable activities. First, under the Canadian Income Tax Act, an organization that maintains registered charity status is tax-exempt on any income it receives. An...
Introduction: The Access to Information Act And The Privacy Act An Access to Information and Privacy (ATIP) request, also referred to as Access to Information and Personal Information request, allows a Canadian taxpayer to exercise his or her right to access records of government institutions, including personal information held...
The Canada Revenue Agency (CRA) has revealed that $458 million in funds distributed to employers through a pandemic-era wage subsidy program have either been denied or adjusted. This decision is a consequence of an ongoing tax auditing process that is not yet complete. The CRA published a report on...
Introduction: First Home Savings Account (FHSA) Purchasing a home is a significant milestone in one’s life, often requiring substantial financial planning and saving. With increasing housing prices and stagnant housing supplies in Canada, in August 2022, the Canadian federal government in Budget 2022 proposed the tax-free First Home Savings...