Introduction: Canada Focuses On Economic Immigrants Immigrants account for approximately a third of all business owners in Canada. This may not be a surprising fact since the most recent Canadian census noted that almost 1 in 4 people in Canada are or have been a landed immigrant or permanent...
A guarantor becomes the creditor when a guarantee payment is made According to the Federal Court decision in Abrametz v. The Queen, when a taxpayer makes a payment under a guarantee for a corporation’s indebtedness, it is generally regarded that the taxpayer has acquired the rights of the creditor...
Introduction: Rectification & Its Tax Consequences Rectification is an equitable remedy. It allows parties to correct drafting errors that would otherwise render a legal instrument incompatible with the agreement that the instrument was meant to document. In these cases, the contracting parties may ask a court to rectify the...
Background: What is an NFT? A non-fungible token (NFT) is a unique digital asset that is built on top of the blockchain system. It is non-fungible in the sense that it is unique in nature: there is only one unique, original NFT. Cryptocurrencies (such as Bitcoin or Ethereum) or...
Background on Directors Liability for Taxes: The Tax Court of Canada has recently decided a case regarding director’s liability for unremitted GST/HST. Generally, a director of a corporation can be held personally liable to CRA for various corporate liabilities such as unremitted GST and HST, as well as unremitted...
Introduction: The Starting Point of the Taxation of Employment Income Every person resident in Canada must pay income tax on the taxable income for each taxation year. Section 3 of the Canadian Tax Act sets out five main sources of income: office, employment, business, property, and capital gains/losses. In...
Overview – Emigrating from Canada with Stock Options Most forms of remuneration for employment are taxed as income in the year they are received by that employee. For example, income from a salary is included in the year that the salary is paid. Employee stock options are an important...
Introduction: Why do private corporations receive Refundable Dividends? Canada’s Income Tax Act was originally drafted with three main principles in mind: equity, simplicity, and fairness. In essence, the overall goal of the Income Tax Act is to remove incentives or disincentives for structuring one’s affairs in a particular manner...
Introduction – Corporate Tax Arrangements of ViacomCBS ViacomCBS is a multinational media corporation that owns the rights to multiple blockbuster franchises including Teenage Mutant Ninja Turtles, SpongeBob and Transformers. According to the New York Times, ViacomCBS is under scrutiny for allegations that the media conglomerate has been going to...
Introduction – Employee Stock Options Certain corporations offer stock options to their employees as a form of compensation. Employee stock options give employees the right to purchase shares of their corporate employer for a fixed price during a set time period. If the value of the shares exceeds the...