Appropriate Tax Treatment for a Specific Income Tax Provision: Who Determines? The provisions of the Income Tax Act can pose significant challenges for those unfamiliar with legislative language. Moreover, the Tax Act does not provide practical guidelines on its application, complicating matters for taxpayers seeking to understand its relevance...
Introduction Recent changes to the Alternative Minimum Tax (AMT) in Canada could have significant implications in various tax planning areas. Understanding how these changes affect your tax situation is crucial for minimizing your tax liability. What is the Alternative Minimum Tax (AMT)? For each taxation year, individual taxpayers must...
Introduction Business owners are often tempted to dip into the corporation’s pockets to pay for personal expenses. A temptation which seems like a relatively insignificant transgression but in reality, is a decision that can create dire tax consequences. A corporation paying amounts for a purpose other than earning income...
What is the reversionary trust rule? A trust is a relationship where a person, called the settlor, provides cash or other property in trust for the benefit of others, known as the beneficiaries. Although a trust is not a legal entity for most purposes, it is considered a “person”...
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...
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...