Understanding the Departure Tax: A Guide for Canadians Leaving the Country Moving out of Canada is not always as simple as packing your bags and settling in a new country. For many individuals, it can lead to unexpected tax consequences—most notably, the departure tax. The departure tax arises from...
Canada Strengthens Mandatory Disclosure Rules: What You Need to Know On June 22, 2023, the Income Tax Act was amended to enhance Canada’s mandatory disclosure rules, which are contained in Sections 237.3 to 237.5. These enhanced rules are designed to provide the Canada Revenue Agency (CRA) with earlier and...
Notice of Appeal filed after deadline In June 2025, the Tax Court of Canada (TCC) handed down the decision in Schwarz v. HMK, 2025 TCC 86, dismissing the taxpayer’s request for an extension of time to file an appeal in respect of his 2008 to 2014 taxation years. A...
In Canadian tax law, members of a syndicate are generally treated the same when it comes to the tax consequences of their collective activities. The Income Tax Act does not define or explain the treatment of syndicate members. Rather, tax case law has dealt with this issue. The tax...
CRA’s view vs. statutory language: Interpreting not-for-profit qualification The Canada Revenue Agency (CRA) explains that for an entity to qualify as a non-profit organization under Section 149 (l) of the Income Tax Act (ITA), it must be organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or...
What is the NRST? The Non-Resident Speculation Tax (NRST) was introduced to address concerns about non-resident investors purchasing Ontario homes primarily for speculative purposes. Initially implemented in 2017 as a 15% levy on transactions within the Greater Golden Horseshoe Region, the NRST has since been expanded province-wide at a...
Introduction – When are food expenses deductible? The Income Tax Act and case law allow for various deductions for employees and businesses. Many of these deductions relate to costs incurred to produce income. Generally, the Income Tax Act does not permit deductions for expenses that are personal in nature...
The General Rule Under Section 150.1(2.1) of the Income Tax Act and What is a ‘prescribed corporation’? Section 150.1(2.1) of the Income Tax Act (the “Tax Act”) mandates prescribed corporations file electronic tax returns. A “prescribed corporation” is defined under s.205.1(2) of the Income Tax Regulations (the “Regulations”). Prior...
Introduction: The Residence of a Trust – Central Management and Control Test Trusts are a common and effective tax planning tool for the distribution of income amongst different recipients. A trust, which originally arose under the laws of equity, is defined as a relationship where one person, the trustee,...
Income Tax Folio S3-F1-C2, Deemed Interest Benefit on Shareholder Loans and Debts, replaces and cancels Interpretation Bulletin IT-421R2 In April 2025, the Canada Revenue Agency (CRA) issued the Income Tax Folio S3-F1-C2, Deemed Interest Benefit on Shareholder Loans and Debts, which can be relied upon as the accurate summary...