Businesses that carry on commercial activities and are registered for GST/HST
|
|
- Mildred Lewis
- 8 years ago
- Views:
Transcription
1 ISSUE THE TAX FACTOR DO YOU HAVE ALL THE DOCUMENTS REQUIRED TO SUPPORT YOUR RECOVERY OF GST/HST AND QST? CONTENTS Do you have all the documents required to support your recovery of GST/HST and QST? Q&A: Answering your tax questions, Principal residence exemption Businesses that carry on commercial activities and are registered for GST/HST and QST are entitled to recover GST/HST and QST paid on their expenses. The recovery of this type of tax is referred to as an Input Tax Credit (ITC) in the case of GST/HST and an Input Tax Refund (ITR) in the case of QST. There are specific documentary requirements that must be met in order to be entitled to recover the sales taxes paid and some businesses may not be aware of these requirements. More often than not, ITCs and ITRs are disallowed because businesses have not met the documentary requirements outlined by the federal and Québec governments. This article will review these requirements and provide guidance for you to ensure that your business is in a position to recover ITCs and ITRs. What does documentary evidence include? Legislation provides that before a registrant can claim an ITC or ITR, the registrant must first obtain the proper documentary evidence to support a claim. As well, before filing the return for the reporting period in which the ITC or ITR is to be claimed, the registrant is required to obtain sufficient evidence as detailed under the Input Tax Credit Information (GST/HST) Regulations and the equivalent Québec regulations. You should note that supporting documentation includes, but is not limited to: an invoice; a receipt; a credit card receipt; a debit note; a book or ledger of account; a written contract or agreement; any record contained in a computerized or electronic retrieval or data storage system; and any other document validly issued or signed by a registrant in respect of a supply made by the registrant on which the sales tax is paid or payable.
2 2 In addition to the supporting documentation regulations, there is a requirement that certain information be provided. Keep in mind that the details of the required information depend on the dollar value of the expense in question. Having said that, there is no requirement that the information needed to support an ITC or ITR claim be contained in a single document. The following table helps summarize the required information that should be detailed on supporting documentation. Summary of required information detailed on supporting documentation Amount under $30 Amount is $30 or more and less than $150 Amount is $150 or more Name of vendor Date of invoice (where one is issued) Date tax was payable (where no invoice is issued) The total amount paid for the supply The GST/HST and QST registration number (if applicable) of the vendor The amount of the tax or a statement that the tax is included in the price n/a For QST only: The purchaser s name n/a n/a The terms of payment n/a n/a A description of each supply sufficient to identify it For QST only: For QST only: Some additional matters to consider with respect to documentary evidence What needs to be included on an invoice? When preparing your GST/HST and QST refund claim, it is important to remember that an invoice includes a statement of account, a bill, a cash register slip or receipt and any other similar record regardless of its form. Having noted that, where a vendor uses a billing agent to make a supply on its behalf, it is acceptable for the billing agent s name and registration number to be used on the invoice in place of the actual vendor s name and registration number. In cases where a vendor uses a registered trade name in its business and on its invoices, it is acceptable for the invoice to provide only the trade name and registration number. Keep in mind, however, that trade names should be registered with the applicable government registry in order to satisfy the documentary requirements. Contact your BDO advisor if you receive such an invoice. For invoices with amounts equal to or in excess of $150, it is extremely important that the purchaser s name be on the supporting documentation. If, for example, an invoice is made out to Company A but it in fact relates to the activities of Company B, Company B cannot claim the ITC or ITR. In this case, the invoice would have to be cancelled and re-issued to Company B. Alternatively, Company A (the purchaser who is legally liable to pay for the invoice) can claim the ITC or ITR and then re-invoice Company B for the supply adding GST/HST and QST as applicable. In this example, Company A would have to
3 3 include all the documentary evidence to enable Company B to reclaim the taxes. What if the invoice includes false information? It is important to note that where a vendor has supplied a false or incorrect GST/HST or QST registration number, the purchaser is not permitted to claim an ITC or ITR. What if there are multiple claimants for a single supply? Bear in mind that where there are multiple claimants for a single supply, each entity must be identified on the supporting documentation. In this case, each of the purchasers would only be entitled to claim an ITC or ITR in respect of the proportionate amount of tax paid to the extent it is used in their business. The proportionate amount would typically be laid out in an agreement between the sharing parties. What if an agent is invoiced for a supply? It is fairly common for an agent or representative to be invoiced for a supply that belongs to the beneficial owner or principal. In these circumstances, it is the beneficial owner or principal that has the right to claim the ITC or ITR. However, in order to support the claim, it is strongly recommended to have a written agency agreement or representative clause within a contract confirming this type of relationship. Are there special rules where a credit card is used to pay an invoice? Credit card expenses are regularly the subject of an audit of ITCs and ITRs. Very often businesses do not have the credit card slips or an actual invoice or bill. The rules are quite strict on credit card expenses as the Canada Revenue Agency maintains that a credit card statement does NOT constitute acceptable documentary evidence. This means that whether a registered business uses a simplified factor approach to calculate the ITC or the actual tax paid, the credit card statement must be supported by another document. In addition, where a credit card slip is issued in conjunction with another slip or invoice, both components must be obtained in order to claim the ITC or ITR. Only in cases where only the credit card slip is issued (such as supplies in the hospitality industry or by gasoline service stations) will the credit card slip itself be considered acceptable documentary evidence. What does this all mean? The claiming of ITCs and ITRs is an integral component of a value added tax system. In order to recover these sales taxes, one must obtain and keep on file the acceptable documentary evidence. Where the sales tax becomes embedded in the cost of goods sold or services rendered, the economics of such a system break down. Even though the GST/HST and QST regimes have been around for over 20 years, the government authorities are taking a very hard line approach. If your business does not have the appropriate documents on hand, and does not provide all of the required information, ITCs and ITRs may be disallowed. To ensure that your business is ready when the auditor comes knocking, it is always a good idea to review your internal policies regarding the claiming of ITCs and ITRs with your BDO advisor.
4 THE TAX FACTOR 4 Q&A: ANSWERING YOUR TAX QUESTIONS Principal residence exemption Ken and Ivy purchased their home in rural British Columbia three decades ago just before starting a family together. At the time they purchased their home, zoning laws applicable to the area prevented them from acquiring property that was less than 2.75 hectares. Given Ken and Ivy s dream of raising their children in the country, this constraint did not present a problem and they purchased a house on 2.75 hectares of property. As Ken and Ivy approach retirement, they are contemplating selling their home and property. They plan to purchase a condominium unit in the city to be closer to their adult children and their families. Ken and Ivy are confident that their property has appreciated in value. They are hoping that the capital gain arising from the disposition will not be subject to income tax because of the principal residence exemption. Ken and Ivy s question Ken and Ivy have asked us, their trusted BDO advisors, Will the gain from the sale of our home and rural property be subject to income tax? BDO s answer The principal residence exemption In simple terms, the principal residence exemption (PRE) is a special exemption that will reduce or eliminate the capital gain realized upon the disposition of a property which constitutes a principal residence, thereby reducing income tax. In this regard, a principal residence is generally any residential property (such as a house) owned by an individual and occupied by that individual or their spouse or common-law partner, or former spouse or common-law partner, or child at any time in the year. Note that the individual may own the property jointly with another person. Of interest to Ken and Ivy, a principal residence includes up to ½ hectare (approx. 1.2 acres) of land surrounding a house, to the extent that the land contributes to the use and enjoyment of the principal residence. In cases where the surrounding land exceeds ½ hectare, the entire capital gain may also be exempt from income tax by using the PRE if the taxpayer can establish that the excess land is necessary for the use and enjoyment of the house. It is worth noting that the Canada Revenue Agency (CRA) maintains that to be considered part of the principal residence, the excess land must clearly be necessary for the housing unit to properly fulfill its function as a residence and not simply be desirable. Furthermore, they state that factors such as a minimum lot size or a severance or subdivision restriction may be relevant in determining whether land in excess of ½ hectare is necessary for the use and enjoyment of a house. This means that Ken and Ivy must establish that the excess land of 2.25 hectares (2.75 hectares less ½ hectare) is necessary for the use and enjoyment of their house in order for the excess land to be considered to be part of their principal residence. Case law for Ken and Ivy to consider Ken and Ivy should note that there have been numerous cases that focus on the issue of whether excess land surrounding a house qualifies for the PRE. In one such case, Carlile v. the Queen (95 DTC 5483, FCA), the federal court heard from a taxpayer who sold a acre parcel of land. The taxpayer, in this case, used only 3 acres personally while the balance of the property was rented to a farmer. The land in question was zoned for agricultural use and by-laws required a minimum lot size for both farming and residential use. In this case, the federal court held that because it was difficult for the taxpayer to obtain consent to have the land in question subdivided, the entire property qualified for the PRE.
5 5 In a more recent case, Wayne Cassidy v. the Queen (2011 FCA 271), the federal court considered whether a taxpayer that sold his home with 2.43 hectares of land was eligible for the PRE. In this case, the CRA had denied the PRE on the property that exceeded ½ hectare since, just prior to the sale, the land was rezoned allowing it to be subdivided. When the property was acquired, the taxpayer could not have purchased less than 2.43 hectares of land because of zoning laws. In reaching their decision, the federal court maintained that eligibility for the PRE is to be determined annually and the rezoning of the taxpayer s property just before a sale did not affect the taxpayer s eligibility for previous years. What does this mean for Ken and Ivy? It is important for Ken and Ivy to determine whether or not the zoning laws have changed since they purchased their house located on 2.75 hectares of property. To the extent that the zoning laws have changed during their ownership and the property can be subdivided, the determination of whether the excess land will be considered part of their principal residence will be made on a year-by-year basis. To the extent that zoning laws have not changed during their ownership, based on the case law noted above, the entire 2.75 hectares of property should be considered part of their principal residence throughout the time that they have owned the house and property. Additional matters to consider Ken and Ivy must remember that they are only able to designate their home as their principal residence for each year that they, or their minor children, ordinarily inhabited the property. As well, if Ken and Ivy own(ed) more than one residence for years after 1981, they can only designate one residence for a given year as their principal residence. For more details on the PRE and these rules, read our article Tax implications of owning personal real estate: Selling a home in the issue of the Tax Factor. Note that the discussion above assumes that Ken and Ivy did not use the excess land in a farming business. There are special rules that apply when a farm property that includes a house is sold. Contact your BDO advisor if you are selling a farm property that includes a house. Summary The decision to sell a home often comes following careful consideration based on a number of factors. With a solid understanding of the tax consequence of selling their home, this decision may be a little easier for Ken and Ivy. If you are selling a property and are uncertain if you can claim the PRE, contact your BDO advisor. The information in this publication is current as of October 1, This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
TAX GUIDE FOR PROCUREMENT CARDS IN CANADA
TAX REPORTING TAX GUIDE FOR PROCUREMENT CARDS IN CANADA Simple tips on claiming input tax credits from procurement card transactions. VISA CANADA COMMERCIAL CARDS TAX REPORTING TIPS Canada s GST/HST Background
More informationmanagement fee documentation
Issue 2010-02 www.bdo.ca the tax factor e-communications from the cra READ MORE p4 management fee documentation READ MORE p6 relief on US FBAR requirements READ MORE p8 Changes to the Tax Deferral on Publicly
More informationGST/HST and Real Property Transactions. Wayne Mandel
GST/HST and Real Property Transactions Wayne Mandel 1 Disclaimer This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should
More informationIn today s fast-paced world, business owners often find themselves spending a lot
ISSUE 2013-09 WWW.BDO.CA THE TAX FACTOR STEERING THE OWNER-MANAGER THROUGH CAR OWNERSHIP DECISIONS In today s fast-paced world, business owners often find themselves spending a lot of time in their cars.
More informationTAX PLANNING FOR CANADIAN FARMERS
April 2014 CONTENTS Annual tax planning issues Income tax deferral Incorporating your farming business Long-term planning issues Taxation of capital gains Maximizing your capital gains exemption claims
More informationProperty Transfer Tax Issues: Tips and Traps for the Unwary
RESIDENTIAL REAL ESTATE CONFERENCE 2010 PAPER 3.1 Property Transfer Tax Issues: Tips and Traps for the Unwary These materials were prepared by Randall E. Cobbett, and Michael S. Rathborne, Articled Student,
More informationPersonal Home and Vacation Properties -Using the Principal Residence Exemption
Personal Home and Vacation Properties -Using the Principal Residence Exemption Introduction Your family s home is generally known to be exempt from capital gains taxation, but what about the family cottage
More informationINCORPORATING YOUR BUSINESS
November 2014 CONTENTS Advantages of incorporation Advantages of an SBC Summary INCORPORATING YOUR BUSINESS If you carry on a business, there are many tax planning opportunities which become available
More informationAUTOMOBILE EXPENSES & RECORDKEEPING
February 2015 CONTENTS Who should keep records? Expenses to track Deductible expenses Keeping a kilometre log Business vs. personal Other motor vehicles The standby charge GST/HST and QST considerations
More informationTAX NEWSLETTER. February 2012
TAX NEWSLETTER February 2012 RECORDING YOUR BUSINESS AUTOMOBILE EXPENSES PRESCRIBED AUTOMOBILE AMOUNTS FOR 2012 EMPLOYEE LOANS CRA SIMPLIFIED RATES FOR MOVING EXPENSES INCURRED IN 2011 CRA PUTS END TO
More informationthe tax factor Don t Let Your Summer Getaway Become a Tax Trap: Tax Saving Strategies for Contents Buying with selling in mind
Issue 2013-06 www.bdo.ca the tax factor Don t Let Your Summer Getaway Become a Tax Trap: Tax Saving Strategies for Cottage Owners The official start of summer is just days away and for many Canadians this
More informationTaxation Capital Gains and Losses
Taxation Capital Gains and Losses July, 2015 Introduction This Information Update defines the general terms of capital gains and losses in the context of Canada s income tax legislation and how this can
More informationU.S. ESTATE TAX ISSUES FOR CANADIANS
February 2015 CONTENTS How the U.S. estate tax applies U.S. estate tax history U.S. estate tax rates and exemptions Planning ideas Summary U.S. ESTATE TAX ISSUES FOR CANADIANS Death and taxes two sure
More informationSelling the farm and the capital gain exemption
Selling the farm and the capital gain exemption RBC Royal Bank Selling the farm and the capital gain exemption 2 The following article was written by RBC Wealth Management Services The 2011 Census of Agriculture
More informationOhio Tax. Workshop KK. Canadian Commodity Tax Update for U.S.-Based Companies. Wednesday, January 29, 2014 2:00 p.m. to 3:00 p.m.
Ohio Tax Workshop KK Canadian Commodity Tax Update for U.S.-Based Companies Wednesday, January 29, 2014 2:00 p.m. to 3:00 p.m. Biographical Information Darryl Rankin, Director, Commodity Tax, DuCharme,
More informationHST Issues of Interest: Taxation of Sales of Vacant Land. Carl Irvine November 18, 2014
HST Issues of Interest: Taxation of Sales of Vacant Land Carl Irvine November 18, 2014 Introduction HST Treatment of Sales of Real Property Overview of the Vacant Land Exemption Conditions for the availability
More informationYour U.S. vacation property could be quite taxing by Jamie Golombek
June 2015 Your U.S. vacation property could be quite taxing by Jamie Golombek It seems everywhere we look, Canadians are snapping up U.S. vacation properties. Though your vacation property may be located
More informationU.S. TAX ISSUES FOR CANADIANS
March 2015 CONTENTS Snowbirds Canadians owning U.S. rental properties Summary U.S. TAX ISSUES FOR CANADIANS If you own rental property in the United States or spend extended periods of time there, you
More informationCANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1
CANADIAN CORPORATE TAXATION A General Guide January 31, 2011 TABLE OF CONTENTS PART A PAGE INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 POTENTIAL DISADVANTAGES OF INCORPORATION
More informationTax Consequences for Canadians Doing Business in the U.S.
April 2012 CONTENTS U.S. basis of taxation The benefits of the Canada-U.S. tax treaty U.S. filing requirements U.S. taxpayer identification U.S. withholding Tax U.S. state taxation Other considerations
More informationIncorporating your farm. Is it right for you?
Incorporating your farm Is it right for you? RBC Royal Bank Incorporating your farm 2 The following article was written by RBC Wealth Management Services If you have considered incorporating your farm,
More informationTAX PLANNING FOR THE SALE OF YOUR BUSINESS
TAX PLANNING FOR THE SALE OF YOUR BUSINESS REFERENCE GUIDE If you own a corporation that carries on an active business, you may be in a position at some point to consider the sale of your business. This
More informationReal Property. mccarthy.ca Doing Business in Canada 2013
51 Land Registration Systems Each Canadian province has its own systems for registering interests in real property, as property legislation is constitutionally a provincial responsibility in Canada. In
More informationConquering Internal Company Challenges in Handling Canadian Taxes and Other VAT
Conquering Internal Company Challenges in Handling Canadian Taxes and Other VAT DuCharme, McMillen & Associates Canada, Ltd. Darryl Rankin, CPA, CGA, Director, Commodity Tax WestRock Company Panel Members:
More informationSpin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009
Spin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009 On March 12, 2009, Time Warner Inc. ( Time Warner ) completed the spin-off (the Spin-Off ) of Time Warner s ownership interest
More informationSTAFF REPORT. March 31, 2004. Administration Committee. Chief Financial Officer and Treasurer. Overpayment of Property Taxes.
STAFF REPORT March 31, 2004 To: From: Subject: Administration Committee Chief Financial Officer and Treasurer Overpayment of Property Taxes Purpose: This report provides information and statistical data
More informationROYAL MALAYSIAN CUSTOMS GOODS AND SERVICES TAX GUIDE ON VALUERS, APPRAISERS AND ESTATE AGENTS
ROYAL MALAYSIAN CUSTOMS GOODS AND SERVICES TAX GUIDE ON VALUERS, APPRAISERS AND ESTATE AGENTS CONTENTS INTRODUCTION... 1 Overview of Goods and Services Tax (GST)... 1 GST AND VALUERS, APPRAISERS AND ESTATE
More informationPSAB AT A GLANCE Section PS 1201 Financial Statement Presentation
PSAB AT A GLANCE Section PS 1201 Financial Statement Presentation November 2015 Section PS 1201 - Financial Statement Presentation GENERAL REPORTING PRINCIPLES Effective Date This Section applies in the
More informationIFRS 11 AND REAL ESTATE AND CONSTRUCTION JOINT ARRANGEMENTS
IFRS 11 AND REAL ESTATE AND CONSTRUCTION JOINT ARRANGEMENTS In May 2011, the International Accounting Standard Board (IASB) issued IFRS 11 Joint Arrangements 1, which supersedes IAS 31 Interests in Joint
More informationMinistry Of Finance VAT Department. VAT Guidance for Land and Property Version 4: November 1, 2015
Ministry Of Finance VAT Department VAT Guidance for Land and Property Version 4: November 1, 2015 Introduction This guide is intended to provide businesses supplying land and property within The Bahamas
More informationCHAPTER 57-34 TELECOMMUNICATIONS CARRIERS TAXATION
CHAPTER 57-34 TELECOMMUNICATIONS CARRIERS TAXATION 57-34-01. Definitions. The definitions in this section may not be construed to subject a telecommunications carrier or telecommunications service to the
More informationThe Tax Implications of Corporate-Owned Life Insurance
The Tax Implications of Corporate-Owned Life Insurance When insurance is being acquired, a key consideration is whether it should be owned personally or through a corporation. Tax and other implications
More information[LOGO] ROGERS COMMUNICATIONS INC. DIVIDEND REINVESTMENT PLAN. November 1, 2010
[LOGO] ROGERS COMMUNICATIONS INC. DIVIDEND REINVESTMENT PLAN November 1, 2010 Rogers Communications Inc. Dividend Reinvestment Plan Table of Contents SUMMARY... 3 DEFINITIONS... 4 ELIGIBILITY... 6 ENROLLMENT...
More informationCertain capitalized terms in this Premium Dividend and Dividend Reinvestment Plan have the meaning assigned to them under "Definitions" below.
Premium Dividend and Dividend Reinvestment Plan Certain capitalized terms in this Premium Dividend and Dividend Reinvestment Plan have the meaning assigned to them under "Definitions" below. Important
More informationGST/HST Tips and Traps
GST/HST Tips and Traps February 11, 2014 Presented by: Katherine Xilinas kxilinas@millerthomson.com Stephen Rukavina srukavina@millerthomson.com Overview 1. Introduction 2. Real Property 3. Asset Purchases
More informationCAPITAL GAINS AND TRANSFERS OF FISHING PROPERTY: 2006 FEDERAL BUDGET PROPOSALS
CAPITAL GAINS AND TRANSFERS OF FISHING PROPERTY: 2006 FEDERAL BUDGET PROPOSALS Under the Income Tax Act of Canada, if a commercial fish harvester sells his or her fishing property for more than its tax
More informationInformational Guideline Release
Massachusetts Department of Revenue Division of Local Services Navjeet K. Bal, Commissioner Robert G. Nunes, Deputy Commissioner & Director of Municipal Affairs Informational Guideline Release Bureau of
More informationInformation on: Deferred Payment Scheme
Information on: Deferred Payment Scheme From 1 April 2015 Introduction From April 2015 the way care and support is provided is changing for the better. The Care Act 2014 is a recent piece of legislation
More informationUnicorn Investment Funds. Open-Ended Investment Company. Supplementary Information Document
Unicorn Investment Funds Open-Ended Investment Company Supplementary Information Document This document is dated 29 June 2015 Issued by Unicorn Asset Management Limited (Unicorn) Unicorn is authorised
More informationQUESTIONS AND ANSWERS ON MEDICAID FOR NURSING HOME RESIDENTS. 1. What is Medicaid? COLUMBIA LEGAL SERVICES OCTOBER 2015
QUESTIONS AND ANSWERS ON MEDICAID FOR NURSING HOME RESIDENTS COLUMBIA LEGAL SERVICES OCTOBER 2015 THIS PAMPHLET IS ACCURATE AS OF ITS DATE OF REVISION. THE RULES CHANGE FREQUENTLY. 1. What is Medicaid?
More informationHow To Avoid Probate Tax In Australia
Joint accounts TAX & ESTATE BULLETIN The convenience of holding assets jointly has led to the increasing use of joint accounts as a means of transferring wealth between spouses or to successive generations
More information- 1 - E-COMMERCE AND SALES TAX: SQUARE PEG IN A ROUND HOLE. In its broadest sense, electronic commerce or e-commerce involves the selling, buying,
- 1 - E-COMMERCE AND SALES TAX: SQUARE PEG IN A ROUND HOLE In its broadest sense, electronic commerce or e-commerce involves the selling, buying, marketing or distributing of property and services via
More informationDeferred Payments Scheme Guidance Notes for residents, relatives and carers
Royal Borough of Windsor and Maidenhead Deferred Payments Scheme Guidance Notes for residents, relatives and carers What you need to know June 2015 Windsor, Ascot and Maidenhead What is the Deferred Payments
More informationIN THE MATTER OF THE HOMEOWNER PROTECTION ACT, S.B.C. 1998, C.31. AND IN THE MATTER OF an appeal to the BRITISH COLUMBIA SAFETY STANDARDS APPEAL BOARD
Indexed as: BCSSAB 10 (1) 2013 Date Issued: February 19, 2014 Appeal No. SSAB 10-2013 IN THE MATTER OF THE HOMEOWNER PROTECTION ACT, S.B.C. 1998, C.31 AND IN THE MATTER OF an appeal to the BRITISH COLUMBIA
More informationTHE OFFERING MEMORANDUM UNDER ONTARIO SECURITIES LAW By: Daniel A. Coderre Soloway Wright LLP
THE OFFERING MEMORANDUM UNDER ONTARIO SECURITIES LAW By: Daniel A. Coderre Soloway Wright LLP Many companies raise capital by offering shares in their capital stock for sale at one time or another. When
More informationEMPLOYEE STOCK OPTIONS
TAX LETTER May 2015 EMPLOYEE STOCK OPTIONS FOREIGN EXCHANGE GAINS AND LOSSES CAREGIVER AND INFIRM DEPENDENT CREDITS MAKING TAX INSTALMENTS EARNED INCOME FOR RRSP PURPOSES AROUND THE COURTS EMPLOYEE STOCK
More informationGI-005 July 2010. Sale of a Residence by a Builder Who is an Individual
GST/HST Info Sheet GI-005 July 2010 Sale of a Residence by a Builder Who is an Individual This Info Sheet replaces the version dated September 2004. This info sheet explains the application of the GST/HST
More informationCRA requires that all offshore assets in excess of $100,000 CDN be declared by the taxpayer. Please inform us if this situation applies to you.
T1 Personal Income Tax Checklist THE MINIMUM FEE FOR A BASIC PERSONAL TAX RETURN FOR A FAMILY WILL BE $325. THE MINIMUM FEE FOR A PERSONAL TAX RETURN FOR A FAMILY, INCLUDING SELF-EMPLOYMENT INCOME, RENTAL
More informationUnderstanding Trusts
March 2013 CONTENTS What is a trust? Types of trusts Inter-vivos trusts Testamentary trusts The 21-year rule Managing your trust Conclusion Understanding Trusts Family trusts have received quite a bit
More informationInformation for people in residential care with property
Information for people in residential care with property If you are assessed as eligible for permanent residential care and you have a property and your other capital is valued at less than 23,250 the
More informationNewcomer Finances Toolkit. Income Tax. Worksheets
Newcomer Finances Toolkit Income Tax Worksheets Ottawa Community Loan Fund Fonds d emprunt Communautaire d Ottawa 22 O Meara St., Causeway Work Centre, Ottawa, ON K1Y 4N6 Tel: 613-594-3535 Fax: 613-594-8118
More information2014 Year-End Tax Planning Tips for Seniors, Employees, Families and Students
2014 Year-End Tax Planning Tips for Seniors, Employees, Families and Students While the end of 2014 is approaching, there is still an opportunity for individuals to review their financial situation with
More informationThe New Harmonized Sales Tax for New Home Builders
The New Harmonized Sales Tax for New Home Builders The province of Ontario announced in its March 2009 Budget that it would harmonize the retail sales tax (the Ontario RST) with the federal Goods and Sales
More informationThe Lifetime Capital Gains Exemption
The Lifetime Capital Gains Exemption Introduction This Tax Topic briefly reviews the rules contained in section 110.6 of the Income Tax Act (the "Act") concerning the lifetime capital gains exemption and
More informationNon Resident Importers (NRI)
Non Resident Importers (NRI) A Non-Resident Importer (NRI) is a company who in most cases does not have a physical presence in Canada, yet for purposes of customs and GST, acts as the importer of record
More informationIf You Are Considering Administering a Deceased Estate
If You Are Considering Administering a Deceased Estate Dunning Place 3123_If You Are Considering.indd 1 3/26/09 11:53:23 AM 3123_If You Are Considering.indd 2 3/26/09 11:53:23 AM If You Are Considering
More informationQuestions and Answers about Medicaid for Those Receiving Long-Term Care in Idaho
Questions and Answers about Medicaid for Those Receiving Long-Term Care in Idaho Question 1: What is Medicaid? Answer: Medicaid is a government program that pays for medical services, including long-term
More informationTaxation of Farmers 1
Taxation of Farmers 1 INCOME TAX Basics A farmer needs to prepare farm accounts every year. These accounts must show all the income that was earned during the year (from cattle sales, subsidies etc) and
More informationONTARIO HST: WHAT IT MEANS FOR LANDLORDS AND TENANTS OF COMMERCIAL REAL PROPERTIES
MAY 2010 ONTARIO HST: WHAT IT MEANS FOR LANDLORDS AND TENANTS OF COMMERCIAL REAL PROPERTIES COMMERCIAL REAL ESTATE LAW ALERT On December 9, 2009, Ontario legislators approved the sales tax reform proposed
More informationQUESTIONS AND ANSWERS ON THE COPES PROGRAM
QUESTIONS AND ANSWERS ON THE COPES PROGRAM COLUMBIA LEGAL SERVICES OCTOBER 2015 THIS PAMPHLET IS ACCURATE AS OF ITS DATE OF REVISION. THE RULES CHANGE FREQUENTLY. 1. What is COPES? COPES is a Home and
More informationDEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 14 (REVISED) PROPERTY TAX
Inland Revenue Department Hong Kong DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 14 (REVISED) PROPERTY TAX These notes are issued for the information of taxpayers and their tax representatives. They
More informationdeduction, as well as any additional relief provided for in any applicable tax treaty between Canada and the other country.
TAX NEWSLETTER Special Release: August 2008 REAL OPPORTUNITY: CANADIANS & U.S. REAL ESTATE The weak U.S. economy, the recent subprime mortgage crisis and the strength of the Canadian dollar relative to
More informationThe Deferred Payments Scheme. An information leaflet for home owners, paying for residential or nursing home care
The Deferred Payments Scheme An information leaflet for home owners, paying for residential or nursing home care What is the Deferred Payment Scheme? The deferred payment scheme is designed to help if
More informationINCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS
INCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS Evelyn R. Schusheim, B.A., LL.B., LL.M. 2010 Tax Law for Lawyers Canadian Bar Association The Queen s Landing Inn Niagara-on-the-Lake, Ontario OVERVIEW
More informationNORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM
NORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM Introduction This Stock Dividend Program (the "Program") provides eligible holders ("Shareholders") of common shares ("Common Shares") of Northern
More informationTHE TAX-FREE SAVINGS ACCOUNT
THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income
More informationA Landlord s Guide to Housing Benefit
A Landlord s Guide to Housing Benefit October 2009 A landlord s guide to Housing Benefit; Table of Contents Introduction...3 Standards Of Service...3 Processing Housing Benefit Claims...3 Changes in circumstances...3
More informationReturn to PST Questions and Answers
Return to PST Questions and Answers Is there a transitional period introduced in the Provincial Sales Tax Act ( PSTA )? When the Harmonized Sales Tax ( HST ) replaced the Goods and Services Tax ( GST )
More informationCommon-law (including same-sex) partners taxation information
Tax & Estate Common-law (including same-sex) partners taxation information Under the Income Tax Act (Canada), all common-law relationships, either opposite- or same-sex, are treated equally. For tax purposes,
More informationCommercial Real Estate Investment: Opportunities for Income Generation in Today s Environment
Commercial Real Estate Investment: Opportunities for Income Generation in Today s Environment Prepared by Keith H. Reep, CCIM Real Estate Investment Consultant In this white paper 1 Advantages of investing
More informationQuestion 2: Deloitte s Response:
Harmonized Sale Tax (HST) Frequently Asked Questions These questions are a follow up to the webinar presentation provided by Deloitte & Touche LLP on July 22, 2010. The purpose is to provide additional
More informationCross Border Tax Issues
Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information
More informationArizona Form 2002 Property Tax Refund (Credit) Claim 140PTC
Arizona Form 2002 Property Tax Refund (Credit) Claim 140PTC NOTICE: If you are age 70 or over and meet certain tests, you may be able to defer the payment of your property taxes on your home. You should
More informationDESCRIPTION OF THE PLAN
DESCRIPTION OF THE PLAN PURPOSE 1. What is the purpose of the Plan? The purpose of the Plan is to provide eligible record owners of common stock of the Company with a simple and convenient means of investing
More informationTable of Contents Section Page #
HOMESTEAD STANDARD DEDUCTION AND OTHER DEDUCTIONS Frequently Asked Questions (FAQs) Revised January 5, 2011 For additional information regarding deductions, please visit http://www.in.gov/dlgf/2344.htm.
More informationTransferring wealth Effective strategies for the typical Canadian
Transferring wealth Effective strategies for the typical Canadian KEEPING IT IN THE FAMILY You ve worked a lifetime to accumulate assets. In fact, the average Canadian family has amassed total personal
More informationAre Your Tax-Free Inter-Corporate Dividends in Jeopardy?
Are Your Tax-Free Inter-Corporate Dividends in Jeopardy? May 27, 2015 No. 2015-23 Canadian corporations that receive dividends from other Canadian corporations may be adversely affected by a recently expanded
More informationNon-Title Tax Enforcement by Saskatchewan Municipalities
Non-Title Tax Enforcement by Saskatchewan Municipalities (Revised October, 2006) by M. Kim Anderson; revised by Reché J. McKeague The following is intended for general information only, regarding some
More informationMinimizing taxes on death
TAX, RETIREMENT & ESTATE PLANNING SERVICES WEALTH TRANSFER STRATEGY 9 Minimizing taxes on death Nobody likes to think about their death and who wants to pay more tax than they have to? But, with a little
More information20. Income Tax Consequences at Death
20. Income Tax Consequences at Death When you die, your income tax situation changes: your estate becomes a separate taxpayer and your tax situation is more complicated. However, the situation also presents
More informationArizona Form 2013 Property Tax Refund (Credit) Claim 140PTC
Arizona Form 2013 Property Tax Refund (Credit) Claim 140PTC NOTICE: If you are age 70 or over and meet certain tests, you may be able to defer the payment of your property taxes on your home. You should
More informationINCORPORATING YOUR FARM BUSINESS
February 2016 CONTENTS Advantages of incorporation Advantages of an SBC and an FFC Other considerations Summary INCORPORATING YOUR FARM BUSINESS If you carry on a farm business, and have significant income,
More informationPLANNING FOR A DISABLED BENEFICIARY
PLANNING FOR A DISABLED BENEFICIARY REFERENCE GUIDE This Reference Guide is intended to provide information and guidance for those whose estate planning objectives include providing for an individual who
More informationNEW ERA IN ESTATE PLANNING
NEW ERA IN ESTATE PLANNING Changes to the Taxation of Estates, Testamentary Trusts and Life Interest Trusts Barbara L. Novek Sweibel Novek S.E.N.C.R.L. L.L.P. June 11, 2015 Introduction New rules effective
More informationEach Corporate Card is governed by the terms and conditions set out in this Agreement.
NATIONAL BANK OF CANADA MASTERCARD TM CORPORATE CARD AUTHORIZED CARDHOLDER TERMS AND CONDITIONS Each Corporate Card is governed by the terms and conditions set out in this Agreement. Your first use of
More informationPROCEDURES FOR THE TRANSMISSION AND TRANSFER OF ASSETS
0.0.1 PROCEDURES FOR THE TRANSMISSION AND TRANSFER OF ASSETS This article summarizes the legislation, procedures, and documents required to transmit various assets of the deceased into the name of the
More informationHow To Get Rid Of Gst
GST/HST AND PST ISSUES ASSOCIATED WITH BUYING AND SELLING A BUSINESS Seminar Materials Presented at the Canadian Bar Association's 2010 Tax Law for Lawyers Conference Niagara-on-the-Lake, Ontario May 30,
More informationExplanatory Notes Relating to the Income Tax Act and Related Legislation
Explanatory Notes Relating to the Income Tax Act and Related Legislation Published by The Honourable Joe Oliver, P.C., M.P. Minister of Finance April 2015 Preface These explanatory notes describe proposed
More informationTax Rates. For personal income tax purposes, for tax years beginning after 2014, the tax rates are as follows:
October 2014 District of Columbia Reduced Tax Rates, Single Sales Factor, Other Changes Adopted Permanent District of Columbia budget legislation makes numerous significant changes to the corporation franchise
More informationASPE AT A GLANCE Section 3870 Stock-based Compensation and Other Stock-based Payments
ASPE AT A GLANCE Section 3870 Stock-based Compensation and Other Stock-based Payments February 2013 Section 3870 Stock-based Compensation and Other Stock-based Payments SCOPE Effective Date Fiscal years
More informationContents. Deposit Account Contract Part 2
Deposit Account Contract Part 2 1-800-750-0959 www.fivecounty.com Contents CONTRACT TERMS AND DISCLOSURES 1 1. This is a Contract between You and Your Credit Union 1 2. Organization of Your & Our Contract
More informationMaking the Most of Your Charitable Gifts for 2015
Making the Most of Your Charitable Gifts for 2015 January 30, 2015 No. 2015-07 Canada s tax incentives for charitable donations are designed to make it easier for you to support your favourite charities.
More information2015 FEDERAL BUDGET SUMMARY
2015 FEDERAL BUDGET SUMMARY April 21, 2015 TABLE OF CONTENTS Table of contents Introduction Personal Income Tax Measures Business Income Tax Measures Charities International Tax Notice to Users 2 2015
More informationHow To Transfer Money From Joint To Joint Ownership
The convenience of holding assets jointly has led to the increasing use of joint accounts as a means to transfer wealth between spouses or common-law partners, or to successive generations with little
More informationGuide for Canadian Small Businesses
Guide for Canadian Small Businesses RC4070(E) Rev. 08 T he success of small businesses is an essential part of Canada s economic growth. At the Canada Revenue Agency (CRA), our goal is to provide all the
More informationP R E F E R E N T I A L S L O A N S A N D I N T E R E S T S U B S I D I E S
P R E F E R E N T I A L S L O A N S A N D I N T E R E S T S U B S I D I E S It is current practice for employers to grant preferential loans or interest subsidies to their employees. The interest savings
More informationThe Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan
The Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan Offering Circular Effective November 6, 2013 The description contained in this Offering Circular of the Canadian and U.S. income tax
More informationTHE PENSION PLAN FOR PROFESSIONAL STAFF OF THE UNIVERSITY OF GUELPH. For the Year Ended September 30, 2005
THE PENSION PLAN FOR PROFESSIONAL STAFF OF THE UNIVERSITY OF GUELPH December 9, 2005 PricewaterhouseCoopers LLP Chartered Accountants 55 King Street West, Suite 900 Kitchener, Ontario Canada N2G 4W1 Telephone
More information