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In its 2024-25 budget, the federal government announced changes to the taxation of capital gains, with those changes scheduled to take effect as of June 25, 2024. The changes included an increase (fro...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for the online filing of individual income tax returns for the 2024 tax year will be available beginning Monday February 24, 2025...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency has issued the T1 income tax return package to be used in the filing of individual income tax returns for the 2024 tax year. The entire T1 package includes the T1 Individual...
The latest release of Statistics Canada’s Consumer Price Index (CPI) shows that there was a slight decrease in the rate of inflation for the month of December 2024. That rate stood at 1.8%, as compa...
During the 2025 tax year, the federal government will levy individual income tax using the following income brackets and tax rates.Tax Rate Taxable Income Brackets15.0% ...
The most recent release of Statistics Canada’s Labour Force Survey shows a decline in the overall unemployment rate for the month of December. That rate dropped by 0.1%, from 6.8% to 6.7%. Significa...
Finance Canada has released the automobile deduction limits and expense benefit rates which will be in effect during the 2025 taxation year. The following changes to limits and rates are in effect as...
Canadian employers are required to deduct amounts for federal and provincial income tax, Canada Pension Plan contributions, and Employment Insurance premiums from amounts paid to employees throughout ...
Finance Canada has announced that the deadline for making charitable donations to be claimed on individual income tax returns for the 2024 tax year has been extended to February 28, 2025. Usually, cha...
Benefits payable under the federal Old Age Security program are indexed to inflation on a quarterly basis, with inflationary increases in benefit amounts calculated using a prescribed indexing formula...
Canadian individual tax filers will be able to use the Canada Revenue Agency’s online NETFILE service to file income tax returns for the 2017 through 2023 taxation years until Friday January 31, 202...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2025, as well as the rates that will apply for the purpo...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation declined to 1.9% for the month of November 2024, as compared to the 2.0% inflation rate r...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate stood at 6.8% for the month of November. That rate represents an increase of 0.3% from Oct...
In its regularly scheduled interest rate announcement, the Bank of Canada indicated that the policy interest rate would be reduced by one-half percentage point. The Bank Rate has therefore declined fr...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Benefits received under the Canada Pension Plan are indexed annually to increases in the Consumer Price Index. Based on that indexing formula, CPP benefits payable will increase by 2.6%, effective as ...
The federal government has announced that eligible Canadians will receive a $250 Working Canadians Rebate to help them meet recent increases in the cost of living. The non-taxable rebate payment will ...
The federal government recently announced that a temporary tax holiday would be provided from the imposition of the GST/HST. The two-month holiday will run from December 14, 2024, to February 15, 2025...
The most recent release of Statistics Canada’s Consumer Price Index shows an increase in the overall rate of inflation for the month of October 2024. During October, the overall inflation rate stood...
Federal personal income tax brackets and tax credit amounts are indexed, with such indexing based on year-over-year changes in the overall Consumer Price Index. The Canada Revenue Agency (CRA) recentl...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Labour Force Survey shows no change in the overall unemployment rate for the month of October. That rate stood at 6.5%, the same rate recorded for the ...
Canadians who earn income from the online economy are required to report all such income earned on their annual tax returns. To assist the tax authorities in the enforcement of those reporting obligat...
The federal government has announced the Canada Pension Plan contribution percentages and amounts which will be in effect during 2025. Maximum pensionable earnings for 2025 will be $71,300, and the ba...
The Canada Revenue Agency (CRA) provides a comprehensive guide to the federal tax rules relevant to post-secondary students during the current taxation year. That guide, P105 – Students and Income T...
In its budget for the 2024-25 year, the federal government announced that a new Canada Carbon Rebate (CCR) would be provided for small businesses. In order to receive the CCR, a business must be a Can...
The federal government has announced the Employment Insurance (EI) premium rates which will be payable by employees and employers during the 2025 calendar year. For 2025, those rates are set at $1.64 ...
In its regularly scheduled interest rate announcement made on October 23, the Bank of Canada announced that the Bank Rate would be lowered by one-half percentage point, from 4.5% to 4.0%. In the press...
The October release of the federal Labour Force Survey shows a slight reduction in the overall rate of unemployment recorded for September 2024, as compared to the previous month. That rate declined b...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation fell to 1.6% for the month of September 2024. As noted in the StatsCan release, that rate...
Millions of Canadians earn income by selling goods or services through websites or apps, and the revenue from such sales represents income to those vendors, which they are required to report on their ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Canadian businesses which have sales of taxable goods or services in excess of $30,000 must register for GST/HST purposes and are required to file returns and remit GST/HST amounts on a prescribed sch...
The Bank of Canada has provided the dates on which it will make scheduled interest rate announcements during the 2025 calendar year. Those dates are as follows. Wednesday, January 29, Wednesday, Marc...
Benefit amounts provided under the federal Old Age Security (OAS) program are indexed to inflation and adjusted at the beginning of each quarter of the calendar year. The federal government has announ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows that the overall rate of inflation for the month of August 2024, as measured on a year-over-year basis, stood at 2.0% ...
Finance Canada has announced that, effective as of December 15, 2024, all first-time home buyers and all buyers of new-build residential properties will qualify for 30-year amortization periods (the t...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight increase in the overall unemployment rate for the month of August. That rate rose to 6.6%, as compared to the 6.4% r...
The third individual income tax instalment payment for the 2024 tax year is due and payable on or before September 15, 2024. As September 15 falls on a Sunday this year, tax instalments due will be co...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for 2024, as well as the rates that will apply for the purpose of calculating emp...
In its regularly scheduled interest rate announcement made on September 4, the Bank of Canada reduced interest rates by 0.25%, meaning that the Bank Rate is now 4.5%. In its press release announcing t...
The federal government provides a non-refundable tax credit for volunteer firefighters and search and rescue volunteers who perform at least 200 hours of combined volunteer service during the year. Th...
The federal, provincial, and territorial governments provide a number of child and family tax credit and benefit programs, and the current benefit year for such programs began on July 1, 2024. In most...
Individuals who pay income tax by instalments must make the third such instalment payment for the 2024 tax year on or before September 15th, 2024. As that date falls on a Sunday this year, such paymen...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation (as measured on a year-over-year basis) stood at 2.5% for the month of July - the lowest ...
The most recent release of Statistics Canada’s Labour Force Survey shows no change in the overall unemployment rate for the month of July 2024. That rate stood at 6.4%, the same rate recorded for Ju...
In this year’s budget, the federal government announced that the inclusion rate for all capital gains earned by corporations after June 24, 2024 would increase from 50% to 66.6%. At the same time, t...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The federal and provincial governments offer a range of tax credit and benefit programs which provide tax-free payments to eligible Canadians. The current benefit year for such credit and benefit prog...
Home purchasers who take out a mortgage must pay back that mortgage amount (plus interest) over a specified period of time, known as the amortization period. While the standard amortization period is ...
The federal and provincial governments offer a number of tax credits and benefits for which both eligibility and the amount receivable are determined, in part, by the income of the recipient. In order...
The Canada Revenue Agency (CRA) administers a program – the Taxpayer Relief Program – under which interest and penalty charges can be waived where taxpayers are unable to meet their tax filing or ...
In its regularly scheduled interest rate announcement made on July 24, the Bank of Canada announced that rates would be lowered by 25 basis points. As a result, the Bank Rate now stands at 4.75%. In t...
The Canada Revenue Agency has issued a News Release reminding taxpayers and mental health service providers that mental health services are now generally (except in the province of Québec) exempt fro...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation declined slightly during the month of June 2024. That rate stood at 2.7%, as compared to ...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight increase in the overall rate of unemployment during the month of June 2024. That rate stood at 6.4%, as compared to ...
In this year’s budget, the federal government announced that the Canada Carbon Rebate program would be expanded to be available to small businesses. In order to be eligible for the rebate a small bu...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation during the month of May 2024 stood at 2.9% – an increase from the 2.7% inflation figure...
The federal and provincial governments provide eligible taxpayers with a range of refundable tax credit and benefit amounts. Such benefits are generally paid on a monthly or quarterly basis and are re...
The Old Age Security (OAS) benefit paid to Canadian residents aged 65 and older is indexed quarterly to changes in the Consumer Price Index. The federal government recently announced that, for the thi...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
As announced in the 2024-25 federal budget, the percentage of capital gains included in income will increase from 50% to 66.6%, effective for gains realized after June 24, 2024. The change in the incl...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for the month of May increased slightly, to 6.2%. The comparable rate for April 2024 was 6.1%. Acr...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first three quarters of 2024, as well as the rates that will apply for th...
All self-employed taxpayers, and their spouses, are required to file an individual income tax return for the 2023 tax year on or before Monday June 17, 2024. All taxpayers (including those who are sel...
In its regularly scheduled interest rate announcement made on June 5, the Bank of Canada announced that rates would be lowered by 25 basis points. As a result, the Bank Rate now stands at 5.0%. The ch...
In its 2024-25 budget, the federal government announced the creation of the Canada Carbon Rebate for Small Businesses, which will be provided to eligible Canadian-controlled private corporations which...
The second individual income tax instalment payment for the 2024 tax year is due and payable on or before Monday June 17, 2024. Taxpayers who are subject to the instalment payment requirement will hav...
The Canada Revenue Agency’s digital services make it possible for Canadian taxpayers to manage all of their personal tax filing, payment, and appeal rights and obligations online, on the Agency’s ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation declined slightly during the month of April. For that month, the inflation rate stood at ...
The Canada Revenue Agency has issued a notice indicating that applications for the GST/HST rebate for new purpose-built rental housing (PBRH) can be made online, on the CRA website, as of May 13, 2024...
The most recent release of Statistics Canada’s Labour Force Survey shows that, while employment during the month of April increased by 90,000, the overall unemployment rate was unchanged from March,...
Self-employed taxpayers (and their spouses) are required to file an individual income tax return for the 2023 tax year on or before June 17, 2024. The Canada Revenue Agency (CRA) recently updated and ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
All Canadian individual taxpayers were required to pay any balance of income tax owed for the 2023 tax year on or before April 30, 2024. While self-employed taxpayers and their spouses have until June...
The 2024-25 federal budget included a measure to increase the percentage of capital gains which must be included in income by corporations and trusts and, in some circumstances, individual taxpayers. ...
Most Canadian individual taxpayers are required to file their income tax return for the 2023 tax year on or before Tuesday April 30, 2024. The exception is self-employed taxpayers (and their spouses) ...
All Canadian individual taxpayers who have tax amounts owing for the 2023 tax year must pay those amounts in full on or before Tuesday April 30, 2024. Where amounts owed are not paid in full by that d...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation rose from 2.8% in February 2024 to 2.9% in March 2024. Both rates are as measured on a ye...
The federal home buyers' plan (HBP) allows eligible first-time home buyers to withdraw up to $35,000 from a registered retirement savings plan (RRSP) to purchase or build a first home. No tax is payab...
Budget 2024 proposes to repeal the exception to the debt forgiveness rules for bankrupt corporations and the loss restriction rule applicable to bankrupt corporations. This change would subject bankru...
Budget 2024 proposes to remove the tax-indifferent investor exception (including the exchange traded exception) to the anti-avoidance rule. This measure would simplify the anti-avoidance rule and prev...
Budget 2024 proposes amendments to the Income Tax Act to preclude a corporation from qualifying as a mutual fund corporation where it is controlled by or for the benefit of a corporate group (includ...
Budget 2024 proposes to introduce a supplementary rule to strengthen the tax debt anti-avoidance rule, applicable in the following circumstances: there has been a transfer of property from a tax debt...
Legislative proposals to implement the excessive interest and financing expenses limitation (EIFEL) rules are currently before Parliament in Bill C-59. The EIFEL rules provide an exemption for interes...
Budget 2024 proposes to return a portion of fuel charge proceeds from a province via the new Canada Carbon Rebate for Small Businesses, an automatic, refundable tax credit directly for eligible busine...
Budget 2024 proposes to provide immediate expensing for new additions of property in respect of Class 44 (patents or the rights to use patented information for a limited or unlimited period), Class 46...
Budget 2024 proposes to provide an accelerated CCA of 10% for new eligible purpose-built rental projects that begin construction on or after Budget Day and before January 1, 2031, and are available fo...
Budget 2024 proposes adjustments to the Clean Technology Manufacturing investment tax credit to provide greater support to businesses engaged in the production of qualifying materials at polymetallic ...
Budget 2024 provides the design and implementation details of the Clean Electricity investment tax credit announced in Budget 2023. Eligible corporations would be: taxable Canadian corporations; prov...
Budget 2024 proposes to increase the home buyers' plan (“HBP”) withdrawal limit from $35,000 to $60,000. This increase would also apply to withdrawals made for the benefit of a disabled individual...
Budget 2024 proposes to extend the period for which qualifying foreign charities are registered as a qualified donee from 24 months to 36 months. In addition, foreign charities would be required to su...
Budget 2023 proposed tax rules to facilitate the creation of employee ownership trusts (“EOTs”). These legislative proposals are currently before Parliament in Bill C-59. The 2023 Fall Economic St...
Budget 2024 proposes to expand the list of expenses recognized under the Disability Supports Deduction, subject to the specified conditions, such as the cost of: an ergonomic work chair (including an...
Budget 2024 proposes to amend the Income Tax Act to extend eligibility for the Canada Child Benefit (“CCB”) in respect of a child for six months after the child's death (the "extended period"), if...
Budget 2023 announced amendments to the Income Tax Act that would change the Alternative Minimum Tax (“AMT”) calculation. Draft legislative proposals to implement these changes were published for ...
Budget 2024 proposes to double the credit amount for the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit from $3,000 to $6,000, applicable to the 2024 and subsequent ...
Budget 2024 proposes to increase the capital gains inclusion rate from one half to two thirds for corporations and trusts, and from one half to two thirds on the portion of capital gains realized in t...
Budget 2024 proposes to introduce the Canadian Entrepreneurs' Incentive, which would reduce the tax rate on capital gains on the disposition of qualifying shares by an eligible individual. Specificall...
The amount of the Lifetime Capital Gains Exemption (“LCGE”) is $1,016,836 in 2024 and indexed to inflation. Budget 2024 proposes to increase the LCGE to apply to up to $1.25 million of eligible ca...
In its regularly scheduled interest rate announcement made on April 10, the Bank of Canada indicated that, in its view, no change was required to current interest rates. Accordingly, the Bank Rate rem...
The most recent release of Statistics Canada’s Labour Force Survey shows a small increase in the rate of unemployment during the month of March. That rate increased by 0.3%, to 6.1%. Among demograph...
The federal government provides investors in flow-through shares of qualifying mineral exploration companies with a non-refundable 15% tax credit. That mineral exploration tax credit program was sched...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Increases to benefits payable under the Old Age Security program are based on changes to the Consumer Price Index, with such benefit amounts indexed quarterly. The federal government has announced tha...
Post-secondary students are entitled to claim a number of tax deductions and credits for costs relating to their education. In addition, such students are frequently in a position to claim several tax...
The most recent release of Statistics Canada’s Consumer Price Index shows a slight decline in the overall inflation rate for the month of February 2024. That rate stood at 2.8%, a 0.1% decline from ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2024, as well as the rates that will apply for the purpose ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight increase in the overall rate of unemployment during the month of February. That rate rose to 5.8%, as compared to th...
Finance Canada has announced that the federal budget for the upcoming (2024-25) fiscal year will be brought down on Tuesday April 16, 2024, at around 4 p.m. Once the budget measures are announced, the...
In its regularly scheduled interest rate announcement made on March 6, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 5.25...
The Canada Revenue Agency has published the income threshold which will apply for purposes of the Old Age Security (OAS) clawback threshold during 2024. Individuals who receive OAS benefits can have u...
Canadian businesses which have registered for goods and services tax/harmonized sales tax (GST/HST) purposes must file returns with the federal government on a prescribed schedule, which can be monthl...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation declined to below 3% during the month of January 2024. The inflation rate for that month (as meas...
The Canada Revenue Agency has announced that its digital services for the filing of individual income tax returns for the 2023 tax year are now open. Both NETFILE and ReFILE services are available 21...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight drop in the overall rate of unemployment for the month of January 2024. That rate declined by 0.1%, from 5.8% to 5.7...
The Canada Revenue Agency (CRA) has announced that the filing deadline for individual income tax returns for the 2023 tax year will be Tuesday April 30, 2024. Self-employed individuals and their spous...
The Canada Revenue Agency has announced that the deadline for making registered retirement savings plan (RRSP) contributions which can be deducted on the return for the 2023 tax year will be Thursday ...
While the majority of Canadian taxpayers file their income tax returns by electronic means, paper returns can still be filed with and processed by the Canada Revenue Agency (CRA). The Agency will be s...
The Canada Revenue Agency has announced that its services for the online filing of individual income tax returns for the 2023 tax year will be available in mid-February. Both NETFILE and ReFILE servic...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its regularly scheduled interest rate announcement made on January 24, 2024, the Bank of Canada indicated that, in its view, no change to current rates was needed. Accordingly, the Bank Rate remain...
Canadian taxpayers can still file individual income tax returns for the 2017 to 2022 tax years using the Canada Revenue Agency’s online tax filing service NETFILE. The NETFILE filing service provide...
The most recent release of Statistics Canada’s Consumer Price Index shows an increase in the overall rate of inflation for the month of December 2023. That rate stood at 3.4%, as compared to the 3.1...
During the pandemic, the federal government provided loan financing to eligible Canadian businesses through the Canada Emergency Business Assistance (CEBA) program. Such loan amounts provided are part...
The most recent release of Statistics Canada’s Labour Force Survey shows no change in the overall unemployment rate for the month of December 2023. That rate stood at 5.8%, the same as the rate reco...
The most recent release of Statistics Canada’s Consumer Price Index shows no change in the overall rate of inflation for the month of November 2023. That rate stood at 3.1%, the same rate recorded f...
Benefits paid under the Canada Pension Plan are indexed annually, based on changes to the Consumer Price Index. The federal government has announced that CPP benefits paid during the 2024 calendar yea...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2024, as well as the rates that will apply for the purpo...
Employment and Social Development Canada (ESDC) has announced that Old Age Security (OAS) payments for the first quarter (January to March) of 2024 will increase by 0.8%. OAS benefit amounts are adjus...
Individual taxpayers who pay income tax for the year through instalment payments do so by four prescribed deadlines each year. The fourth and final instalment payment for the 2023 tax year must be mad...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in the general unemployment rate for the month of November 2023. For that month, unemployment stood at 5.8%, as...
In its regularly scheduled interest rate announcement made on December 6, 2023, the Bank of Canada indicated that, in its view, no change to current rates was needed. Accordingly, the Bank Rate remain...
The Canada Revenue Agency has issued a Tax Tip reminding employers and pension plan administrators of a change in T4 and T4A reporting rules, beginning with the 2023 tax year. All issuers of T4s and T...
Annual changes in personal income tax brackets and tax credit amounts are based on changes in the Consumer Price Index. The Canada Revenue Agency has announced that, for the upcoming 2024 tax year, su...
The 2023-24 Fall Economic Statement brought down by the Minister of Finance on November 21 indicates that the federal government will run a deficit of $40 billion for the current (2023-24) fiscal year...
The most recent release of Statistics Canada’s Consumer Price Index shows a drop in the overall inflation rate for the month of October, with the inflation rate for that month coming in at 3.1%, as ...
The federal government levies a 1% underused housing tax (“UHT”) on some owners of vacant or underused residential properties in Canada. Generally, affected property owners are foreign nationals, ...
Finance Canada has announced that the Fall Economic Statement for the 2023-24 fiscal year will be presented by the Minister of Finance on Tuesday November 21, 2023 at around 4 p.m. Once the measures i...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in the unemployment rate recorded for the month of October 2023. That rate rose by 0.2%, from 5.5% to 5.7%, wit...
The Canada Revenue Agency (CRA) has announced the contribution percentages, limits, and amounts which will apply for purposes of the Canada Pension Plan (CPP) during 2024. Those figures include change...
Residents of Ontario, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Saskatchewan, Alberta, and Newfoundland and Labrador receive a Climate Action Incentive Payment (CAIP) from the federa...
The federal government has announced that sales of home heating oil delivered between November 9, 2023 and April 1, 2027 will be exempt from the federal carbon tax. In the same announcement, the feder...
Canadians who hold “crypto-assets”, including cryptocurrency, are required to report any income or capital gains resulting from transactions involving such assets. The Canada Revenue Agency recent...
In its regularly scheduled interest rate announcement made on October 25, the Bank of Canada indicated that, in its view, no change to current interest rates was required. The Bank Rate accordingly re...
EFILE services for the filing of individual income tax returns for the 2023 tax year will be available sometime in early 2024. The Canada Revenue Agency recently issued a program update reminding EFIL...
The most recent release of Statistics Canada’s Consumer Price Index shows a drop in the overall rate of inflation for the month of September. That rate stood at 3.8%, as compared to the 4.0% inflati...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Labour Force Survey shows no change in the overall unemployment rate recorded for the month of September, with that rate remaining at 5.5% for the thir...
The Canada Employment Insurance Commission has announced the premium rates and limits which will apply for purposes of the Employment Insurance program during the 2024 calendar year. For 2024, as a re...
The federal government has announced that amounts paid under the Old Age Security (OAS) program will increase for the fourth quarter (October to December) of 2023. The increases are based on changes t...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of August stood at 4.0%, as compared to the 3.3% inflation rate recorded fo...
The Canada Revenue Agency has issued a Tax Tip indicating that interest and penalty relief will be provided to taxpayers who are unable to meet their tax filing and/or payment obligations due to this ...
During the pandemic, the federal government provided the small business sector with financial assistance through the Canada Emergency Business Account (CEBA) program. That program provided eligible sm...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the last quarter of 2023, as well as the rates that will apply for the purpos...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of August stood at 5.5%, the same rate recorded for the month of July. As no...
Individual Canadian taxpayers who pay federal income tax by instalments make those instalment payments of tax four times each year, by specified deadlines. The third income tax instalment deadline for...
In its regularly scheduled interest rate announcement made on September 6, the Bank of Canada indicated that, in its view, no change was needed to current interest rates. Accordingly, the Bank Rate re...
During the pandemic a number of post-secondary students received the Canada Emergency Response Benefit (CERB) and, in some cases, have been asked to repay those benefits to the federal government. The...
Canadian parents can save for their children’s post-secondary education on a tax-assisted basis, through the federal Registered Education Savings Plan (RESP) program, which allows parents to contrib...
Beginning in 2023, Canadians are able to save for the purchase of a first home on a tax-assisted basis through the new First Home Savings Account (FHSA) program. One of the features of the FHSA progra...
For several years, businesses which file more than 50 information returns (slips and summaries) have been required to file those returns by electronic means, rather than paper filing. Effective as of ...
Beginning in 2023, Canadians aged 18 and over can save for the purchase of a first home on a tax-assisted basis, through the First Home Savings Account (FHSA) program. Contributions (to a maximum of $...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall inflation rate increased by .5% for the month of July. That rate reached 3.3%, as compared to the 2.8% infl...
The federal government provides a refundable tax credit to lower and middle-income Canadians, to help offset the impact of the goods and services tax/harmonized sales tax (GST/HST). That credit is p...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in overall unemployment rate for the month of July 2023. That rate increased by 0.1% to 5.5%. Across demographi...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Bank of Canada issues interest rate announcements on eight scheduled dates throughout the year, and the Bank recently released its schedule for such announcements during 2024. Interest rate announ...
Through its Canada Child Benefit program, the federal government provides a non-taxable monthly benefit to parents of children under the age of 18. Benefit amounts are adjusted at the start of each be...
During the pandemic, relieving changes were made to the policies and practices of the Canada Revenue Agency (CRA) with respect to the collection of tax amounts owed by Canadians. In the past several m...
The Canada Revenue Agency has issued a reminder to Canadian taxpayers that applications for the second benefit period for the Canada Dental Benefit can be made as of July 1, 2023. Eligible families ca...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of June 2023 (as measured on a year-over-year basis) stood at 2.8%. The com...
The federal government has announced that maximum payments under the Old Age Security program will increase for the July to September 2023 benefit period. Effective with the July 2023 payment, the max...
In its regularly scheduled interest rate announcement made on July 10, the Bank of Canada indicated that, in its view, another increase to interest was warranted. Consequently, the Bank Rate now stand...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Workers’ Benefit (CWB) is a refundable tax credit provided to lower-income individuals and families which have working income from employment or self-employment. In previous years, the CW...
The Canada Revenue Agency has issued a reminder to Canadians of the availability of administrative relief from tax interest and penalty charges for taxpayers who have been affected by this spring’s ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for May 2023 stood at 3.4%, as measured on a year-over-year basis. The comparable rate fo...
Qualifying Canadians are entitled to claim a disability tax credit which reduces both federal and provincial tax payable. In order to claim that credit an individual must complete and submit an applic...
The federal government has released additional details of the “grocery rebate” which was announced in the 2023 federal Budget. That rebate is scheduled to be paid to eligible Canadians on July 5, ...
The most recent release of Statistics Canada’s Labour Force Survey shows that unemployment rose slightly during May 2023, the first such increase since August of 2022. During May, the unemployment r...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first three quarters of 2023, as well as the rates that will apply for th...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its regularly scheduled interest rate announcement made on June 7, the Bank of Canada indicated that interest rates would be increased by one-quarter percentage point, bringing the Bank Rate to 5%....
Canadians who pay income tax by instalment make those instalment payments of tax four times each year, by specified deadlines. The second income tax instalment deadline for the 2023 tax year falls on ...
While most Canadian taxpayers were required to file their income tax returns for the 2022 tax year on or before May 1, 2023, self-employed taxpayers (and their spouses) have until Thursday June 15, 20...
The federal (and provincial) governments provide taxpayers with a number of tax credits and benefits which are delivered through monthly or quarterly direct payments. In many cases, eligibility for su...
In its 2023-24 budget, the federal government announced that, to assist Canadians coping with recent inflationary increases in the cost of food, it would be providing a one-time “grocery rebate”. ...
All Canadian individual taxpayers were required to pay any tax balance owed for the 2022 tax year on or before May 1, 2023. As of May 2, 2023, interest at a rate of 9% is levied on all such outstandin...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation increased slightly during the month of April, to 4.4%. The comparable rate for March 2023...
Most Canadians were required to file an income tax return for the 2022 tax year by the end of April 2023. For each such filing, a Notice of Assessment is issued by the Canada Revenue Agency (CRA), out...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Canadians who receive Old Age Security (OAS) benefits and whose net income is above a specified threshold (currently $86,912) must repay a portion of those benefits, through the OAS recovery tax (or c...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Most individual Canadian taxpayers must file their income tax returns for the 2022 tax year on or before Monday, May 1, 2023. Self-employed individuals and their spouses, however, have until June 15, ...
Monday May 1, 2023 is the deadline by which all individual income taxes owed for the 2022 tax year must be paid. The May 1 payment deadline applies regardless of the date by which an individual must f...
In the 2023-24 budget, the federal government announced that a one-time payment would be made to Canadians to help them meet inflationary increases in the cost of living. That payment – the “groce...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall inflation rate for the month of March 2023 stood at 4.3%, as compared to the 5.2% rate recorded for Februar...
In its scheduled interest rate announcement made on April 12, the Bank of Canada indicated that, in its view, no change to current interest rates was needed. Accordingly, the Bank Rate remains at 4.75...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of March 2023 stood at 5.0%, the same rate recorded for the previous month. ...
Old Age Security (OAS) benefits paid monthly to eligible Canadians are indexed to inflation on a quarterly basis, meaning that such benefit amounts increase to reflect that indexing at the beginning o...
The federal government imposes a 1% annual Underused Housing Tax (UHT) on the ownership of vacant or underused housing in Canada. While the tax usually applies to non-resident, non-Canadian owners it ...
Where the Canada Revenue Agency (CRA) owes an amount to the taxpayer (such as a tax refund), the Agency has the right to deduct from that amount any debts owed by the taxpayer to the federal governmen...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2023, as well as the rates that will apply for the purpose of cal...
Budget 2023 proposes to temporarily cap the inflation adjustment for excise duties on beer, spirits, and wine at two per cent, for one year only, as of April 1, 2023. The excise duty rates on all alco...
Budget 2023 proposes to amend the GAAR by: introducing a preamble; changing the avoidance transaction standard; introducing an economic substance rule; introducing a penalty; and extending the reasse...
Budget 2023 proposes to amend the rules introduced by Bill C-208 to ensure that they apply only where a genuine intergenerational business transfer takes place. To provide flexibility, it is proposed ...
Budget 2023 proposes to extend the qualifying family member measure (which allows a family member to open an RDSP for an adult relative) by three years, to December 31, 2026. Siblings will also be qua...
Budget 2023 proposes to increase limits on certain RESP withdrawals from $5,000 to $8,000 for full-time students, and from $2,500 to $4,000 for part-time students. Budget 2023 also proposes to allow d...
Budget 2023 proposes to double the maximum employment deduction for tradespeople’s and apprentice mechanics’ tools from $500 to $1,000, effective for 2023 and subsequent taxation years....
The CRA’s automatic tax filing service called “File My Return”, which reached some 53,000 Canadians in 2022, will be expanded to reach more than 2 million Canadians by 2025. The government will ...
Budget 2023 proposes to introduce an increase to the maximum GST/HST tax credit (“GSTC”) amount for January 2023 that would be known as the Grocery Rebate. Eligible individuals would receive an ad...
The federal government proposes to: Increase the Alternative Minimum Tax (“AMT”) capital gains inclusion rate from 80% to 100%. Capital loss carry forwards and allowable business investment losse...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
The most recent release of Statistics Canada’s Consumer Price Index puts the overall rate of inflation for the month of February 2023 at 5.2%, as compared to the 5.9% rate recorded for January. Both...
As part of the 2022 Federal Budget, the federal government introduced the Tax-Free First Home Savings Account (FHSA). The FHSA allows eligible taxpayers to contribute $8,000 per year (to a lifetime ma...
The Minister of Finance has announced that the 2023-24 Federal Budget will be brought down on Tuesday March 28, 2023, at around 4 p.m. EST. The media release providing the budget date can be found on ...
The Canada Revenue Agency (CRA) provides taxpayers with several telephone help lines, through which taxpayers can obtain both general tax information and information specific to their tax situation. T...
For the first time since January of 2022, the Bank of Canada has determined that no increase to current interest rates is needed. Consequently, the Bank Rate remains at 4.75%. In the press release ann...
Taxpayers are entitled to make a claim on their annual return for costs incurred in certain circumstances for meal costs and vehicle expenses. Such costs may, for instance, be claimable by individuals...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation continues to moderate. The inflation rate for the month of January 2023 stood at 5.9%, as...
In 2022, the federal government announced the creation of a top-up to the existing Canada Housing Benefit, which would provide a one-time payment of $500 to lower income individuals who pay a dispropo...
Millions of Canadians received federal government benefits during the pandemic, and those benefits represented income which must be reported on the annual tax return. The CRA will, by the end of Febru...
The most recent release of Statistics Canada’s Labour Force Survey shows that, while there was an increase in employment during January 2023, the unemployment rate was unchanged at 5.0%. Employment ...
The Canada Revenue Agency has announced that the tax payment deadline for individual income taxes owed for the 2022 tax year will be Monday May 1, 2023. While the payment deadline is usually April 30,...
The Canada Revenue Agency has announced that the filing deadline for individual income tax returns for the 2022 tax year will be Monday May 1, 2023. While the filing deadline is usually April 30, an e...
The Canada Revenue Agency has announced that the deadline for making registered retirement savings plan (RRSP) contributions which can be deducted on the return for the 2022 tax year will be Wednesday...
The Canada Revenue Agency (CRA) has issued the tax package to be used for the filing of individual income tax returns for the 2022 tax year. That package, which includes both the income tax return and...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for filing of federal individual income tax returns for the 2022 tax year will be available on Monday February 20, 2023. Informat...
While the majority of Canadian taxpayers file their individual income tax returns electronically, a significant number of taxpayers file a paper return. The Canada Revenue Agency has issued a Tax Tip ...
In its regularly scheduled interest rate announcement made on January 25, the Bank of Canada announced that interest rates would be increased by one-quarter percentage point. That change marks the eig...
The Canada Revenue Agency has announced that its NETFILE service for the filing of prior year returns will be available until January 27, 2023. Specifically, NETFILE and ReFILE services for tax years ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation declined slightly during the month of December 2022. For that month, inflation stood at 6...
Finance Canada is currently conducting the consultation process leading to the release of the 2023-24 federal Budget this spring. There are two parts to the budget consultation process – an online s...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of December 2022 stood at 5.0%. During the month of December, the country ad...
The federal government has announced the amounts which may be paid as benefits under the Canada Pension Plan (CPP) during 2023. The amount of retirement benefit receivable by an individual is based on...
The federal government has announced the amounts which will be paid to recipients of Old Age Security benefits for the first quarter of 2023. Such benefit amounts are indexed quarterly, based on the c...
The Bank of Canada announces its decision with respect to interest rates on eight scheduled dates each year, and the Bank has provided the dates on which such interest rate announcements will be made ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2023, as well as the rates that will apply for the purpose of ...
The federal government is providing a one-time non-taxable $500 payment to assist eligible Canadians who pay more than 30% of their income for rental housing, and the application process for that bene...
Individual taxpayers who pay income tax for the year through instalment payments do so by four prescribed deadlines each year. The fourth and final instalment payment for the 2022 tax year must be mad...
In its regularly scheduled interest rate announcement made on December 7, the Bank of Canada announced that interest rates would be increased by one-half percentage point. That change marks the sevent...
Most Canadians are eligible to receive Old Age Security (OAS) benefits after they turn 65 (although receipt of such benefits can be deferred to as late as age 70). Regardless of the age at which recei...
The Canada Revenue Agency (CRA) has updated and re-issued its publication T4130 Employers’ Guide – Taxable Benefits and Allowances. The Guide, which can be found on the CRA website at T4130 Employ...
Canadians over the age of 17 can make annual contributions (up to a specified maximum) to a tax-free savings account (TFSA). While contributions made are not deductible from income, all investment inc...
Each year, personal income tax brackets and tax credit amounts are increased to reflect year-over-year changes in the Consumer Price Index. The Canada Revenue Agency has announced that the indexing fa...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of October 2022 stood at 5.2%.During that month, employment increased among ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of October stood at 6.9%, the same rate recorded for the month of September...
The federal government has announced the amount of Employment Insurance (EI) premiums which will be payable by employees and employers during the 2023 calendar year. The 2023 EI premium rate is $1.63 ...
The Canada Workers Benefit is a refundable tax credit provided by the federal government to lower income Canadians who have “earned working income” during the year. The credit of up to $1,428 for ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
The Canada Revenue Agency (CRA) has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600. The basic exemption amount for 2023 remains $3,500. Th...
In its regularly scheduled interest rate announcement made on October 26, the Bank of Canada once again announced an increase in interest rates, bringing the Bank Rate to 4.00%. The most recent change...
The characterization of an individual as an employee or as a self-employed taxpayer affects both the tax treatment of that individual’s income and the remittance and filing obligations which are imp...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
The most recent release of Statistics Canada’s Consumer Price Index shows that inflationary increases in the price of food continue to outpace the overall inflation rate.During September, that overa...
The Canada Revenue Agency has announced that administrative tax relief will be provided to taxpayers living in Atlantic Canada who were affected by Hurricane Fiona. Specifically, the CRA has announced...
The most recent release of Statistics Canada’s Labour Force Survey shows that there was little change in the overall employment picture for the month of September. The unemployment rate for that mon...
The federal government has announced that maximum payments under the Old Age Security (OAS) program will increase for the October to December 2022 benefit period. For that period, and owing to changes...
While the last of the pandemic benefit programs for Canadian businesses ended as of May 7, 2022, eligible businesses have up to 180 days after the end of a benefit claim period to apply for such benef...
Finance Canada has announced that it plans to provide a one-time payment of $500 under the Canada Housing Benefit program, to assist individuals and families who must allocate a significant portion of...
The federal government has announced that, for a period of 30 days (until October 24, with the possibility of extension), it will match donations made to the Canadian Red Cross for storm relief effort...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of August was down slightly. That rate stood at 7.0% (as measured on a year...
The federal government provides eligible Canadians with a GST/HST tax credit, with the amount of credit receivable based on family composition, size, and income. For the July 2022 through June 2023 b...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for the month of August rose slightly, to 5.4%. Among demographic groups, employment fell among yo...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for 2022, as well as the rates that will apply for the purpose of calculating employee ...
In its regularly scheduled interest rate announcement made on September 7, the Bank of Canada once again announced an increase in interest rates, bringing the Bank Rate to 3.50%. The most recent chang...
Canadian employees have tax deducted from their income at source – that is, the employer deducts income tax from the employee’s wages and then remits such tax to the federal government on the empl...
Individual taxpayers who pay income tax by instalment are required to make such payments quarterly. The third instalment payment deadline for the 2022 tax year falls on Thursday September 15, 2022. Mo...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
All Canadian resident corporations, regardless of size, are required to file a T2 corporation income tax return annually. The Canada Revenue Agency (CRA) has issued a Tax Tip for such corporate filers...
In this year’s budget, the federal government announced that, beginning in 2023, first-time home buyers would be able to save for a home purchase on a tax-free basis, through the new Tax-Free First ...
The most release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of July, as measured on a year-over-year basis, stood at 7.6%. The comparable rate for Jun...
The benefit year for most individual tax credit and benefit programs administered by the Canada Revenue Agency runs from July 1 to the following June 30, and benefit amounts change with each year. The...
The most recent release of Statistics Canada’s Labour Force Survey shows that the rate of unemployment for the month of July was unchanged, at 4.9%. Employment was down in Ontario and Prince Edward ...
Since 2009 Canadians have been able to save on a tax-sheltered basis through Tax Free Savings Accounts, or TFSAs. While TFSA contributions made are not tax-deductible, investment income earned by cont...
The Bank of Canada has released the schedule on which it will make interest rate announcements during the 2023 calendar year. Those announcements will be made on the following dates: January 25, Mar...
The prescribed leasing interest rate mandated by the Canada Revenue Agency must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescrib...
Canadian individual taxpayers who pay income tax by instalments make such payments four times a year, on prescribed dates. The third such instalment payment for 2022 is due and payable on or before Th...
The Canada Child Benefit is a non-taxable payment made monthly by the federal government to eligible families having children under the age of 18. There are two benefit levels – one for children und...
The July release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation reached 8.1% for the month of June, as measured on a year-over-year basis. That 8.1% figure was ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of June fell by 0.2%, to a new record low of 4.9%. Statistics Canada, howeve...
In its regularly scheduled interest rate announcement made on July 13, the Bank of Canada increased interest rates by a full percentage point. Consequently, the Bank Rate now stands at 2.75%, the high...
While the remaining pandemic benefit relief programs for businesses ended on May 7, 2022, the application process for such benefits for 2022 is still open. Applications are made and benefits paid sepa...
The federal government has announced that maximum payments under the Old Age Security (OAS) program will increase for the July to September 2022 benefit period. Two changes will take effect as of July...
The Office the Superintendent of Financial Institutions (OSFI) has announced that changes will be made with respect to maximum borrowings permitted under some “combined loan plans”. Those products...
For many federal tax benefits, including the GST/HST credit, the Canada Child Benefit, the Canada Workers Benefit, and the Climate Action Incentive Payment, the new benefit payment year starts on July...
The federal government provides residents of Ontario, Alberta, Manitoba, and Saskatchewan with a Climate Action Incentive (CAI) intended to help offset the cost of the federal carbon tax. In previous ...
The overall inflation rate for the month of May, as measured on a year-over-year basis, stood at 7.7% – nearly a full percentage point higher than the 6.8% increase recorded for the month of April 2...
Effective as of July 1, 2022, the monthly Old Age Security benefit will be increased by 10% for recipients aged 75 and older. Recipients who turn 75 after July 1, 2022 will see the increase in their b...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall rate of unemployment for the month of May stood at 5.1% – marking a new record low for the third consecuti...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first three quarters of 2022, as well as the rates that will apply for the purp...
Individual taxpayers who pay income tax by instalment are required to make such payments quarterly. The second instalment payment deadline for the 2022 tax year falls on Wednesday June 15, 2022. Most ...
While all individual taxpayers were required to pay any balance of taxes owed for the 2021 tax year on or before April 30, 2022, self-employed taxpayers (and their spouses) benefit from a later tax re...
As anticipated, in its scheduled interest rate announcement made on June 1, the Bank of Canada raised interest rates by another one-half percentage point. This latest change brings the Bank Rate to 1....
The Canada Revenue Agency recently updated and re-issued its Guide RC4466 to the Tax-Free Savings Account (TFSA). The updated Guide includes information on determining TFSA contribution room, permitte...
The CRA has issued a new Tax Tip for tax filers who become aware, after the return has been filed, that their income tax return for 2021 contains an error. In all cases taxpayers should wait until the...
At the beginning of the pandemic in 2020, more than 8 million Canadians applied for and received the Canada Emergency Response Benefit (CERB). In applying for the CERB, recipients self-assessed their ...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the overall rate of inflation reached 6.8% for the month of April 2022, as measured on a year-over-year basis. The lar...
Most of the pandemic benefit programs which the federal government has provided over the past two years came to an end on May 7, 2022. Notwithstanding the ending of the programs, applications for bene...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for the month of April stood at 5.2%, down 0.1% from the rate recorded for March 2022. Among demog...
The federal government provides a non-refundable tax credit to first time home buyers (defined as individuals who have not owned and lived in a home in the current year or any of the previous four yea...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of March 2022 (as measured on a year-over-year basis) was the highest such rate sin...
Under current legislation, three major pandemic benefit programs for individuals are scheduled to expire on May 7, 2022. The Canada Recovery Sickness Benefit, the Canada Recovery Caregiving Benefit, a...
Since 2016, the federal government has provided a non-refundable tax credit for home renovation expenses undertaken to increase accessibility. Individuals eligible for this credit include those who ar...
In some instances, seniors who were eligible for the federal Guaranteed Income Supplement (GIS) and who received pandemic benefits during 2020 saw their GIS benefit amounts reduced or eliminated begin...
All Canadian individual taxpayers are required to pay income tax balances owed for 2021 on or before Monday May 2, 2022. Where payment is not made on or before that date, interest will be levied on al...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of March stood at 5.3%. That rate is the lowest rate on record since compara...
In its regularly scheduled interest rate announcement made on April 13, the Bank of Canada determined that an increase in interest rates was warranted. Following that increase, the Bank Rate stands at...
The proposed federal excise duty framework for vaping products would come into force on October 1, 2022. Retailers may continue to sell until January 1, 2023, unstamped products that are in inventory ...
Budget 2022 proposes to amend the Excise Tax Act to make all assignment sales in respect of newly constructed or substantially renovated residential housing taxable for GST/HST purposes....
Budget 2022 proposes targeted amendments to the Income Tax Act to align the taxation of investment income earned and distributed by “substantive CCPCs” with the rules that currently apply to CC...
Budget 2022 announces a consultation process for Canadians to share views as to how the existing rules could be modified to protect the integrity of the tax system while continuing to facilitate genu...
In order to facilitate small business growth, Budget 2022 proposes to extend the range over which the business limit is reduced based on the combined taxable capital employed in Canada of the Canadia...
Budget 2022 proposes to broaden the Medical Expense Tax Credit to recognize circumstances that involve medical expenses for individuals other than the intended parents....
Budget 2022 proposes to introduce a Labour Mobility Deduction for Tradespeople to recognize certain travel and relocation expenses of workers in the construction industry....
Profits arising from dispositions of residential property (including a rental property) that was owned for less than 12 months would be deemed to be business income....
Budget 2022 proposes to increase the annual expense limit of the Home Accessibility Tax Credit from $10,000 to $20,000....
This new refundable credit would provide recognition of eligible expenses for a qualifying renovation....
Budget 2022 proposes to double the Home Buyers’ Tax Credit amount from $5,000 to $10,000, which would provide up to $1,500 in tax relief to eligible home buyers....
Budget 2022 proposes to create the Tax-Free First Home Savings Account, a new registered account to help individuals save for their first home....
The Old Age Security (OAS) benefit payable to most Canadians over the age of 65 is indexed to inflation, with the benefit being adjusted at the beginning of each calendar quarter. For the second quart...
Many Canadian taxpayers work in the “gig” economy – holding down part-time, contract, or on-call positions or providing services to clients through online platforms, or some combination of those...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of February dropped by a full percentage point, from 6.5% to 5.5%. While emp...
The Minister of Finance has announced that the federal budget for the upcoming 2022-23 fiscal year will be brought down on Thursday April 7, 2022, at around 4 p.m. The announcement of the budget date ...
The Canada Revenue Agency provides an individual tax enquiries line where taxpayers can obtain general tax information, or information specific to their personal taxes. While the individual tax enquir...
Millions of Canadians earn money each year from online or digital sales transactions, often through platforms like Etsy or eBay. The Canada Revenue Agency recently issued a Tax Tip, reminding taxpayer...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2022, as well as the rates that will apply for the purpose of cal...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation during the month of February 2022 reached 5.7% (as measured on a year-over-year basis), t...
Canadian individual taxpayers can claim a deduction for a number of expenses which they incur in the course of their employment. For 2021, those deductible expenses can include a flat rate deduction f...
The Canada Revenue Agency’s (CRA) NETFILE service for the filing of individual income tax returns for the 2017, 2018, 2019, 2020 and 2021 tax years is available 21 hours each day. The hours of servi...
Canadian individual taxpayers can now file their income tax returns for the 2021 tax year using the Canada Revenue Agency’s (CRA) NETFILE tax service. That service, which will be available until Fri...
In its regularly scheduled interest rate announcement made on March 2 the Bank of Canada, as expected, announced an increase to interest rates. Specifically, the Bank Rate has been increased from 0.50...
Dollar amounts on which individual non-refundable federal tax credits for 2022 are based, and the actual tax credit claimable, will be as follows: ...
The indexing factor for federal tax credits and brackets for 2022 is 2.4%. The following federal tax rates and brackets will be in effect for individuals for the 2022 tax year. Income level ...
During the 2021 tax year, many employees continued to work from home for pandemic-related reasons. Such employees may be eligible to claim a deduction for specified home office related expenses incurr...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of January 2022 stood at 5.1%, as measured on a year-over-year basis. The last prev...
Canadian individual taxpayers are entitled to claim a non-refundable tax credit for qualifying medical expenses incurred. Detailed information on the rules governing the types of expenses which qualif...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate rose slightly during the month of January, from 6% to 6.5%. The change marked the first su...
Post-secondary students filing a return for the 2021 tax year are entitled to claim a number of tax credits and deductions for education-related expenses which they incur, in addition to the credits a...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for online filing of individual income tax returns for the 2021 tax year will be available on Monday February 21, 2022. In order ...
The January release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of December 2021 (as measured on a year-over-year basis) reached 4.8%. While pr...
In its regularly scheduled interest rate announcement made on January 26, the Bank of Canada indicated that, in its view, no change to current rates was needed. Consequently, the Bank Rate remains at ...
Taxpayers who filed their income tax return on paper last year will automatically receive the 2021 income tax package from the Canada Revenue Agency (CRA) by February 21, 2022. The package taxpayers w...
The Canada Revenue Agency (CRA) has announced the automobile expense deduction limits which will apply during the 2022 taxation year. Owing to increases in the Consumer Price Index, most such limits h...
The Canada Revenue Agency (CRA) has announced that individual (T1) income tax return forms for the 2021 tax year will be available on the Agency’s website on January 18, 2022. Such returns must be f...
In October 2021, the federal government announced the creation of a new pandemic benefit, the Canada Worker Lockdown Benefit (CWLB), which was intended to be provided to workers affected by regional p...
The amount of Old Age Security (OAS) benefit paid to eligible Canadians is adjusted each quarter to take account of increases in the Consumer Price Index. Based on recent increases to the Consumer Pri...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first quarter of 2022, as well as the rates that will apply for the purpose ...
The Canada Revenue Agency (CRA) has issued the TD1 form to be used by all Canadian resident employees for the 2022 tax year. On the TD1 form, the employee indicates the federal personal tax credit amo...
Canadian taxpayers who have a registered retirement savings plan (RRSP) must collapse that RRSP by the end of the year in which the taxpayer turns 71. Such taxpayers are entitled to make a final RRSP ...
As part of the Economic and Fiscal Update, the federal government announced that small businesses would be provided with a refundable Small Businesses Air Quality Improvement Tax Credit. That credit, ...
As part of pandemic relief measures, changes were made to the existing home office expense deduction for employees. Those changes, which were for the 2020 tax year only, allowed employees to use a fla...
Individual taxpayers who pay income tax for the year through instalment payments do so by four prescribed deadlines each year. The fourth and final instalment payment for the 2021 tax year must be mad...
The 2021 Economic and Fiscal Update will be delivered by the Minister of Finance on Tuesday, December 14 at around 4 p.m. The update is expected to include information on the current state of the Cana...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has posted a Tax Tip on its website reminding individuals who have been affected by the recent extreme weather events of the availability of the Taxpayer Relief Program...
The fourth and final income tax instalment payment deadline for individuals for 2021 falls on Wednesday December 15. Taxpayers who pay income tax by instalment will have received an Instalment Reminde...
The Canada Revenue Agency (CRA) publishes a guide for post-secondary students which outlines the tax treatment of the types of income and expenses (like scholarship income and tuition expenses) which ...
The Canada Revenue Agency (CRA) has released the indexing factor which will apply for purposes of determining individual income tax brackets and non-refundable tax credits for 2022. That indexing fact...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows that during the month of October inflation rose by 4.7%, as measured on a year-over-year basis. That increase marked t...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate declined slightly during the month of October, from 6.9% to 6.7%. Employment held steady f...
The federal government has announced the premium rates and amounts which will apply for purposes of the Employment Insurance program during the 2022 calendar year. For 2022, maximum insurable earnings...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has released the contribution rates and amounts which will apply with respect to the Canada Pension Plan (CPP) during the 2022 calendar year. For 2022, the employer and...
In its regularly scheduled interest rate announcement made on October 27, the Bank of Canada indicated that, in its view, no change was required to current interest rates. Accordingly, the Bank Rate r...
The most recent release of Statistics Canada’s Consumer Price Index indicates that the rate of inflation, as measured on a year-over-year basis, rose by 4.4% during the month of September. The compa...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has announced that new security measures have been made available with respect to the authorization of online representatives by taxpayers. Generally, representatives a...
The federal government currently provides a range of pandemic benefit programs, for both individuals and businesses, and a number of those programs are scheduled to end on Saturday October 23, 2021. H...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate declined during the month of September, by 0.2 percentage points. The September unemployme...
The federal government has announced the premium rates and amounts which will apply for purposes of Employment Insurance during the 2022 calendar year. The contribution rates for both employers and em...
The amount of Old Age Security (OAS) benefit paid to eligible Canadians is adjusted each quarter to take account of increases in the Consumer Price Index. Based on recent increases to the CPI, the fed...
In the 2020 Fall Economic Statement, the federal government announced that, as part of its pandemic relief measures, an additional amount would be paid during 2021 to qualifying families who were elig...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for 2021, as well as the rates that will apply for the purpose of calculating employ...
A number of pandemic relief benefit programs provided to individual Canadians are currently scheduled to end as of October 23, 2021. Those programs are as follows: Canada Recovery Benefit Canada Reco...
The latest release of Statistics Canada’s Consumer Price Index shows that the rate of inflation, as measured on a year-over-year basis, rose by 4.1% during the month of August, as compared to the 3....
The most recent release of Statistics Canada’s Labour Force Survey shows a decline in the overall unemployment rate during the month of August. During that month, the rate declined by 0.4%, to 7.1%....
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Individual taxpayers who pay income tax for the year through instalment payments do so by four prescribed deadlines each year. The third of those deadlines falls on Wednesday September 15, 2021. Taxpa...
In its regularly scheduled interest rate announcement made on September 8, the Bank of Canada (the “Bank”) indicated that, in its view, no change to current rates was needed. Accordingly, the Bank...
Each year, on pre-announced dates, the Bank of Canada releases its decision on any changes to current interest rates. The Bank recently issued a listing of the dates on which such interest rate announ...
The benefit year for many federal tax credits, including the GST/HST tax credit, runs from July 1 to June 30 of the following year. Each year, credit amounts change, as do the income thresholds which ...
In July of this year, the federal government announced that the Canada Emergency Wage Subsidy (CEWS) program would be extended to be available to employers until October 2021. The Canada Revenue Agenc...
This year’s federal Budget included a proposal for a “luxury tax” which would apply, at varying rates, to sales of specified goods over a prescribed price threshold. The proposal indicated that ...
The Canadian tax system provides credits and incentives for taxpayers who carry out qualifying scientific research and experimental development (SR&ED) work. When claims are made for such credit a...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of July, as measured on a year-over-year basis, stood at 3.7%. The comparable rate ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Individual taxpayers who pay income tax by instalments must make the third instalment payment of the year on or before Wednesday September 15, 2021. Such taxpayers should receive an Instalment Reminde...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of June, as measured on a year-over-year basis, reached 3.1%. That rate was slightl...
The federal government has announced that a number of pandemic relief benefit programs, for both businesses and individuals, have been extended. The changes announced are as follows. The eligibility p...
The federal government administers the Canada Workers Benefit (CWB), a refundable tax credit which supplements income amounts for lower-income working Canadians. The annual benefit amount is $1,400 fo...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
As announced in this year’s federal Budget, some recipients of Old Age Security will receive a one-time supplement, to be paid in August 2021. During that month, OAS recipients who were born on or b...
The current benefit year for the Canada Child Benefit runs from July 1, 2021 to June 30, 2022. The federal government recently announced that Child Tax Benefit amounts for this benefit year have been ...
The most recent release of Statistics Canada’s Labour Force Survey shows a rebound in employment, as pandemic-related public health restrictions were eased in several provinces. For the month of Jun...
In its regularly scheduled interest rate announcement made on July 14, the Bank of Canada indicated that, in its view, no change to current rates was required. Accordingly, the Bank Rate remains at 0....
The Old Age Security benefit administered by the federal government is adjusted quarterly to reflect the rate of inflation. The federal government has announced that the maximum basic OAS benefit paya...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2021, as well as the rates that will apply for the p...
In its regularly scheduled interest rate announcement made on June 9, 2021, the Bank of Canada determined that, in its view, no change to current rates was needed. Accordingly, the Bank rate remains a...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2021, as well as the rates that will apply for the p...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
Canadian companies are required to file their federal income tax returns within 6 months after their fiscal year end. Consequently, companies which had a calendar year end on December 31, 2020 must fi...
While there was little change in the overall unemployment rate for the month of May, employment did fall by 68,000 positions, most of those in part-time work. The overall unemployment rate for the mon...
The most recent release of Statistics Canada’s Consumer Price Index shows an increase of 3.6% increase in the rate of inflation for the month of May, as measured on a year-over-year basis. The comp...
For individuals who pay income tax through quarterly instalments, the second instalment payment deadline for the year is Tuesday June 15, 2021. Information on the instalment payment system, including ...
The filing deadline for income tax returns for the 2020 tax year for self-employed individuals and their spouses is Tuesday June 15, 2021. Information on that filing deadline and on available filing m...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In 2020, some self-employed Canadians received Canada Emergency Relief Benefits (CERB) to which they were not entitled, as the result of erroneous information provided by the federal government, and t...
The Canada Revenue Agency (CRA) has posted a Tax Tip on its website outlining the several methods taxpayers can use to make a change, or correct an error, on an already-filed return. Requests for chan...
Last year, the federal government announced that families who are eligible for the Canada Child Benefit in 2021 and have a child or children under the age of six could receive a supplement — the Can...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of April 2021 was up by 3.4%, as measured on a year-over-year basis. Statistics Can...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers with respect to a tax scheme currently being promoted, typically to homeowners who have significant equity in their homes and substant...
Taxpayers who are unable to file their returns or make payment of taxes owed on a timely basis for reasons outside their control (including financial hardship) can apply, under the Taxpayer Relief Pro...
The most recent release of Statistics Canada’s Labour Force Survey shows an increase in the rate of unemployment during the month of April 2021. That rate, as measured on a year-over-year basis, ros...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of March 2021 was 2.2%, as measured on a year-over-year basis. While the monthly in...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its regularly scheduled interest rate announcement made on April 21, the Bank of Canada indicated that, in its view, no change to current rates was warranted. Accordingly, the Bank Rate remains at ...
The deadline for payment of all individual income tax amounts owed for the 2020 tax year is Friday, April 30, 2021. For most individuals (other than self-employed taxpayers and their spouses), April 3...
The Budget includes proposals to address perceived anti-avoidance activity and failures by taxpayers to comply with transaction reporting rules. To address the issue of failure to report, the governme...
The federal government provides two tax credit programs for the film and television industry. The Canadian Film or Video Production Tax Credit (CPTC) provides a 25% refundable tax credit on qualified ...
In the Budget, the federal government announced that the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy, and the Lockdown Support programs, which are currently scheduled to expire on...
Under Canada’s capital cost allowance (CCA) system, an asset is written off over a period of years, at a prescribed percentage rate per year, based on the useful life of that asset. Acquisitions of ...
The Budget includes a proposal for a temporary measure to reduce corporate income tax rates for qualifying zero-emission technology manufacturers. Specifically, taxpayers would be able to apply reduce...
Under Canadian tax rules, companies which acquire capital assets are required to deduct, or write off, the cost of those assets over a period of years, under the rules provided in the Capital Cost All...
The federal Budget includes a proposal for a Canada Recovery Hiring Program. That program will provide eligible employers with a subsidy of up to 50% on the incremental remuneration paid to eligible e...
The Budget papers provide that public corporations which received the Canada Emergency Wage Subsidy will, in some instances, be required to repay part or all of that subsidy. Specifically, where the t...
Current rules provide that tax preparers and filers of information returns who file more than a prescribed number of returns each year must file such returns electronically. Those rules will be amende...
Changes are proposed to the rules to increase the ability of the Canada Revenue Agency (CRA) to communicate with taxpayers electronically, without the taxpayer having to authorize the CRA to do so. Ge...
The Canada Revenue Agency has the authority to revoke the charitable registration status of an organization where that organization fails to fulfill its legal obligations. The rules governing such rev...
Millions of Canadian taxpayers received pandemic benefits during the 2020 taxation year. While most such recipients were entitled to those benefits, there were instances in which the benefits were pai...
Postdoctoral fellows are generally not, for purposes of the income tax system, considered to be students. Consequently, postdoctoral fellowship income does not qualify for the exemption generally prov...
Canadians who live in prescribed northern areas of Canada for at least six consecutive months in a year are eligible for the Northern residents deduction. That deduction has both a residency component...
The Canada Workers’ Benefit (CWB) is a non-taxable refundable tax credit that supplements the earnings of low-income and medium-income workers. The CWB, which is generally available to workers who e...
The federal government provides qualifying individuals with a disability tax credit (DTC) which reduces federal tax otherwise payable. For 2021, the value of the DTC is $1,299. To qualify for the DTC,...
The tax return completed by individual Canadians changes from one year to the next, as tax credits or deductions are introduced, eliminated, or changed, or reporting requirements are altered. The Cana...
The filing deadline for most individual income tax returns for the 2020 taxation year is Friday, April 30, 2021. Self-employed individuals and their spouses are not required to file their returns unti...
Last year, the federal government provided a deferral of the payment deadline for individual income taxes owed. No such deferral is allowed for this year, meaning that any balance of individual income...
The federal government, through the Canada Recovery Sickness Benefit, provides a weekly benefit of $500 to qualifying individual Canadians who are unable to work because they are sick or need to self-...
While gains made on a sale of a principal residence in Canada are generally tax exempt, there are reporting requirements imposed on such sales. In addition, certain tax credits may be claimed by home ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first half of 2021, as well as the rates that will apply for the purpose of ...
The most recent release of Statistics Canada’s Consumer Price Index shows a slight increase in the rate of inflation for the month of February 2021. That rate stood at 1.1%, as compared to the rate ...
The Minister of Finance has announced that the federal Budget for the upcoming 2021-22 fiscal year will be delivered on Monday April 19, 2021. This year’s Budget will be the first one delivered sinc...
Over the past month, the Canada Revenue Agency (CRA) identified a large number of individual taxpayer online accounts for which user IDs and passwords had been obtained by unauthorized third parties. ...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant increase in employment during the month of February. During that month, employment rose by 259,000 jobs, and th...
As expected, the Bank of Canada announced on March 10 that no changes would be made to current interest rates. Accordingly, the Bank Rate remains at 0.5%. In the press release announcing its decision,...
The Canada Revenue Agency (CRA) has announced that targeted interest relief will be provided to Canadians who received pandemic income support benefits during 2020. Specifically, qualifying individual...
The most recent release of Statistics Canada’s Consumer Price Survey shows a slight increase in the rate of inflation for January 2021. The inflation rate for that month, as measured on a year-over-...
The Canada Revenue Agency’s (CRA) NETFILE service for the filing of individual income tax returns for the 2017, 2018, 2019, and 2020 tax years is now available 21 hours a day, 7 days a week. The ser...
The Canada Revenue Agency (CRA) has issued the guide to be used by taxpayers who are reporting business or professional income, commission income, and income from farming and fishing received during 2...
The Canada Revenue Agency (CRA) has announced that, beginning February 27, 2021, its Individual Tax Enquiries line will be available on Saturdays, from 9 a.m. to 5 p.m. That service is also available ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
The Canada Revenue Agency (CRA) has announced that its individual income tax enquiries line will be open for extended hours during the upcoming tax filing season. That line — reachable at 1-800-959-...
The Canada Revenue Agency’s (CRA) NETFILE service for the online filing of individual income tax returns for the 2020 taxation year will be available starting Monday, February 22, 2021. In order to ...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant decline in employment during the month of January, and a corresponding increase in the overall unemployment rat...
The Canada Revenue Agency (CRA) has issued the individual income tax forms and guides to be used by Canadian residents in filing an income tax return for the 2020 taxation year. The particular form to...
The federal government has launched the consultation process leading to the release of the 2021-22 federal Budget. This year, there are three components to the consultation process. The government wil...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its regularly scheduled interest rate announcement made on January 20 the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 0....
The Canada Revenue Agency (CRA) has issued an updated version of Guide T4044, Employment Expenses 2020, which outlines the tax treatment of various employment expenses, and will be used by taxpayers i...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate inflation rose by 0.7% during the month of December 2020, as measured on a year-over-year basis. The rate for...
The Canada Revenue Agency (CRA) has released the automobile expense deduction limits and benefit rates which will apply during the 2021 taxation year. Most of the rates and limits which applied during...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of December 2020 increased to 8.6%. The comparable rate for the month of Nov...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first quarter of 2021, as well as the rates that will apply for the purpose ...
The Canada Revenue Agency’s (CRA) NETFILE service for the filing of individual income tax returns for the 2016, 2017, 2018, and 2019 taxation years will be available until Friday, January 22, 2021. ...
Post-secondary students in Canada are eligible for a range of tax credits and deductions, including a tuition tax credit, deductions for moving expenses, and a claim for qualifying student loan intere...
The Canada Revenue Agency (CRA) has announced that a new temporary home office tax credit may be claimable by qualifying individuals who worked from home during 2020. Taxpayers are eligible to use thi...
The Canada Revenue Agency (CRA) permits taxpayers to designate another person, firm, or business to communicate with the CRA on the taxpayer’s behalf, where a written authorization has been provided...
Taxpayers may apply to the Minister of National Revenue for administrative relief from interest and penalty charges imposed or, in some cases, for permission to late-file tax elections. In order to be...
In its regularly scheduled interest rate announcement made on December 9, the Bank of Canada announced that no change would be made to current interest rates. Accordingly, the Bank Rate remains at 0.5...
The most recent release of Statistics Canada’s Labour Force Survey shows that the rate of unemployment declined by 0.4% during the month of November. The unemployment rate for the month was 8.5%. Fu...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
On November 30, the Minister of Finance released the Fall Economic Statement, which included updated deficit projections for the current and future fiscal years. The deficit is now projected to reach ...
The federal government has announced that the program providing a wage subsidy to eligible businesses experiencing a pandemic-related revenue loss has been extended to be available until June 2021. Th...
The federal government has announced that its Fall Economic Statement for the 2020-21 fiscal year will be released on Monday November 30, 2020. The press release announcing the date and time of the St...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate of inflation for the month of October rose by 0.7%, as measured on a year-over-year basis. The comparable inc...
The federal government has released the premium rates and amounts which will apply in 2021 for purposes of the Employment Insurance (EI) program. For 2021, the EI premium rate will be 1.58% and maximu...
The Canada Revenue Agency (CRA) has announced upcoming changes in the allowable contribution limits for a range of retirement savings programs. For registered pension plans, the 2021 money purchase l...
The most recent release of Statistics Canada’s Labour Force Survey shows that the overall rate of unemployment stood at 8.9% for the month of October. While the unemployment rate for the month was l...
The tax treatment of non-monetary benefits provided by employers to their employees can vary widely. Some such benefits must be included in the employee’s taxable income for the year, while others a...
The Canada Revenue Agency (CRA) has announced the contribution rates and amounts which will apply for purposes of the Canada Pension Plan during 2021. For 2021, the employer and employee contribution ...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
In its October 28 announcement, the Bank of Canada indicated that, in its view, no change to current interest rates was needed. Accordingly, the Bank Rate remains at 0.5%. The press release announcing...
The Bank of Canada has released its schedule for policy interest rate announcements to be made during the 2021 calendar year, and that schedule is as follows: Wednesday, January 20 Wednesday, March 1...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation rose 0.5% on a year-over-year basis in September, up from a 0.1% increase in August. While pric...
In September, the Canada Emergency Response Benefit program came to an end, and three new programs to provide financial assistance to individuals impacted by the pandemic were launched. One of those p...
The most recent release of Statistics Canada’s Labour Force Survey shows that Canada’s overall unemployment rate declined by 1.2% during the month of September. For the month, that rate stood at 9...
The federal government has created three separate benefits which can be claimed by qualifying Canadians, following the end of the Canada Emergency Response Benefit (CERB) program. Applications for two...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers with respect to a tax scam currently operating, which involves claims for bad debt write-offs. While bad debts can be written off for ...
The federal government has created three separate benefits which can be claimed by qualifying Canadians, following the end of the Canada Emergency Response Benefit (CERB) program. Applications for two...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for 2020, as well as the rates that will apply for the purpose of calculating employ...
The Old Age Security benefit received by Canadians over the age of 65 is indexed quarterly to changes in the Consumer Price Index. The federal government has announced that the basic OAS benefit of $6...
The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the pr...
As part of its pandemic relief plan, the federal government provided eligible post-secondary students and recent post-secondary and high school graduates who were unable to find work for pandemic-rela...
Canadian taxpayers who pay income tax by instalment usually make four instalment payments each year, by the 15th day of March, June, September, and December. Earlier this year, the federal government ...
Earlier this year, the Canada Revenue Agency (CRA) announced that the deadline for payment of individual income tax balances for the 2019 tax year, which is usually April 30, was being extended to Wed...
The September release of Statistics Canada’s Labour Force Survey shows that the overall unemployment rate for the month of August stood at 10.2%. That rate represented a decrease of 0.7% from the ra...
The federal government has announced an increase in the amount of any overtime meal allowance, or meal portion of a travel allowance, that employers can provide to employees on a non-taxable basis. Th...
Eligibility for a number of refundable tax credits and benefits, including the harmonized sales tax/goods and services tax credit and the child tax benefit is based in part on a taxpayer’s income fo...
The pandemic emergency benefit program provided by the federal government for post-secondary students and recent secondary and post-secondary graduates ended on August 29, 2020. Those eligible for suc...
Since March 15 of this year, Canadians who have lost income as a result of the pandemic have been able to receive $500 per week from the Canada Emergency Response Benefit (CERB). The CERB program will...
Earlier this month, a cyberattack on the Canada Revenue Agency (CRA) and other agencies of the federal government compromised the personal tax and financial information of approximately 5500 taxpayers...
On July 17, the federal government announced that the existing Canada Employer Wage Subsidy (CEWS) program would be extended to be available until November 21, 2020, and that eligibility criteria for ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of July, as measured on a year-over-year basis, stood at 0.1%. The comparable rate ...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for July was 10.9%. The change means that the unemployment rate has fallen by 1.4 percentage poi...
Individual taxpayers who pay income tax by instalment are required to make four such instalment payments each year. The usual deadlines for such payments are the 15th day of March, June, September, an...
The Canada Revenue Agency (CRA) has posted a notice on its website indicating that it is experiencing delays in the processing of paper-filed individual income tax returns for the 2019 taxation year. ...
The Canada Revenue Agency (CRA) has announced that an interest waiver period will be provided to individual taxpayers with respect to income taxes owed. That waiver period will run from April 1 to Sep...
Earlier this year, the deadline for payment of individual income tax amounts owed for the 2019 taxation year was extended from April 30 to September 1, 2020. The federal government has now indicated t...
In its regularly scheduled interest rate announcement made on July 15, the Bank of Canada indicated that, in its view, no change to current interest rates was required. Accordingly, the Bank Rate rema...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
Canadian employers whose businesses have been affected by the pandemic may be eligible for a federal government wage subsidy – the Canada Emergency Wage Subsidy (CEWS). The CEWS, which pays the empl...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight decline in the rate of unemployment during the month of June. The unemployment rate for June stood at 12.3%, a decli...
On July 8, the federal government provided an update of its fiscal position for the current (2020-21) fiscal year, taking in account expenditures made in connection with the pandemic. That “Economic...
Earlier this year, the federal government announced that, as part of its pandemic relief measures, recipients of Old Age Security would receive an additional one-time payment. Such payment is intended...
The Canada Revenue Agency (CRA) has issued a Tax Tip reminding Canadians that its online filing services for the filing of individual income tax returns for the 2019 tax year are still open. Such indi...
The Old Age Security benefit received by Canadians over the age of 65 is indexed quarterly to changes in the Consumer Price Index. The federal government has announced that, as the rate of inflation d...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2020, as well as the rates that will apply for the p...
The federal government has announced that the Canada Emergency Response Benefit (CERB) program has been extended to be available for a further eight weeks in some circumstances. As originally designed...
The most recent release of Statistics Canada’s Consumer Price Survey shows that the rate of inflation fell by 0.4% during the month of May, as measured on a year-over-year basis. Prices were up in f...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate rose slightly during the month of May, from 13% to 13.7%. The StatsCan analysis indicates that une...
In its regularly scheduled interest rate announcement made on June 3 the Bank of Canada, as anticipated. made no change to current rates. Accordingly, the Bank Rate remains at 0.5%. In its announcemen...
Self-employed Canadians and their spouses must file an individual income tax return for the 2019 tax year on or before June 15, 2020. As part of the federal government’s pandemic response plan, howe...
Individual Canadians who pay income tax by instalments would normally be required to make the second instalment payment for this year on June 15, 2020. The Canada Revenue Agency (CRA) has indicated, h...
The Canada Revenue Agency (CRA) has announced that the deadline for filing of T2 returns by corporations and T3 returns by trusts has been extended. That announcement provides that all businesses and ...
Each year community organizations across Canada operate a number of tax clinics at which individual income tax returns are prepared and filed free of charge to the taxpayer. Due to concerns surroundin...
The benefit year for many federal benefits, like the Canada Child Benefit and the Goods and Services Tax Credit runs from July 1 to June 30. Eligibility for and the amount of such benefits are based, ...
The Canada Revenue Agency has issued a reminder to Canadians that there are circumstances in which the Canada Emergency Response Benefit (CERB) must be repaid. In particular, individuals who return to...
The federal government has announced that, in order to help seniors with additional costs resulting from the pandemic, a one-time supplement will be provided to Canadians who already receive Old Age S...
The Canada Revenue Agency (CRA) has issued an alert on its website warning Canadians of a scam operating with respect to the Canada Emergency Response Benefit (CERB). That Benefit, for which more than...
As part of its pandemic response, the federal government is providing eligible employers with a partial wage subsidy through the Canada Emergency Wage Subsidy (CEWS) program. The CEWS program provides...
The prescribed leasing rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2020, as well as the rates that will apply for the purpose ...
The April release of Statistics Canada’s Consumer Price Index shows a sharp decline in the rate of inflation for the month of March. That rate stood at 0.9%, as measured on a year-over-year basis. T...
The most recent release of Statistics Canada’s Labour Force Survey shows a significant increase in the rate of unemployment during the month of March. The April release of the Labour Force Survey, w...
The federal government has announced that required repayments of Canada Student Loans will be suspended until September 30th, 2020. Where payments are usually made by pre-authorized debit, such paymen...
In its regularly scheduled interest rate announcement made on April 15, the Bank of Canada indicated that, in its view, no change to current interest rates was required. Accordingly, the Bank Rate rem...
The federal government will be providing a wage subsidy program to eligible employers who have experienced a recent reduction in revenues of 30% or more. That program—the Canada Emergency Wage Subsi...
As of April 6, 2020, Canadians can apply for the federal Canada Emergency Response Benefit (CERB), which provides eligible individuals with $500 per week for a maximum of 16 weeks. The benefit is gene...
The federal government will be providing businesses with an extension with respect to remittance deadlines related to goods and services tax (GST) and harmonized sales tax (HST). The deferral will app...
In an unscheduled announcement made on March 27, the Bank of Canada lowered interest rates for the third time this month. In that announcement, the Bank reduced current rates by one-half percentage po...
The federal government has announced that, for the current benefit year only, the amount of Canada Child Benefit will be increased by a one-time payment of $300 per child. The $300 additional benefit ...
The deadline for filing of most 2019 individual income tax returns, as well as payment of any balance of tax owed for the 2019 taxation year by individual taxpayers would usually be April 30, 2020. Th...
Citing the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent drop in oil prices, the Bank of Canada has announced a further reduction in interest rates. The unsch...
The federal government has announced that the filing deadline for individual Canadian tax filers who would usually be required to file by April 30 has been extended to June 1, 2020. (Returns for 2019 ...
Canadian taxpayers who buy or sell a property during the year may be subject to requirements to report that transaction on their annual return and, in some cases, to pay tax on sale proceeds. The CRA ...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in the overall unemployment rate during the month of February. That rate rose by 0.1%, to 5.6%. During the mont...
The Canada Revenue Agency’s individual income tax enquiries telephone service will be available for extended hours during tax filing season. That enquiries service, which can be reached at 1-800-959...
In its regularly scheduled interest rate announcement made on March 4 the Bank of Canada indicated that, in its view, a reduction to current interest rates was required. Accordingly, the bank rate was...
The Canada Revenue Agency (CRA) has released its 2019 Guide to Self-Employed Business, Professional, Commission, Farming and Fishing Income for 2019. That Guide is used by taxpayers who are reporting ...
The Canada Revenue Agency’s NETFILE service for the filing of individual income tax returns for the 2019 taxation year is now available. The current NETFILE service, which can be found on the CRA we...
The Canada Revenue Agency (CRA) has announced that contributions to a registered retirement savings plan (RRSP), in order to be deducted on the return for 2019, must be made on or before Monday March ...
The most recent release of Statistics Canada’s Consumer Price Index shows an increase in the rate of inflation for the month of January. That rate stood at 2.4%, as measured on a year-over-year basi...
The most recent release of Statistics Canada’s Labour Force Survey shows that that unemployment rate dropped slightly during the month of January, from 5.6% to 5.5%. During that month, employment in...
The rates and limits for deduction and credit claims for meal and travel expenses are now posted on the Canada Revenue Agency (CRA) website. Such rates and limits apply to meal and travel expense clai...
In the 2019 Budget, the federal government introduced a new tax credit for digital news subscription costs incurred by individuals. That tax credit is available starting in the 2020 tax year. Individu...
In the 2019 Budget, the federal government introduced a new tax credit for digital news subscription costs incurred by individuals. That tax credit is available starting in the 2020 tax year. Individu...
The Canada Revenue Agency (CRA) publishes a guide for post-secondary students which outlines the rules governing typical tax situations for such students. Those rules include the tax treatment of tuit...
The Canada Revenue Agency (CRA) has announced that the NETFILE service for online filing of individual income tax returns for the 2019 tax year will be available beginning Monday, February 24, 2020. M...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide for all provinces and territories for the 2019 tax year, and those forms and guides are posted on its website at...
In its regularly scheduled interest rate announcement made on January 22, 2020, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remain...
The Canada Revenue Agency has announced the rates and limits which will apply for purposes of automobile-related benefits and deductions in 2020. Most such rates and limits are unchanged, as follows: ...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the first quarter (January 1 to March 31) of 2020. OAS payments are indexed quarterly to c...
The most recent release of Statistics Canada’s Labour Force Survey shows that employment increased by 35,000 jobs during the month of December and that the overall unemployment rate fell by 0.3%, to...
The federal government has announced that the basic personal tax credit, the spousal credit, and the eligible dependant credit amounts will increase, in four stages, from $12,298 to $15,000. The first...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first quarter of 2020, as well as the rates that will apply for the purpose ...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The federal government has announced the amounts which will be paid under the climate action incentive program during 2020. Such amounts are claimed when filing the individual income tax return for 20...
Taxpayers who have not yet filed their individual income tax returns for 2018 (or the three prior years) can file those returns on NETFILE until Friday, January 24, 2020. Until that date, the Canada R...
The 2019 Economic and Fiscal Update released on December 16 by the Minister of Finance shows a significant increase in the projected deficit for the current fiscal year. In the 2019-20 Budget announce...
Canadians who pay income tax by instalments are required to pay the fourth and final instalment payment of 2019 on or before Monday December 16, 2019. Taxpayers subject to the instalment payment requi...
Under the federal government’s Taxpayer Relief Program, the Minister of National Revenue can provide relief to taxpayers from interest or penalty charges which have been assessed. Such taxpayer reli...
In its regularly scheduled interest rate announcement made on December 4, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 2...
The Canada Revenue Agency has announced that personal income tax brackets and credit amounts for the 2020 taxation year will increase by 1.9%. Each year, such individual income tax brackets and cred...
The most recent release of Statistics Canada’s Consumer Price Index indicates that there was no change in the rate of inflation recorded for the month of October. That rate stood at 1.9%, as measure...
The Canada Revenue Agency has issued the 2020 version of Guide T4127, Payroll Deduction Formulas, which is intended for use by payroll software providers or companies which develop their own in-house ...
On Wednesday November 27, the Canada Revenue Agency (CRA) will be hosting a webinar on payroll requirements for Canadian employers. The webinar, which will start at 1:00 p.m. EST, is free of charge fo...
The Canada Revenue Agency (CRA) has updated and re-issued its tax guide for post-secondary students. That guide (P105, Students and Income Tax) reviews the tax treatment of common deductions and credi...
The federal government has announced the Employment Insurance (EI) premium rates which will be levied during 2020. For 2020, maximum insurable earnings for the year will be $54,200. The premium rate f...
The most recent release of Statistics Canada’s Labour Force Survey shows that there was no change in the overall unemployment rate for the month of October 2019, with that rate remaining at 5.5%. Am...
The Canada Revenue Agency has issued its Employer’s Guide: Payroll Deductions and Remittances for 2020 (T4001(E)). That guide provides employers with information on the deductions which must be made...
The federal government has announced the contribution rates and amounts and maximum pensionable earnings which will apply for purposes of the Canada Pension Plan in 2020. Employee and employer contrib...
Employers are required, by the end of February 2020, to issue T4 slips for their employees for the 2019 taxation year. Those T4s will summarize the amount of remuneration received by the employee duri...
In its regularly scheduled interest rate announcement made on October 30, 2019, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate will r...
As previously announced, changes are to be made to the Canada Pension Plan over the next 5 years, with the goal of increasing the amount of CPP retirement benefits available to contributors. The next ...
The federal government provides a detailed online retirement income calculator which can be used by taxpayers planning retirement. The online calculator allows users to input income amounts from vario...
The overall inflation rate was unchanged for the month of September, with that rate matching the 1.9% year-over-year increase posted for the month of August 2019. The greatest contributor to the infla...
The most recent release of Statistics Canada’s Labour Force Survey shows a sharp increase in job creation for the month of September. During that month employment rose by 54,000, mainly in full-time...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The federal government has announced the Employment Insurance premium rates and amounts which will be levied during the 2020 calendar year. For 2020, the Employment Insurance premium rate is decreased...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the fourth quarter (October 1 to December 31) of 2019. OAS payments are indexed quarterly ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for 2019, as well as the rates that will apply for the purpose of calculating emp...
The Canada Revenue Agency (CRA) has updated and re-issued its publication on the conduct of tax audits. The updated publication (RC4188E)) outlines the process by which the CRA chooses a file for audi...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of August stood at 1.9%, as measured on a year-over-year basis. The inflation rate ...
Finance Canada has released the Annual Financial Report of the Government of Canada for 2018-19, which provides an overview of the federal government’s financial results for the 2018-19 fiscal year ...
Each September thousands of international students move to (or return to) Canada to attend Canadian secondary or post-secondary educational institutions. Depending on their residency status, those stu...
The most recent release of Statistics Canada’s Labour Force Survey shows that employment increased by 81,000 positions during the month of August 2019. Notwithstanding that increase, the unemploymen...
In its regularly scheduled interest rate announcement made on September 4, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at ...
Individual taxpayers who make quarterly instalment payments of tax must make the third such instalment payment for the year on or before September 15. As that date falls on a Sunday this year, payment...
The Bank of Canada has released a listing of the eight dates on which it will make regularly scheduled interest rate announcements during 2020. That listing is as follows: Wednesday, January 22 Wedne...
The Canada Revenue Agency has issued a Tax Tip warning owners of self-directed RRSPs about a current tax scheme which they may encounter. Promoters of such schemes falsely promise owners of self-direc...
The Canada Revenue Agency has updated and re-issued its Information Circular outlining the rules and requirements which apply to taxpayers who keep business and tax books and records in electronic for...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation recorded for the month of July was unchanged from the previous month. For both June and July, tha...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, which includes the applicable rate for the upcoming month, as well as the rates in ...
The most recent release of Statistics Canada’s Labour Force Survey shows a slight increase in the unemployment rate for the month of July, as measured on a year-over-year basis. For that month, the ...
The Canada Revenue Agency (CRA) has issued a Tax Tip reminding taxpayers of the procedures which it utilizes to protect their personal information, particularly with respect to contacts between taxpay...
Individuals who are required to pay income tax by instalments must make their third quarterly instalment for 2019 on or before September 15, 2019. As that date is a Sunday, such payments are considere...
The federal government provides tax relief to livestock producers who are experiencing severe weather or climate conditions during the year. Such relief is provided through the livestock tax deferral ...
The Bank of Canada has released the listing of dates on which it will make scheduled interest rate announcements during calendar year 2020. There will be 8 such scheduled interest rate announcements d...
Prospective mortgage borrowers in Canada are subject to a “stress test” as part of the assessment of their credit-worthiness. Under that test, such borrowers are required to qualify for a mortgage...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation during the month of June 2019 stood at 2%. The comparable rate for May was 2.4%. The decr...
The Canada Revenue Agency (CRA) formerly provided taxpayers with a listing of prescribed interest rates for leasing, with such listing including the applicable rate for the upcoming month, as well as ...
The most recent release of Statistics Canada’s Labour Force Survey shows that, although the unemployment rate for the month of June rose by 0.1%, employment increased by 132,000 positions during the...
In its regularly scheduled interest rate announcement made on July 10, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the bank rate remains at 2%. ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first three quarters of 2019, as well as the rates that will apply for th...
July 1, 2019 is the start of the 2019-20 benefit year for many provincial and federal child and tax benefits, including the federal GST/HST credit and the Canada Child Benefit. As of that date, the pa...
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the third quarter (July 1 to September 30) of 2019. OAS payments are indexed quarterly to ...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of July 2019. The prescribed rate for July is 2.75%. A chart showi...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of May 2019, as measured on a year-over-year basis, stood at 2.4%. Inflation during...
Under the Canadian tax system, employee stock options receive preferential tax treatment. In this year’s Budget the federal government indicated that, in its view, the existing rules on stock option...
In this year’s federal Budget, a new program was announced to benefit first-time home buyers. Under that program, the First-Time Home Buyer’s Incentive, the Canada Mortgage and Housing Corporation...
Effective as of July 2019, the amount of Canada Child Benefit (CCB) payable to eligible Canadian families will be increased to account for inflation. Starting with the July payment (which will be made...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in the overall unemployment rate recorded for the month of May. The unemployment rate for that month stood at...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the month of June 2019. The prescribed rate for that month will be increase...
Individual taxpayers who pay income tax by instalments must make their second instalment payment for 2019 on or before June 17, 2019. Such taxpayers will have received an instalment notice setting out...
Self-employed taxpayers (and their spouses) have until Monday June 17, 2019 to file their income tax returns for the 2018 tax year. Returns filed after that date will be subject to late-filing penalti...
In its regularly scheduled interest rate announcement made on May 29, the Bank of Canada indicated that, in its view, no change was needed to current interest rates. Consequently, the Bank Rate remain...
The federal government and many of the provinces provide benefit programs for which both entitlement and benefit amount are based, at least in part, on the income of the recipient taxpayer. Those bene...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of April stood at 2%, as measured on a year-over-year basis. Seven of the eight maj...
The Canada Revenue Agency (CRA) has issued a Tax Tip confirming that the filing deadline for individual income tax returns filed for the 2018 tax year by self-employed individuals and their spouses is...
The most recent release of Statistics Canada’s Labour Force Survey shows growth in employment during the month of April for nearly all demographic groups. The overall unemployment rate for the month...
The Canada Revenue Agency (CRA) has issued a warning about a current tax scheme involving Health Spending Accounts (HSAs) which are being marketed to small businesses. HSAs are self-insured health pla...
The federal government has announced that, effective with the July 2019 payment, Canada Child Benefit rates will increase.As of July, the maximum benefit for a child under the age of 6 will increase t...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the month of May 2019. The prescribed rate for that month will be reduced t...
The Canada Revenue Agency (CRA) has issued a press release reminding taxpayers who have been affected by this spring’s floods of the availability of relief with respect to their obligation to file a...
The most recent release of Statistics Canada’s Consumer Price Index shows a significant increase in the rate of inflation recorded for the month of March 2019. During that month, the CPI rose 1.9%, ...
The Bank of Canada, in its regularly scheduled interest rate announcement made on April 24, determined that no change was needed to current rates. The Bank Rate therefore remains at 2%. The press rele...
The federal government has announced the Old Age Security payment rates which will be in effect for the second quarter (April 1 to June 30) of 2019. OAS payment rates are indexed quarterly to inflatio...
All payments of individual income tax owed for the 2018 taxation year must be received by the Canada Revenue Agency (CRA) on or before Tuesday April 30, 2019. There are a number of means by which paym...
The Canada Revenue Agency (CRA) has issued an updated guide to be used by taxpayers who are claiming medical expenses on their income tax returns for 2018. Individual taxpayers are entitled to claim a...
The most recent release of Statistics Canada’s Labour Force Survey indicates that there was no change in the overall unemployment rate for the month of March. That rate remained at 5.8%. Employment ...
The Canada Revenue Agency has announced the prescribed interest rates for leasing rules which will be in effect during the month April 2019. The prescribed rate for the upcoming month is 3.1%. A chart...
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first half of 2019, as well as the rates that will apply for the purpose of cal...
The Canada Revenue Agency (CRA) has posted a number of Tax Tips for seniors and students on its website. Those Tax Tips list and explain particular credits, deductions, or benefits which are most like...
The most recent release of Statistics Canada’s Consumer Price Survey indicates that the rate of inflation for the month of February, as measured on a year-over-year basis, stood at 1.5%. The compara...
Budget 2019 is proposing that the excise duty framework for cannabis products be amended to more effectively apply the excise duty on new classes of cannabis products, as well as to cannabis oils, whi...
Budget 2019 proposes to expand health-related tax relief under the Goods and Services Tax/Harmonized Sales Tax (GST/HST) system to better meet the health care needs of Canadians by: providing GST/HST...
Budget 2019 announces the Government’s intent to limit the use of the current employee stock option tax regime and move toward aligning the tax treatment with the United States for employees of larg...
Budget 2019 proposes that the Canada Revenue Agency (CRA) will be allowed to send requirements for information electronically to a bank or credit union only if the bank or credit union notifies the CR...
Budget 2019 proposes that the joint and several liability for tax owing on income from carrying on a business in a TFSA be extended to the TFSA holder. The joint and several liability of a trustee of ...
Budget 2019 proposes to introduce a new rule that would deny a mutual fund trust a deduction in respect of the portion of an allocation made to a unitholder on a redemption of a unit of the mutual fun...
Budget 2019 proposes to prohibit Individual Pension Plans (IPPs) from providing retirement benefits in respect of past years of employment that were pensionable service under a defined benefit plan of...
To bring the Specified Multi-Employer Plan (SMEP) rules in line with the pension tax provisions that apply to other defined benefit RPPs, Budget 2019 proposes to amend the tax rules to prohibit contri...
Amounts paid for cannabis products may be eligible for the medical expense tax credit where such products are purchased for a patient for medical purposes in accordance with the Access to Cannabis for...
A recent court decision related to the interpretation of “national importance” has created uncertainty about the availability of these tax incentives. Budget 2019 proposes to introduce legislative...
Budget 2019 proposes to amend the Income Tax Act to clarify that financial assistance payments received by care providers under a kinship care program are neither taxable nor included in income for th...
Budget 2019 proposes to amend the Income Tax Act to clarify that an individual may be considered to be the parent of a child in their care for the purpose of the Canada Workers Benefit, regardless of ...
To ensure that the Registered Disability Savings Plan (RDSP) continues to respond to the needs of Canadians with disabilities, Budget 2019 proposes two changes that will better protect the long-term s...
Budget 2019 proposes to amend the tax rules to permit PRPPs and defined contribution RPPs to provide a variable payment life annuity (VPLA) to members directly from the plan. A VPLA will provide payme...
Budget 2019 proposes to amend the tax rules to permit an advanced life deferred annuity (ALDA) to be a qualifying annuity purchase, or a qualified investment, under certain registered plans. An ALDA w...
To improve the consistency of the tax treatment of owners of multi-unit residential properties in comparison to owners of single-unit residential properties, Budget 2019 proposes to allow a taxpayer t...
Budget 2019 proposes to increase the Home Buyers’ Plan (HBP) withdrawal limit to $35,000. This would be available for withdrawals made after March 19, 2019. Budget 2019 also proposes to extend acces...
Budget 2019 proposes this new, non-taxable credit that would help Canadians pay for training fees. Every year, eligible workers between the ages of 25 and 64 would accumulate a credit balance of $250 ...
Budget 2019 proposes to: extend the foreign affiliate dumping rules in the Income Tax Act to prevent a corporation resident in Canada that is controlled by a non-resident individual or trust from red...
In Budget 2019, the Government proposes further amendments to the Income Tax Act to make the beneficial ownership information maintained by federally incorporated corporations more readily available t...
Budget 2019 proposes an amendment that introduces an additional qualification for the commercial transaction exception in the definition “derivative forward agreement” as the exception applies to ...
Budget 2019 proposes to add The Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-speaking Communities of the Kingdom of Bel...
Budget 2019 proposes to repeal the use of taxable income as a factor in determining a CCPC’s annual expenditure limit for the purpose of the enhanced SR&ED tax credit. As a result, small CCPCs w...
Budget 2019 proposes to eliminate the requirement that sales be to a farming or fishing cooperative corporation in order to be excluded from specified corporate income. As such, this exclusion will ap...
Budget 2019 proposes that these vehicles be eligible for a full tax write-off in the year they are put in use. Qualifying vehicles will include electric battery, plug-in hybrid (with a battery capacit...
Budget 2019 proposes to introduce three new tax measures to support Canadian journalism: allowing journalism organizations to register as qualified donees; a refundable labour tax credit for qualifyi...
The most recent release of Statistics Canada’s Labour Force survey shows that, while the rate of unemployment for the month of February was unchanged, employment grew by 56,000 positions. The unempl...
In its regularly scheduled interest rate announcement made on March 6, the Bank of Canada indicated that, in its view, no change was needed to current rates. Accordingly, the Bank Rate remains at 2% I...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows a drop in the rate of inflation for the month of January. That rate, as measured on a year-over-year basis, was 1.4%. ...
The first instalment payment of individual income taxes for the 2019 tax year is due on or before Friday March 15, 2019. Individuals who have previously paid tax by instalments will have received an i...
The Canada Revenue Agency (CRA) has announced that its Individual Income Tax Enquiries line (1-800-959-8281) is now available for extended hours. Until April 30, 2019, telephone agents will be availab...
The Minister of Finance has announced that the 2019-20 federal Budget will be brought down on Tuesday, March 19, 2019. Once the Budget is released, at around 4 p.m., the Budget Papers will be posted o...
The 2018 T1 Individual Income Tax Return and Guide package is now available on the Canada Revenue Agency (CRA) website at https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packag...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for the filing of individual income tax returns is available as of Monday, February 18, 2019. The current NETFILE service (which ...
The Canada Revenue Agency (CRA) has issued a Tax Tip for post-secondary students and graduates who will be filing an income tax return for the 2018 tax year. That Tax Tip, which can be found on the CR...
During the month of January, the number of people employed in Canada rose by 67,000, with that figure attributable for most part to increased employment of those aged 15 to 24 and those working in the...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of March 2019. That prescribed rate for the month of March will be...
The Canada Revenue Agency (CRA) has posted a Tax Tip which lists the tax deductions and credits which are most relevant to seniors, and which can be claimed by eligible seniors when preparing and fili...
The Canada Revenue Agency (CRA) has announced that its NETFILE service for the filing of individual income tax returns for the 2018 tax year will be available online on Monday February 18, 2019. The N...
Effective as of February 11, 2019, the Canada Revenue Agency (CRA) will be merging its online mail and account alerts services. Notification of the change is being sent to users of those services, and...
Finance Canada has issued a reminder that the current consultation process with respect to the upcoming 2019-20 federal Budget will end on Tuesday, January 29, 2019. Interested stakeholders can make t...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation, as measured on a year-over-year basis, stood at 2% during the month of December 2018. The equiva...
Finance Canada has announced the automobile deduction limits and expense benefit rates which will apply to businesses and their employees during the 2019 taxation year. Most of the limits which applie...
In its regularly scheduled interest rate announcement made on January 9, 2019, the Bank of Canada indicated that no change would be made to current interest rates. The Bank Rate therefore remains at 2...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will be in effect during the months of January and February 2019.The prescribed rate for January is ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2019, as well as the rates that will apply for the purpo...
Over the next seven years, significant changes will be made to the Canada Pension Plan. Those changes will result, overall, in an increase of about 50% in the maximum retirement benefit. The first suc...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of November, as measured on a year-over-year basis, stood at 1.7%. The comparable r...
Taxpayers who have not yet filed their individual income tax returns for 2017 (or the three prior years) can file those returns on NETFILE until Friday, January 25, 2019. Until that date, the Canada R...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of January 2019. The prescribed rate for that month will be 3.39%....
Where taxpayers fail to meet their tax filing or payment obligations, penalties and interest are usually levied for that failure. However, the Minister of National Revenue has the authority to forgive...
The most recent release of Statistics Canada’s Labour Force Survey shows that the unemployment rate for the month of November was the lowest recorded since 1976. The unemployment rate for the month,...
In its regularly scheduled interest rate announcement made on December 5, the Bank of Canada indicated that, in its view, no change to current interest rates was needed. Accordingly, the Bank Rate rem...
The federal government will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $12,069 Spouse or common law partner amount …...
The most recent release of Statistics Canada’s Consumer Price Index shows a slight increase in the rate of inflation rate for the month of October. That rate rose 2.4%, following a 2.2% increase for...
Finance Canada has announced details of the consultation process leading up the release of the 2019-20 Federal Budget next spring. The budget consultation process will include both in-person and digit...
In the 2018-19 Fall Economic Statement, the Minister of Finance announced that three new tax initiatives would be introduced to support both traditional and digital news organizations. Those changes w...
In the Fall Economic Statement issued on November 21, the Minister of Finance announced new tax measures that would: allow businesses to immediately write off the cost of machinery and equipment used...
Some of the non-monetary benefits which employers provide to their employees must be included in the employee’s income and taxed as such. Each year, employers must include the amount of any such tax...
The Canada Revenue Agency (CRA) provides a mobile web app for small business owners and sole proprietors which enables them to manage their business tax accounts on any browser-enabled mobile device. ...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in unemployment during the month of September. That rate stood at 5.8%, down 0.1% from the rate posted for Au...
The Canada Revenue Agency has announced the contribution rates and amounts for the Canada Pension Plan which will apply during the 2019 calendar year, and that announcement can be found at https://www...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of November. The prescribed rate for that month will be 3.43%. A c...
The Canada Revenue Agency (CRA) (as well as other federal government departments and agencies) has issued information indicating how government payments will be handled during the current postal disru...
The most recent release of Statistics Canada’s Consumer Price Index shows that the inflation rate for the month of September stood at 2.2%, as measured on a year-over-year basis. The comparable rate...
In its regularly scheduled interest rate announcement made on October 24, the Bank of Canada once again increased the bank rate, which now stands at 2%.In the press release announcing the increase, wh...
The federal government has announced the maximum Old Age Security (OAS) benefit amount which will be paid to eligible recipients in the last quarter — October, November, and December — of 2018. Th...
In some circumstances, taxpayers are entitled to request a reduction in the amount of tax being deducted at source from their income. An employee can request that the amount of income tax being deduct...
A number of changes have been made over the past few years to the Canada Pension Plan (CPP), with those changes generally providing greater flexibility to CPP contributors. Some of those changes parti...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decrease in the overall unemployment rate for the month of September. That rate decreased from the 6% rate recorded f...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of October. The prescribed rate for that month will be 3.33%. A ch...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the fourth quarter of 2018, as well as the rates that will apply for the purp...
While the deadline for filing of individual income tax returns for the 2017 tax year (for both employees and the self-employed) has passed, the Canada Revenue Agency’s (CRA’s) NETFILE service thro...
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of August 2018 stood at 2.8%, as measured on a year-over-year basis. The comparable...
Canada’s tax system is one based on residency, and individuals who are considered to be residents of Canada are subject to federal and provincial tax. The federal government has issued a fact sheet ...
The Minister of Finance has announced that the employment insurance premium rate payable by employees and the self-employed for the 2019 tax year will be reduced. The premium rate for that year will b...
The federal government has updated and re-issued its guide to child benefits paid by the federal and several provincial governments. The updated guide (T4114), which is available on the Canada Revenue...
The most recent release of Statistics Canada’s Labour Force Survey shows a small increase in the unemployment rate posted for the month of August. That rate rose by 0.2%, from 5.8% to 6%. Most of th...
The Canada Revenue Agency (CRA) can provide interest and penalty relief to taxpayers who are unable to meet their tax filing or payment obligations due to circumstances beyond their control, including...
In its scheduled interest rate announcement made on September 5, the Bank indicated that no change would be made to current interest rates. Accordingly, the Bank Rate remains at 1.75%. The Bank acknow...
Each year the Canada Revenue Agency (CRA) sends a letter and questionnaire to approximately 350,000 taxpayers, seeking to determine whether such taxpayers are receiving the correct tax credits and ben...
The due date for the third instalment payment of 2018 income taxes by individuals falls on September 15, 2018. As that date is a Saturday, instalment payments will be considered to be made on time if ...
The federal government has announced that changes will be made to the administrative rules governing the extent to which charities can engage in non-partisan political activities. The intended amendme...
The most recent release of Statistics Canada’s Consumer Price Survey shows a significant increase in inflation for the month of July. That rate, as measured on a year-over-year basis, stood at 3%. T...
The most recent release of Statistics Canada’s Labour Force Survey indicates that the overall rate of unemployment was down slightly for the month of July. That rate stood at 5.8%, down by 0.2% from...
The Minister of Finance has announced that two major payment card networks have agreed to lower costs charged to small and medium-sized businesses. Both VISA and Mastercard have agreed to reduce domes...
The Canada Revenue Agency (CRA) prepares and posts on its website a number of podcasts and webinars covering tax and tax-related issues of particular interest to small businesses. There are currently ...
The Bank of Canada has issued a listing of the dates on which it will make announcements during the 2019 calendar year with respect to current interest rates. There are eight such interest rate announ...
The Canada Mortgage and Housing Corporation (CMHC) has announced that, effective as of October 1, 2018, changes will be made to the process by which self-employed taxpayers are assessed for mortgage f...
The Canada Revenue Agency (CRA) has updated and re-issued its Form RC366, which allows businesses to have amounts owed to them deposited directly to a bank account. The updated form can be used to eit...
The Canada Revenue Agency (CRA) has updated and re-issued its publication RC4092(E) on Registered Education Savings Plans. The updated publication incorporates changes, originally announced as part of...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of June, as measured on a year-over-year basis, stood at 2.5%. That change ...
The Canada Revenue Agency (CRA) has announced the prescribed interest rates for leasing rules which will apply during the months of July and August 2018. Those prescribed rates will be 3.28% for July ...
The Canada Revenue Agency has updated and re-issued its publication outlining the tax treatment of funds held in a RRIF on the death of the RRIF annuitant. The updated publication (RC4178(E)) also rev...
While employment rose by 32,000 during the month of June, the unemployment rate was also up, by 0.2%, a result attributed by Statistics Canada an increase in the number of individuals seeking to enter...
In its regularly scheduled interest rate announcement made on July 11, the Bank of Canada indicated that it was increasing its benchmark interest rate by one-quarter of a percentage point. Accordingly...
Each year, the Canada Revenue Agency reviews approximately 3 million returns which have already been filed and assessed. Generally, such reviews are carried out to confirm income amounts reported, and...
Old Age Security (“OAS”) benefits received by Canadians are indexed to changes in the overall Consumer Price Index, and are adjusted each quarter to reflect increases in that Index.The federal gov...
The most recent release of Statistics Canada’s Consumer Price Index indicates the rate of inflation for the month of May stood at 2.2%. The same rate was recorded for the month of April, and both ra...
The Canada Revenue Agency (CRA) has re-issued the payroll deductions online calculator to be used by employers in calculating employee source deductions as of July 1, 2018. The updated version of that...
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of July. The prescribed rate for that month will be 3.28%. A chart...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the third quarter of 2018, as well as the rates that will apply for the purpo...
The Canada Revenue Agency has updated and re-issued its standard form for filing an objection to a Notice of Assessment or Reassessment. The 2018 T-400A E, Notice of Objection, can be found on the CRA...
The most recent release of Statistics Canada’s Labour Force Survey shows little change in unemployment during the month of May. For the fourth consecutive month, that rate stood at 5.8%. There was s...
The filing deadline for individual income tax returns for the 2017 year for self-employed individuals and their spouses is midnight Friday June 15, 2018. Returns can be filed using the Canada Revenue ...
For Canadians who make quarterly instalment payments of personal income tax, the next due date for such payment is Friday June 15, 2018. The Canada Revenue Agency has posted a notice on its website in...
The Canada Revenue Agency (CRA) has issued a reminder to taxpayers who have been affected by this spring’s floods of the availability of administrative tax relief. Under the federal government’s T...
In its regularly scheduled interest rate announcement made on May 30, the Bank of Canada indicated that, in its view, no change was needed to current interest rates. Accordingly, the Bank Rate remains...
The Canada Revenue Agency (CRA) has issued updated payroll deduction formulas for use by employers for payroll periods beginning after July 1, 2018. The updated formulas reflect changes in provincial ...
The most recent release of Statistics Canada’s Consumer Price Index shows that the overall rate of inflation for the month of April stood at 2.2%, as measured on a year-over-year basis. The rate for...
The Canada Revenue Agency (CRA) will be making changes to its distribution method for GST/HST reporting and remittance forms for small businesses, with those changes generally directed toward reducing...
The most recent release of Statistics Canada’s Labour Force Survey indicates that there was no change during the month of April to either employment figures or the overall unemployment rate. That un...
The Canada Revenue Agency prepares and posts podcasts on a number of different tax topics, both individual and corporate. Those podcasts are available for download from the CRA website. The current se...
The Canada Revenue Agency has announced the prescribed interest rates for leasing rules which will be in effect during the months of May and June 2018. Those prescribed rates will be 3.22% during the ...
Taxpayers who have filed their return for the 2017 tax year and are expecting to receive a refund can track the status of that refund payment through a toll-free telephone line. That line, the CRA’s...
The Canada Revenue Agency (CRA) has issued a warning to taxpayers of the need to be particularly vigilant with respect to fraudulent text, telephone, and e-mail communications, which increase during t...
The most recent release of Statistics Canada’s Consumer Price Index indicates that the rate of inflation stood at 2.3% during the month of March 2018, as measured on a year-over-year basis. The year...
The Canada Revenue Agency (CRA) has issued a reminder that all individual income tax balances owed for the 2017 tax year must be paid on or before Monday April 30, 2018. April 30 is also the deadline ...
The most recent release of Statistics Canada’s Labour Force Survey shows that the rate of unemployment for the month of March 2018 stood at 5.8%. The same rate was recorded for February 2018. Employ...
In its regularly scheduled interest rate announcement made on April 18, the Bank of Canada indicated that no change was required to current interest rates. Accordingly, the Bank Rate will remain at 1....
It is not uncommon for taxpayers to discover an error or omission in an already-filed return, and the usual means by which such error can be corrected is the filing of a T1-Adjustment form. While a co...
The Canada Revenue Agency (CRA) has issued a reminder to taxpayers who receive income from the “sharing economy” that such income is taxable and must be reported on the annual tax return. Although...
The Bank of Canada’s regularly scheduled interest rate announcement dates for the remainder of calendar year 2018 are as follows: April 18, 2018; May 30, 2018; July 11, 2018; September 5, 201...
Proceeds received from the sale of one’s principal residence are, in most circumstances, not taxable, as such sales are eligible for the principal residence exemption. However, as of the 2016 tax ye...
The most recent release of Statistics Canada’s Consumer Price Index shows a sharp increase in inflation for the month of February. That rate stood at 2.2%, while the rate for January 2018 was 1.7%. ...
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the second quarter of 2018, as well as the rates that will apply for the purpose...
While taxpayers fall victim to tax scams year-round, such scams are more prevalent during and just following tax filing season. During that time, taxpayers expect to hear from the tax authorities, a...
In December 2017, the Canada Revenue Agency (CRA) announced that substantive changes would be made to the Agency’s Voluntary Disclosure Program (VDP). That program enables taxpayers who are in defau...
The Canada Revenue Agency has issued its Guide RC4018, Electronic Filers Manual for 2017 Income Tax and Benefit Returns. That guide is for use by certified e-filers in filing individual income tax ret...
The most recent release of Statistics Canada’s Labour Force Survey shows a small decline in the overall unemployment rate for the month of February 2018. That rate declined from 5.9% in the month of...
The most recent release of Statistics Canada’s Consumer Price Index indicates that the rate of inflation for the month of January 2018 stood at 1.7%. The rate for the previous month was 1.9%. Inflat...
In its regularly scheduled interest rate announcement made on March 7, the Bank of Canada indicated that no change would be made to current interest rates. Accordingly, the bank rate remains at 1.5%. ...
Budget 2018: No personal tax credits have been repealed, and there are no new personal tax rate changes....
Budget 2018: Foreign-born Status Indians may now be eligible for child benefits, retroactive to 2005....
Budget 2018: Eligibility of specially trained service animals will be expanded for the purposes of the medical expense tax credit....
Budget 2018: Taxpayers will no longer need to apply when filing their return in order to receive the Canada Workers Benefit....
Budget 2018: The Working Income Tax Benefit amounts are enhanced as of 2019, and the credit is renamed the Canada Workers Benefit...
Budget 2018: The non-resident surplus stripping rules are tightened to address the use of partnerships and trusts....
Budget 2018: Where a CRA compliance order or information requirement is contested, a new rule will “stop the clock” to prevent the tax year from being statute barred....
Budget 2018: A corporation will have two RDTOH accounts going forward: eligible and non-eligible RDTOH....
Budget 2018: A corporation with $100,000 of investment income will have its small business limit reduced to $250,000....
Budget 2018: A corporation’s small business limit will be reduced where the corporation earns investment income exceeding $50,000....
The Canada Revenue Agency (CRA) provides a 1-800 telephone service to provide tax information to Canadian taxpayers. Such information can be general in nature, or can involve the specific tax affairs ...
The Canada Revenue Agency’s NETFILE service for filing of individual income tax returns will be available starting Monday February 26, 2018. Taxpayers do not need to obtain an access code to file th...
The most recent release of Statistics Canada’s Labor Force Survey shows a slight increase in the overall unemployment rate for the month of January. That rate rose by 0.1%, from 5.8% to 5.9%. That c...
The Federal Minister of Finance has announced that the 2018-19 federal Budget will be brought down on Tuesday, February 27, 2018. The Budget will be released at around 4 p.m. and the full Budget Paper...
This year, the Canada Revenue Agency (CRA) will be providing taxpayers with hard copies of the 2017 Income Tax and Benefit package through a variety of means, and at various dates. Individuals who pap...
The Canada Revenue Agency (CRA) has announced the date on which NETFILE service for the filing of individual income tax returns for the 2017 tax year will be available. NETFILE service will be availab...
While the majority of Canadians now file their individual income tax returns electronically, there is still a significant minority of tax filers who file using a printed return. The Canada Revenue Age...
The Canada Revenue Agency (CRA) has posted a notice on its website that an “update” has been made to individual 2017 tax forms. Those forms are to be used by individual Canadians to file their ret...
For a number of years, taxpayers whose tax situation was relatively straightforward were able to file their return by telephone. That service, which was called TELEFILE, was withdrawn a few years ago....
The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2018, as well as the rates that will apply for the purpo...
As widely expected, the Bank of Canada indicated, in its regularly scheduled interest rate announcement made on January 17, that an increase in the bank rate was required. The Bank’s announcement, w...
Finance Canada has announced that the consultation process leading to the release of the 2018-19 federal Budget will conclude on Friday January 26, 2018. Canadians can provide input by submitting thei...
The Canada Revenue Agency has released the T1 Individual Income Tax Return and Benefit form to be used by individual Canadian taxpayers in filing their return for the 2017 tax year. The T1 form is ava...
The most recent release of Statistics Canada’s Labour Force Survey indicates that the unemployment rate for the month of December 2017 stood at 5.7%. The last period for which that rate was recorded...
As previously announced, the federal small business tax rate is reduced to 10.0%, effective as of January 1, 2018. There is no change in the federal small business limit, which remains at $500,000. Th...
Finance Canada has announced the limits and thresholds which will apply for purposes of determining automobile benefits and deductions during 2018. Most such deduction limits and thresholds are unchan...
Planned changes to the federal income tax rules governing the taxation of small incorporated Canadian businesses are to take effect for 2018. One of those changes will include greater restrictions on ...
The Canada Revenue Agency (CRA) provides an administrative program under which taxpayers who have failed to file returns or pay taxes on a timely basis can bring their tax affairs into compliance, usu...
Taxpayers who are turning age 71 during the year and who have available contribution room are entitled to make a final RRSP contribution for that year. Such contributions must be made by the end of th...
Taxpayers who have not yet filed their return for the 2016 tax year will have until January 19, 2018 to file that return using NETFILE. Until that date, returns for the 2013, 2014, 2015, and 2016 tax ...
In its regularly scheduled interest rate announcement made on December 6, the Bank of Canada indicated that, in its view, no change is required to current rates. Accordingly, the bank rate remains at ...
The most recent release of Statistic’s Canada’s Labour Force Survey shows a slight decline in the overall unemployment for the month of November. That rate declined by 0.4%, to 5.9%. The November ...
The Canada Revenue Agency has issued the 2018 version of its publication T4127(E), Payroll Deductions Formulas. The guide is intended for use by payroll software providers and by employers which manag...
The Canada Revenue Agency has issued the federal TD1 Form and Worksheet which will be used by taxpayers and their employers to determine required federal income tax source deductions for the upcoming ...
The most recent release of Statistics Canada’s Consumer Price Index (CPI) shows an inflation rate of 1.4% for the month of October, as measured on a year-over-year basis. The equivalent rate for the...
Finance Canada has begun the consultation process leading to the release of the 2018-19 federal Budget. As part of that budget consultation process, the Minister of Finance is holding in-person public...
Effective as of January 8, 2018, administrators and representatives of qualifying Canadian trusts will be able to file trust income tax and information returns online, through the Canada Revenue Agenc...
The federal government has announced the premium rates and maximum insurable earnings amount which will be in place for the 2018 calendar year. The premium rate for the year for employees has been set...
The Canada Revenue Agency (CRA) has announced the contribution rates and amounts for both employers and employees which will apply for 2018. Maximum pensionable earnings for the year will be $55,900 (...
Alberta corporations are required to file a provincial corporate income tax return within six months from the end of the corporation’s tax year. Corporations having a December 31, 2022 year end must...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates which will be levi...
In its recent 2023-24 budget, the provincial government introduced a new non-refundable tax credit for investments in the agri-food sector. That new credit is available for investments made on or afte...
In its budget for the 2023-24 fiscal year, the province announced that the amount of expenses claimable for purposes of the Alberta adoption tax credit would be increased, effective as of January 1, 2...
In its budget for the 2023-24 fiscal year, the government of Alberta announced that the provincial tax credit provided for charitable donations would be increased. As of January 1, 2023, the provincia...
The Canada Revenue Agency has issued a News Release summarizing this year’s tax filing and payment deadlines for Alberta residents, together with a listing of changes which Alberta taxpayers will se...
The Alberta Minister of Finance has announced that the province’s budget for the upcoming 2023-24 fiscal year will be brought down on Tuesday February 28. Once the budget measures are announced, the...
The province provides qualified Alberta corporations with a refundable tax credit known as the Alberta Innovation Employment Grant (IEG). The IEG provides such corporations with a deduction from Alber...
The Alberta Tax and Revenue Administration (TRA) has issued a new Fuel Tax and Tobacco Tax Rate Chart, showing the tax rates currently applicable to different products for purposes of provincial fuel ...
Earlier this month, the provincial government announced that the online portal for claiming benefits under its new affordability payments program would open in the third week of January. The Alberta g...
During the 2023 taxation year, the province of Alberta will impose personal income tax using the following taxable income brackets and tax rates. Tax Rate Taxable Incom...
Recently the provincial government announced that new or additional “affordability payments” will be provided to eligible residents of the province to help them cope with increases in the cost of ...
The province of Alberta will provide the following personal tax credit amounts for 2023: Basic personal amount ……………………………… $21,003 Spouse or equivalent to spouse amount ...
The Alberta government has issued a Special Notice (Vol. 1, No.46) announcing that for the first half of 2023 (January 1 to June 30), the provincial fuel tax rate will be reduced to zero. The fuel tax...
In August of this year, the Alberta government announced that the provincial personal income tax system would be indexed to inflation, with retroactive effect from January 1, 2022. Consequently, the b...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates which will be levi...
On November 24, the Alberta Minister of Finance released the province’s 2022-23 Mid-Year Fiscal Update and Economic Statement. The Update showed that the projected surplus for 2022-23 has decreased ...
The Canada Revenue Agency has released the payroll deduction formulas to be used by Alberta employers during the 2023 tax year. The Guide to Payroll Deductions outlines the amounts which Alberta emplo...
The province of Alberta imposes a fuel tax regime in which each recipient in the distribution chain recovers the fuel tax from the party they sell fuel to, continuing until the end consumer pays the t...
The province of Alberta has announced the start of its consultation process with respect to the 2023-24 provincial budget which will be announced in February 2023. There are several elements to the co...
The Alberta Tax and Revenue Administration (TRA) has announced that, effective as of October 3, 2022, it is no longer processing phone or email requests for basic corporate income tax account informat...
Earlier this year, the provincial government announced that, owing to higher than expected revenues, the surplus forecast for the 2022-3 fiscal year had increased to $13.2 billion. At that time, the g...
The provincial government has announced that its natural gas rebate program will run from October 1, 2022 to March 31, 2023. Under that program, the amount of monthly rebate provided to consumers is t...
Earlier this year, the Alberta government announced that, in order to assist Alberta residents dealing with higher living costs, a provincial fuel tax holiday would be provided for a six-month period....
The fiscal update for the first quarter of the 2022-23 fiscal year (April 1 to June 30, 2022) indicates that the province is in a much better financial position than was projected in the 2022-23 budge...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The Alberta Tax and Revenue Administration has announced that, effective as of October 3, 2022, it will no longer be processing phone or email requests for basic account information on corporate incom...
The Alberta Innovation Employment Grant (IEG) is a refundable tax credit that a qualified corporation may deduct from provincial corporate income tax otherwise payable for the year. Generally, the IEG...
Alberta’s Temporary Rent Assistance Benefit, which provides rent supports for a two-year period to working households with low income, or those between jobs, is being expanded. In order to be eligib...
Earlier this year, the Alberta government announced that eligible residents of the province would be receiving a rebate on their electricity costs. That rebate would be provided by means of a $50 cred...
Earlier this year, the government of Alberta announced that a number of energy cost rebate programs would be provided to residents of the province during 2022. Payments under one of those programs –...
The province has released its financial results for the 2021–22 fiscal year which ended on March 31, 2022, and those results show the province to be in a strong surplus position.Projections issued i...
The Alberta Tax and Revenue Administration has changed its policy with respect to the way a corporation’s address is updated, and, as of June 20, 2022, such updates can no longer be made on the corp...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The provincial government has announced that the third and final application intake for the Alberta Jobs Now program opened on June 3, 2022. Under that program, eligible employers can hire and train u...
In 2020, Alberta introduced a Film and Television Tax Credit program, which provides a refundable tax credit based on eligible Alberta production and labour costs incurred for films and television ser...
The Alberta government has announced that it will be providing rebates to residents of the province to help offset the costs of electricity and natural gas. The Electricity Rebate Program will help co...
The Alberta Innovation Employment Grant (IEG) is a refundable tax credit that a qualified corporation may deduct from provincial corporate income tax otherwise payable for the year. Generally, the IEG...
Alberta corporations are required to file a provincial corporate income tax return within six months of the corporation’s tax year end. Calendar year corporations will consequently have to file thei...
In its 2022-23 budget brought down earlier this year, the province announced changes to its tobacco tax regime, including changes to the taxation of smokeless (loose) tobacco. The Alberta Tax and Reve...
The federal government has released information on the Climate Action Incentive (CAI) payment amounts for 2022-23. For residents of Alberta, those amounts will be $539 for the first adult in a family,...
The Alberta government recently announced that, in order to provide relief from current high fuel prices, it would be suspending the collection of provincial fuel tax. That measure will take effect as...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The provincial government has announced that, to address the impact of record high gasoline prices, it will be suspending collection of the provincial fuel tax, effective as of April 1, 2022. That fue...
The 2022-23 provincial Budget released on February 24 contained no changes to personal or corporate tax rates, and no new taxes. Total revenue for the upcoming 2022-23 fiscal year is estimated at $62....
The province of Alberta will provide the following personal tax credit amounts for 2022: Basic personal amount ……………………………… $19,369 Spouse or equivalent to spouse amount … ...
The Alberta government has announced that the province’s Budget for the upcoming 2022-23 fiscal year will be brought down on Thursday February 24, at 3:15 p.m. The Budget speech can be viewed online...
The province had previously announced that the existing tourism levy abatement, which permits eligible tourist sector operators to retain rather than remit tourism levy amounts collected, would be ext...
The Alberta Tax and Revenue Administration (TRA) has announced that, effective for taxation years ending after December 31, 2021, all Insurance Premiums Tax returns must be filed electronically, using...
The Alberta Tax and Revenue Administration (TRA) has announced that, effective as of January 2022, it has resumed all normal compliance activities with respect to filings and collections. Such collect...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta Finance has announced that, in view of the continuing impact of the pandemic on the tourism sector, eligible businesses in that sector will be provided with an abatement of the provincial Tour...
The Canada Revenue Agency (CRA) has issued the TD1 form to be used by residents of Alberta for the 2022 tax year. On the TD1 form, an employee indicates the provincial personal tax credit amounts for ...
The province has launched the public consultation process leading to the delivery of Alberta’s Budget for the 2022-23 fiscal year. That Budget will be brought down in February 2022. The consultation...
The Alberta Tax and Revenue Administration has announced that existing information circulars relating to the International Fuel Trade Agreement (IFTA) have been revised and consolidated into a single ...
On November 30, the province issued its Mid-Year Fiscal Update and Economic Forecast. Overall, the fiscal news was good, as the current deficit forecast for 2021-22 stands at $5.8 billion. That figure...
The International Fuel Tax Agreement (IFTA) enables uniform collection and distribution of fuel taxes paid by motor carriers traveling in several jurisdictions in Canada and the United States. The Alb...
Eligible employers can again apply for assistance under the Alberta Jobs Now program, as the second intake period for the program opened on November 10, 2021. That intake period applies to eligible ne...
All Alberta corporations are required to file an Alberta Corporate Income Tax Return (AT1 Return) (with all applicable schedules) with the Alberta Tax and Revenue Administration (TRA) within six month...
Between October 2021 and April 2022, the province will implement a number of significant changes to the administration of the IFTA program in Alberta. Those changes will affect the way in which carrie...
The provincial government has announced that a one-time benefit of $2,000 will be made available to small and medium-sized Alberta businesses. That benefit is intended to help offset costs incurred by...
The province of Alberta provides an online system known as TRACS (Tax and Revenue Administration Client Self-Service) through which Alberta businesses can submit tax payments, registrations, applicati...
The Alberta Tax and Revenue Administration (TRA) has announced that changes are being made with respect to access to client tax records by representatives. Effective as of October 1, third party repre...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
In 2020, the provincial government announced the creation of a new program — the Alberta Innovation Employment Grant (IEG) — to be made available to corporations working in the research and develo...
Alberta Finance has released its report on the state of the province’s finances as of the end of the first quarter of the 2021-22 fiscal year. That quarter ended on June 30, 2021, and the province w...
The Alberta Tax and Revenue Administration (TRA) has issued a list of the software packages which are currently certified for use in the preparation and filing of Alberta corporate income tax (AT1) re...
As part of its pandemic relief measures, the province of Alberta introduced a Critical Worker Benefit program. Under the program, individuals in a broad range of sectors and occupations can receive a ...
The 2021-22 federal Budget included measures providing for a current-year deduction of the cost of specified property acquired by a Canadian controlled private corporation after April 19, 2021, to a m...
Businesses in the province which offer temporary accommodation for sale are required to collect the provincial tourism levy and to file a return with respect to such amounts collected, on a monthly or...
Final results for the 2020-21 fiscal year that ended March 31, 2021 show that Alberta ended that year with a deficit of $16.9 billion, $3.2 billion lower than the third-quarter deficit forecast. For t...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The Alberta Tax and Revenue Administration (TRA) has updated and re-issued two publications relating to the province’s tobacco tax regime. The updated publications can be found on the TRA website at...
Provincial corporate income tax returns are due six months from a corporation’s tax year end. The Alberta Tax and Revenue Administration (TRA) recently updated and re-issued both the AT1 Corporate I...
As part of its pandemic relief measures, the provincial government allowed tourism operators in Alberta to retain all tourism levy amounts which they collected between March 1, 2020 and March 31, 2021...
The Alberta Tax and Revenue Administration has updated and re-released corporate income tax Information Circular CT-2, Filing Requirements. That circular, which provides information on whether a corpo...
Eligible holders of Alberta Indian Tax Exemption (AITE) cards are entitled to purchase fuel, tobacco, and accommodation exempt from tax on Alberta reserves. The Alberta Tax and Revenue Administration ...
Earlier this year, the province announced the creation of a Temporary Rent Assistance Benefit, and the application process for that program opened on May 1, 2021. The Temporary Rent Assistance Benefit...
The provincial government recently announced that the Small and Medium Enterprise Relaunch Grant (SMERG) program would be reopened for a new payment to businesses affected by the April 2021 public hea...
Through the Film and Television Tax Credit (FTTC) program, the province of Alberta provides eligible corporations that produce films, televisions series, and other eligible screen-based productions wi...
In its 2021-22 Budget, the province announced that it would, effective as of April 1, 2021, extend the application of the provincial tourism levy to short-term rentals purchased through online marketp...
The government of Alberta has announced that, effective as of April 1, 2021, its existing Direct to Tenant Rent Supplement program will be replaced. Under the new program — the Rent Assistance Benef...
The provincial government has issued a reminder to eligible Alberta residents that the deadline for applying for the Working Parents Benefit is March 31, 2021. Parents who used childcare from April to...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta Tax and Revenue Administration has issued a detailed guide to claiming the provincial Innovation Employment Tax Grant. That Grant generally provides eligible corporations with a tax credit equ...
The 2021-22 provincial Budget brought down on February 25 projects that Alberta will be in a deficit position at least until the end of the 2023-24 fiscal year. The Budget projects a deficit of $18.2 ...
The Alberta government has announced that it will be making grants of up to $20,000 available to small and medium-sized businesses in the province which experienced significant revenue loss due to the...
The Alberta Innovation Employment Grant (IEG) program, which provides a refundable tax credit to qualified corporations that incur eligible expenditures in respect of IEG activities carried out in Alb...
During the 2021 taxation year, the province of Alberta will impose personal income tax using the following taxable income brackets and tax rates. Tax Rate ...
The province of Alberta will provide the following personal tax amounts for 2021. Basic personal amount ……………………………… $19,369 Spouse or common law partner amount …… $19,36...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Effective as of January 1, 2020, the existing Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit was eliminated. However, as of January 1, 2021, businesses in the province...
The province of Alberta levies a tax on purchases of a number of types of fuel, including gasoline, diesel, and aviation fuel. The Alberta Tax and Revenue Administration (TRA) recently updated and re-...
The Alberta government has announced that the Small and Medium Enterprise Relaunch Grant program which was announced earlier this year has been expanded. The existing Program provides financial assist...
On November 24, the provincial Minister of Finance released Alberta’s Mid-Year Fiscal Update, which included some good financial news. Figures contained in the update indicated that the provincial g...
Taxpayers in Alberta can request relief from interest and penalties imposed under a variety of tax statutes and programs, including provincial corporate income tax, fuel tax, tobacco tax, and the tour...
Alberta Tax and Revenue has updated and re-issued three Information Circulars dealing with the Alberta Indian Tax Exemption Program (AITE). Those updated Information Circulars are as follows: AITE-1R...
The Alberta Tax and Revenue Administration (TRA) has issued updated consent forms to be used for purposes of the province’s corporate income tax, fuel tax, tobacco tax, tourism levy, and Internation...
The provincial government has launched the consultation process for Alberta’s 2021-2022 Budget, to be brought down next spring. The consultation process begins with an online survey, which can be fo...
The Alberta Tax and Revenue Administration (TRA) has announced that the filing deadlines with respect to claims for the provincial Scientific Research and Experimental Development (SR&ED) tax cred...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta Finance has updated and re-issued a number of publications relating to provincial corporate income tax filing and payment obligations, as well as the conduct of audits carried out in relation ...
Earlier this year, the province announced that the payment deadline for certain provincial corporate income tax balances payable would be deferred. Consequently, Alberta businesses with such income ta...
The province has issued a report on its first quarter (April 1 to June 30) results for the 2020-21 fiscal year and the fiscal news is not good. First-quarter projections show a significant increase to...
Alberta Finance has updated and re-issued the tax forms required for filing of provincial corporate income tax returns, as well as the guide to preparing those returns. Those forms and the guide are a...
Alberta Finance has issued an updated notice (Special Notice Vol. 7, No. 10) confirming that temporary accommodation operators in the province are not required to remit tourism levy amounts collected ...
Alberta Finance has issued an updated Corporate Income Tax Special Notice (Vol. 5, No. 59) indicating that Alberta corporations with income tax balances owing on or after March 18, 2020, or installmen...
Earlier this year, the provincial government announced that Alberta businesses with corporate income tax balances that become owing on or after March 18, 2020, or installment payments coming due betwe...
The government of Alberta has announced that eligible small and medium-sized businesses in the province may receive a grant to help offset re-launch costs. The Small and Medium Enterprise Relaunch Gra...
During the current pandemic, the Alberta Tax and Revenue Administration (TRA) has requested that taxpayers pay any amounts due through electronic means. The TRA recently announced that, to further fac...
Earlier this year, in conjunction with the provincial state of emergency, the provincial government temporarily suspended all registration and credential requirements with respect to the International...
The Alberta government released its Recovery Plan on June 29, 2020, which included the announcement of an immediate cut to the provincial general corporate income tax rate. Effective July 1, 2020, tha...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Effective July 1, 2020, the current Alberta Child Benefit and the Alberta Family Employment Tax Credit will be replaced by a single benefit, the Alberta Child and Family Benefit. The first quarterly p...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The Alberta government is providing one-time emergency financial assistance for spring flood evacuees to help them with costs while they were evacuated. Adults can receive $1,250, plus $500 for each c...
The province had previously announced that the deadline for income tax returns to be filed by corporations between March 18 and June 1, 2020 would be deferred until June 1, 2020. That deferral announc...
Alberta imposes a tourism levy which must be collected and remitted by operators of tourist accommodations in the province. The provincial government had previously announced that the remittance deadl...
As originally announced in the 2019 provincial Budget, the current Alberta Family Employment Tax Credit and the Alberta Child Benefit will be combined into the new Alberta Child and Family Benefit, ef...
Earlier this year, the province announced that corporate income tax filing and payment deadlines occurring after March 18, 2020 and before June 1, 2020 would be extended. The Alberta Tax and Revenue A...
The provincial government has announced that rent relief will be provided to small businesses in the province through the Canada Emergency Commercial Rent Assistance (CECRA) program. That program will...
The Alberta Tax and Revenue Administration (TRA) has issued a Special Notice (Vol.10, No. 4) indicating that the filing deadline for returns under the International Fuel Tax Agreement (IFTA) has been ...
The Alberta Tax and Revenue Administration has issued a corporate income tax Special Notice (Vol. 5, No. 57) providing that filing deadlines for provincial corporate income tax returns have been exten...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
The provincial government has announced that temporary accommodation providers in Alberta with tourism levy remittances coming due between March 27, 2020 and August 31, 2020 may defer making these pay...
The provincial government has announced that Alberta businesses with corporate income tax balances that become owing on or after March 18, 2020, or instalment payments coming due between March 18, 202...
The province of Alberta imposes a levy of 4% on most types of temporary accommodation rentals in the province. Under current legislation an exemption from that levy is provided for rentals in establis...
The 2020-21 provincial Budget brought down on February 27 included the announcement of further cuts to Alberta’s general corporate income tax rate. That rate was reduced from 11% to 10% effective Ja...
In the 2019-20 Budget, the Alberta government announced that its grant-based program for the province’s film industry would be eliminated and replaced with a tax credit program. That new corporate t...
The Alberta Treasurer has announced that the province’s Budget for the upcoming (2020-21) fiscal year will be released on Thursday February 27, 2020, at approximately 3:15 p.m. The announcement of t...
Alberta Finance has posted on its website the corporate income tax forms to be used by Alberta corporations for fiscal years ending after July 1, 2019. The new forms posted are as follows: AT1 – Alb...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Alberta as of December 31, 2019. That return and guide can be fo...
The province has launched the budget consultation process leading to the release of the 2020-21 provincial Budget this spring. That consultation process will include an online survey and two telephone...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Alberta will provide the following personal tax credit amounts for 2020:Basic personal amount ……………………………… $19,369Spouse or common law partner amount …… $19,369 l...
During the 2020 taxation year the province of Alberta will levy individual income tax using the following income brackets and tax rates. Tax Rate ...
The province of Alberta has provided a Community Economic Development Corporation (CEDC) tax credit to encourage rural economic development and, under that program, individual or corporate investors i...
The Alberta Investor Tax Credit (AITC) offered a 30% tax credit to investors in the province who provided equity capital to Alberta small businesses doing research, development, or commercialization...
The province has announced that it is carrying out an online consultation process as part of a review of the province’s employment standards laws. That online survey will be available until Thursday...
In the recent provincial Budget, it was announced that the Interactive Digital Media Tax Credit (IDMC) was being eliminated. That program offered a 25% refundable tax credit for labour costs associate...
Alberta's Scientific Research and Experimental Development Tax Credit (SR&ED) program provides a refundable tax credit to corporations for SR&ED expenditures carried out in Alberta by the corp...
In the 2019 Budget released on October 24, the government of Alberta announced that it will be eliminating the existing provincial tuition and education tax credits claimable by post-secondary student...
The Alberta Tax and Revenue Administration (TRA) has posted information on its website on how to renew an International Fuel Tax Agreement (IFTA) licence for 2020. Such renewals can be done online, th...
The Alberta government has announced the rates which will apply for purposes of the International Fuel Tax Agreement during the third quarter (July 1 to September 30) of 2019. IFTA is an agreement am...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates levied and paid fo...
Most corporations having a permanent establishment in the province of Alberta are required to file a provincial corporate income tax return by a specified deadline each year. The Alberta Tax and Reven...
The province provides eligible corporations which carry on scientific research and experimental development (SR&ED) work within Alberta with a refundable tax credit generally equal to 10% of the c...
As part of its general review of the province’s employment standards rules, the Alberta government has made changes to the rules governing the payment of wages for work done on holidays. A summary o...
The Alberta government has announced that it has appointed an expert panel to study and make recommendations with respect to the province’s minimum wage structure. The panel will, in particular, be ...
The general corporate provincial income tax rate imposed by the province was reduced, effective as of July 1, 2019, from 12% to 11%. That change was the first in a multi-step reduction of the provinci...
The Alberta Tax and Revenue Administration has issued a Corporate Income Tax Special Notice (Vol. 5, No. 53) confirming that the province has adopted the measures announced in the 2018 Federal Economi...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
Alberta motor carriers which operate in multiple jurisdictions and are members of the International Fuel Tax Agreement (IFTA) must file returns quarterly. The next such return is due on June 30, 2019....
The provincial carbon tax was eliminated by the Alberta government, effective as of May 30, 2019. As a consequence of the elimination of the tax, a number of transitional rules are required, and the p...
The government of Alberta has repealed the province’s carbon tax, effective as of May 30, 2019. In order to obtain a refund of carbon tax paid on fuel held in inventory on May 30, fuel sellers must ...
Corporations in the province of Alberta are required to file provincial corporate income tax returns, with such returns due within 6 months after the corporation’s taxation year end. That deadline m...
The government of Alberta has confirmed that it will be introducing legislation to reduce the general business provincial income tax rate. The current rate is 12%. The legislation, once enacted, will ...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Tax and Revenue Administration has announced that, effective as of March 18, 2019, most fuel tax returns and claims can be filed through the province’s TRACS (Tax and Revenue Administrat...
Through the Alberta Indian Tax Exemption (AITE), the province of Alberta provides eligible consumers with an exemption from fuel tax and carbon levy, tobacco tax, and the provincial tourism levy. The ...
The third quarter fiscal update issued by the Provincial Treasurer on February 27 shows a decreased deficit for the current (2018-19) fiscal year. The deficit for the current year was forecast to reac...
Residents of Alberta who use fuel for eligible activities may apply for an exemption certificate in order to obtain such fuel exempt from the carbon levy at the time of purchase. Those who were charge...
Taxpayers whose livestock farming operations are affected by adverse weather conditions during a particular taxation year can benefit from a tax deferral program. That Livestock Tax Deferral provision...
The province of Alberta has started the consultation process for the upcoming 2019-20 provincial Budget. A budget consultation webpage on which submissions can be made is available on the Alberta gove...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of Alberta during the 2019 tax year.The supplement, which can be found on the CRA website at ...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The second quarter update of provincial finances which was recently announced by the Alberta government shows that the province’s deficit for the current (2018-19) fiscal year is now forecast to be ...
The province of Alberta will provide the following personal tax credit amounts for 2019: Basic personal amount ………………………………… $19,369 Spouse or equivalent to spouse amount …...
The Alberta Tax and Revenue Administration has issued a Special Notice (Vol. 5, No. 50) on the province’s Community Economic Development Corporation (CEDC)Tax Credit. The tax credit program is avail...
As previously announced, the province will be making changes to its online tax service (TRACS), and those changes will take effect as of Monday November 19, 2018. On that date, current user IDs and pa...
The provincial government has announced that, as of January 1, 2019, motor carriers will be allowed to carry their IRP cab cards and IFTA licences in electronic format, and that they will have the cho...
The provincial government has announced that applications are now being accepted for the 2018-19 intake period of the Community Economic Development Corporation (CEDC) tax credit program. In order to ...
The Alberta Tax and Revenue Administration has posted information on its website with respect to a possible postal service disruption. The TRA information indicates that all taxpayers will continue to...
As previously announced, the Alberta general minimum wage increased, effective as of October 1, 2018, from $13.60 per hour to $15 per hour. The general minimum wage applies to most employees in the pr...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The province of Alberta provides individual and corporate residents with the option of carrying out their tax filing and payment obligations online, through the province’s Tax and Revenue Administra...
The Alberta Tax and Revenue Administration (TRA) has updated and re-issued a required form under the International Fuel Tax Agreement (IFTA). The new form, which is required in order to register for I...
The provincial government recently announced the province’s fiscal results for the first quarter (April 1 to June 30) of the 2018-19 fiscal year. Those results show that the 2019 economic forecast h...
As previously announced, the general minimum wage payable in Alberta will increase, effective October 1, 2018, to $15 per hour. The general hourly minimum wage applies to most employees in the provinc...
The province provides a Capital Investment Tax Credit (CITC) to qualifying Alberta companies which make capital investments in qualifying assets, including machinery, equipment, and buildings. The non...
Following an earlier consultation process, the provincial government has drafted new regulations that govern certain rights of condominium owners. Those draft regulations cover such matters as improve...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Tax and Revenue Administration (TRA) administers a Voluntary Disclosure Program (VDP) under which the Minister can provide corporate taxpayers with relief from provincial interest and pena...
The province of Alberta provides two tax credits intended to encourage investment by individuals and corporations in the manufacturing and processing, tourism, and new technology sectors. The Alberta ...
Under Alberta’s fuel and carbon tax regimes, no fuel tax or carbon tax is generally payable where fuel sales are for export from the province in bulk. The Alberta Tax and Revenue Administration has ...
Energy Efficiency Alberta administers a number of programs which enable consumers who purchase energy efficient equipment and appliances to qualify for rebates. The Agency has recently posted a warnin...
Earlier this year the provincial government announced the creation of a new Interactive Digital Media (IDM) Tax Credit. The credit is available in respect of eligible labour costs paid after April 1, ...
Last year, the Alberta government announced that residential builders in the province would be required to be licenced, effective as of December 1, 2017. Temporary licences which were obtained on that...
The Alberta Tax and Revenue Administration has updated and re-issued its Tobacco Tax Information Circular (TTA-4R6) which summarizes the licensing, reporting, and remitting requirements imposed by the...
The Alberta Tax and Revenue Administration (TRA) has added additional topics to its FAQ document providing information with respect to a variety of issues which can arise under the province’s carbon...
The Alberta Tax and Revenue Administration has issued updated forms for use by companies in filing their provincial corporate income tax returns. The following new forms have been posted on the TRA we...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Alberta Minister of Finance brought down the province’s 2018-19 Budget on March 22, 2018. There were no changes to personal or corporate tax rates announced in the Budget, and no changes to the ...
The Alberta Tax and Revenue Administration (TRA) provides online tax services to individuals and businesses through its TRACS program. TRA has announced that new online services for a number of differ...
The Alberta Tax and Revenue Administration (TRA) has issued a Special Notice (Vol. 1, No. 40) with respect to the expiry date of current Tax Exempt Fuel User Numbers. Current numbers are scheduled to ...
The 2017-18 Third Quarter Fiscal Update announced by the provincial government at the end of February indicates that the province’s projected deficit for the 2017-18 fiscal year is down significantl...
The province of Alberta currently provides a rebate program for businesses which make investments in energy efficiency. The provincial government recently announced that that energy efficiency rebate ...
For the 2018 tax year, individuals resident in the province of Alberta will be able to claim the following non-refundable personal tax credit amounts: Basic personal amount ………………….…...
For the 2018 tax year, the province of Alberta will levy personal income tax at the following individual income tax rates and brackets: 10% on taxable income between $18,915 and $128,145; 12% on taxa...
The provincial government has announced the start of the consultation process leading to the release of the 2018-19 Budget. That process has several components, including an online survey, which will ...
The Alberta Tax and Revenue Administration (TRA) has issued a warning to Alberta taxpayers of a tax scam which is currently operating in the province. That tax scam involves fraudulent text messages s...
The province of Alberta levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and p...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Alberta at the end of that year. The T1 form package (w...
Effective as of January 1 2018, changes have been made to Alberta’s carbon levy program. Those changes include an increase in the carbon levy, from $20 per tonne to $30 per tonne. That change will b...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which Alberta employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension P...
As of December 1, 2017, residential builders in Alberta require a license to build homes and secure warranty coverage. In order to be licensed, builders must provide information about their finances, ...
The Alberta Tax and Revenue Administration has issued a Special Notice advising corporations of upcoming changes to filing requirements for income tax returns. The new requirements are effective for r...
The Canada Revenue Agency has issued the Alberta TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income tax sourc...
The Alberta Tax and Revenue Administration (TRA) has announced the Carbon Levy Rates which will apply as of January 1, 2018. A listing of those rates can be found at www.finance.alberta.ca/publication...
Alberta corporations which fail to file corporate income tax returns by the required deadline, or which fail to remit corporate income tax amounts owed on time or in full may be subject to penalties a...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax under a number of provincial tax programs, including employer health tax, logging...
The recent 2023-24 provincial budget included the announcement of an increase in amounts payable under the B.C. Family Benefit program, as well as a new supplement for single parent families. The incr...
The province of British Columbia provides an interactive digital media tax credit (IDMTC), which may be claimed by eligible registered corporations that develop interactive digital media products (suc...
In its recent 2023-24 budget, the provincial government announced that amounts paid through the Climate Action Tax Credit program would increase, effective as of July 1, 2023. As of that date, the max...
In its budget for the upcoming (2023-24) fiscal year, the province announced that it would be introducing an income-tested renter’s tax credit, which is available as of January 1, 2023. The full cre...
Sales of short-term accommodation in British Columbia are subject to 8% provincial sales tax and, in some locations, an additional Municipal and Regional District Tax (MRDT) at varying rates. Such sho...
Provincial legislation requires that the annual British Columbia budget be brought down on the third Tuesday of February each year. That requirement means that this year the 2023-24 provincial budget ...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax under a number of provincial tax programs, including employer health tax, logging...
The province levies an annual speculation and vacancy tax (SVT), which is based on how homeowners use residential properties in specified areas in British Columbia. Homeowners in affected areas receiv...
During the 2023 taxation year the province of British Columbia will levy individual income tax using the following income brackets and tax rates. Tax Rate Taxable Income Brac...
The provincial government has announced that the Home Owner Grant Program threshold for 2023 has been increased to $2.125 million. Under the Home Owner Grant Program, eligible residents of the provinc...
The province of British Columbia will provide the following personal tax credit amounts for 2023: Basic personal amount ……………………………… $11,981 Spouse or equivalent to spouse...
The Canada Revenue Agency has released the payroll deduction formulas to be used by British Columbia employers during the 2023 tax year. The Guide to Payroll Deductions outlines the amounts which Brit...
Sales of short-term accommodation in British Columbia are subject to provincial sales tax (PST) at a rate of 8% and may also be subject to Municipal and Regional District Tax (MRDT) at a rate of up to...
The province provides training tax credits for both employers and apprentices in British Columbia through the Training Tax Credit Program. That Program was scheduled to end on December 31, 2022 but, a...
On November 25, the BC Minister of Finance released the province’s Second Quarterly Report for the current (2022-23) fiscal year. That report indicates that the province is in a much stronger fiscal...
The provincial government has announced the creation of a new tax credit – the B.C. Affordability Tax Credit, which will be paid in January 2023 with the B.C. Climate Action Tax Credit. Eligible res...
British Columbia provides eligible residents of the province with the option of deferring payment of property taxes on their principal residence. The amount deferred can accrue from year to year, and ...
When an interest in a property is registered with the province, the purchaser must file a property transfer tax return and pay property transfer tax based on the fair market value (FMV) of the transfe...
As announced in this year’s budget, the province has implemented new rules which govern the computation of value for sales tax purposes where a vehicle is sold privately or is imported into British ...
British Columbia Small Business and Revenue has updated and re-issued a number of provincial sales tax (PST) bulletins to take account of the PST exemption provided on sales of electricity in the prov...
Small and medium-sized businesses in British Columbia benefit from a preferential corporate income tax rate on their active small business income. For 2022, that small business tax rate is set at 2.0%...
British Columbia taxpayers are entitled to appeal to the Ministry of Finance from most decisions made under provincial tax programs. However, both the criteria for bringing an appeal and the applicabl...
British Columbia levies an employer health tax (EHT) on BC payrolls which are over $500,000 in a calendar year. The BC Ministry of Small Business and Revenue recently updated its webpage on the EHT, t...
The British Columbia government provides eligible families who live in the province and who have children under the age of 18 with a tax-free monthly payment under the British Columbia Family Benefit ...
The province of British Columbia imposes a property transfer tax when there is a change of ownership of property located in the province. The British Columbia Ministry of Small Business and Revenue re...
Lower and middle-income residents of British Columbia who are over the age of 19 are eligible to receive the BC Climate Action Tax Credit (BCCATC), a non-taxable payment issued four times a year. The ...
The province has released the year-end financial figures for the 2021-22 fiscal year which ended on March 31, 2022. Those figures show that the province posted a surplus for that year of $1.3 billion,...
The 2022-23 British Columbia budget included a number of changes to the rules governing provincial sales tax, with those changes taking effect on February 23, April 1, and July 1, 2022. BC Small Busin...
Earlier this year, the provincial government announced that new consumer protection measures would be implemented for homebuyers. Those measures are intended to ensure that homebuyers have sufficient ...
British Columbia provides a home owner grant program and a supplement, both intended to help offset the cost of property taxes for British Columbia homeowners. The home owner grant and supplement prog...
Effective September 1, 2022, licence applications, renewals, and decal requests under the International Fuel Tax Agreement (IFTA) will have to be filed online, using the eTaxBC service. Consequently, ...
In this year’s budget, the province announced a change to the sales tax rules which apply to private sales of motor vehicles, and that change will take effect as of October 1, 2022. Provincial sales...
British Columbia offers a refundable corporate income tax credit to eligible production companies which produce accredited film or video productions in the province. There are four separate credits av...
This year’s provincial budget included the announcement of a new tax credit, the Clean Buildings Tax Credit. The new program provides a 5% refundable tax credit to help offset the cost of expenditur...
As announced in this year’s budget, and effective as of April 1, 2022, the province is providing a sales tax exemption on sales of heat pumps. The B.C. Ministry of Small Business and Revenue recentl...
As announced in this year’s provincial budget, and effective as of July 1, 2022, provincial sales tax (PST) applies at a rate of 7% on tobacco sold in British Columbia. Such provincial sales tax is ...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax under a number of provincial tax programs, including employer health tax, logging...
As announced in this year’s provincial budget, significant changes to the rules governing the application of provincial sales tax (PST) to online marketplace sellers and facilitators will take effec...
Qualifying residents of British Columbia can receive a climate action tax credit, intended to help offset the financial impact of carbon taxes for lower- and middle-income individuals and families. Th...
Under provincial law, the annual BC budget is brought down on the third Tuesday in February each year. The 2023 budget will therefore be released on Tuesday February 21, 2023, and the province recentl...
The province currently provides purchasers of electric vehicle (EV) charging stations with rebates which cover up to 50% of the cost of such purchases. Recently, the provincial government announcement...
The British Columbia government has announced that it will be putting in place measures to provide consumers with a “right of recission” on real estate purchases. The new measures are intended to ...
The province provides qualifying homeowners in the province with a Home Owner Grant to help offset the cost of property taxes. An additional Grant amount is also provided to qualifying homeowners who ...
The province imposes sales tax at a rate of 8% on sales of short-term accommodation (including such accommodation listed on online accommodation platforms) in the province. In addition, a Municipal an...
The province provides a refundable tax credit to employers whose principal business is constructing, repairing, or converting ships and who employ apprentices in that business. The credit is generall...
A scheduled increase in the BC carbon tax rate was implemented on April 1, 2022. As the result of that change, amounts payable under the province’s Climate Action Tax Credit will also increase. Effe...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax under a number of provincial tax programs, including employer health tax, logging...
In this year’s budget, the province announced that, effective as of February 23, 2022, sales of zero-emission vehicles would be exempt from provincial sales tax. That exemption applies to both sales...
Effective as of June 1, 2022, the provincial general minimum wage will increase from $15.20 to $15.65 per hour. The upcoming change reflects the first indexation of the BC minimum wage, with the rate ...
The province provides a training tax credit for both employers and employees who take part in eligible apprenticeship programs. There are three main elements to the training tax credit, as follows: b...
Under current rules, the sale of tobacco in BC is exempt from provincial sales tax, but that will change following an announcement made in the recent 2022–23 provincial budget. Effective as of Frida...
The provincial scientific and research and experimental development (SR&ED) tax credit, which had been scheduled to expire on August 31, 2022, has instead been extended to be available for a furth...
In the recent 2022–23 budget, the province announced that it would, effective as of February 23, 2022, be providing a new temporary tax credit for retrofits that improve the energy efficiency of mul...
The 2022-23 British Columbia Budget contained no changes to personal or corporate tax rates and no new taxes. The fiscal plan included with the Budget projects total revenue of $68.6 billion for the u...
The province of British Columbia will provide the following personal tax credit amounts for 2022: Basic personal amount ………………………………… $11,302 Spouse or equivalent to spouse a...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province of British Columbia has fixed budget date legislation, which calls for the province’s annual Budget to be brought down on the third Tuesday in February. Consequently, the B.C. Budget fo...
The speculation and vacancy tax imposed by the province requires affected property owners to make a declaration with respect to their residency status and where their income is earned and reported, as...
The province of British Columbia provides the film and television industry with a number of corporate tax credits, including the film and television tax credit (which includes six separate credits) an...
B.C. Small Business and Revenue has updated and re-issued two tax bulletins dealing with the application of provincial sales tax to restaurants, liquor sellers, and liquor producers. The first such Bu...
The province provides eligible B.C. homeowners with a Home Owner Grant which reduces property taxes otherwise payable. The amount of available grant depends on the location of the applicant’s home a...
In December 2021, a public health order was issued requiring some types of B.C. businesses, including gyms, fitness and adult dance centres, bars, lounges and nightclubs, and event venues to temporari...
The Canada Revenue Agency (CRA) has issued the TD1 form to be used by residents of British Columbia for the 2022 tax year. On the TD1 form, an employee indicates the provincial personal tax credit amo...
The province provides a program which allows eligible B.C. residents to defer property taxes owed on a principal residence. Under the regular program individuals who are 55 years of age or older, a su...
Employers in British Columbia which have annual payrolls of more than $500,000 are subject to the provincial Employer Health Tax. Some of those employers are required to make three instalment payments...
The province imposes a speculation and vacancy tax on specified types of residential properties located in major urban areas, based on the use which is made of such properties and the residency status...
On November 22, the provincial government released its Second Quarterly Report (July 1 to September 30) for the current (2021-22) fiscal year, and that report contained good financial news for the pro...
As part of its pandemic relief and recovery measures, the province introduced the Increased Employment Incentive. That program provides employers in the province with a one-time refundable tax credit ...
The province of British Columbia provides qualifying B.C. homeowners with a grant that reduces the amount of property tax such homeowners pay on a principal residence. B.C. Tax and Revenue recently po...
The province of British Columbia provides qualifying residents with the option to defer payment of their property taxes. Such deferral may be provided to homeowners who are aged 55 or older, a single ...
Under provincial law, special tax rules apply where a vehicle is registered as a multi-jurisdictional vehicle, and a refund of sales tax or multi-jurisdictional vehicle tax paid may be provided. B.C. ...
British Columbia’s Ministry of Finance has announced that, effective for reporting periods that start on or after April 1, 2022, all taxpayers with motor fuel and carbon tax accounts who are on a sc...
In 2020, the provincial government announced that a sales tax rebate would be provided to corporations which purchased qualifying machinery and equipment prior to September 30, 2021. It was announced ...
The provincial government has issued its financial report for the first quarter of the current (2021-22) fiscal year. The report indicates that the projected deficit for the current fiscal year is now...
The B.C. Ministry of Finance has issued Tax Notice 2021-044,which provides information on renewals of IFTA licences for 2022. Current IFTA licences will expire on December 31, 2021, and licence holder...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
In this year’s Budget, the province introduced two changes to the rules governing the application of sales tax to motor vehicle sales. Those changes, which take effect as of October 1, 2021, are as ...
As part of its pandemic response, the province provides eligible corporations with a rebate of provincial sales tax paid on qualifying acquisitions of eligible machinery and equipment. Under that prog...
The British Columbia Ministry of Finance has issued an information sheet outlining a change in the royalty/taxpayer reporting deadline under the Petroleum and Natural Gas legislation. Currently, that ...
As part of its pandemic relief measures, the province announced a rebate program for businesses which acquire qualifying machinery and equipment between September 17, 2020 and September 30, 2021. Unde...
While British Columbia levies a provincial sales tax (PST) on the sale of most goods in the province, exemptions to the tax are provided where goods are purchased for resale or lease or to be incorpor...
B.C.’s Tax and Revenue Administration has updated and re-issued its bulletin on registering for purposes of provincial sales tax (PST) — PST 001, Registering to Collect PST — which was last upda...
The province requires employers who have a total annual payroll greater than $500,000 to register for purposes of the Employer Health (payroll) tax. Employers whose employer health tax payments for th...
As announced in this year’s Budget, the province imposed an across-the-board increase in tobacco taxes, effective as of July 1, 2021. B.C. Finance has now re-issued Form FIN125, Collector’s Return...
B.C. Finance has updated and re-issued its bulletin on the application of provincial sales tax to warranties, service agreements, and maintenance agreements. The bulletin (PST 303) was last updated in...
The B.C. government has announced the start of the consultation process leading to the 2022-23 provincial Budget, which is scheduled to be released in the third week of February 2022. The press releas...
The province imposes a speculation and vacancy tax on properties located in major urban areas of British Columbia. The imposition of the tax and the rate of tax applied depends on the residency status...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
As announced in this year’s provincial Budget, there will be an across the board increase in B.C. tobacco taxes effective July 1, 2021. The specific increases are as follows: Cigarettes: 29.5 cents...
As part of its pandemic response, British Columbia provides business recovery grants to small and medium-sized businesses in the province. Grants of $10,000 to $30,000 are available to businesses who ...
The provincial government has announced that applications for the 2021 home owner grant are now being processed. Eligible property owners in B.C. are advised to claim their 2021 grant as soon as they ...
Effective as of June 1, 2021, the provincial general minimum wage will increase by 60 cents, from $14.60 to $15.20 per hour. Minimum wage applies regardless of how employees are paid — hourly, sala...
As part of its pandemic response measures, the province deferred previously announced increases to provincial carbon tax rates which had been scheduled to take effect as of April 1, 2020. As a consequ...
The province provides eligible B.C. homeowners with the option of deferring payment of their property taxes. There are two streams to that program — the Regular Program and the Families with Childre...
In the 2021-22 provincial Budget, it was announced that the deadline for filing claims for specific business tax credits had been extended. The new deadline is the earlier of December 31, 2020 and six...
As announced in the recent provincial Budget, B.C.’s tobacco tax rates will increase, effective July 1, 2021, as follows: cigarettes from 29.5 cents per cigarette to 32.5 cents; heated tobacco prod...
During 2020, individuals in the province who applied for the B.C. Emergency Benefit were required to disclose their income from self-employment as part of the application process. As was the case with...
Effective June 1, 2021, the province will make two changes to its minimum wage structure. The first change will increase the general minimum wage by 60 cents, from $14.60 to $15.20 per hour. The secon...
The 2021-22 B.C. Budget will be brought down on Tuesday, April 20, 2021. While the province usually operates on a fixed-date budget system, in which the annual budget is brought down during the third ...
The province of British Columbia provides a training tax credit for both employers and apprentices who take part in eligible apprenticeship programs. The Training Tax Credit provides a basic credit fo...
British Columbia provides a refundable tax credit to eligible Canadian-controlled corporations that carry on a qualifying book publishing business in the province. The amount of the refundable tax cre...
The B.C. government has announced that the deadline for applications for the Small and Medium Sized Business Recovery Grant program has been extended, and that the qualifying criteria for that program...
The provincial government has announced that changes to provincial carbon tax rates which were originally scheduled to take effect as of April 1, 2020 will now be implemented on April 1, 2021. B.C. Fi...
The provincial government has announced that it plans to extend the current residential rent freeze until December 31, 2021. The planned changes will include measures to limit illegal “renovictions...
The province provides qualifying B.C. homeowners with a grant to help with the cost of annual property taxes. A retroactive grant application process is now open for B.C. residents who qualified for b...
The provincial government has announced that it will be providing a new B.C. Recovery Benefit to eligible individuals and families resident in the province. The Recovery Benefit is a one-time benefit,...
The province of British Columbia imposes a speculation and vacancy tax on some residential properties located in major urban areas of the province. Residential property owner(s) in the designated taxa...
The British Columbia government has announced that, effective as of 2021, changes have been made to process by which residents of the province apply for the Home Owner Grant. That Home Owner Grant red...
The province of British Columbia will provide the following personal tax amounts for 2021. Basic personal amount …………………………………… $11,070 Spouse or common law partner amount ...
During the 2021 taxation year the province of British Columbia will levy individual income tax using the following income brackets and tax rates. Tax Rate ...
The province of British Columbia provides rebates in varying amounts to homeowners who convert their home energy equipment from fossil-fuel-based systems. The province recently announced that such reb...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
On December 17, the provincial Minister of Finance released British Columbia’s Fall Fiscal Update for the 2020-21 fiscal year. B.C. is now forecast to end the 2020-21 fiscal year with a deficit of $...
British Columbia provides a program under which eligible individuals may be able to defer payment of property taxes owed on a principal residence located in the province. That program is available to ...
The province will be providing B.C. residents with a B.C. Recovery Benefit of up to $500 per eligible individual and up to $1,000 per eligible family or single parent. Eligibility for the benefit is b...
The federal government has issued the payroll deduction formulas to be used by employers in British Columbia during the 2021 taxation year. Those formulas are outlined in Canada Revenue Agency publica...
The farmers' food donation tax credit is a non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products that they produce in B.C. to register...
The provincial government has announced that the current residential rent freeze will be extended until July 10, 2021. The extension is effective immediately, such that increases set to happen on Dece...
Employers and apprentices in the province who take part in eligible apprenticeship programs can claim a training tax credit. Programs eligible for that credit include both Red Seal and non-Red Seal tr...
The B.C. government previously announced an increase in the provincial carbon tax rate, which was to be implemented in April 2020. The implementation of that change was subsequently deferred until at ...
Businesses in British Columbia which have an annual payroll of $500,000 or more are subject to the provincial Employer Health Tax (EHT). Businesses subject to EHT are also required to make instalment ...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that it will be providing incorporated British Columbia businesses with a rebate of provincial sales tax (PST) paid on acquisitions of qualifying equipment and ...
The province of British Columbia provides a number of refundable and non-refundable tax credits to corporations doing business in the province. Each of those tax credit programs has a different deadli...
The provincial government has announced that qualifying employers in British Columbia who increase the amount of remuneration paid during the fourth quarter of 2020 may be eligible for a new 15% refun...
As part of its pandemic relief measures, the province announced earlier this year that it would provide an interest relief period with respect to payments owed under a wide range of provincial tax pro...
The provincial government has announced that, under British Columbia’s rent control legislation, the maximum allowable rent increase for 2021 has been set at 1.4%. In addition, to protect tenants wh...
The provincial government has released the full Public Accounts for the 2019-2020 fiscal year which ended on March 31, 2020, and those figures confirm the economic impact of the current pandemic. The ...
B.C. Small Business and Revenue has announced that the filing and payment deadline for Employer Health Tax (EHT) returns for 2019 has been extended. Following the change, such returns and final paymen...
The province of British Columbia imposes an employer health (payroll) tax, and employers subject to that tax must make instalment payments throughout the year. Employers required to make instalment pa...
British Columbia Small Business and Revenue has updated the webpages for the provincial tobacco tax, to eliminate outdated information and to correct errors. The updated webpages can be found at Buyi...
British Columbia Small Business and Revenue has updated and re-issued its bulletin on the application of provincial sales tax to various types of goods sold in grocery and drug stores in the province....
On July 14, the British Columbia government provided an updated report on the province’s finances as of the end of the 2020-21 fiscal year. That Economic and Fiscal Update indicates that the costs o...
As announced in this year’s provincial Budget, real property contractors who supply and affix — or install — goods so that they become part of real property situated outside British Columbia are...
As announced in this year’s provincial Budget, changes were made to the registration requirements for purposes of provincial sales tax (PST), effective as of July 1, 2020. B.C. Small Business and Re...
Earlier this year, the provincial government announced the creation of the B.C. Emergency Benefit for Workers, a one-time, tax-free payment of $1,000. This benefit was payable to B.C. workers who had ...
The province provides a property tax deferral program for qualifying residents, as well as a Home Owner Grant program to help offset property tax costs. Applications under both the property tax deferr...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that the consultation process for the 2021-22 Budget will be held this month, and will be conducted entirely online. The next B.C. Budget will be brought down i...
The provincial government has announced that corporations that have a B.C. logging tax return due between the periods of March 18, 2020 to August 31, 2020 must file that return on or before September ...
The benefit year for many federal and provincial benefits, including the B.C. Climate Action Tax Credit and the Early Childhood Tax Benefit runs from July 1 to June 30. Eligibility for and the amount ...
As previously announced, the general minimum wage payable in British Columbia will increase by 75 cents, from $13.85 to $14.60 per hour. The change is effective as of June 1, 2020. The general minimum...
The provincial government has announced that Disaster Financial Assistance (DFA) is now available for eligible British Columbians in the Cariboo Regional District and the Fraser-Fort George Regional D...
Residents of British Columbia who are eligible for the federal Canada Emergency Response Benefit may also receive the B.C. Emergency Benefit for Workers (BCEBW), and the online application process for...
The provincial government previously announced that, effective as of March 23, 2020, filing and payment due dates for provincial sales taxes had been deferred until September 30, 2020. That notice (20...
British Columbia provides a program under which qualifying homeowners in the province can defer payment of their property taxes. Homeowners can apply for the deferment as soon as they receive their pr...
The provincial government has announced that it will be providing a temporary rental supplement for eligible residents of British Columbia, and that applications for that rental supplement can now be ...
The provincial government has announced that it will be providing a one-time tax-free payment of $1,000 to B.C. residents who are unable to work due to the pandemic. Details of how the payment will be...
The British Columbia government has announced that changes to the province’s carbon tax rates which were scheduled to take effect as of April 1, 2020 will not be implemented, and that such rates are...
The provincial government has announced that, effective as of March 23, 2020, filing and payment deadlines for most provincial payroll, consumption, and commodity taxes have been extended to September...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The provincial government has announced that B.C.’s carbon tax rates will increase, effective as of April 1, 2020. In addition, changes will be made to those rates to align them with “federal carb...
The 2020-21 provincial Budget brought down on February 18 included an announcement of a new post-secondary student grant program which will take effect for the fall 2020 semester. Eligibility for the ...
The province provides a training tax credit for employers and apprentices who take part in eligible apprenticeship programs. There are three main elements to the training tax credit, as follows: Basi...
The 2020-21 provincial Budget, which was brought down on February 18, included the announcement of a tax increase for high-income residents of the province. The Minister of Finance announced that a ne...
The province provides a property tax deferment program which enables qualifying residents of British Columbia to defer payment of their property taxes to a future date, through a low-interest loan pro...
The B.C. Ministry of Finance has announced that its Tax Interpretation Manual (TIM) for provincial consumption tax statutes is now available online. The TIM describes how the Ministry of Finance inter...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of British Columbia as of December 31, 2019. That return and guide ...
Between January 24 and February 21, British Columbia homeowners living in communities where the speculation and vacancy tax applies will receive, by mail, a package which includes the required declara...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province of British Columbia provides a grant program – the Home Owner Grant – to help offset property taxes payable by eligible B.C. homeowners. The grant ranges from $570 to $1,045 and is re...
Effective as of January 1, 2020, B.C. residents will no longer be required to make Medical Services Plan premium payments. In 2017, the provincial government announced that such premium payments would...
The province of British Columbia will provide the following personal tax credit amounts for 2020: Basic personal amount ……………………………… $10,949 Spouse or common law partner ...
As previously announced, the province’s tobacco tax will increase by 2 cents per cigarette, to 29.5 cents, effective as of January 1, 2020. As a consequence of that increase, all retail and wholesal...
The provincial government has released the figures summarizing British Columbia’s revenue and expenditure picture as of the end of the second quarter of the 2019-20 fiscal year. The second quarter o...
The provincial government has announced that the provincial sales tax (PST) rate applied to vaping products will increase from 7% to 20%, effective as of January 1, 2020. The government also indicated...
Effective as of January 1, 2019, the province introduced a new Employer Health (payroll) Tax (EHT). All employers in the province who are subject to the tax (generally, for for-profit employers, those...
Qualifying homeowners in the province may receive a Home Owner Grant to help offset the cost of property taxes payable on their principal residence. The terms and qualifications for this grant differ,...
The province has issued a reminder to holders of International Fuel Tax Agreement licences that current licences will expire at the end of the calendar year. In order to receive a licence for 2020 pri...
A press release issued by the provincial government indicates that the credit rating agency Standard & Poor’s has affirmed British Columbia’s AAA long-term rating. The province will, as a resu...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The British Columbia government has released figures summarizing the province’s fiscal position as of the end of the first quarter of 2019-20 (June 30, 2019). Those figures show that the province is...
As of January 1, 2019, the province of British Columbia imposes an Employer Health (payroll) Tax (EHT) to help fund the province’s health care system. The EHT generally applies to companies within t...
British Columbia provides individual taxpayers in the province with a Small Business Venture Capital Tax Credit, the purpose of which is to encourage equity capital investments in B.C. small businesse...
The provincial government provides B.C. farmers (whether individuals or corporations) with a tax credit for qualifying food donations made. For both individuals and corporations, the credit is equal t...
B.C. Small Business and Revenue has issued information on the application of the provincial employer health tax to First Nations employers and employees. The update, which can be found at https://www2...
Effective as of January 1, 2019, the province levies an employer health (payroll) tax on annual remuneration over $500,000 paid in British Columbia. Employers whose annual EHT liability is more than $...
B.C. Small Business and Revenue has updated and re-issued the provincial tax bulletin (Bulletin PST 311) which outlines the provincial sales tax (PST) treatment of materials purchased and provided for...
The province has announced the final revenue, expenditure, and surplus/deficit figures for its fiscal year ended March 31, 2019. Those Public Accounts indicate that provincial revenue for the year was...
The province of British Columbia provides training tax credits which may be claimed by both apprentices and by their employers. Such credits are paid to qualifying apprentices upon the completion of e...
Effective July 1, 2019, the dedicated tax on clear gasoline and clear diesel sold inside the Greater Vancouver area was increased by 1.5¢ per litre. To reflect that change, the following tax bulletin...
Each of the three major credit rating agencies has provided British Columbia with a triple-A rating. In providing those ratings, Moody’s, DBRS, and Standard & Poor’s cited British Columbia’s...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province imposes a Speculation and Vacancy tax on owners of certain residential properties in specified areas of the province. All residential property owners in those areas, in order to be exempt...
The province of British Columbia provides a climate action tax credit to eligible B.C. residents, to help offset the impact of carbon tax. The amount of climate action tax credit will be increased, ef...
The province provides a program through which eligible B.C. homeowners can defer payment of their property taxes. An application is required to participate in the program and, before applying, the hom...
Taxpayers in the province have the right to appeal assessments, disallowed refunds, and other decisions made by the provincial Minister of Finance under a broad range of taxing statutes. Those statute...
British Columbia implemented an employer health (payroll) tax effective January 1, 2019. B.C. Small Business and Revenue recently posted updated information with respect to the tax on the EHT website....
The international credit rating agency Moody’s Investors Services has affirmed British Columbia’s AAA credit rating, with a stable outlook. In its rating decision, Moody’s cited the province’s...
Effective as of June 1, 2019, the British Columbia general minimum wage will increase from $12.65 per hour to $13.85 per hour. As of the same date, minimum wage rates payable to workers in specific ty...
British Columbia provides a program — Clean B.C. — in which homeowners who purchase new energy-efficient products and equipment can receive a rebate to help offset a portion of the purchase price....
Effective as of April 1, 2019, increases in provincial carbon tax rates took effect. Bulletin MFT-CT 005, Tax Rates on Fuels, has been updated to reflect those changes. Consequential changes have bee...
B.C. Small Business and Revenue has announced that it has updated and redesigned its website for the provincial tobacco tax. As part of that redesign, the following tobacco tax bulletins have been ret...
The provincial government imposes a Speculation and Vacancy tax intended to target foreign and domestic speculators who own residences in B.C. but who do not pay taxes in the province. Property owners...
As of June 1, 2019, the general minimum wage payable in the province will increase by $1.20 per hour, from $12.65 to $13.85. Different minimum wage rates apply to liquor servers, live-in camp leaders,...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
In this year’s Budget, the province announced that its program of training tax credits, which was scheduled to end on December 31, 2018, has instead been extended and will be available until the end...
The province provides a Venture Capital Tax Credit (VCC) program, under which individual investors can claim a tax credit for qualifying investments made during the year or within 60 days after year e...
The province of British Columbia provides a non-taxable climate action tax credit to help offset the impact of the carbon taxes paid by provincial residents. That credit is paid four times a year, com...
As announced in the recent provincial Budget, and effective as of October 1, 2020, the existing early childhood tax benefit will be combined with the new Child Opportunity Benefit to provide a single ...
In the 2019-20 B.C. Budget brought down on February 19, the provincial government announced that it was eliminating interest charges on all student loans, effective immediately. The change means that ...
As of January 1, 2019, the province implemented a payroll tax — the Employer Health Tax (EHT). B.C. Small Business and Revenue has now issued a Notice providing information on the remittance of EHT ...
The B.C. Ministry of Finance has updated and re-issued its provincial sales tax bulletin with respect to sales of cannabis in the province. The updated bulletin (Bulletin PST 141), which applies to sa...
The 2019-20 British Columbia Budget is, by law, brought down on the third Tuesday of February. Consequently, this year’s B.C. Budget will be announced on Tuesday February 19, 2019. When the Budget i...
The provincial government has announced that registration for the B.C. Employer Health Tax (EHT) is now open. Employers having an annual B.C. payroll of more than the basic exemption amount of $500,00...
In 2018, the provincial government announced the creation of a speculation and vacancy tax (SVT), as part of its housing affordability initiative. All owners living in areas subject to the SVT must re...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The Canada Revenue Agency has issued a supplement to the payroll deduction tables to be used for residents of British Columbia during the 2019 tax year.The supplement, which can be found on the CRA we...
The B.C. Minister of Finance has announced that the province is operating debt-free for the first time in more than 40 years. The announcement was made as part of the Province’s Second Quarterly Rep...
The province of British Columbia will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $10,682 Spouse or equivalent to spous...
In its 2018-19 Budget, the province announced a 30-Point Housing Plan through which a number of measures would be implemented to address housing affordability in the province. As part of that Plan, an...
As previously announced, the province will be implementing an employer health (payroll) tax, effective as of January 1, 2019. At the same time, Medical Service Plan premiums payable by B.C. residents ...
Consumers in the province can claim a refund of provincial sales tax (PST) paid, where such tax was overpaid or paid in error. The B.C. Ministry of Small Business and Revenue has updated and re-issued...
The provincial government has announced the contingency plans which will apply for purposes of payments to and from the province in the event of a postal disruption. That announcement indicates that q...
In September 2018, the province introduced a new Affordable Child Care Benefit for eligible residents of the province. It has now issued a warning to such residents about online services which purport...
British Columbia levies both provincial sales tax (PST) and a separate Municipal and Regional District Tax (MRDT) accommodation tax on sales of short-term accommodation in the province. Effective as o...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
Individual and corporations which generate revenue from logging on private or Crown land in British Columbia are subject to the provincial logging tax. That tax applies to such individuals and corpora...
The provincial government has announced the start of the pre-budget consultation process for the 2019-20 B.C. Budget, which will be brought down on Tuesday, February 19, 2019. To assist in that the pr...
Effective as of September 1, the province replaced its existing child care subsidy with the Affordable Child Care Benefit. That new benefit will, in most cases, be paid to child care providers, with t...
B.C.’s Minister of Finance has released the Public Accounts for the fiscal year ended March 31, 2018. Those accounts confirm that the province recorded a surplus for the 2017-18 fiscal year. The aud...
As previously announced, the province will be joining Petrinex, effective as of November 5, 2018. The purpose of the change is to improve how information about the oil and gas industry is recorded and...
British Columbia provides farm corporations in the province with a tax credit for donations to registered charities (such as food banks or school meal programs) of certain agricultural products which ...
The provincial government has announced that significant changes will be made to the provincial automobile insurance program administered by ICBC. Key proposed changes to basic insurance through ICBC ...
The province provides a refundable tax credit equal to 17.5% of the wages and salaries paid in a tax year in relation to the development of eligible interactive digital media tax products, which inclu...
Effective as of September 17, 2018, the province will require additional information to be disclosed where real estate in the province is purchased through a trust or a corporation. In such circumstan...
Effective as of November 2018, reporting requirements for oil and gas activities in the province will be changing. Those changes include the implementation of Petrinex, as well as new revenue administ...
B.C. Small Business and Revenue has updated and re-issued a number of provincial sales tax bulletins. The purpose of each update is to indicate that, effective as of April 1, 2018, delivery charges ar...
As previously announced, the province will be implementing an employer health (payroll) tax, or EHT, effective as of January 1, 2019. Details of that payroll tax have now been released. The payroll ta...
The B.C. government has announced that new regulations will apply to payday loan businesses and cheque cashing services operating in the province. Those new regulations will take effect as of Septembe...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
The province announced, in this year’s Budget, that the existing B.C. Infirm Dependant and In-Home Care of Relative Tax Credits would be replaced by a new B.C. Caregiver Tax Credit. The new credit i...
Effective as of June 1, the general minimum wage payable in the province of British Columbia increased to $12.65 per hour. The change is part of a planned series of increases which will result in a $1...
Qualifying homeowners in the province can take advantage of a program which allows them to defer payment of their property taxes, through a low-interest loan from the province. There are two component...
The province announced, as part of this year’s (2018-19) Budget, that it would be eliminating the provincial education tax credit, effective as of January 1, 2019. That credit is claimable by part-t...
B.C. Small Business and Revenue has updated and re-issued a number of tax bulletins to reflect the application of sales tax to certain gift cards and gift certificates. The updated bulletins cover the...
The provincial government has announced the creation of a Small Business Tax Force, which will be holding consultation sessions throughout the province for interested stakeholders. An online consultat...
Standard and Poor’s (S&P) Global Ratings has affirmed British Columbia’s ‘AAA’ long-term credit rating, with the Agency’s report indicating that it expects “the provincial economy will...
As announced in the province’s 2018-19 Budget, changes have been made to the provincial caregiver tax credit, effective for the 2018 and subsequent taxation years. Those changes will see the former ...
As previously announced, B.C.’s tobacco tax and carbon tax rates were increased, effective as of April 1, 2018. Updated tobacco tax return forms and carbon tax refund forms which reflect the new rat...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax, and insurance premium tax. ...
In its 2018-19 Budget, the province announced that a land speculation tax would be imposed, in specified areas of the province, on housing units which were neither owner-occupied nor used as a qualify...
The B.C. Ministry of Small Business and Revenue has updated and re-issued a number of sales tax bulletins. Those updates correct an error in previous versions, which incorrectly indicated that provinc...
In this year’s Budget, the provincial government announced that changes would be made to impose a higher provincial sales tax (PST) rate on the sale of some passenger vehicles in the province. Under...
The 2018-19 B.C. Budget included a number of changes to the province’s property transfer tax regime. Such tax is imposed when property is bought or sold and the tax payable is based on the fair mark...
The province of British Columbia will provide the following personal tax credit amounts for 2018: Basic personal amount ………………………………… $10,412 Spouse or equivalent to spouse...
In its 2018-19 Budget, the provincial government introduced a new real estate speculation tax, which will be effective for the 2018 and subsequent tax years. The new tax will target foreign and domest...
In the 2018-19 provincial Budget brought down on February 20, 2018, the B.C. government announced that the existing 15% additional property transfer tax rate has been increased to 20%, and that such t...
British Columbia Budget legislation provides for a fixed annual budget date of the third Tuesday of February. Consequently, the 2018-19 B.C. Budget will be announced at around 1:30 p.m. on Tuesday, Fe...
For the 2018 tax year, the province of British Columbia will levy personal income tax at the following individual income tax rates and brackets. 06% on taxable income between $10,412 and $39,676; 7% ...
As announced in the 2017 Budget Update, the province has reduced Medical Service Premiums (MSP) by one half, effective as of January 1, 2018. As well, the income threshold for full exemption from MSP ...
As announced in the 2017 Budget Update last fall, the provincial general corporate income tax rate was increased, effective as of January 1, 2018, from 11% to 12%. The general corporate income tax rat...
The provincial government has announced that the threshold for British Columbia’s Homeowner Grant program has been increased, for 2018, to $1.65 million. Homeowners must apply for the grant each yea...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of British Columbia at the end of that year. The T1 form p...
The province of British Columbia levies and pays interest at prescribed rates on underpayments and overpayments of tax with respect to corporation capital tax, logging tax and insurance premium tax. T...
The Canada Revenue Agency (CRA) has issued the payroll deduction tables which B.C. employers will use to determine employee source deductions for federal and provincial income tax, Canada Pension Plan...
A number of changes to the province’s rent control legislation took effect on December 11, 2017. One of the changes effective on that date limits the ability of landlords of rental residential units...
British Columbia’s fiscal report for the second quarter of the 2017-18 fiscal year shows that the province is on track to post a balanced budget for the year. That balanced budget is expected notwit...
The Canada Revenue Agency has issued the British Columbia TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income ...
The B.C. Ministry of Finance has issued a provincial sales tax (PST) notice dealing with the application of PST to sales of clean energy vehicles in the province. That notice (Notice 2017-005) address...
The provincial government, which previously announced its intention of raising the minimum wage to $15 per hour, will be holding public consultations on the timeline and process for that change.The co...
Beginning in 2025, returns under some Saskatchewan tax programs must be filed electronically through Saskatchewan E-Tax Services (SETS), which is available on the provincial government website at www....
During the 2025 taxation year the province of Saskatchewan will levy individual income tax using the following income brackets and tax rates. Tax Rate Taxable Income Brackets 10.5% ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2025 is a...
The Saskatchewan government recently announced that a number of personal tax exemption amounts would increase by $500, effective for the next four taxation years. The increase, which is in addition to...
As announced by the federal government last month, a two-month holiday from the imposition of the federal goods and services tax/harmonized sales tax (GST/HST) will be provided on sales of specified t...
Saskatchewan Finance has issued a new Information Notice (IN 2024-02) reminding taxpayers that, regardless of any interruption in postal services during the possible upcoming postal disruption, tax re...
Effective as of October 1, 2024, the Saskatchewan general minimum wage will increase from $14.00 to $15.00 per hour. The press release announcing the change is available at https://www.saskatchewan.ca...
Saskatchewan Finance has prepared and issued a new Information Bulletin (PST-77, Buying and Selling a Business) on the provincial sales tax rules which apply where a business is bought or sold. The ne...
Saskatchewan Finance has updated and re-issued two Information Bulletins dealing with requirements imposed on suppliers and vendors under the province’s tobacco tax rules. The recently released Bull...
The Saskatchewan government has issued its financial report for the First Quarter (April 1 to June 30) of the province’s 2024-25 fiscal year. That First Quarter Report shows that the province’s fi...
Saskatchewan Finance has updated and re-issued its Bulletin (BC-5 - The Saskatchewan Beverage Container Collection and Recycling Program) which outlines the collection, registration, filing, and payme...
Effective as of October 1, 2024, the general minimum wage payable in Saskatchewan will increase by $1.00, from $14.00 to $15.00 per hour. The press release announcing the increase is available on the ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rates payable for 2024 are as follows: ...
Saskatchewan Finance has updated and re-issued its Bulletin (PST-7 – Computer Hardware, Software and Computer Services) on the application of provincial sales tax to sales of computer hardware, soft...
The province provides transferable Crown royalty and freehold production tax credits through the Saskatchewan Petroleum Innovation Incentive (SPII) program. Such credits are available, at a rate of 25...
Through its Technology Start-Up Incentive (STSI) program, the province provides a non-refundable 45% tax credit to individuals or corporations which invest in early-stage technology businesses which h...
The Saskatchewan Commercial Innovation Incentive (SCII) is a tax incentive that provides eligible corporations that commercialize their qualifying intellectual property in Saskatchewan with a reduced ...
In 2020, as part of pandemic relief measures, the government of Saskatchewan reduced the province’s small business income tax rate to 0%. That 0% rate was later extended to apply until June 30, 2023...
In 2020, the provincial government introduced a new tax credit – the Provincial Sales Tax (PST) Rebate for New Home Construction – which provides a rebate of up to 42% of the PST paid on the purch...
During the 2024 taxation year the province of Saskatchewan will levy individual income tax using the following income brackets and tax rates. Tax Rate Taxable I...
The province of Saskatchewan will provide the following personal tax credit amounts for 2024: Basic personal amount ……………………………… $18,491 Spouse or equivalent to spouse amou...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2024 is a...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2024 is a...
The Saskatchewan government has announced that it has directed Saskatchewan Power to remove the federal carbon tax from electric home heating bills between January 1 and April 30, 2024. Customers of S...
Since 2015, the province has provided a non-refundable tax credit to eligible corporations that increase the number of employees engaged in qualifying manufacturing and processing work. That credit ...
Since April 1, 2020, the province has provided a rebate of provincial sales tax on purchases of newly constructed homes in the province. That program was expanded to provide such a rebate of sales tax...
Saskatchewan Finance has updated, renamed, and re-issued its Bulletin (PST-5) on Registration and Reporting requirements for purposes of provincial sales tax. Bulletin PST-5 was formerly entitled Gene...
The provincial government has issued a reminder to Saskatchewan parents of the current availability of the Active Families Benefit, a tax credit program intended to help offset the cost of enrolling c...
Saskatchewan Finance has updated and re-issued its provincial sales tax (PST) Bulletin PST-78, dealing with the application of PST to motor vehicle sales in the province. The updated Bulletin, which c...
Effective as of Sunday October 1, 2023, the provincial general minimum wage will increase by $1.00, from $13.00 to $14.00 per hour. The minimum wage rate is scheduled to increase again, as of October ...
The 2023-24 First Quarter Report issued by the province shows a reduction in the 2023-24 surplus amount which was projected in this year’s budget. Overall, that surplus is now expected to be $485.5 ...
The federal Livestock Tax Deferral program allows livestock producers who are forced to sell all or part of their breeding herd due to drought or flooding to defer a portion of their income from such ...
The Financial and Consumer Affairs Authority (FCAA) (an agency of the Saskatchewan government) has announced that as of August 2023 it will be participating in the Canada Revenue Agency (CRA) Individu...
Changes to the Saskatchewan hourly minimum wage rate are announced on or before June 30 of each year, to take effect on October 1 of that year. The provincial minimum wage was increased on October 1, ...
Eligible residents of Saskatchewan can receive four quarterly payments during the 2023-24 benefit year under the federal Climate Action Incentive Payment program. For the 2023-24 benefit year, eligibl...
The Saskatchewan government has announced that the province ran a surplus of $1.58 billion for the 2022-23 fiscal year which ended on March 31, 2023. That surplus figure represents a $3.05 billion imp...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rates payable for 2023 are as follows: ...
Saskatchewan Finance has updated and re-issued provincial sales tax (PST) Bulletin PST-23, on the application of PST to lawn and garden centres, nurseries, greenhouses, gardens, and other growers in t...
In 2020, the province introduced a program under which purchasers of a newly constructed home could claim a partial rebate of provincial sales tax (PST) paid on that purchase, where the total price of...
Residents of the province can claim a Saskatchewan Mineral Exploration Tax Credit (SMETC) for investments made in eligible flow-through shares issued by approved mineral exploration companies. Such fl...
Since 2015, the province has provided a non-refundable tax credit to eligible corporations that increase the number of employees engaged in manufacturing and processing related work. The Manufacturing...
The Saskatchewan government has announced that the province’s budget for the upcoming 2023-24 fiscal year will be released on Wednesday March 22. Once the budget measures are announced, the full 202...
Effective as of October 1, 2022, provincial sales tax (PST) applies to charges levied for taxable admissions, entertainment and certain types of recreation in relation to a place or facility, or a sem...
Saskatchewan Finance has issued an updated Provincial Sales Tax (PST) Information Notice (IN 2023-01), outlining the different tax treatment which applies for PST purposes to sales of gift cards, gift...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2023 ...
During the 2023 taxation year the province of Saskatchewan will levy individual income tax using the following income brackets and tax rates. Tax Rate Taxable Inc...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2023 is a...
The province of Saskatchewan will provide the following personal tax credit amounts for 2023: Basic personal amount ……………………………… $17,661 Spouse or equivalent to spouse amo...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2023 ...
Saskatchewan Finance has updated and re-issued the following provincial sales tax (PST) bulletins. Among the changes made were clarifications on how PST applies to levies imposed by the federal govern...
The Saskatchewan government has issued its mid-year financial report for the 2022-23 fiscal year. That report shows that the province is now forecasting a surplus of $1.1 billion for 2022-23, up from ...
Saskatchewan provides a home renovation tax credit, through which eligible homeowners can claim a 10.5% non-refundable tax credit on up to $9,000 in qualifying home renovation costs incurred during 20...
The province of Saskatchewan provides home buyers with a rebate of the provincial sales tax payable on a new home purchase. That rebate, which was introduced in 2020, is 42 per cent of PST paid (about...
In October 2020, as part of its pandemic relief measures, the government of Saskatchewan temporarily reduced the provincial small business income tax rate to zero. This year’s provincial budget incl...
Earlier this year, the province announced that the 6% provincial sales tax would, effective as of October 1, 2022, apply to charges for admissions, entertainment, and some recreation activities in the...
Effective as of October 1, 2022, provincial sales tax at a rate of 6% will apply to sales of taxable admissions, entertainment, and some recreation activities in Saskatchewan. There are, however, a nu...
The government of Saskatchewan has announced that, in order to help residents of the province meet increases in the cost of living, it will be providing a one-time non-taxable payment of $500 through ...
Effective as of October 1, 2022, the provincial general minimum wage will increase from $11.81 per hour to $13.00. The change is the first in a three-stage increase in the minimum wage. Further increa...
In 2020 the province introduced a Home Renovation Tax Credit, which provides (for 2022) a 10.5% non-refundable tax credit on up to $10,000 of eligible costs incurred during the year for renovations ma...
The province has released the year-end financial results for its 2021-22 fiscal year ended March 31, 2022, and those figures show that the province is in a better financial position than anticipated. ...
Saskatchewan’s small business income tax rate was increased, effective as of July 1, 2022, from 0% to 1.0%. The 0% rate was a temporary measure put in place during the pandemic to provide relief to ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rates payable for 2022 are as follows: ...
The province has announced that, effective as of June 1, 2022, the Saskatchewan Housing Benefit program was expanded to cover renters in the province. Specifically, eligible renters who pay 35 per cen...
Earlier this year, the provincial government announced that new provincial sales tax exemptions would be provided on a range of goods and services provided to farmers or primary producers or used dire...
Through its Saskatchewan Technology Startup Incentive (STSI) program, the province offers Saskatchewan-based investors a 45% non-refundable tax credit for investments made in eligible technology start...
In this year’s budget, the provincial government announced that there would be an across-the-board increase in tobacco tax rates. All such increases were effective as of March 24, 2022. Saskatchewan...
In this year’s budget the province announced that, effective as of October 1, 2022, provincial sales tax will be levied on admission charges for a wide range of entertainment and sports events. The ...
On October 1, 2020, as part of its pandemic relief measures, the province temporarily reduced its small business corporate income tax rate to zero. In its recent budget for the 2022-23 fiscal year, th...
The federal government has released information on Climate Action Incentive (CAI) payment amounts for 2022-23. For residents of Saskatchewan, those amounts will be $550 for the first adult in a family...
Saskatchewan Finance has revised and re-issued a number of provincial sales tax bulletins, to provide updates or add more detailed information. The recently re-issued bulletins are as follows. PST-36...
The province of Saskatchewan will provide the following personal tax credit amounts for 2022: Basic personal amount ……………………………… $16,615 Spouse or equivalent to spouse amount...
Saskatchewan Finance recently updated and re-issued a number of bulletins covering the application of provincial sales tax. Those updated bulletins cover services provided in relation to specific comm...
In 2020, the province introduced a non-refundable tax credit program — the Saskatchewan Home Renovation Tax Credit — allowing homeowners to claim a 10.5% credit on eligible home renovation expense...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rate payable for the first half of 2022 is a...
The Canada Revenue Agency (CRA) has issued the TD1 form to be used by residents of Saskatchewan for the 2022 tax year. On the TD1 form, an employee indicates the provincial personal tax credit amounts...
Saskatchewan Finance has updated and re-issued Information Bulletin PST-6, which provides information on the application of provincial sales tax for vendors of extended warranty contracts and maintena...
The Mid-Year Report released recently by the provincial government included some good fiscal news, in that a deficit of $2.7 billion is now forecast for the current (2021-22) fiscal year. While that f...
Holders of Fuel Tax Exemption permits in Saskatchewan may purchase fuel on a tax-exempt or tax-reduced basis. Saskatchewan Finance has recently updated and re-issued a number of Fuel Tax Bulletins to ...
The province of Saskatchewan levies a fuel tax, and revenue from that fuel tax is used to maintain and improve provincial highways. Since the fuel tax does not apply to electric vehicles, owners of su...
Effective as of October 1, 2021, the general minimum wage payable in the province will increase from $11.45 to $11.81 per hour. The provincial minimum wage is calculated using an indexation formula. A...
The first quarter fiscal update issued recently by the government of Saskatchewan shows an increase in the provincial deficit for 2021-22. That deficit is now projected to be $2.74 billion, an increas...
Beginning in February 2020, the province introduced a new regulatory and tax regime for vapour products sold in Saskatchewan. As of September 1, 2021, that regime will include an increase in the rate ...
The Saskatchewan government has announced that, effective as of July 1, 2021, amounts paid under the province’s Seniors Income Plan were increased. As of that date, the maximum monthly benefit incre...
As announced in the 2021-22 provincial Budget, effective as of September 1, 2021 Saskatchewan will impose a vapour products tax (VPT) at the rate of 20% on all vapour products. Until August 31, 2021, ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rates payable for 2021 are as follows: ...
The Saskatchewan government has announced that the provincial general minimum wage will increase, effective October 1, 2021, from $11.45 to $11.81 per hour. Saskatchewan's minimum wage is reviewed ann...
The province levies provincial sales tax at a rate of 6% on personal property or services purchased and distributed through an electronic format, accommodation services booked through an online accomm...
In 2020, the province launched the Small Business Emergency Payment Program, to provide financial assistance to small businesses in the province whose operations were substantially affected by public ...
The Active Families Benefit (AFB) is an annual refundable tax benefit introduced to help Saskatchewan families with the costs of their children’s participation in qualifying non-school activities. E...
On October 1, 2020, as part of its pandemic response plan, the provincial government temporarily reduced its small business corporate income tax rate from 2% to 0%. In its 2021-22 Budget, the governme...
The 2021-22 Saskatchewan Budget, which was brought down on April 6, 2021, includes projections of provincial deficits through 2025. For the current (2021-22) fiscal year, the Budget forecasts a defici...
Residents of Saskatchewan who carry out qualifying home renovations between October 1, 2020 and the end of 2022 may claim a tax credit with respect to eligible expenses incurred.The non-refundable tax...
The provincial government has announced that the 2021-22 Saskatchewan Budget will be brought down on Tuesday April 6, 2021. The press release announcing the Budget date can be found on the provincial ...
During the 2021 taxation year, the province of Saskatchewan will levy individual income tax using the following income tax brackets and tax rates. Tax Rate ...
The province of Saskatchewan levies interest on late or insufficient payments of tax at rates prescribed by statute and set every January 1st and July 1st. The rate payable for the first half of 2021 ...
In the recent Speech from the Throne, the provincial government announced that it would be providing Saskatchewan homeowners with a Home Renovation Tax Credit. Homeowners will be able to claim a credi...
On November 27, the provincial government released its Mid-Year Report on the province’s finances for the current (2020-21) fiscal year. That forecast showed a deficit of $2 billion, which represent...
The government of Saskatchewan has announced Phase 2 of its existing wage supplement program, which is effective as of November 19. The extension will provide a further wage supplement to full-time, p...
The province of Saskatchewan offers manufacturing companies in the province with a Manufacturing and Processing (M&P) Exporter Tax Incentive. That Incentive provides non-refundable tax credits to ...
Effective April 1, 2020, the province provides new home purchasers in Saskatchewan with a rebate of up to 42% of provincial sales tax paid on the purchase of a newly constructed home. To qualify for t...
The province has released its First Quarter Budget Update for the 2020-21 fiscal year, and that Update includes both a projection of a reduced current year deficit, and of a return to surplus in 2024-...
Effective as of October 1, the provincial general minimum wage will increase by 13 cents, to $11.45 per hour. That increase is based on changes to the Saskatchewan Consumer Price Index. Some groups of...
Saskatchewan provides a wage supplement for qualifying essential workers in the province, equal to $400 for each four-week period between March 15 and July 4, 2020. The supplement is generally availab...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and July 1. The rates payable for 2020 are as follows ...
The 2020-21 Saskatchewan Budget recently brought down by the provincial government included an announcement of a provincial sales tax rebate on new housing construction. Under the new rebate program, ...
The provincial government previously announced that taxpayers who file returns and make payments electronically for purposes of Provincial Sales Tax, Liquor Consumption Tax, and the Beverage Container...
The province of Saskatchewan brought down its 2020-21 Budget on June 15 and that Budget included a projection of a deficit of $2.4 billion for the year. For 2020-21, revenue is forecast to be $13.6 bi...
The provincial government has announced that Saskatchewan’s minimum wage will increase from $11.32 to $11.45 per hour on October 1, 2020. The provincial minimum wage is revised annually, based on c...
Earlier this month, the province announced that a temporary wage supplement would be made available to qualifying essential care workers in the province. Saskatchewan Finance has now issued Informatio...
The provincial government has announced that a new wage supplement of $400 per month will be provided to lower income essential workers in the province for a period of 16 weeks (March 15 to July 4).Wo...
The Saskatchewan government will be providing eligible small and medium-sized businesses in the province which are directly affected by government public health orders related to COVID-19 with a one-t...
The province has announced relief measures for Saskatchewan businesses with respect to their provincial sales tax payment obligations. While businesses which are able to do so are still required to fi...
The provincial government has announced that, effective as of March 20, 2020, Saskatchewan businesses which are unable to remit their Provincial Sales Tax (PST) due to cashflow concerns will have reli...
The provincial government has announced that businesses directly impacted by the COVID-19 virus that are unable to file their provincial tax return(s) by the due date may submit a request for interest...
Saskatchewan Finance has announced that taxpayers filing returns or making payments electronically for purposes of Provincial Sales Tax, Liquor Consumption Tax and the Beverage Container Program will ...
The provincial government has announced that changes will be made, effective April 1, 2020, to the tax payable thresholds which determine the frequency with which businesses must file returns under ce...
The Canada Revenue Agency (CRA) has released the Individual Income Tax Return and Guide to be used by individuals who were residents of Saskatchewan as of December 31, 2019. That return and guide can ...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and June 1. The rate payable for the first half of 2020 is as f...
The province of Saskatchewan will provide the following personal tax credit amounts for 2020: Basic personal amount ………………………………… $16,065 Spouse or equivalent to spouse...
As announced in this year’s Budget, the province will be providing a new tax credit for volunteer emergency responders, effective for the 2020 and subsequent tax years. The $3,000 tax credit amount ...
The provincial government has released the financial results for the first half of the province’s 2019-20 fiscal year. Those results forecast an increased surplus for the year — up $3 million from...
Saskatchewan Finance has updated and re-released its tax bulletin (PST-74) on the application of provincial sales tax to sales of cannabis. The updated Bulletin, which is available at https://www.sets...
Saskatchewan Finance has issued two updated Bulletins providing information on the application of provincial sales tax where complimentary or tax-included meals or meal tokens are provided in particul...
Effective as of October 1, 2019, the general minimum wage payable in the province of Saskatchewan will increase from $11.06 to $11.32 per hour. Saskatchewan’s minimum wage is indexed, increasing on ...
The province of Saskatchewan has issued the revenue and expenditure figures for the first quarter (April 1 – June 30) of its 2019-20 fiscal year. Those figures indicate that the province is on track...
Saskatchewan Finance has updated and re-issued its Information Bulletin (PST-58) on the application of provincial sales tax to sales of used goods in the province. The changes to the Bulletin include ...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1 and June 1. The rates payable for 2019 are as follows. ...
Saskatchewan Finance has updated and re-issued its provincial sales tax (PST) bulletin (PST-58) with respect to the application of PST to sales of used goods. Where a business sells used assets, it is...
Final figures for the province’s 2018-19 fiscal year show that Saskatchewan ended that year in a better than expected financial position. During that year, total revenue was $14.45 billion, which wa...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rates payable for 2019 are as follows. ...
The Saskatchewan government has announced that the general minimum wage payable in the province will be increased, effective as of October 1, 2019. As of that date, the provincial general minimum wage...
In this year’s Budget, the province has announced that, beginning in 2020, a new non-refundable $3,000 tax credit amount will be claimable by Volunteer Emergency Medical First Responders and Volunte...
The 2019-20 Budget brought down on March 19 indicates that Saskatchewan will have a balanced Budget for the upcoming (2019-20) fiscal year, with a surplus of $34.4 million. There were no new taxes or ...
The Saskatchewan government has announced that the 2019-20 provincial Budget will be brought down on Wednesday, March 20, 2019. Once the Budget is released, the Budget Papers will be posted on the pro...
Taxpayers whose livestock farming operations are affected by adverse weather conditions during a particular taxation year can benefit from a tax deferral program. That Livestock Tax Deferral provision...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rate payable for the first half of 2019 is ...
The mid-year fiscal update announced by the Saskatchewan Finance Minister indicated that the province’s projected deficit for the 2018-19 will be less than was forecast in the Budget. That deficit i...
The province of Saskatchewan will provide the following personal tax credit amounts for 2019: Basic personal amount ……………………………… $16,065 Spouse or equivalent to spouse am...
Applications are now being accepted for a new incentive to help encourage mineral exploration in targeted areas of Saskatchewan. That new incentive, the Targeted Mineral Exploration Incentive, is desi...
The province has announced the procedures which will be in place with respect to consumption tax fillings, payments and refunds by and to businesses in the event of a postal disruption. The announceme...
Effective as of October 1, 2018, individuals and corporations can apply for the Saskatchewan Technology Startup Incentive (STSI). The STSI is a non-refundable 45% tax credit for individuals or corpora...
The province has instituted a “Tip Line” which provides an anonymous, fully confidential way for the public to report businesses or individuals who are participating in tax fraud. The Tip Line is...
The province’s Finance Minister has announced that Moody’s Investors Service has confirmed Saskatchewan’s AAA credit rating. Saskatchewan and British Columbia are the only two Canadians province...
The first quarter (2018-19) fiscal results released by the provincial government show a reduction in the projected deficit for the current year. The 2018-19 Budget had projected a full-year deficit of...
Effective as of October 1, 2018, the provincial general minimum wage will increase by $0.10 per hour, from $10.96 to $11.06. More information on Saskatchewan’s minimum wage and minimum wage payment...
The Minister of Finance has announced that the province achieved a significant reduction in its overall deficit during the 2017-18 fiscal year. The Minister’s announcement indicates that the provinc...
As announced in this year’s budget, the province will be providing a tax credit for investments made in Saskatchewan technology start-ups. That non-refundable tax credit, the Saskatchewan Technology...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rates payable for 2018 are as follows. ...
The minimum wage in Saskatchewan will increase to $11.06 an hour from $10.96 an hour, effective as of October 1, 2018. Saskatchewan’s legislation provides for an annual review of the minimum wage, b...
In this year’s Budget, the province announced that it would be eliminating the existing provincial sales tax (PST) exemption provided for purchases of certain Energy Star rated products. Consequentl...
Saskatchewan Finance has announced that residents of the province who are over the age of 65 will be eligible for a new property tax deferral program, which came into effect as of April 10, 2018. To t...
As announced on February 26, 2018, provincial sales tax is no longer levied on certain types of insurance policies, including individual and group life policies, health, disability, accident and sickn...
The province of Saskatchewan levies interest on late or deficient payments of tax at rates prescribed by statute and set every January 1st and June 1st. The rate payable for the first half of 2018 is ...
The province of Saskatchewan will provide the following personal tax credit amounts for 2018: Basic personal amount ……………………………… $16,065 Spouse or equivalent to spouse amount...
For the 2018 tax year, the province of Saskatchewan will levy personal income tax at the following individual income tax rates and brackets: 5% on the first $45,225 of taxable income; 5% on taxable i...
Effective as of January 1, 2018, the Saskatchewan general corporate income tax rate increased from 11.5% to 12%. That rate was reduced to 11.5% from 12% from July 1 to December 31, 2017. The general c...
The Canada Revenue Agency has released the 2017 T1 Individual Income Tax Return and Benefit form to be used by individuals who were residents of Saskatchewan at the end of that year. The T1 form packa...
The provincial government has issued a press release reminding small businesses in Saskatchewan that the provincial small business limit has been increased, effective as of January 1, 2018, from $500,...
The Canada Revenue Agency has issued the Saskatchewan TD1 Form and Worksheet which will be used by taxpayers resident in the province, and their employers, to determine required provincial income tax ...
Saskatchewan imposes a Liquor Consumption Tax (LCT) equal to 10% of the selling price of beer, wine, and spirits in the province. Authorized vendors of such products are issued a non-transferable Spec...
Effective as of January 1, 2018, changes will be made to the taxation of both large and small corporations in the province. Small businesses will benefit from an increase in the small business thresho...
The Employment Insurance premium rate for 2025 is set at 1.64%.
The Employment Insurance premium rate for 2025 is set at 1.64%.
Yearly maximum insurable earnings are increased to $65,700, making the maximum employee premium $1,077.48.
As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2025 is therefore $1,508.47.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
As of 2024, there are two contribution levels for the Québec Pension Plan (QPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows.
As of 2024, there are two contribution levels for the Québec Pension Plan (QPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows.
- First tier contributions for 2025 are set at 6.4% of pensionable earnings between $3,500 and $71,300.
- Second tier contributions for 2025 are set at 4.0% of pensionable earnings between $71,300 and $81,200.
The maximum employee QPP contribution in 2025 for employees making only first-tier contributions (those with pensionable earnings of $71,300 or less) will be $4,339.20. Employees making second tier contributions will be required to contribute up to an additional $396.00 in contributions for the year.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
As of 2024, there are two contribution levels for the Canada Pension Plan (CPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows.
As of 2024, there are two contribution levels for the Canada Pension Plan (CPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows.
- First tier contributions for 2025 are set at 5.95% of pensionable earnings between $3,500 and $71,300.
- Second tier contributions for 2025 are set at 4.0% of pensionable earnings between $71,300 and $81,200.
The maximum employee CPP contribution in 2025 for employees making only first-tier contributions (those with pensionable earnings of $71,300 or less) will be $4034.10. Employees making second tier contributions will be required to contribute up to an additional $396.00 in contributions for the year.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Tax credit amounts on which individual non-refundable federal tax credits for 2025 are based, and the actual tax credit claimable, will be as follows:
Tax credit amounts on which individual non-refundable federal tax credits for 2025 are based, and the actual tax credit claimable, will be as follows:
Credit amount Tax credit
Basic personal amount* $16,129 $2,419
Spouse or common-law
partner amount* $16,129 $2,419
Eligible dependant amount* $16,129 $2,419
Age amount $9,028 $1,354
net income threshold for erosion of
age credit $45,522
Canada employment amount $1,471 $221
Disability amount $10,138 $1,521
Adoption expenses credit $19,580 $2,937
Medical expense tax credit (3% of
net income ceiling) $2,834
*For taxpayers having net income for the year of more than $253,414, amounts claimable for the basic personal amount, the spousal amount, and the eligible dependant amount for 2025 may differ.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
The indexing factor for federal tax credits and brackets for 2025 is 2.7%. The following federal tax rates and brackets will be in effect for individuals for the 2025 tax year.
The indexing factor for federal tax credits and brackets for 2025 is 2.7%. The following federal tax rates and brackets will be in effect for individuals for the 2025 tax year.
Income level Federal tax rate
$16,129 - $57,375 15.0%
$57,376 - $114,750 20.5%
$114,751 - $177,882 26.0%
$177,883 - $253,414 29.0%
Over $253,414 33.0%
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Each new tax year brings with it a schedule of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning opportunities. Some of the more significant dates and changes for individual taxpayers for 2025 are listed below.
Each new tax year brings with it a schedule of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning opportunities. Some of the more significant dates and changes for individual taxpayers for 2025 are listed below.
Registered retirement savings plan (RRSP) deduction limit and contribution deadline
The RRSP current year contribution limit for the 2024 tax year is $31,560. In order to make the maximum current year contribution for 2024 (for which the contribution deadline will be Monday March 3, 2025), it will be necessary to have earned income of $175,335 for the 2023 taxation year.
Tax-free savings account (TFSA) contribution limit
The TFSA current year contribution limit for 2025 remains at $7,000. The actual amount which can be contributed by a particular individual in 2025 includes both the current year contribution limit and any carryover of uncontributed or re-contribution amounts from previous taxation years.
Taxpayers can find out their individual 2025 TFSA contribution limit by calling the Canada Revenue Agency’s automated Tax Information Phone Service (TIPS) at 1-800-267-6999, where that information will be available from mid-February to the end of December. Taxpayers who have registered for the CRA’s online tax service My Account can obtain that information by logging into My Account.
A TFSA contribution can be made at any time during the taxation year.
First home savings account (FHSA) contribution limit for 2024
The FHSA current year contribution limit for 2025 is $8,000. The actual amount which can be contributed by a particular individual includes both the current year contribution limit and any carryover of uncontributed amounts from previous years, to a maximum carryover limit of $8,000.
There is a lifetime per individual limit of $40,000 in contributions to an FHSA, and an FHSA contribution can be made at any time during the taxation year.
Individual tax instalment deadlines for 2025
Millions of individual taxpayers pay income tax by quarterly instalments, which are due on the 15th days of March, June, September, and December 2025. Where the 15th of the month falls on a weekend or a statutory holiday, the instalment payment deadline is extended to the next business day.
The actual tax instalment due dates for 2025 are as follows:
- Monday March 17, 2025
- Monday June 16, 2025
- Monday September 15, 2025
- Monday December 15, 2025
Old Age Security income clawback threshold
For 2025, the income level above which Old Age Security (OAS) benefits are clawed back is $93,454.
Individual tax payment and filing deadlines in 2025
For all individual taxpayers, including those who are self-employed, the deadline for payment of any balance of 2024 taxes owed is Wednesday April 30, 2025.
Taxpayers (other than self-employed individuals and their spouses) must file an income tax return for 2024 on or before Wednesday April 30, 2025.
Self-employed taxpayers and their spouses must file an income tax return for 2024 on or before Monday June 16, 2025.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.
Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.
They can be accessed below.
Corporate:
Personal:
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
While almost everyone looks forward to retirement and an end to the day-to-day demands of working life, there’s also no question but that the decision to give up a regular paycheque is a stressful one. Particularly when the cost of life’s necessities – especially food and housing – seem to be continually increasing, individuals wanting to retire have to wonder whether they can actually afford to do so, or whether it would be foolhardy, in the current economic realities, to walk away from a reliable regular paycheque.
While almost everyone looks forward to retirement and an end to the day-to-day demands of working life, there’s also no question but that the decision to give up a regular paycheque is a stressful one. Particularly when the cost of life’s necessities – especially food and housing – seem to be continually increasing, individuals wanting to retire have to wonder whether they can actually afford to do so, or whether it would be foolhardy, in the current economic realities, to walk away from a reliable regular paycheque.
While retirement planning is about a lot more than just finances, it’s nonetheless the case that finances loom very large in any discussion about whether retirement in the near future is possible. The first financial task faced by anyone seeking an answer to that question is to determine what financial resources they will have to live on, and whether those resources are sufficient to meet their needs, now and in the future. And, while no one can accurately predict where inflation or interest rates are going, it is nonetheless possible to formulate both “best case” and “worst case” scenarios, and to test one’s current retirement income and expense expectations against both.
For most Canadians, income in retirement will come from three sources. The first two sources – a Canada Pension Plan (CPP) retirement benefit and Old Age Security (OAS) payments – will be received by nearly all retirees. The fortunate minority who are members of an employer-sponsored registered pension plan will also receive a monthly benefit from that plan. For the majority of Canadian retirees who will not receive a pension from their employer, the balance of their income in retirement (after CPP and OAS) will come from private retirement savings accumulated in registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), and tax-free savings accounts (TFSAs). The real question for most Canadians is how to determine the amount of annual after-tax income which all those sources of income will generate during their retirement years, and that’s not a simple calculation.
Money can be withdrawn from an RRSP, an RRIF, or a TFSA at any age, a CPP retirement pension can start anytime from age 60 to age 70, and Old Age Security benefits can be received as early as age 65 or as late as age 70. For both CPP and OAS, benefits will rise with each month that receipt of such benefits is deferred. As well, income from the different types of retirement income may be subject to different tax treatment, meaning that the after-tax amount received on $100 of income may vary widely, depending on the nature and source of that income.
The number of factors to consider and, especially, the complexity which results from the interaction of those factors could reasonably lead the average Canadian to conclude that it’s just not possible to make an accurate determination of the best way to structure their income in retirement, in order to ensure a reasonable income throughout their retirement years. But help is available – and it’s free!
That help is in the form of two online retirement planners which are available on the Government of Canada website. The first of these are webpages which can be found at https://www.canada.ca/en/services/retirement.html and https://www.canada.ca/en/services/retirement/learn.html. While these webpages, entitled Learn and Plan for Your Retirement, do include financial calculations, they provide much more broad-based information on transitioning to and living in retirement. In particular, the website outlines a number of “rules-of-thumb” with respect to the decision on when to begin receiving CPP or OAS benefits, and explains the specific rules which must be considered by lower-income seniors who may be eligible for the Guaranteed Income Supplement or those who are already receiving provincial disability benefits.
For purely financial calculations, the federal government provides a Retirement Income Calculator. That Calculator is included in the “Learn and Plan for your Retirement” webpages, but can also be found in a stand-alone version at https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html.
Using the Retirement Income Calculator, individual Canadian taxpayers can enter their personal data, including their date of birth, gender, and planned age of retirement, without the need to provide any personal identifying information. The user is then asked to provide information on income amounts which will be received from various sources, including any employer pension and Canada Pension Plan amounts and the age at which the user plans to begin receiving such income. Information is requested on the user’s period of residency in Canada, in order to determine whether they will be eligible to receive Old Age Security benefits and the amount of OAS benefits which will be provided at different ages. The calculator also allows the user to input the total amount of savings accumulated to date. Finally, information is requested on any other sources of income which will be available during retirement.
Using that data, the calculator estimates the amount of income which will be available to the individual from each source during each year of their retirement and generates a bar graph and a table showing those income amounts.
The real benefit of the calculator, however, lies in the individual’s ability to vary the inputs – to create “what-if” scenarios in order to determine the effect any changes made will have on retirement income at various ages. Users can change the age at which they choose to receive government-sponsored retirement benefits like CPP and OAS, or can specify a different rate of return (pre- or post-retirement) earned on retirement savings. They can also change the period of time over which retirement income will be spread (i.e., life expectancy). That way, the user can obtain answers to frequently asked questions like the following:
- How much more will I receive if I accelerate – or delay – receipt of Canada Pension Plan or Old Age Security benefits, or both, for one, two, or more years?
- What if I work an additional year or two after age 65 before starting RRSP withdrawals?
- What if I earn income from part-time employment during retirement?
- What if I choose to begin receiving CPP and OAS as soon as I am eligible, but defer making RRSP withdrawals?
- What if I live longer than the average life expectancy?
For each of these what-if fact scenarios, the calculator will determine the effect that particular change will have on the amount of income receivable from each different retirement income source, and will provide a summary of income for each year of retirement from all such sources under each fact scenario created by the user.
There are, of course, some factors which can’t be incorporated into any calculator because they cannot be predicted or planned for. No one can predict how long their retirement will last (although the Calculator does project retirement income based on average life expectancy for individuals of the age and gender of the user). Similarly, it’s never possible to know what investment returns will be earned on retirement savings during retirement, or what the rate of inflation will be. The calculator’s ability to estimate future income data based on a number of different fact patterns does, however, allow users to create retirement income projections under both “best-case” and “worst-case” retirement income scenarios. And, based on those income projections, an individual can determine whether retirement in the near future is financially feasible.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
It seems incongruous, in the season of holiday gifts and celebrations, to consider the possible tax implications and consequences of those traditions. But, in some circumstances, the unwelcome spectre of an income tax bill arising from such activities does intrude.
It seems incongruous, in the season of holiday gifts and celebrations, to consider the possible tax implications and consequences of those traditions. But, in some circumstances, the unwelcome spectre of an income tax bill arising from such activities does intrude.
Fortunately, there are never any tax consequences to the exchange of gifts and holiday celebrations with family and friends. However, where gifts are given and/or holiday celebrations held where the gift giver or person or company sponsoring the holiday celebration is the employer of the recipient, unwanted tax consequences can arise.
It’s traditional for employers to provide employees with something a little “extra” at this time of year. Sometimes it’s a salary or wage bonus, or a gift, or a holiday celebration sponsored and hosted by the employer – and sometimes it’s all three. What employers certainly don’t want to do is to create a tax headache for their employees. Unfortunately, it’s also the case that a failure to properly structure such gifts or holiday parties can result in a tax cost to those employees.
Trying to formulate and administer the tax rules around holiday gifts and celebrations is something of a no-win situation for the CRA. On an individual or even a company level, the amounts involved are usually small, or even nominal, and the range of situations which must be addressed by the related tax rules are virtually limitless. As a result, the cost of drafting and administering those rules can outweigh the revenue generated by the enforcement of such rules, to say nothing of the potential ill-will generated by imposing a tax cost on holiday gifts or parties. Nonetheless, the potential exists for employers to provide what would otherwise be taxable remuneration in the guise of holiday gifts, and it’s the responsibility of the tax authorities to ensure that such situations don’t slip through the tax net.
The starting point for the Canada Revenue Agency’s rules is that any gift (cash or non-cash) received by an employee from their employer at any time of the year is considered to constitute a taxable benefit, to be included in the employee’s income for that year.
The CRA does, however, make some administrative concessions in this area, allowing non-cash gifts (within a specified annual dollar limit) to be received tax-free by employees, as long as such gifts are given on significant dates or events, like religious holidays such as Christmas or Hanukkah, or on the occasion of a birthday, a marriage, or the birth of a child.
In sum, the CRA’s administrative policy is simply that such non-cash gifts to an arm’s length employee, regardless of the number of such gifts, will not be taxable if the total fair market value of all such gifts (including goods and services tax or harmonized sales tax) to that employee is $500 or less annually. The total value over $500 annually will be a taxable benefit to the employee and must be included on the employee’s T4 for the year, and on which income tax must be paid.
It’s important to remember the “non-cash” criterion imposed by the CRA, as the $500 per year administrative concession does not apply to what the CRA terms “cash or near-cash” gifts, and all such gifts are considered to be a taxable benefit and included in income for tax purposes, regardless of amount. For this purpose, the CRA considers both currency and cheques to be cash. As well, in situations in which an employee selects and purchases something, submits a receipt to the employer, and receives reimbursement for that purchase, that employee is considered to have received a cash gift in the amount of the purchase/reimbursement.
Other instances of gifts made to employees are not so clear cut, as even a gift or award which cannot be converted to cash can be considered by the CRA to be a near-cash gift. Drawing a firm line between cash/near-cash gifts and non-cash gifts can be difficult, and the CRA provides the following information to help clarify that difference.
Examples of a near-cash gift or award
- Something easily converted to cash, such as bonds, securities or precious metals;
- Gift cards (with the exception outlined below);
- A prepaid card issued by a financial institution that can be used to pay for purchases; and
- Digital currency which is electronic money (e.g. cryptocurrencies not issued by a government or central bank).
At one time, the CRA considered all gift cards to be near-cash gifts and fully taxable to the employee who received one, but the Agency now provides an exception to that policy. Under current rules, a gift card that meets all of the following criteria will be treated as a non-cash gift, and subject to the usual rules governing such non-cash gifts:
- the card comes with money already on it and can only be used to purchase goods or services from a single retailer or group of retailers identified on the card;
- the terms and conditions of the gift card clearly state that amounts loaded on the card cannot be converted into cash; and
- the employer keeps a log to record details of the gift card information including the date, the employee’s name, and the reason for providing the gift card, as well as the type and amount of the gift card and the name of the retailer.
It may seem nearly impossible to plan for employee holiday gifts without running afoul of one or more of the detailed rules and administrative policies surrounding the taxation of such gifts and benefits. However, designing a tax-effective plan is possible, if the following rules are kept in mind.
Cash or near-cash gifts should be avoided, as they will, no matter how large or small the amount, almost always create a taxable benefit to the employee. The sole exception to that rule is the exception carved out by the CRA which now treats gift certificates as non-cash gifts, but only where such gift certificates meet the criteria listed above.
Where non-cash special occasion gifts are provided to employees, gifts with a value of up to $500 can be received free of tax. The employer must be mindful of the fact that the $500 limit is a per-year and not a per-occasion limit. Where the employee receives non-cash gifts with a total value of more than $500 in any one taxation year, the portion over $500 is a taxable benefit to the employee.
When it comes to holiday parties and celebrations, the policy followed by the CRA in determining whether such events constitute a taxable benefit for employees has a long and frequently amended history. The general and long-standing rule is that a holiday social event does not create a taxable benefit to employees where the event is open to all employees and the per person cost of the event is below a specified threshold.
For 2024, an employer-sponsored social event will not create a taxable benefit for employees if the per person cost is less than $150. Ancillary costs such as transportation home, taxi fare, and overnight accommodation for attendees are not included in the total cost limit for the event.
Finally, employers should note that where the per employee dollar limits outlined above for holiday social events are exceeded, the entire per employee cost of the event is treated as a taxable benefit – not just the amount by which the per employee cost exceeds those prescribed dollar limits. And, finally, in order to benefit from those prescribed limits, employers are restricted to holding six or fewer employer-paid social events each year.
The range and variety of social events and employee gifts which can be provided by an employer to its employees is almost limitless, and where the government seeks to draft rules to govern the tax treatment of such a range of possibilities, complexity is inevitable. The best advice to be given to employers in the circumstances is to consider carefully the kinds of gifts which are given and to be mindful of the dollar amount limits imposed on non-cash gifts and employer-paid social gatherings. After all, at the end of the day, a gift which increases the employee’s income tax bill for the year is unlikely to engender much holiday spirit or goodwill on the part of the employee who receives it.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
December 31 , 2024 marks not just the end of the calendar year, but the end of the 2024 tax year for every individual Canadian taxpayer. And while the thoughts of most Canadians during the holiday season are focused on anything but their 2024 income taxes, the reality is that December 31 can be a critical date when it comes to determining how much income tax one will pay for 2024.
December 31 , 2024 marks not just the end of the calendar year, but the end of the 2024 tax year for every individual Canadian taxpayer. And while the thoughts of most Canadians during the holiday season are focused on anything but their 2024 income taxes, the reality is that December 31 can be a critical date when it comes to determining how much income tax one will pay for 2024.
In some cases, steps need to be taken by December 31 in order to obtain administrative relief from interest or penalty charges which have been imposed by the Canada Revenue Agency. In other cases, not taking certain actions prior to the end of the calendar year will mean losing out on deductions and credits which might otherwise have been claimed on the 2024 return, and which would have reduced tax payable for the year. And, in all cases, a failure to meet that December 31 deadline cannot be remedied: only actions taken prior to the end of the calendar year (with the exception of RRSP contributions) can reduce the tax bill for 2024.
While the remaining time frame in which most tax planning and tax saving strategies for 2024 can be implemented is only a few weeks, the good news is that the most readily available of those strategies don’t involve a lot of planning or complicated financial structures – in many cases, it’s just a question of considering the timing of steps which would have been taken in any event. What follows is a listing of some of the steps which should be considered by most Canadian taxpayers as the calendar and tax year-end approaches.
Taxpayer requests for penalty or interest relief
Taxpayers are entitled to request relief from the Canada Revenue Agency for interest or penalty charges which the Agency has levied, and those who want to do so must send their request within ten years from the end of the calendar year or fiscal period concerned.
The 2024 deadline applies to taxpayer relief requests for:
- the 2014 tax year;
- any reporting period that ended during the 2014 calendar year; and
- any interest and penalties that accrued during the 2014 calendar year for any tax year or reporting period.
All such requests for relief must be submitted on or before December 31, 2024. More information on the circumstances in which relief may be provided, and how to make a request for such relief, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes/cancel-waive-penalties-interest/who-can-apply.html.
Making a final RRSP contribution
Most Canadians are aware that an RRSP contribution can be made anytime up to 60 days after the end of the calendar/tax year, and claimed as a deduction on the return for that calendar/tax year. There is, however, an important exception to that rule, of which most Canadians are likely unaware.
Every Canadian who has an RRSP must collapse that plan by the end of the year in which they turn 71 years of age – usually by converting the RRSP into a registered retirement income fund (RRIF) or by purchasing an annuity. An individual who turns 71 during the year is still entitled to make a final RRSP contribution for that year, assuming that they have sufficient contribution room. However, in such cases, the 60-day window for making a contribution after December 31 is not available. Any RRSP contribution to be made by a person who turns 71 during 2024 must be made by December 31, 2024. Once that deadline has passed, no further RRSP contributions are possible.
Reviewing tax instalments for 2024
Millions of Canadian taxpayers (particularly self-employed and retired Canadians) pay income taxes by quarterly instalments, with the amount of those instalments representing an estimate of the taxpayer’s total liability for the year.
The final quarterly instalment for this year will be due on December 15, 2024 (as that date falls on a Sunday this year, the actual due date for the instalment payment is Monday December 16). By mid-December, almost everyone will have a reasonably accurate idea of what their income and deductions will be for 2024 and so will be in a position to estimate what the final tax bill for the year will be, taking into account any tax planning strategies already put in place, as well as any RRSP contributions which will be made on or before March 1, 2025. While the tax return forms to be used for the 2024 year haven’t yet been released by the Canada Revenue Agency, it’s possible to arrive at an estimate by using the 2023 form. Increases in tax credit amounts and tax brackets from 2023 to 2024 will mean that using the 2023 form will likely result in a slight over-estimate of tax liability for 2024.
Once one’s tax bill for 2024 has been calculated, that figure should be compared to the total of tax instalments already made during 2024 (that figure can be obtained by checking one’s online tax account on the Canada Revenue Agency website, or by calling the CRA’s Individual Income Tax Enquiries line at 1-800-959-8281). Depending on the result, it may then be possible to reduce the amount of the tax instalment to be paid on December 15 – and thereby free up some additional funds for the inevitable holiday spending!
Medical expenses
The federal and all provincial and territorial governments provide a non-refundable tax credit for eligible medical expenses incurred. Most Canadians will incur such expenses: while we benefit from a publicly-funded health care system, there is nonetheless a long list of medical and para-medical expenses which must be paid for out-of-pocket.
Individual taxpayers are entitled to claim the medical expense tax credit for all qualifying medical expenses incurred during any 12-month period which ends during the taxation year. In other words, the taxpayer can choose the 12-month period for which medical expenses incurred create the highest tax credit amount. However, as with other such credits, any expense, in order to be claimed on the 2024 tax return, must be incurred before the end of 2024.
There is an additional criterion for claims for the medical expense tax credit: only medical expenses which exceed the lesser of $2,759 or 3% of the taxpayer’s net income for 2024 can be claimed. Put in more practical terms, the rule for 2024 is that any taxpayer whose net income for the year is $91,967 or less will be entitled to claim eligible medical expenses that are greater than 3% of his or her net income for the year. Those having income of more than $91,967 will be limited to claiming qualifying expenses which exceed the $2,759 threshold.
Finally, it’s possible to combine medical expenses incurred by both spouses and by their minor children, and to make that combined claim on a single return. In most cases, the best tax result can be obtained where that claim is made on the return of the lower-income spouse, as long as that spouse has tax payable of at least as much as the medical expense tax credit to be claimed.
It is unfortunate that, given the number of Canadians who are in a position to claim the medical expense tax credit, the computation of that credit can be confusing. More information on how to calculate and claim the medical expense tax credit for 2024 can be found on the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065.html. While the most current version of the publication currently available on the CRA site is for the 2023 tax year, the same rules will apply for 2024, with the exception of the applicable net income threshold, as outlined above.
Make sure to file your 2023 tax return by year-end
While making sure that one’s tax returns are filed on time is always a good idea (and delaying filing is, in all cases, a bad one), there are additional reasons this year to ensure that one’s tax returns for all years up to and including 2023 are filed by December 31, 2024.
On November 21, the federal government announced a “Working Canadians Rebate” – a tax-free rebate of $250 which will be sent to eligible Canadians in the spring of 2025. The basic requirements for eligibility for the rebate are that the individual have net income of $150,000 or less in 2023 and have earned income from employment or self-employment that year. In addition, an individual must have filed an income tax return for the 2023 tax year by the end of 2024. Canadians who are otherwise eligible but who do not file their income tax return for 2023 on or before December 31, 2024 will not receive the rebate.
The need to file a 2023 return by the end of this year is particularly important for residents of Ontario. In October of this year, the Ontario government announced that eligible residents of the province would receive a tax-free rebate of $200 early in 2025. In order to receive the Ontario rebate, an individual must have been 18 years of age or older and a resident of the province at the end of 2023, and must have filed an income tax return for the 2023 tax year on or before December 31, 2024.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
On November 21, the federal government announced two new measures intended to relieve some of the financial stress currently being experienced by most Canadian families and households. That financial stress arises, in large measure, from the steady increase in the cost of goods and service over the past two years – and, while inflation has decreased significantly over the past several months, price increases for non-discretionary expenditures like food and housing continue to outpace the general rate of inflation.
On November 21, the federal government announced two new measures intended to relieve some of the financial stress currently being experienced by most Canadian families and households. That financial stress arises, in large measure, from the steady increase in the cost of goods and service over the past two years – and, while inflation has decreased significantly over the past several months, price increases for non-discretionary expenditures like food and housing continue to outpace the general rate of inflation.
The two measures seek to relieve that financial stress in different ways. The first provides an exemption from the Goods and Services Tax/Harmonized Sales Tax (GST/HST) for a wide range of goods purchased by Canadians between December 14, 2024 and February 15, 2025.
The list of goods which will be GST/HST-exempt during that two-month period is as follows.
- Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
- Restaurant meals, whether dine-in, takeout, or delivery.
- Snacks, including chips, candy, and granola bars.
- Beer, wine, cider, and pre-mixed alcoholic beverages below 7% alcohol by volume.
- Children’s clothing and footwear, car seats, and diapers.
- Children’s toys, such as board games, dolls, and video game consoles.
- Books, print newspapers, and puzzles for all ages.
- Christmas trees.
Some of these categories, like snacks, toys, and clothing, obviously cover a huge range of potential goods. A detailed listing of the specific kinds of goods in each category which will be eligible for the temporary GST/HST exemption can be found in a Backgrounder which is available on the Finance Canada website at https://www.canada.ca/en/department-finance/news/2024/11/more-money-in-your-pocket-a-tax-break-for-all-canadians.html.
The tax savings to be realized by the GST/HST holiday will be different in different provinces, because of the way sales tax is structured. In Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island, the provincial sales tax is combined with the federal goods and services tax (GST) to create a harmonized sales tax (HST), which is levied at the point of sale and collected by the federal government. The federal GST is levied at a rate of 5% in all provinces; when that GST is combined with provincial sales tax, it results in a combined HST tax rate of 13% in Ontario and 15% in each of the Maritime provinces. In each of these provinces, the tax holiday will exempt eligible purchases from the entire 13% or 15% HST levy.
In all of the other provinces, consumers pay both federal GST of 5% and provincial sales tax (PST) at rates ranging from 6% to 9.975% (except in Alberta, which has no PST), but those taxes are imposed separately. In those provinces, the 5% federal GST is collected by the federal government and the PST is levied and collected by the provincial government. Consequently, the two-month tax holiday will be available in British Columbia, Alberta, Saskatchewan, Manitoba, and Québec only with respect to the 5% federal GST.
Working Canadians Rebate
The second measure announced by the federal government is not specifically a tax break, but a rebate program – the “Working Canadians Rebate”, which will provide a tax-free payment of $250 to each individual Canadian who meets the eligibility criteria. Those criteria, as currently structured, mean that the rebate will be available to individual Canadians who earned up to $150,000 in employment or self-employment income, or received Employment Insurance (EI) or Québec Parental Insurance Plan (QPIP) benefits during 2023, and who have filed their income tax return for 2023 on or before December 31, 2024.
The detailed criteria for receipt of the Working Canadians Rebate by an individual are as follows.
- Worked (as an employee or in self-employment) or received EI or QPIP benefits during 2023 and had $150,000 or less in net income for that year.
- Filed their 2023 tax return by December 31, 2024, and:
- claimed the tax credit for Canada Pension Plan or Québec Pension Plan contributions on employment or self-employment earnings;
- claimed the tax credit for EI or QPIP premiums on employment or self-employment earnings; or,
- reported income from EI or QPIP benefits;
- Is a resident of Canada on March 31, 2025;
- Is not incarcerated for a period of at least 90 days immediately prior to April 1, 2025; and,
- Is not deceased on April 1, 2025.
The rebate will be provided to eligible Canadians, by direct deposit or by cheque, in the early spring of 2025.
The News Release announcing the two new measures can be found on the federal government website at https://www.pm.gc.ca/en/news/news-releases/2024/11/21/more-money-your-pocket-tax-break-all-canadians-and-working-canadians.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
It has been nearly five years since the start of the pandemic, and the work-from-home arrangements which became a necessity during that time have now become a choice for employers and employees.
It has been nearly five years since the start of the pandemic, and the work-from-home arrangements which became a necessity during that time have now become a choice for employers and employees.
Relatively few employees still work from home on a full-time basis – many have returned to the office full-time and many more likely now utilize some kind of hybrid arrangement, dividing their work week between their employer’s work site and a home office.
There are any number of benefits to working from home – avoiding a lengthy and often stressful commute, and the costs associated with such a commute, and being able to have a better work/life balance. There are other financial benefits as well, as employees who work from home can sometimes claim tax deductions for expenses incurred to create and maintain their home office.
As the necessity and availability of work-from-home arrangements changed (and changed again) over the past five years, the tax rules governing the deductions which could be claimed for home office expenses changed (and changed again) to meet those realities.
Employees who work from home have always been able to claim a tax deduction for costs related to a home office. Under the tax rules in place prior to 2020, a claim for a deduction for home office expenses was available only where employees met a number of criteria and could provide the tax authorities with an itemized accounting of eligible home office expenses incurred, as well as an attestation from their employer of the terms of the work-from-home arrangement – known as the “detailed” method. However, when work-from-home arrangements became effectively mandatory in 2020, for public health reasons, the federal government greatly simplified the rules governing those claims to provide a temporary flat-rate method which essentially eliminated the requirement for documentation. That flat-rate method, however, was available only during 2020, 2021, and 2022, and can no longer be utilized.
For 2024, the “detailed method” for claiming home office expenses will be the only method under which such costs may be deducted for tax purposes. What follows is a summary of the current rules outlined on the Canada Revenue Agency (“CRA”) website with respect to claims for home office expense deductions which will, absent an unlikely change in CRA policy, continue to apply to such claims during 2024.
In order to claim a deduction in 2024 for costs related to a work-at-home space, an employee must be required by their employer to work from home during the year. The requirement to work from home doesn’t have to be included in the employee’s employment contract, but can be simply a written or verbal agreement with the employer. Where an employee has entered into a formal telework arrangement with his or her employer, that arrangement will satisfy the “required work from home” criteria.
In addition, as outlined on the CRA website, at least one of the following criteria must also be satisfied in order for an employee to claim work-from-home costs for 2024.
- The work-at-home space is where the individual mainly (more than 50% of the time) did their work for a period of at least four consecutive weeks during the year; or
- The individual uses the workspace only to earn their employment income. They must also use it on a regular and continuous basis for in-person meetings with clients, customers, or other people in the course of their employment duties.
While the rules are (fairly) straightforward, it can be difficult to apply them in practice to the almost infinite variety of work-from-home arrangements which can be utilized by an employer and employee. Recognizing that reality, the CRA provides a number of examples on its website of how to analyze a particular work situation in order to determine whether it fits within the CRA’s criteria. Those examples can be found on the Agency’s website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/who-claim/detailed-method.html#h-2.
Once the CRA’s criteria are met, a broad range of costs become deductible by the employee. Specifically, a salaried employee can claim and deduct the part of specified costs that relate to their work-from-home space, such as rent; utilities costs like electricity, heating, and water (or the portion of a condo fee attributable to such utilities costs); home maintenance and minor repair costs; and internet access (but not internet connection) fees.
Once total expenses are tallied, the taxpayer must determine the percentage of those expenses which can be deducted as home office expenses, and the CRA provides detailed information on its website of how such determination is made. Generally, the employee determines that percentage based on the square footage of the workspace as a percentage of the overall square footage of the home. Where the work space is not a separate room but is a shared or multi-purpose space like a dining room, the employee must also calculate the number of hours for which that space is dedicated to work from home activities. Detailed information on how to make those calculations (including an online calculator) can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/work-space-use.html. In all cases, the Canada Revenue Agency can ask the taxpayer to provide documentation and support for claims made using the detailed method.
There is one further requirement for employees who seek to deduct costs incurred in relation to a home office. Each such employee must obtain from their employer a completed form T2200 Declaration of Conditions of Employment - Canada.ca. On that form, the employer must certify the work-from-home arrangement and confirm that the employee is required to pay their own home office expenses and is not being reimbursed for any such expenses incurred. Where there is any kind of reimbursement provided, the employer must specify the type of expense reimbursed, and the amount of reimbursement. And, of course, the employee cannot claim a deduction for any expenses for which reimbursement was received.
The ability to claim a deduction for home office expenses can mean that significant expenses (like the cost of rent and utilities) which would have to be incurred by the employee in any case can give rise to tax savings. There’s no denying, though, that the record keeping required to support such deduction claims can be onerous, and it’s likely that few taxpayers record and document such costs on a routine basis. However, given the potential tax benefits, it’s worth doing some upfront planning to determine whether a deduction claim for home office expenses can be made for 2024 and to ensure that any record keeping needed to support that deduction is done before tax filing season arrives a few months from now.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
For most Canadians, the subject of making RRSP or TFSA contributions, or making RRIF withdrawals, isn’t usually top of mind at year-end. Most Canadians know that the deadline for making contributions to one’s registered retirement savings plan (RRSP) comes 60 days after the end of the calendar year, around the end of February, but relatively few are aware that in some circumstances an RRSP contribution must be (or should be) made by December 31, in order to achieve the best tax result. As well, while a contribution or withdrawal from a TFSA can be done at any time, additional flexibility can be gained where withdrawals, in particular, are timed to take best advantage of the rules governing TFSAs. Finally, most Canadians who have opened a registered retirement fund (RRIF) are aware that they are required to make a withdrawal of a specified amount from that RRIF each year, with the percentage withdrawal amount based on the RRIF holder’s age – although few are aware of when and how that required withdrawal is calculated.
For most Canadians, the subject of making RRSP or TFSA contributions, or making RRIF withdrawals, isn’t usually top of mind at year-end. Most Canadians know that the deadline for making contributions to one’s registered retirement savings plan (RRSP) comes 60 days after the end of the calendar year, around the end of February, but relatively few are aware that in some circumstances an RRSP contribution must be (or should be) made by December 31, in order to achieve the best tax result. As well, while a contribution or withdrawal from a TFSA can be done at any time, additional flexibility can be gained where withdrawals, in particular, are timed to take best advantage of the rules governing TFSAs. Finally, most Canadians who have opened a registered retirement fund (RRIF) are aware that they are required to make a withdrawal of a specified amount from that RRIF each year, with the percentage withdrawal amount based on the RRIF holder’s age – although few are aware of when and how that required withdrawal is calculated.
There are, in sum, significant advantages which can be obtained (and significant disadvantages avoided) by taking some time to consider and plan for RRSP and TFSA contributions and withdrawals before the end of the calendar year. What follows is an outline of steps which should be considered, before the end of the 2024 calendar year, by Canadians who have an RRSP, an RRIF, or a TFSA – or maybe all three.
Timing of RRSP contributions
When you are making a spousal RRSP contribution
Under Canadian tax rules, a taxpayer can make a contribution to a registered retirement savings plan (RRSP) in their spouse’s name and claim the deduction for the contribution on their own return. When the funds are withdrawn by the spouse, the amounts are taxed as the spouse’s income, at a (presumably) lower tax rate. However, the benefit of having withdrawals taxed in the hands of the spouse is available only where the withdrawal takes place no sooner than the end of the second calendar year following the year in which the contribution is made. Therefore, where a contribution to a spousal RRSP is made in December of 2024, the contributor can claim a deduction for that contribution on their return for 2024. The spouse can then withdraw that amount as early as January 1, 2027 and have it taxed in their own hands. If the contribution isn’t made until January or February of 2025, the contributor can still claim a deduction for it on the 2024 tax return, but the amount won’t be eligible to be taxed in the spouse’s hands on withdrawal until January 1, 2028. It’s an especially important consideration for couples who are approaching retirement and may plan on withdrawing funds in the relatively near future. Even where that’s not the situation, making the contribution before the end of the calendar year will ensure maximum flexibility should an unforeseen need to withdraw funds arise.
When you are turning 71 during 2024
Every Canadian who has an RRSP must collapse that plan by the end of the year in which they turn 71 years of age – usually by converting the RRSP into a registered retirement income fund (RRIF) or by purchasing an annuity. An individual who turns 71 during the year is still entitled to make a final RRSP contribution for that year, assuming that they have sufficient contribution room. However, in such cases, the 60-day window for contributions after December 31 is not available. Any RRSP contribution to be made by a person who turns 71 during the year must be made by December 31 of that year. Once that deadline has passed, no further RRSP contributions are possible.
RRIF withdrawals for 2024
Under Canadian law, anyone who has an RRIF is required to make a minimum withdrawal from that RRIF each year. The amount of the withdrawal is calculated as a specified percentage of the balance in the RRIF at the beginning of the calendar year, with that percentage based on the age of the RRIF holder at that time.
Taxpayers who have no immediate need of funds held within an RRIF are often reluctant to make a withdrawal and pay the tax on those amounts, especially where the value of investments held in an RRIF has declined. While there is no way of avoiding the requirement to withdraw that minimum amount from one’s RRIF, and to pay tax on the amount withdrawn, such taxpayers can consider contributing those amounts to a tax-free savings account (TFSA). Where that is done, the funds can be invested and continue to grow. As well, neither the original contribution nor the investment gains will be taxable when the funds are withdrawn from the TFSA, and amounts withdrawn will not be included in income when determining the taxpayer’s eligibility for means-tested federal benefits and credits, like Old Age Security, the GST/HST credit, or the age credit.
Planning for TFSA withdrawals and contributions
Each Canadian aged 18 and over can make an annual contribution to a tax-free savings account (TFSA) – the current-year contribution limit for 2024 is $7,000. As well, where an amount previously contributed to a TFSA is withdrawn from the plan, that withdrawn amount is added to the taxpayer’s total TFSA contribution limit, but not until the year following the year of withdrawal.
Consequently, it makes sense, where a TFSA withdrawal is planned (or the need to make such a withdrawal might arise) within the next few months, to make that withdrawal before the end of the calendar year. A taxpayer who withdraws funds from their TFSA on or before December 31, 2024 will have the amount which is withdrawn added to their TFSA contribution limit for 2025, which means it can be re-contributed, where finances allow, as early as January 1, 2025. If the same taxpayer waits until January of 2025 to make the withdrawal, the amount withdrawn won’t be added to the taxpayer’s TFSA contribution room until 2026.
The approach of the calendar year end doesn’t usually prompt Canadians to consider the details of making contributions to an RRSP, or withdrawals from a TFSA or an RRIF. There is, however, no flexibility in the deadlines for taking such actions, and considering what steps may be needed or advisable now means one less thing to remember as the December 31 deadline nears.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
For most Canadians, tax planning for a year that hasn’t even started yet may seem premature or even unnecessary. However, most Canadians will start paying their taxes for 2025 in less than two months, starting with the first paycheque they receive in January.
For most Canadians, tax planning for a year that hasn’t even started yet may seem premature or even unnecessary. However, most Canadians will start paying their taxes for 2025 in less than two months, starting with the first paycheque they receive in January.
For most Canadians, (certainly for the vast majority who earn their income from employment), income tax, along with other statutory deductions like Canada Pension Plan contributions and Employment Insurance premiums, are paid periodically throughout the year by means of deductions taken from each paycheque received, with those deductions then remitted to the Canada Revenue Agency (CRA) on the taxpayer’s behalf by their employer.
Of course, each taxpayer’s situation is unique and so the employer has to have some guidance as to how much to deduct and remit on behalf of each employee. That guidance is provided by the employee/taxpayer in the form of TD1 forms which are completed and signed by each employee, sometimes at the start of each year, but certainly at the time employment commences. Each employee must, in fact, complete two TD1 forms – one for federal tax purposes and the other for provincial tax imposed by the province in which the taxpayer lives. Federal and provincial TD1 forms for 2025 (which have not yet been released by the CRA but, once published, will be available on the Agency’s website at https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later.html) list the most common statutory credits claimed by taxpayers, including the basic personal credit, the spousal credit amount and the age amount. Adding amounts claimed on each form gives the Total Claim Amounts (one federal, one provincial) which the employer then uses to determine, based on tables issued by the CRA, the amount of income tax which should be deducted (or withheld) from each of the employee’s paycheques and remitted on their behalf to the federal government.
While the TD1 completed by the employee at the time their employment commenced will have accurately reflected the credits claimable by the employee at that time, everyone’s life circumstances change. Where a baby is born, a child starts post-secondary education, there is a separation or a divorce, a taxpayer turns 65 years of age, or an elderly parent comes to live with their children, the affected taxpayer(s) will often become eligible to claim tax credits not previously available. And, since the employer can only calculate source deductions based on information provided to it by the employee, those new credit claims won’t be reflected in the amounts deducted at source from the employee’s paycheque.
Consequently, it’s a good idea for all employees to review the TD1 form prior to the start of each taxation year and to make any changes needed to ensure that a claim is made for any and all credit amounts currently available to them. Doing so will ensure that the correct amount of tax is deducted at source throughout the year.
As well, it’s often the case that a taxpayer will have available deductions which cannot be recorded on the TD1, like RRSP contributions, deductible support payments, or child care expenses. While such claims make things a little more complicated, it’s still possible to have source deductions adjusted to accurately reflect those claims, and the employee’s resulting reduced tax liability for 2025. The way to do so is to file Form T1213, Request to Reduce Tax Deductions at Source with the CRA. The most recent version of the T1213 was issued by the CRA in September 2024, and can be found on the Agency’s website at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1213.html.
Once the T1213 form is filed with the CRA, the Agency will, after verifying that the claims made are accurate, provide the employer with a Letter of Authority authorizing that employer to reduce the amount of tax being withheld from the employee’s paycheque – and thereby increasing the employee’s take-home income.
Of course, as with all things bureaucratic, having one’s source deductions reduced by filing a T1213 takes time. While a T1213 can be filed with the CRA at any time of the year, the sooner it’s done, the sooner source deductions can be adjusted, effective for all subsequent paycheques. Providing an employer with an updated TD1 for 2025 as soon as possible, along with filing the T1213 with the CRA where circumstances warrant, will ensure that source deductions made starting January 1, 2025 will accurately reflect all of the employee’s current circumstances, and consequently their actual tax liability for the year – and, potentially, provide the employee with a little more cash flow to meet day-to-day expenses.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Canada’s income tax system is a self-assessing one, in which residents of Canada are expected (and in most cases, required) to file an annual tax return in which all sources of worldwide income are reported, and the amount of tax owed on that income calculated and paid.
Canada’s income tax system is a self-assessing one, in which residents of Canada are expected (and in most cases, required) to file an annual tax return in which all sources of worldwide income are reported, and the amount of tax owed on that income calculated and paid.
While the onus is on individual Canadians to determine the sources and amounts of income which have been received during the year, the process is not entirely an “honour” system in which amounts reported are not subject to cross-checks or verification. Rather, where income (whether salary, wages, investment income, or pension/retirement income) is paid to Canadians, the payor must prepare an information slip (a T4 or T5, or T4RRIF or T4RSP) setting out the amount and nature of the monies paid and the personal identification details (i.e., name, address, social insurance number) of the recipient. A copy of that information slip is provided to that recipient and another copy filed with the Canada Revenue Agency (CRA). The CRA is therefore able to cross-check income amounts reported by each Canadian taxpayer with the income payment information which has been filed with the Agency by the payor of that income.
There are very few types of income that escape the Canadian tax net, and in almost all cases the CRA is able to determine the amount and types of income received by each Canadian taxpayer through the system of information slips filed by payors. Where that system has not, to date, been as effective is in the tracking and reporting of income earned by Canadians through online or digital sales of goods or services.
Millions of Canadians earn income from online sales, through websites or apps. In some cases, such sales are infrequent, where an individual wants to earn a bit of additional income by selling possessions which are no longer needed or wanted, but are still saleable. In other cases, however, where such sales are done on a regular and frequent basis, the amount of income earned through online sales can be very substantial.
While it’s impossible to quantify or even know for certain, it’s likely the case that substantial amounts of income earned by Canadians from online sales are never reported to the tax authorities and are therefore never taxed. In some cases, that may be because recipients genuinely believe that such income does not need to be reported, while others who don’t report may simply be hoping that their omission never comes to the attention of the tax authorities.
Whatever the motivation or belief, the perception that online income doesn’t have to be reported is incorrect – as stated clearly on the CRA website, “income from platform economy activities is subject to taxation”. More generally, every resident of Canada is required to report all income received from all sources, both within Canada and worldwide. That includes income from what the CRA terms the “peer-to-peer” economy, in which goods are sold through online platforms including (but not limited to) Kijiji, Etsy, eBay, and Amazon.
To date, there has not been a practical mechanism by which the tax authorities can track amounts of income received by Canadians through online sales. That will change when, in January 2025, online platform operators will be required for the first time to report income amounts earned by individuals to the CRA. The actual reporting requirements came into force at the beginning of 2024, but the deadline for filing a report to the CRA with respect to online income earned by individual Canadians during 2024 is January 31, 2025. Information filed by online platform operators with the CRA with respect to any Canadian taxpayer will, of course, also be provided to that taxpayer, in the same way that taxpayers receive a copy of a T4 or T5 slip. The information filed with the CRA will include personal identifying information, including social insurance numbers, income figures, and bank account numbers, for any individual who meets the definition of a “reportable seller”.
The purpose of limiting such reporting to sales carried out by “reportable sellers” is to create a minimum activity/income threshold. The general definition of a “reportable seller” is any Canadian resident who is registered with a platform and has received amounts during the year from sales made on that platform. However, while all income from online sales are reportable as income, the cost to the CRA of pursuing taxpayers who earn very small amounts from such sales and/or do so very infrequently would almost certainly outweigh the benefit of any additional tax revenue collected as a result. Consequently, individuals who meet the definition of a reportable seller, but who trade infrequently or for very small amounts, are considered to be “excluded sellers” who are exempted from the new reporting requirements.
Notwithstanding, the threshold amounts which allow an individual to be characterized as an excluded seller (and for that reason exempt from the reporting requirements) are actually quite low. In order to be an excluded seller, an individual must have fewer than 30 sales per year and have earned no more than a total of $2,800 on such sales. Consequently, an individual who, during 2024, makes an average of three sales per month (36 per year) and receives an average of $80 per sale would be considered to be a reportable seller and the activities and income earned by that individual during 2024 would be reported to the CRA by January 31, 2025.
Where reporting is required, the obligation to report falls on the platform operator, who must provide the CRA with both identification and activity information with respect to each reportable seller, and provide a copy of that information to the reportable seller. The information reported can include:
- Identification information
- Name of seller;
- Seller’s primary address;
- Sellers’s date of birth;
- Seller’s tax identification number (for Canadian individuals, that means their social insurance number); and
- Seller’s financial account identifiers (meaning bank account numbers)
- Activity information
- Total income from sales (paid or credited), and number of sales, broken down by calendar quarter, and
- Fees, commissions, or taxes withheld or charged by the platform operator.
Platform operators who are required to report under the new rules may ask sellers who are registered with their platform for additional information, in order to confirm whether an individual is a reportable seller for purposes of those reporting rules. Responding to such a request is not optional, as the new rules permit the CRA to assess a penalty of $500 where a seller fails to provide his or her social insurance number when such information is requested by a platform operator.
Detailed information on the new reporting rules for digital platform operators can be found on the CRA website at https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/reporting-rules-digital-platforms.html. Individuals who sell goods or services through online platforms or apps can find information summarizing their income tax and goods and services/harmonized sales tax obligations with respect to income earned from those activities on the same website at https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/platform-economy.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
While the need for charitable donations for any number of causes is a year-round reality, appeals for such donations tend to increase as the holiday season and the end of the calendar year approach. And generally, those appeals are met, as Canadians have a well-deserved reputation for supporting charitable causes, through donations of both money and goods. Our tax system supports that generosity by providing both federal and provincial tax credits for qualifying donations made. In all cases, in order to claim a credit for a donation in a particular tax year, that donation must be made by the end of that calendar year.
While the need for charitable donations for any number of causes is a year-round reality, appeals for such donations tend to increase as the holiday season and the end of the calendar year approach. And generally, those appeals are met, as Canadians have a well-deserved reputation for supporting charitable causes, through donations of both money and goods. Our tax system supports that generosity by providing both federal and provincial tax credits for qualifying donations made. In all cases, in order to claim a credit for a donation in a particular tax year, that donation must be made by the end of that calendar year.
There is an additional reason, when planning charitable donations, to ensure that such donations are made by December 31. The credit provided by the federal government is a two-level credit, in which the percentage credit claimable increases with the amount of donation made. For federal tax purposes, the first $200 in donations is eligible for a non-refundable tax credit equal to 15% of the donation. The credit for donations made during the year which exceed the $200 threshold is, however, calculated as 29% of the excess. Finally, where the taxpayer making the donation has taxable income (for 2024) over $246,752, charitable donations above the $200 threshold can receive a federal tax credit of 33%.
As a result of the two-level credit structure, the best tax result is obtained when donations made before the end of the calendar year are maximized. For example, a qualifying charitable donation of $400 made in December 2024 will receive a federal credit of $88.00 ($200 times 15% plus $200 times 29%). If the same amount is donated, but the donation is split equally between December 2024 and January 2025, the total credit claimable is only $60.00 ($200 times 15% plus $200 times 15%), and the 2025 donation can’t be claimed until the 2025 return is filed in April of 2026. And, of course, the larger the donation made in any one calendar year, the greater the proportion of that donation which will receive credit at the 29% level rather than the 15% level.
It’s also possible to carry forward, for up to five years, donations which were made in a particular tax year, but not claimed on the tax return for that year. So, if donations made in 2024 don’t reach the $200 level, it’s usually worth holding off on claiming the donation and carrying it forward to the next year in which total donations, including carryforwards, are over that threshold. Of course, this also means that donations made but not claimed in any of the 2019, 2020, 2021, 2022, or 2023 tax years can be carried forward and added to the total donations made in 2024, and the total then claimed on the 2024 tax return. There is a ceiling on the amount of donations which can be claimed in any one calendar year, but that ceiling is a very generous one – a taxpayer can claim any qualifying current or carryforward donations up to a limit of three quarters of the taxpayer’s net income for the year.
When claiming charitable donations, it’s possible to combine donations made by oneself and one’s spouse and claim them on one spouse’s return. Generally, it makes sense to do so in order to maximize the total amount of donations claimed by a single individual, and therefore the amount of donations which can qualify for the higher tax credit rate(s).
Regardless of when a charitable donation is made or who claims it for tax purposes, would-be donors are well advised to carefully consider the charities to which they donate. It’s an unfortunate reality that while most organizations seeking charitable donations are legitimate, the charitable sector attracts its share of scammers and fraudsters whose only aim is to personally profit from the generosity of others. Such charitable donation frauds arise, in particular, whenever there are Canadian or world events like wars or natural disasters and people are particularly motivated to help. After every such event a flurry of “instant” charities spring to life, seeking donations which may or may not actually be used as represented. And, while some of the individuals or organizations who seek to raise funds in response to particular events may actually be well intentioned, the reality is that they are unlikely to have either the infrastructure or the experience needed to actually carry out their stated or intended aims. And others, of course, are simply scammers seeking to capitalize on the desire of Canadians to help in response to disaster or other need.
There are two ways to ensure that one’s charitable dollar is actually utilized as intended. The first is to donate only to large international charities which have been in existence for some time and which have both expertise and experience in utilizing charitable donations in an efficient and effective way. However, where a donor is deciding whether to make a donation to a newer or less well-known charity, it’s relatively easy to find information about that charity on the website of the Canada Revenue Agency.
Only donations made to registered charities can be claimed for purposes of the charitable donations tax credit. The Canada Revenue Agency maintains on its website a listing of all such registered charities; that listing (which is searchable) can be found at https://apps.cra-arc.gc.ca/ebci/hacc/srch/pub/dsplyBscSrch?request_locale=en.
That webpage will also provide information on the charity’s activities, including the date on which it became a registered charity. Through that site (which is updated daily by the Canada Revenue Agency), it’s also possible to obtain information on the countries in which the charity operates, the nature of its charitable activities, and details of its revenues and expenditures, all of which can help a would-be donor to determine whether or not to make a donation.
Detailed information on calculating and claiming the charitable donation tax credit is available on the same website at Giving to charity: Information for donors - Canada.ca.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Residents of the eight Canadian provinces in which the federal fuel charge (more commonly known as the federal carbon tax) is levied are entitled to claim and receive the federal Canada Carbon Rebate (CCR). That rebate (formerly known as the Climate Action Incentive Payment) is a non-taxable payment made four times a year (in April, July, and October of 2024 and January 2025) to help offset the cost of that federal carbon tax.
Residents of the eight Canadian provinces in which the federal fuel charge (more commonly known as the federal carbon tax) is levied are entitled to claim and receive the federal Canada Carbon Rebate (CCR). That rebate (formerly known as the Climate Action Incentive Payment) is a non-taxable payment made four times a year (in April, July, and October of 2024 and January 2025) to help offset the cost of that federal carbon tax.
For 2024, residents of Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Newfoundland and Labrador, New Brunswick, and Prince Edward Island are eligible for the CCR. Unlike other federal credits, eligibility for the CCR is based solely on the province of residence of the individual, and is not affected in any way by the income of the person claiming it. Specifically, all individuals who were resident in Canada during the previous month and are resident in any of the above eight provinces on the first day of the month in which the rebate is paid are eligible to receive it, regardless of income.
The CCR has two elements – the basic rebate and the rural supplement. The amount of both will differ, depending on the taxpayer’s province of residence. The basic annual rebate amounts payable for the 2024-25 payment year (April 1, 2024 – March 31, 2025) are as follows.
First Adult Second Adult Each Minor Child
Alberta $900 $450 $225
Saskatchewan $752 $376 $188
Manitoba $600 $300 $150
Ontario $560 $280 $140
Nova Scotia $412 $206 $103
New Brunswick $380 $190 $95
PEI $440 $220 $110
Nfld and Labrador $596 $298 $149
The rural supplement, as the name implies, is provided to Canadians who live outside metropolitan areas and who are likely to have higher energy needs and consequently greater federal carbon tax expenditures. The rural supplement is calculated as a percentage of the basic rebate and was formerly equal to 10% of that basic rebate. However, that percentage amount has been increased, effective as of June 2024, to 20% of the basic rebate.
The increased rural supplement was not included in the April and July 2024 payments; consequently, the payment to be made on October 15 will include both the increased rural supplement for October, as well as retroactive payments for April and July.
While the general rules provide that the rural supplement is provided to Canadians who live outside metropolitan areas, all residents of Prince Edward Island automatically receive the rural supplement, and that is reflected in the figures shown above.
Unlike some other federal credit and rebate programs, there is no requirement for individual Canadians to file an application for the CCR for adults. However, in order to receive the CCR, all individuals must file an annual tax return with the Canada Revenue Agency, as information on that return is used to determine both eligibility (based on province of residence) and the amount of the available rebate (based on family composition) for the upcoming benefit year. There is no need to check any box or complete any particular line of the return in order to receive the basic rebate; however, individuals who are claiming the rural supplement (other than residents of PEI) must check off a box on page 2 of the federal income tax return, indicating that they are eligible for that supplement. Finally, in order to receive the CCR for a minor child, it is necessary that the child be registered for purposes of either the Child Tax Benefit program, or the GST/HST tax credit.
As shown above, a rebate amount is issued for each adult and each child in a family. However, only one global payment including rebate amounts for all family members is issued each quarter (around the 15th of April, July, October, and January). Those payments (of both the basic rebate and the rural supplment) are made to the adult in the family whose tax return for the previous year is filed first. Where parents share custody of a child or children, 50% of the rebate for that child or children will be paid to each parent.
The Canada Carbon Rebate is among the easiest and most beneficial of the federal rebates and credits to qualify for and to claim, in that the only qualification needed is that the taxpayer be a resident of one of the provinces in which the federal carbon tax is levied, the only step needed to claim the rebate is the filing of an annual tax return, and finally, the full amount of the rebate (which can be as much as $1,800 annually for a family of four) is non-taxable and is received regardless of individual or family income.
The basic rules governing the Canada Carbon Rebate program are straightforward, and any needed computation of the amount of benefit claimable is done by the CRA when the taxpayer’s return is assessed. Taxpayers who have questions about the CCR can find detailed information on the program on the CRA website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-carbon-rebate.html and https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4215.htm.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
The Old Age Security (OAS) program is one of the two major federal benefit programs available to older Canadians – the other being the Canada Pension Plan (CPP). While both programs provide taxable monthly payments to Canadians, there are significant differences between the two. The Canada Pension Plan is a contributory system, with Canadians contributing a percentage of income earned during their working years, and with the amount of benefits receivable based on the amount of contributions made. By contrast, OAS benefits are paid out of general government revenues, with no requirement that recipients pay into the plan. The amount of the monthly OAS benefit is a fixed amount which is payable to anyone who has been resident in Canada for at least 40 years after the age of 18. (Reduced benefits are payable to those whose period of Canadian residence after the age of 18 is between 10 and 40 years.) For the fourth quarter of 2024 (October to December), that maximum monthly benefit for recipients under the age of 75 is $728., while benefit recipients aged 75 and older can receive up to $800. per month.
The Old Age Security (OAS) program is one of the two major federal benefit programs available to older Canadians – the other being the Canada Pension Plan (CPP). While both programs provide taxable monthly payments to Canadians, there are significant differences between the two. The Canada Pension Plan is a contributory system, with Canadians contributing a percentage of income earned during their working years, and with the amount of benefits receivable based on the amount of contributions made. By contrast, OAS benefits are paid out of general government revenues, with no requirement that recipients pay into the plan. The amount of the monthly OAS benefit is a fixed amount which is payable to anyone who has been resident in Canada for at least 40 years after the age of 18. (Reduced benefits are payable to those whose period of Canadian residence after the age of 18 is between 10 and 40 years.) For the fourth quarter of 2024 (October to December), that maximum monthly benefit for recipients under the age of 75 is $728., while benefit recipients aged 75 and older can receive up to $800. per month.
The other difference between the OAS and CPP programs is that eligible Canadians can begin to receive a CPP retirement benefit at age 60, but OAS benefits can start only once an individual turns 65. Formerly, OAS benefits were automatically paid to eligible recipients once they reached that age. Now, however, Canadians who are eligible to receive OAS benefits are able to defer receipt of those benefits for up to five years, to when they turn 70 years of age. For each month that an individual Canadian defers receipt of those benefits, the amount of benefit eventually received increases by 0.6%. The longer the period of deferral, the greater the amount of monthly benefit eventually received. Where receipt of OAS benefits is deferred for a full 5 years, until age 70, the monthly benefit received is increased by 36%.
It can, however, be difficult to determine, on an individual basis, whether and to what extent it would make sense to defer receipt of OAS benefits. Some of the difficulty in deciding whether to defer – and for how long – lies in the fact there are no hard and fast rules, and the decision is very much an individual one. Fortunately, however, there are a number of factors which each individual can consider when making that decision.
The first such factor is how much total income will be required, at the age of 65, to finance current needs. It’s also necessary to determine what other sources of income (employment income from full- or part-time work, Canada Pension Plan retirement benefits, employer-sponsored pension plan benefits, annuity payments, and withdrawals from registered retirement savings plans (RRSPs) and registered retirement income fund (RRIFs)) are available to meet those needs, both currently and in the future, and when receipt of those income amounts can or will commence or cease. Once income needs and the sources and possible timing of each is clear, it’s necessary to consider the income tax implications of the structuring and timing of those sources of income. The tax rate payable on retirement income (as with all income) increases as income rises and, in addition, the availability of a number of federal tax credits and benefits is eroded at higher incomes. The ultimate goal, as it is at any age, is to ensure sufficient income to finance a comfortable lifestyle while at the same time minimizing both the tax bite and the potential loss of tax credits and benefits.
In making those calculations, the following income tax thresholds and benefit cut-off figures are a starting point.
- Income in the first federal tax bracket is taxed at 15%, while income in the second bracket is taxed at 20.5%. For 2024, that second income tax bracket begins when taxable income reaches $55,867.
- The Canadian tax system provides (for 2024) a non-refundable tax credit of $8,790 for taxpayers who are age 65 or older at the end of the tax year. The amount of that credit is reduced once the taxpayer’s net income for the year exceeds $44,325.
- Individuals can receive a GST/HST refundable tax credit, which is paid quarterly. For 2024, the full credit is payable to individual taxpayers whose family net income is less than $44,324.
- Taxpayers who receive Old Age Security benefits and have income over a specified amount are required to repay a portion of those benefits through a mechanism known as the “OAS recovery tax”, or clawback. Taxpayers whose net income for 2024 is more than $90,997 will have a portion of their future OAS benefits “clawed-back”.
What other sources of income are currently available?
More and more, Canadians are not automatically leaving the work force at the traditional retirement age of 65. Those who continue to work at paid employment and whose employment income is sufficient to finance their chosen lifestyle may well prefer to defer receipt of OAS. Similarly, a taxpayer who begins receiving benefits from an employer’s pension plan when they turn 65 may be able to postpone receipt of OAS benefits.
Is the taxpayer eligible for Canada Pension Plan retirement benefits, and at what age will those benefits commence?
Nearly all Canadians who were employed or self-employed after the age of 18 paid into the Canada Pension Plan and are eligible to receive CPP retirement benefits. While such retirement benefits can be received as early as age 60, receipt can also be deferred and received any time up to the age of 70. As is the case with OAS benefits, CPP retirement benefits increase with each month that receipt of those benefits is deferred. Taxpayers who are eligible for both OAS and CPP will need to consider the impact of accelerating or deferring the receipt of each benefit in structuring retirement income.
Does the taxpayer have private retirement savings through an RRSP?
Receipt of a monthly pension from an employer-sponsored pension plan is no longer the reality for the majority of Canadian retirees; such retirees have generally saved for their retirement through a registered retirement savings plan (RRSP). While taxpayers can choose to withdraw amounts from such plans at any age, they are required to collapse their RRSPs by the end of the year in which they turn 71, and to begin receiving income from those savings. There are a number of options available for structuring that income but, whatever the option chosen (usually converting the RRSP into a registered retirement income fund (RRIF) or purchasing an annuity), it will mean that the taxpayer will begin receiving taxable income amounts from those RRSP funds in each year after they turn 71. Taxpayers who have significant retirement savings in RRSPs should, in determining when to begin receiving OAS benefits, consider the tax impact that receipt of that additional taxable income amount from their RRSP will have in every future year.
The ability to defer receipt of OAS benefits does provide Canadians with more flexibility when it comes to structuring retirement income. The price of that flexibility is increased complexity, particularly where, as is the case for most retirees, multiple sources of income and the timing of each of those income sources must be considered, and none can be considered in isolation from the others.
Individuals who are undertaking that decision-making process will find some assistance on the Service Canada website. That website provides a very helpful Retirement Income Calculator, which, based on information input by the user, will calculate the amount of OAS which would be payable at different ages. The calculator will also determine, based on current RRSP savings, the monthly income amount which those RRSP funds will provide during retirement. To use the calculator, it is necessary to know the amount of Canada Pension Plan benefit which will be received. Taxpayers who are registered for online access to My Service Canada Account can find that information there; those who are not can obtain that figure by calling Service Canada at 1-800 277-9914.
The Retirement Income Calculator can be found at https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
In the 2024-25 Federal Budget released earlier this year, the federal government announced changes to the rules which govern mortgage lending in Canada. Those changes had two goals: making it easier for first-time home buyers to qualify for a mortgage, and providing an incentive to encourage the building of new residential properties in Canada. Finance Canada recently announced two additional changes to mortgage lending rules; the first of those changes builds on one of the Budget announcements, while the second reduces the amount of the down payment which some home purchasers are required to make.
In the 2024-25 Federal Budget released earlier this year, the federal government announced changes to the rules which govern mortgage lending in Canada. Those changes had two goals: making it easier for first-time home buyers to qualify for a mortgage, and providing an incentive to encourage the building of new residential properties in Canada. Finance Canada recently announced two additional changes to mortgage lending rules; the first of those changes builds on one of the Budget announcements, while the second reduces the amount of the down payment which some home purchasers are required to make.
To understand the purpose and impact of these changes, a bit of background on how mortgage lending works is necessary. In Canada, all home purchasers must make a down payment on the purchase price of a home. The current required minimum down payment is a percentage of the purchase price, as follows:
$500,000 or less ……………………………… |
5% of the purchase price |
$500,000 to $999,999 …………………… |
5% of the first $500,000 of the purchase price; plus |
$1 million or more …………………………… |
20% of the purchase price |
A mortgage is a loan obtained to help finance the purchase of a home, and the mortgage amount is the difference between the down payment made and the purchase price. Where any home purchaser makes a down payment of less than 20% of the purchase price of the property, they are required to obtain (and pay for) mortgage default insurance through the Canada Mortgage and Housing Corporation (CMHC). The home purchaser must, as well, repay that mortgage (known as a “high-ratio mortgage”) within 25 years (known as the “amortization period”). Where the down payment amount is more than 20% of the purchase price of the home, there is no limit on the length of time the homeowner can take to repay the full mortgage amount (although, as a practical matter, the maximum amortization period which most major mortgage lenders in Canada will provide is 30 years.).
In its Budget for the 2024-25 fiscal year, the federal government announced that an extended amortization period would be provided for first-time home buyers purchasing a new residential property. In July of this year, Finance Canada provided details of that change, announcing that mortgage lenders would be allowed to provide 30-year amortization periods on insured mortgages to all first-time home buyers who were purchasing a new residential property. In other words, the existing 25-year limit on amortization periods for high-ratio mortgages insured by the Canada Mortgage and Housing Corporation would be extended to allow for 30-year amortization periods – but only for first-time home buyers purchasing new residential properties. That change was effective as of August 1, 2024. On September 16, Finance Canada announced that eligibility for a 30-year amortization (that is, the option to repay a mortgage over 30 years rather than 25 years) would be expanded to become available to ALL first-time home buyers and to ALL buyers of new residential properties. That change will take effect on December 15, 2024.
In the same announcement made on September 16, changes were made to the rules which determine how large a down payment a home purchaser must make. Specifically, the current requirement to make a minimum 20% down payment on a home costing $1 million or more is increased to apply only to homes costing $1.5 million or more. That change is also effective for any mortgage taken out on or after December 15, 2024. As of that date, required down payments will be as follows:
$500,000 or less ……………………………… |
5% of the purchase price |
$500,000 to $1,499,999 ………………… |
5% of the first $500,000 of the purchase price; plus |
$1.5 million or more ………………………… |
20% of the purchase price |
As with all such measures, there are additional rules which must be consulted to determine eligibility for either an extended amortization period and/or the ability to make a lower down payment. Those rules are outlined in detail in a Backgrounder to the September 16 announcement; that Backgrounder can be found on the Finance Canada website at https://www.canada.ca/en/department-finance/news/2024/09/delivering-the-boldest-mortgage-reforms-in-decades.html. The press releases for the July and September announcements are available on the same website at https://www.canada.ca/en/department-finance/news/2024/07/government-announces-30-year-amortizations-for-insured-mortgages-to-put-homeownership-in-reach-for-millennials-and-gen-z.html, and https://www.canada.ca/en/department-finance/news/2024/09/government-announces-mortgage-reform-details-to-ensure-canadians-can-access-lower-monthly-mortgage-payments-by-december-15.html.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.
Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.
They can be accessed below.
Corporate:
Personal:
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
While the current state of the Canadian health care system is far from perfect, Canadians are nonetheless fortunate to have a publicly funded health care system, in which most major medical expenses are covered by provincial health care plans. Notwithstanding, there is a large (and growing) number of medical and para-medical costs – including dental care, prescription drugs, physiotherapy, ambulance trips, and many others – which must be paid for on an out-of-pocket basis by the individual. In some cases, such costs are covered by private insurance, usually provided by an employer, but not everyone benefits from private health care coverage. Self-employed individuals, those working on contract, or those whose income comes from several part-time jobs do not usually have access to such private insurance coverage. Fortunately for those individuals, our tax system acts to help cushion the blow by providing a 15% federal non-refundable medical expense tax credit (METC) to help offset out-of-pocket medical and para-medical costs which must be incurred.
While the current state of the Canadian health care system is far from perfect, Canadians are nonetheless fortunate to have a publicly funded health care system, in which most major medical expenses are covered by provincial health care plans. Notwithstanding, there is a large (and growing) number of medical and para-medical costs – including dental care, prescription drugs, physiotherapy, ambulance trips, and many others – which must be paid for on an out-of-pocket basis by the individual. In some cases, such costs are covered by private insurance, usually provided by an employer, but not everyone benefits from private health care coverage. Self-employed individuals, those working on contract, or those whose income comes from several part-time jobs do not usually have access to such private insurance coverage. Fortunately for those individuals, our tax system acts to help cushion the blow by providing a 15% federal non-refundable medical expense tax credit (METC) to help offset out-of-pocket medical and para-medical costs which must be incurred.
The difficulty for such individuals is that while the tax credit claimable is simple in concept, it can be difficult to determine just what kinds of expenses are claimable for purposes of that credit (not all are, and others are claimable only if certain criteria are met), the extent to which expenses can be claimed (only expenses which exceed a certain amount can be claimed, and that amount changes with the income of the taxpayer), and who should claim the expenses (usually, but not always, it makes more sense for the lower-income spouse to claim medical expenses incurred by the entire family).
It's not hard to see why taxpayers can become confused and frustrated when trying to file a claim for medical expenses on the annual return. However, the process of determining the available claim really comes down to answering three questions, as follows.
- Which of my expenses are claimable and are there additional criteria imposed?
- Of my total medical expenses, how much can I claim?
- Should I or my spouse should make the claim for the medical expense tax credit?
Which of my expenses are claimable, and are there additional criteria imposed?
The good news for taxpayers is that there are a great number of different kinds of medical expenses which qualify for the medical expense tax credit, and the Canada Revenue Agency provides a detailed alphabetical (and searchable) listing of those expenses on its website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html.
While each of the medical expenses listed on the CRA website are eligible to be claimed for purposes of the medical expense tax credit, for each such expense it’s necessary to determine whether there are additional criteria which must be met in order to make that particular expense eligible for the credit.
Probably the most important criterion for most taxpayers is that, in some cases, a particular expense is only claimable if a prescription has been obtained from a medical doctor indicating a need on the part of the taxpayer to incur that expense. However, making a determination of when it’s necessary to obtain a prescription from a medical professional in order to ensure that the planned expenditure will qualify for the credit is far from intuitive. For instance, in order to claim the medical expense tax credit for the cost of a cane or a walker, it is necessary to obtain a prescription for that cane or walker. However, where costs are incurred to purchase a wheelchair, those costs are eligible for the medical expense credit, with no requirement that a prescription of any kind be obtained.
The listing of eligible medical expenses found on the CRA website does indicate the kinds of expenses for which a prescription is required; where the amount of a planned expenditure for a medical expense is significant, it’s well worth consulting the CRA website to ensure that the purchase is done in a way that will make it possible to claim the METC for the cost incurred.
Other types of medical expense costs can be claimed for purposes of the credit only where the person incurring that expenditure qualifies for the federal disability tax credit. Once again, the listing found on the CRA website indicates the types of expenditures to which this requirement applies.
Of my total medical expenses, how much can I claim?
Here again, the basic rule which determines how much a taxpayer can claim in a particular taxation year can be stated simply, but is more complex to apply. The basic rule is that for a taxation year a taxpayer can claim eligible medical expenses which exceed 3% of the taxpayer’s net income, or $2,759, whichever is less.
Put in more practical terms, the rule for 2024 is that any taxpayer whose net income for the year is $91,967 or less will be entitled to claim medical expenses that are greater than 3% of his or her net income for the year. Those having income of more than $91,967 will be limited to claiming qualifying expenses which exceed the $2,759 threshold.
Take, for example, a taxpayer who has $60,000 in net income for 2024 and incurs $3,400 in eligible medical expenses during the year. The computation of the available METC claim for 2024 is as follows. Based on the 3% of net income rule, the taxpayer will be entitled to claim medical expenses incurred which are more than $1,800 (3% of net income for the year). That taxpayer will therefore be able to claim $1,600 ($3,400 minus $1,800) in medical expenses for purposes of the METC.
The other aspect of determining the total expenses which can be claimed for purposes of the medical expense tax credit is that it’s possible to claim medical expenses which were incurred prior to the current tax year but weren’t claimed on the return for the year that the expenditure was made. The actual rule is that the taxpayer can claim qualifying medical expenses incurred during any 12-month period which ends in the current tax year, meaning that each taxpayer must determine which 12-month period ending in 2024 will produce the greatest amount eligible for the credit. That determination will obviously depend on when medical expenses were incurred so there is, unfortunately, no universal rule of thumb which can be used.
Which spouse should make the claim for the medical expense tax credit?
Medical expenses incurred by family members – the taxpayer, their spouse, and children who are under the age of 18 at the end of 2024, as well as certain other dependent relatives – can be added together and claimed by either spouse. In most cases, it’s best to make that claim on the tax return of the lower-income spouse, in order to maximize the amount of claimable expenses (remembering that only expenses greater than 3% of net income can be claimed).
That said, it’s also necessary