Are you waiting for your income tax objection to be resolved? Here is an update on the timelines with regards to the assignment and resolution of income tax objections based on its complexity. 1. The majority of low complexity objections now being assigned to an appeals officer were received in January 2018. Objections resolved in March 2018 were completed in an average of 81 days from the date the objection was submitted. Low complexity objections often involve issues such as individual tax credits, personal deductions, Canada Child Benefit and Disability Tax Credit. 2. The majority of medium complexity objections now being...
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On our last blog, we listed the highlights of the tax plan. In this blog, we’ll look into the details of these highlights. - A new Interactive Digital Media Tax Credit worth 25% of eligible labour costs: The new refundable tax credit was created to attract and retain employment and investment in a growing global industry. This tax credit will provide eligible interactive digital media companies with a benefit worth 25% of eligible labour costs incurred after April 1, 2018. - An extension of the Alberta investor Tax Credit and Capital Investment Tax Credit to 2021-22: The Alberta Investor Tax Credit...
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The Alberta Budget 2018 focuses on maintaining a competitive tax system to promote investment, economic diversification and make life more affordable for all Albertans. The 2018 tax plan’s highlights include: - A new Interactive Digital Media Tax Credit worth 25% of eligible labour costs.- An extension of the Alberta investor Tax Credit and Capital Investment Tax Credit to 2021-22.- Indexation of the personal income tax system, saving Albertans $65 million in 2018.- Holding the total amount collected from education property taxes steady at the 2017-2018 level.- Confirmation of the tax revenue collection mechanism for cannabis. Alberta Budget 2018 mentions that our...
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If you are applying for the Disability Tax Credit (DTC), you can now get a nurse practitioner to fill out and sign your Form T2201, Disability Tax Credit Certificate. The Federal Government made a change to recognize nurse practitioners as one of the medical practitioners who can certify Form T2201 through Budget 2017. This change will provide a huge benefit for individuals applying for the Disability Tax Credit who live in an area where a nurse practitioner is their first point of contact. This ensures that all Canadians who want to apply for the DTC will be able to do so...
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Here are the Sales and Excise Tax Measures included in Budget 2018. GST/HST and Investment Limited Partnerships: Budget 2018 proposes measures so that the GST/HST applies to management and administrative services rendered by the general partner on or after September 8, 2017, and not to management and administrative services rendered by the general partner before September 8, 2017 unless the general partner charged GST/HST in respect of such services before that date. Budget 2018 also proposes that the GST/HST be generally payable on the fair market value of management and administrative services in the period in which these services are rendered....
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Enhancement of the Canada Workers Benefit: The Working Income Tax Benefit is a refundable tax credit that supplements the earnings of low-income workers. Last year, the Government announced that they intend to enhance the benefits provided by the Working Income Tax Benefit by an additional %500 million starting in 2019. Budget 2018 proposes to rename the program to the Canada Workers Benefit. Also, Budget 2018 proposes that for 2019, the amount of the benefit be equal to 26% of each dollar of earned income in excess of $3,000 to a maximum benefit of $1,355 for single individuals without dependents and $2,335...
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As mentioned in Part 1, Budget 2018 proposes to require certain trusts to provide additional information on an annual basis and this includes an obligation to file a T3 return annually. If the new reporting requirement applies to a trust, the trust will also be required to report the identity of all trustees, beneficiaries and settlors of the trust as well as the identity of each person who has the ability to exert control over trustee decisions regarding the appointment of income or capital of the trust. Budget 2018 has committed a funding of $79 million over a five year period...
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In Budget 2018, the Government acknowledged that some taxpayers have used trusts in complex arrangements to prevent the appropriate authorities from acquiring sufficient information to determine the taxpayer’s tax liabilities. Generally, a trust that does not earn any income or make distributions in a year is not required to file an annual return of income (T3). A trust is required to file a T3 return when the trust has tax payable or if it distributes all or part of its income or capital to its beneficiaries. In addition to this, even if the trust annually files a return, there is no...
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Here are the rest of the Personal Income Tax Measures included in Budget 2018.Registered Disability Savings Plan and Qualifying Plan Holders: There is a temporary federal measure that exists to allow a qualifying family member to be a plan holder of the individual’s RDSP if the individual’s capacity to enter into a contract is in doubt and if the individual does not have a legal representative in place. This measure expires at the end of 2018. Budget 2018 proposes to extend this temporary measure by five years, to the end of 2023.Child Benefits: In Budget 2016, the Government announced that foreign-born...
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Last week, we looked at the Business Income Tax Measures proposed in Budget 2018. This week, we’ll focus on the Personal Income Tax Measures starting with the proposals on the Working Income Tax Benefit and the Medical Expense Tax Credit. Enhancement of the Canada Workers Benefit: The Working Income Tax Benefit is a refundable tax credit that supplements the earnings of low-income workers. Budget 2018 proposes to rename the program to the Canada Workers Benefit. Also, Budget 2018 proposes that for 2019, the amount of the benefit be equal to 26% of each dollar of earned income in excess of $3,000...
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