Aug
12

Consultations on proposed Luxury Tax launched

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A tax on select luxury goods was introduced in the recent budget. This proposed luxury tax aim help address the uneven impact of the COVID recession. Some sectors and some Canadians have flourished during the pandemic while some have lost jobs and businesses. Because of this, the government introduced the tax on some luxury items in an effort to ask Canadians who can afford to buy luxury items to contribute a little bit more. This proposed Luxury Tax will apply on the sale of new luxury cars and aircraft with a retail sale price of over $100,000 and new boats over...
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Jul
28

Taxation on intergenerational transfers of small business shares

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The Department of Finance recently confirmed that Bill C-208 has been passed by Parliament, received Royal Assent and has become part of Canada’s Income Tax Act. Clarifications to this legislation were also released. Unintended tax avoidance loopholes were created by Bill C-208 which is why the Government intends to make amendments to Bill C-208. One of the loopholes allowed the opportunity for “surplus stripping,” in which dividends are converted to capital gains to take advantage of the lower tax rate without any genuine transfer of the business actually taking place. Below is a list of issues the amendments to Bill C-208...
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Jul
08

Some foreign-based businesses engaged in the digital economy have started charging GST

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Most foreign-based businesses who sell mobile apps, online video streaming services and other digital platform-based products are now required to charge Canada’s sales tax, commonly known as GST/HST, when making sales in Canada. This requirement started this July 2021. So starting July 1, 2021, you may see GST/HST charges when you make purchases from affected businesses. Affected businesses will include:- Cross-border digital products and services, like video or music streaming services- Platform-based short-term accommodation, like homestays or vacation rentals and- Goods supplies through fulfillment warehouses in Canada. These businesses will be required to register for, charge, collect and remit GST/HST on...
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Jul
06

Expansion of the Canada Workers Benefit

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The Department of Finance announced the expansion of the Canada Workers Benefit that will now be available to about one million more Canadians. The Canada Workers Benefit is a refundable tax credit that helps people who are working and earning a low income and a sizeable tax refund for workers. With the expansion of this benefit, more Canadian low-income earners will be eligible for a tax refund of up to almost:- $1,400 for workers who are single and without children and- $2,400 for workers with families. A total of 3.2 million Canadians are now eligible for this benefit. The eligibility of...
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