The Federal Government recently announced the income tax deduction limits and expense benefit rates that will be applied this 2019 for businesses that use an automobile. Note that most of the limits that were applied in 2019 will continue to be applied in 2019. However, there are 2 changes that will be applied this year.1. The limit on the deduction of tax-exempt allowances that are paid by employers to employees who use their personal vehicle for business purposes in 2019 has increased by 3 cents to 58 cents per kilometer for the first 5,000 kilometers driven, and to 52 cents per...
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Starting 2019, the Federal government will levy fossil fuels of $20 per tonne of greenhouse gas emissions. The Federal government released details on how direct proceeds from carbon pollution pricing under the federal system will be returned to the province or territory. • For jurisdictions that have adopted the federal system, direct proceeds will be returned directly to the governments of those jurisdictions. • For those provinces that do not meet the federal standard such as Ontario, New Brunswick, Manitoba and Saskatchewan, the majority of the fuel charge proceeds will be returned through the new Climate Action Incentive payments to residents...
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Here are the other tax changes that have taken effect this year:• Canada Pension Plan contribution rates will rise over seven years starting January 2019. Please read our blog series about this change here: CPP Enhancement Starting 2019 Part 1, CPP Enhancement Starting 2019 Part 2• The Federal government will levy a tax on fossil fuels of $20 per tonne of greenhouse gas emissions starting in 2019 and rising by $10 each year to $50 a tonne by 2022 in provinces that don’t have carbon pricing mechanisms of their own. In provinces where this will be imposed, the cost of a...
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In our last blog, we mentioned the following tax changes to expect in 2019. • Further reduction of the Small Business Tax Rate from 10% to 9. • Replacement of the Working Income Tax Benefit with the Canada Workers Benefit. In this blog, we would like to focus on the key tax measures that took effect this 2019 for businesses. • As mentioned, the Small Business Tax Rate has been reduced to 9% this year. Note that the new Alberta Small Business Rate (up to $500,000) is now 11%. • The taxation of non-eligible dividends (generally distributed from corporate income taxed...
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