Jan
06

2020 Automobile Deduction Limits and Expense Benefit Rates for Businesses

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The Federal Government has announced the income tax deduction limits and expense benefit rates that will apply in 2020 for automobiles used for business.Most of the limits and rates from 2019 will continue to be used in 2020 including:• The general prescribed rate that is used to determine the taxable benefit of employees relating to the personal portion of automobile operating expenses paid by their employers will remain at 28 cents per kilometer. For taxpayers who are employed principally in selling or leasing automobiles, the prescribed rate used to determine the employee's taxable benefit will remain at 25 cents per kilometer.Only...
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Jan
03

Update on Changes to the Tax Treatment of Employee Stock Options

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The Department of Finance has recently announced updates on its intention to change the tax treatment of employee stock options. Employee stock options are generally used as a helpful form of remuneration for small businesses who do not have significant profits. Employee stock options often help these businesses to attract and retain talented staff. However, the government has acknowledged that the tax benefits of the employee stock options disproportionately accrue to a very small number of high-income individuals. Some large companies use the employee stock options as a tax preferred method of compensation for their executives. To address this issue, the...
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Dec
26

CRA Consultation Report Released

In Spring 2019, the CRA consulted with Canadians to get feedback in an effort to improve its services. Here are the highlights of the report. - Over 3,300 online submissions were received from April 23 to June 18.- Over 140 Canadians participated in 7 in-person consultations conducted across Canada from May to June 2019.- What Canadians told the CRA to improve their services – provide personal and tailored services, make taxes easier to understand, provide accurate information consistently, make services accessible and modernize programs and servicesThis consultation has resulted in the CRA’s commitment to three main outcomes:- Making information more helpful...
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Dec
24

Climate Action Incentive Payment Amounts for 2020 Announced

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The Minister of Finance Bill Morneau recently announced the 2020 Climate Action Incentive payment amounts for residents of provinces that have not adopted the federal system. These provinces include Ontario, Manitoba, Saskatchewan and Alberta. Individuals who are residents of these mentioned provinces will be able to claim these amounts through their 2019 personal income tax returns. The following are the Climate Action Incentive payment amounts for 2020:- Ontario - $224 for single adults or first adult in a couple, $112 for second adult in a couple or first child of a single parent, $66 for each child under 18 starting with...
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