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A. Tax Legislation

1. Budget Dates 2017

Federal – March 22, 2017
Alberta – March 16, 2017
British Columbia – February 21, 2017
Manitoba – April 11, 2017
New Brunswick – February 7, 2017
Newfoundland & Labrador – April 6, 2017
Northwest Territories – February 1, 2017
Nova Scotia – April 27, 2017
Nunavut – February 22, 2017
Ontario – April 27, 2017
Prince Edward Island – April 7, 2017
Quebec – March 28, 2017
Saskatchewan – March 22, 2017
Yukon – April 20, 2017

2. Proposed Federal Tax Legislation - Including Budgets

The Department of Finance Website links all pending/draft tax legislation on its website, including the recent Federal Budget introduced by Notice of Ways and Means Motion on the same day as the Federal Budget. 

This is where you can find links to the various Notices of Ways and Means Motions and draft technical legislative proposals which have not yet become law, as well as the Department of Finance’s explanatory notes for the proposed tax changes.

The status of proposed tax legislation as it progresses though Parliament until it is Proclaimed into Force, please follow this link to the “Federal Statutory Updates” can be found here.

For additional details on tax legislation contact the Finance official responsible for the particular piece of legislation whose contact details are typically included with each piece of Draft Legislation.

3. Specified Cooperative Income - Specified Corporate Income Fix

Specified Cooperative Income – Specified Corporate Income Fix

See KPMG article in D below

4. Status of Tax Treaty Negotiations

For the Status of International Tax Treaty Negotiations on the Department of Finance website, scroll down past the yearly Notices to see the: In Force; Signed but Not Yet In Force and Under negotiation/re-negotiation details. Also included in this section of the Department of Finance website is an update on TIEA’s. There are no new Treaties or TIEA’s this month.

5. Personal and Corporate Tax Rates

NOTE – KPMG’s new Digital Tax Facts – the easiest to use in the business

CRA – Individual Tax RatesCorporate Tax Rates

BDO – Personal Tax Rates 2017Corporate Tax Facts 2017

E & Y – Personal Tax Calculator and Corporate Tax Rates

KPMG – Personal Tax TablesCorporate Tax Tables

KPMG –Digital Tax Facts 2016-2017 April 30, 2017

Deloitte – Personal and Corporate Tax Rates Archive

PwC – Combined Tax Rates

6. 2017 Federal Budget Commentaries

Aird & Berlis

Stikeman Elliot – GST/HST

Blake Cassels & Graydon

Moodys Gartner

McCarthy Tetreault

BDO

KPMG

Deloitte

PWC

7. 2017 Provincial Territorial Budgets - Deloitte

Deloitte Provincial budget commentaries

B. CRA's Interpretations

8. CRA Publications

CRA publishes a wide variety of technical information on the application of the Income Tax Act (Canada) referred to in Executive Tax Briefs as the “Tax Act”.  Below is a list of CRA Publications and links, where available to those CRA resources, as follows:

What’s New

Recently Added Forms and Publications

Income Tax Folios

  • The Canada Revenue Agency (CRA) issues income tax folios to provide technical interpretations and positions regarding provisions of the Tax Act and related legislation. The comments in a particular Folio represent the views of CRA as they relate to provisions of the Tax Act in force at the time they were made but should not be considered to be a substitute for a review of the actual wording of the Tax Act as enacted from time to time.  CRA’s views are not always shared by the courts and indeed the views of the Tax Court can be superseded by the views of the Federal Court of Appeal and, ultimately, the Federal Court of Appeal.  The results of the final court finding on particular questions of law where no further appeal is available are considered to have for all times since the introduction of the legislation to be the law of the land.
  • It should be noted that the system of Folios is gradually being introduced to replace the former system of, now archived, Interpretation Bulletins and Technical News releases

Interpretations Bulletins (ITBs”)

Technical Interpretations (“TIs”)

  • TIs are published on a regular basis by the Rulings Directorate of CRA in Ottawa in both Official languages( with no available translations) and provide by far the most current views of CRA on the interpretation of provisions of the Tax Act in a variety of situations.
  • TIs are not published on CRA’s website although inquiries regarding such items may be made directly to the Rulings Directorate by e-mail to itrulingsdirectorate@cra-arc-gc.ca.
  • Currently, a website called Tax Interpretations is providing free access to these copyright protected materials on a limited basis – weekends and the first week of every month.  To locate a specific technical interpretation, go to http://taxinterpretations.com/ and enter the number of the TI in their search box.
  • We highly recommend the Tax Interpretations Website – at $750 a year for what they offer, there is no better resource material – keep in mind that the bulk of the most significant tax news is found in CRA’s Tax Interpretations, all of which are published in only one official language and are not available to the public!!!  Tax Interpretations has now taken on the job of translating the French TIs to English – invaluable!

CRA Income Tax Audit Manual

9. CRA Prescribed Interest Rates and Exchange Rates

CRA prescribed interest rates can be found at this prescribed interest rates link.

For exchange rates see:

10. GST/HST/PST Links

Executive TaxBriefs is dedicated to providing the most current monthly updates on income tax matters affecting Owner-managers.  However, for your convenience this news item contains links to important GST/HST/PST resources.

CRA pages on GST/HST:

New GST/HST Forms, Guides or Releases are found under CRA’s Recently Added Forms and Publications.

Provincial PST:

BC PST – General
BC PST – Verify a PST No.
BC PST – LegislationRegulations, and Exemptions
BC PST – Publications and Bulletins

SK PST – General
SK PST – Legislation
SK PST – Bulletins

MB PST – General
MB PST – Legislation
MB PST – Bulletins

11. CRA confirms previously incurred trivial ECE may generate better ECP transitional results

CRA confirms that previously having incurred trivial ECE may generate better ECP transitional results

T.I. 2016-0680141E5

12. CRA indicates GST gross negligence penalty can be levied on amounts not attributable to gross negligence

CRA indicates that the GST gross negligence penalty can be levied on amounts that are not attributable to gross negligence

31 October 2016 Interpretation 164696

13. CRA Advises no T4A for rent

No T4A for rent

T.I. 2016-0675221E5 

14. CRA maintains position of no foreign tax credit for US taxes paid by Canadian member on undistributed LLC Income

CRA maintains its position of no foreign tax credit for U.S. taxes paid by a Canadian member on undistributed LLC income – post Anson

T.I. 2015-0601781E5

15. Taxation of Airline Passes for Employees

Taxation of Airline Passes for Employees

T.I. 2016-0662341E5

16. Specified Corporate Income Trap Examples

CRA provides illustration of the SBD-denial rule in s. 125(1)(a)(i)(B)

T.I. 2016-0679721E5

17. CRA holds appraisal increment increased corporation’s retained earnings for Part I.3 purposes

CRA holds that appraisal increment increased a corporation’s retained earnings for Part I.3 purposes

 T.I. 2016-0663781E5

18. CRA checklist for determining whether LLLP legislation provides for a corporation

CRA checklist for determining whether LLLP legislation provides for a corporation

T.I. 2015-0587691I7

19. CRA will exclude contingent-fee WIP from professionals’ post-Budget income

CRA will exclude contingent-fee WIP from professionals’ post-Budget income

CRA Billed Basis Accounting – Budget 2017

C. Tax Court Cases

20. TCC Holds that Agreements Reached Under the Mutual Agreement Procedure are Binding on the CRA

TCC Holds that Agreements Reached Under the Mutual Agreement Procedure are Binding on the CRA – Sifto Canada

2017 TCC 37

21. FCA confirms finding of gross negligence for failure of executive to review tax return

FCA confirms a finding of gross negligence for failure of an executive to review a tax return with an unexpectedly low amount payable – Melman

Case

22. TCC finds that structuring to deduct most of cost of land was unsuccessful

TCC finds that structuring to deduct most of the cost of land (or a ground leasehold interest therein) was unsuccessful  – Armour Group

Case

23. TCC indicates that defence under s. 163.2(6) of “good faith” reliance on information is unavailable

TCC indicates that a defence under s. 163.2(6) of “good faith” reliance on information is unavailable where the reliance was unreasonable  – Ploughman

2017 TCC 64 

24. TCC finds that a taxpayer is not bound by the statement of boot set out in its s. 97(2) election

TCC finds that a taxpayer is not bound by the statement of boot set out in its s. 97(2) election form – R&S Industries

2017 TCC 75

25. QCA finds that a promoter could be convicted of evading taxes of others – Gagné

a href=”https://taxinterpretations.com/tax-topics/income-tax-act/section-239#node-453373″>QCA finds that a promoter could be convicted of evading taxes of others  – Gagné

2017 QCCA 788

26. FCA Holds that Limited partnership at-risk rules do not apply to partnerships as members – Green

FCA Holds that Limited partnership at-risk rules do not apply to partnerships as members – Green

2017 FCA 107

27. Crown must produce all documents “considered by officials involved in or consulted during” a GAAR

Crown must produce all documents “considered by officials involved in or consulted during” a GAAR-related audit per TCC – MP Western Properties

2017 TCC 82

D. Practitioners' Forum

28. Finance Provides Tax Relief to Farmers and Fishers from new Specified Corporate Income Rules

Finance Provides Tax Relief to Farmers and Fishers from new Specified Corporate Income Rules

Watch out for this potential application of Specified Corporate Income Rules in small town dealings

May 2017 Legislative Proposals

29. Doing business in Canada — a checklist

Doing business in Canada — a checklist

30. Americas deadline update for early CRS Adoption of Tax Information Exchange

Americas deadline update for early CRS Adoption of Tax Information Exchange

31. An international guide to employment law across 28 countries – Canada

An international guide to employment law across 28 countries – Canada

32. CRA Announces it will not Appeal FCA BP Canada Decision on Working Papers

CRA Announces it will not Appeal BP Canada Decision of FCA on Working Papers

See Item 24 in May 2017 ETB

See also note from Greg DelBiggio of Thorsteinssons

33. Estate Planning and Shareholders’ Agreements

Estate Planning and Shareholders’ Agreements

34. The Pitfalls of Disability Planning

The Pitfalls of Disability Planning