Menu

A. Tax Legislation

1. TaxMentor's Change in Direction

We hope you are all finding some benefit in our new complimentary format of links to information on changes in tax legislation, interpretaions by CRA, cases considered by the courts and professional commentary on these items.

For PD credit, we remind you that a dinner group or skype forum is a great vehicle to discuss the tax issues of the day for about 2 ½ hours a month perhaps using TaxBriefs Newsletter – Links Edition as your topics and source material.  All you need is one volunteer per month to do the reading and lead the group (and one to keep track of the attendees for verifiable PD).  Anyone wishing to start such a group can provide us with their information and we will make it available to those in your area who are interested.

North Vancouver – we have an individual interested in a dinner group.  Please e-mail us at info@taxmentor.ca and we will pass along their information.

Some excellent tax resources on the internet, include:

  1. TaxMentor’s Monthly Executive Tax Briefs – Links edition
  2. 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.  Tax Interpretations has now taken on the job of translating the French TIs to English – invaluable!
  3. Seminars and Webinars – Taxmentor will be offering Webinars – possibly combined with in person seminars, depending on demand – with the first Webinar anticipated for  May on the Topic of Trusts and Estates with more to follow on a variety of Owner-manager tax topics – practical, subject focused, and following our usual two hour format.
  4. CPA’s Chapters also offer lots of tax seminars that provide verifiable credits at a modest cost.
  5. CPA provincial associations also offer a whole variety of CPA programs across the country although these course tend to be more expensive.

2. B.C. Gives Transfer Tax Relief to Foreign Homebuyers

See Exemptions discussion in BC publication:  Additional Property Transfer Tax

also

B.C. Gives Transfer Tax Relief to Foreign Homebuyers

3. New land transfer tax rates for Ontario

New land transfer tax rates for Ontario

New land transfer tax rates for Ontario Article

Ontario Unveils a New 15% Land Transfer Tax and Expanded Rent Controls

4. 2017 Federal Budget Commentaries

Aird & Berlis

Stikeman Elliot – GST/HST

Blake Cassels & Graydon

Moodys Gartner

McCarthy Tetreault

BDO

KPMG

Deloitte

PWC

5. 2017 Provincial Territorial Budgets - Deloitte

Deloitte Provincial budget commentaries

6. 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

7. 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.

8. Personal and Corporate Tax Rates

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 – Tax Facts 2016 – 2017 (202 pp) current to December 30, 2016

Deloitte – Personal and Corporate Tax Rates Archive

PwC – Combined Tax Rates

9. 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.

B. CRA's Interpretation

10. 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

11. CRA Prescribed Interest Rates and Exchange Rates

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

For exchange rates see:

12. 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

13. CRA ruled that annually recurring dividends are not a series of transactions

TI 2016-0672321C6

CRA ruled that annually recurring dividends are not a series of transactions for safe income determination purposes

14. Partnership of individuals can change to a different non-calendar year end

CRA indicates that a partnership of individuals can change with CRA’s permission to a different non-calendar year end

2014-0534341E5 F

15. CRA: Generally is no 3rd party requirement to report benefits under $500

CRA:Generally is no 3rd party requirement to report benefits under $500

2016 TEI Roundtable, Q.2, 2016-0670911C6

16. Financial Institutions Get Ready for New Common Reporting Standard Rules

Information for entities holding accounts with Canadian financial institutions

Financial Institutions Get Ready for New Common Reporting Standard Rules

17. Test of a real property security under the Canada-U.S. Treaty is a point-in-time test

TI 2016-0658431E5

Test of a real property security under the Canada-U.S. Treaty is a point-in-time test

18. Non-resident director who attends all Canadian board meetings by phone or internet not subject to withholding

TI 2016-0677351E5 

Non-resident director who attends all Canadian board meetings by phone or internet is not subject to source withholding

19. Contingent secondary call right of a non-resident on shares of minority residents disqualifies

TI 2016-0662381E5

CRA finds that a highly contingent secondary call right of a non-resident on shares of minority residents undercuts for CCPC purposes their USA right to appoint half the board

20. Unconsolidated balance sheet must reflect the same accounting standards applied in the consolidated financials

TI 2015-0618511I7

Unconsolidated balance sheet must reflect the same accounting standards applied in the consolidated financials for Thin Cap Rules

21. Income paid to minor beneficiary in contravention of trust deed is non-deductible under s.104(6)

TI 2016-0663971I7

Income paid to a minor beneficiary in contravention of the trust deed is non-deductible under s. 104(6)

22. CRA states that T1135s are prepared without regard to the attribution rules

TI 2016-0669081E5

CRA states that T1135s are prepared without regard to the attribution rules

23. NR4s are required even where there is no Part XIII tax

26 April 2017 IFA Roundtable, Q.8 

NR4s are required even where there is no Part XIII tax

C. Tax Court Cases

24. CRA’s broad tax audit powers restrained by Federal Court of Appeal - BP Canada Energy

BP Canada Energy Company v. MNR, 2017 FCA 61

Canada Revenue Agency’s broad tax audit powers restrained by Federal Court of Appeal

25. TCC finds s. 96(1.1) income from an accounting firm is business income - not retiring allowance

Freitas v. The Queen, 2017 TCC 46

TCC finds that a s. 96(1.1) allocation of income from an accounting firm was business income rather than a retiring allowance

26. TCC finds use of class PUC-averaging to bump the PUC of personally-held shares abusive under s.245(4)

1245989 Alberta Ltd. v. The Queen, 2017 TCC 51

TCC finds use of class PUC-averaging to bump the PUC of personally-held shares abusive under s. 245(4)

27. Birchcliff Energy Ltd - Lossco Deal - TCC Decision a Nullity on FCA Appeal

Birchcliff Energy Ltd 2017 FCA 89

High-Crest and Birchcliff Energy – Federal Court of Appeal nullifies cases that were decided by a 2nd judge based on the trial transcript before the 1st judge

28. CRA to Put Holds on Refunds for GST Non-Compliance

CRA to Put Holds on Refunds for GST Non-Compliance

29. S. 69(11) can apply to non-rollover transactions

Perry Truster, “Loss Trading and Subsection 69(11),” Tax for the Owner-Manager, Vol. 17, No. 2, April 2017

S. 69(11) can apply to non-rollover transactions

30. Doing Business in Canada - McCarthys

Doing Business in Canada

31. Trump's Tax Proposals

Meritas Memo