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 firstname.lastname@example.org and we will pass along their information.
Some excellent tax resources on the internet, include:
- TaxMentor’s Monthly Executive Tax Briefs – Links edition
- 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!
- 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.
- CPA’s Chapters also offer lots of tax seminars that provide verifiable credits at a modest cost.
- 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
3. New land transfer tax rates for Ontario
4. 2017 Federal Budget Commentaries
5. 2017 Provincial Territorial Budgets - Deloitte
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.
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
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:
- 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 email@example.com.
- 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
- CRA’s Income Tax Audit Manual sets out the internal audit policies and procedures for CRA employees involved in income tax audits of small and medium-sized businesses.
- Access to the Income Tax Audit Manual is now provided on the Tax Interpretations website and can provide a very useful insight into the assessing positions taken by CRA’s auditors.
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.
13. CRA ruled that annually recurring dividends are not a series of transactions
14. Partnership of individuals can change to a different non-calendar year end
15. CRA: Generally is no 3rd party requirement to report benefits under $500
16. 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
18. Non-resident director who attends all Canadian board meetings by phone or internet not subject to withholding
19. Contingent secondary call right of a non-resident on shares of minority residents disqualifies
20. Unconsolidated balance sheet must reflect the same accounting standards applied in the consolidated financials
21. Income paid to minor beneficiary in contravention of trust deed is non-deductible under s.104(6)
22. CRA states that T1135s are prepared without regard to the attribution rules
23. 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
25. TCC finds s. 96(1.1) income from an accounting firm is business income - not retiring allowance
26. 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
28. 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