The federal budget has proposed increasing the inclusion rate on capital gains from 50% to 66.667%. The proposal applies to capital gains realized on or after June 25, 2024. There is a $250,000 “safe harbour” for individuals. Assuming that [1] Québec harmonizes and [2] that RDTOH rates remain the same, the chart below summarizes the […]
Introduction On April 16, 2024, Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented Budget 2024. This budget aims to increase lifetime capital gains exemption, introduce a new Canadian Entrepreneurs’ Incentive and increase the capital gains inclusion rate. It also proposes measures to help Canadians buy their first home by increasing the withdrawal limit […]
What is Bill S-211? Bill S-211 An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the “Act”), came into effect on January 1, 2024. The goal of the Act is to enforce Canada’s commitment to combat forced labour and child labour by […]
The CRA has been erroneously assessing a $100 penalty for trusts that were filed on time. These penalty assessments seem to apply to trusts that were filed on April 1st or April 2nd. As a reminder, the 90 day filing period for trusts ended on the weekend, and the first business day was April 2nd […]
Introduction The Minister of Finance, Mr. Eric Girard, tabled his 2024-2025 budget plan on March 12, 2024, which plans to support seniors, to improve the fairness and impact of tax credits supporting jobs in the information technology sector and to enhance support for Québec film and television production. Here are the highlights of the 2024-2025 […]
Following changes to the trust reporting requirements, for taxation years ending after December 30, 2023, certain trusts, that were previously deemed not to be trusts for the purposes of the Income Tax Act[1] (“ITA”), will be required to file a T3 Trust Income Tax and Information Return (“T3 Return”) even though they were not required […]
As of January 1, 2024, taxpayers (individuals, corporations, partnerships and trusts) will be required to remit payments over $10,000 to the Canada Revenue Agency (“CRA”) and Revenu Québec (“RQ”) electronically or be assessed a penalty of $100 per payment. There are several electronic options available to you. Most Canadian banks provide a full range of […]
The Quebec government has announced changes to the QPP, effective as of January 1, 2024, with the primary goal of promoting job retention among workers aged 65 and older. The changes include the option for individuals aged 65 or over, already receiving a retirement pension from the QPP or the Canada Pension Plan (CPP), to […]
OWNERSHIP OF FOREIGN PROPERTY Form T1135 was introduced by the Canada Revenue Agency to provide for more specific reporting on the ownership of foreign property. The form must be completed by any taxpayer who owns foreign property with a total cost amount of more than $100,000 CDN at any time in the year. Such foreign […]
On November 21, 2023, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the 2023 Fall Economic Update. This update proposes new measures aimed at making changes to the Underused Housing Tax, supporting employee ownership trusts, providing amendments to concessional loans and expanding eligibility for the Clean Technology and Clean Electricity Investment Tax […]