Category: Taxation

Taxation

CORPORATE TAXATION UPDATE

REVISIONS TO SMALL BUSINESS DEDUCTION A summary of the tax rates applicable to CCPCs in 2022 and 2023 is set out in the following tables: Combined Federal and Quebec corporate tax rates applicable on income earned in 2022 and 2023: Active Business Income Passive income RDTOH Dividend refund Eligible for Federal and Quebec SBD Eligible […]

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Taxation

Changes announced to the new excessive interest and financing expenses limitation (“EIFEL”) regime

Purpose of the EIFEL regime The EIFEL proposals restrict taxpayer capacity to deduct interest and other financing costs where certain thresholds are exceeded. Changes announced to the EIFEL regime in November 2022 On November 3, 2022, the federal government announced proposals to modify certain elements of the original EIFEL regime Most importantly, the application date […]

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Taxation

2022 Federal budget summary

INTRODUCTION On April 7, 2022, Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable. The budget proposes measures to help Canadians buy their first home, including by introducing the Tax-Free First Home Savings Account and doubling the First-Time Home Buyers’ Tax […]

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Taxation

2022-2023 Québec Budget Summary March 22, 2022

Introduction On March 22, 2022, the Minister of Finance, Mr. Eric Girard, tabled his 2022-2023 budget plan which was prepared under very special circumstances and which represents the government’s fourth budget. This budget provides tax measures to cope with the rising cost of living, to stimulate economic growth and continue efforts relating to the environment. […]

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Taxation

GST/HST & QST

IMPORTANT NOTICE TO BUSINESSES DEALING WITH NON-RESIDENT SUPPLIERS SUCH AS FACEBOOK AND GOOGLE Since 2019, non-resident suppliers that provide services to Quebec consumers must be registered for and collect QST on such services. The federal government passed similar legislation for GST/HST which came in effect on July 1, 2021. Non-resident suppliers who are required to […]

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Taxation

Canada Recovery Hiring Program

The 2021 Budget proposes a new subsidy: the Canada Recovery Hiring Program (“CRHP”). From June 6, 2021 to November 20, 2021, an eligible entity could claim the CRHP. Up until September 25, 2021, the CRHP is based on the same periods as for the Canada Emergency Wage Subsidy (“CEWS”) and the Canada Emergency Rent Subsidy […]

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Taxation

IMPACT OF QUEBEC’S REQUIRED PLANNING DISCLOSURE REACHES BEYOND THE PROVINCE

IMPACT OF QUEBEC’S REQUIRED PLANNING DISCLOSURE REACHES BEYOND THE PROVINCE Quebec’s Bill 42, which became law in September 2020, has broadened the mandatory disclosure rules to cover specified transactions. These include transactions for which the form and substance are the same or very similar to transactions listed in regulations promulgated on March 17, 2021. Revenu Québec has also provided examples of specified […]

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Taxation

AFTER DE FACTO DIRECTORS, WE NOW HAVE DE FACTO SHAREHOLDERS

Under section 160 of the ITA, a transferee of property may be assessed for the tax liability of the transferor to the extent that the FMV of the transferred property exceeds the FMV of the consideration given for the property. Salary payments are generally not subject to section 160, because the recipient has given consideration for the […]

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Taxation

ELIMINATION OF RESTRICTIONS ON THE CLAIMING OF INPUT TAX REFUNDS (ITR) BY LARGE BUSINESSES EFFECTIVE JANUARY 1st 2021

As announced in the 2015-2016 Quebec budget, restrictions on the claiming of input tax refunds (ITR) by large businesses have now been completely eliminated. A person is generally considered a large business for QST purposes throughout a particular fiscal year if the person’s total taxable sales made through a permanent establishment in Canada, including exportations, […]

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