On August 30, 2011, the federal government released a paper outlining proposed tax rules governing Employee Profit Sharing Plans (“EPSPs”) for public consultation, in furtherance of initiatives first announced in its 2011 Budget. Specifically, the government is seeking stakeholder input on the following issues: eligibility of non-arm’s length employees / “related persons” to participate in…
Tag: Tax
New Income Tax Proposals Introduced – Federal Budget 2011
On August 16, 2011, the Department of Finance released draft legislative and regulatory proposals to implement a number of key tax measures first introduced by the federal government in Budget 2011, the Next Phase of Canada’s Economic Action Plan—A Low-Tax Plan for Jobs and Growth. In part, “Legislative Proposals Relating to the Income Tax Act…
Canada Revenue Agency Provides Further Information about New Volunteer Firefighter Tax Credit
As originally announced in March of 2011 and confirmed with the re-introduction of the Federal Budget on June 6, the Budget proposes a non-refundable tax credit for volunteer firefighters for 2011 and future tax years. This credit will be available to volunteer firefighters who perform at least 200 hours of service for their communities during…
Federal Economic Recovery Bill Passes
On December 15, 2010, Bill C-47, the Sustaining Canada’s Economic Recovery Act, received Royal Assent. The Bill is omnibus legislation and addresses numerous measures of interest to employers, including: income tax reforms relating to stock option plans and employee life and health trusts as outlined in the March 2010 Budget previously reported on August 30,…
Federal Government Introduces Sustaining Canada’s Economic Recovery Act
On September 30, 2010, the federal government introduced Bill C-47, the Sustaining Canada’s Economic Recovery Act. As outlined in the government announcement, Bill C-47 is omnibus legislation and addresses numerous measures of interest to employers including: income tax reforms relating to stock option plans and employee life and health trusts as outlined in the March…
Federal Government to Set Limits On EI Premium Rate Increase for 2011
On September 30, 2010, the federal government announced plans to limit the Employment Insurance (“EI”) maximum premium rate increase for 2011 to five cents per $100 of insurable earnings, and ten cents per $100 of insurable earnings for subsequent years. The rate increase is set by the Canada Employment Insurance Financing Board, which by November…
Department of Finance Proposes Changes to HST Calculation Rules Affecting Investment Funds
On May 19, 2010, the Department of Finance released proposed changes to the Harmonized Sales Tax (“HST”) rules covering the supply of financial services relating to the calculation of the provincial component of the HST under the Excise Tax Act. As outlined in the government Backgrounder, the proposed changes would affect, among others, mutual funds,…
Scholarships for Adult Children – Not a Taxable Employee Benefit
INTRODUCTION In a trio of cases dated March 7, 2008, the Tax Court of Canada allowed three taxpayers’ appeals regarding the taxation of employer-paid amounts awarded to the taxpayers’ adult children in respect of post-secondary tuition. In Dimaria v. The Queen, Bartley v. The Queen, and Okonski v. The Queen, the Court rejected Canada Revenue…
Federal Budget 2008
IN THIS ISSUE: Tax-Assisted Savings and Retirement Initiatives Tax-Free Savings Accounts Life Income Funds (LIF) Registered Education Savings Plans (RESP) Registered Disability Savings Program (RDSP) Guaranteed Income Supplement (GIS) Employment Insurance Reform Benefits Motor Vehicle Expenses Medical Expense Tax Credit (METC) Application of GST/HST to Health Care Services and Products Continued Support for Common Securities…