Consider leaving your RRIF/RRSP to a child or grandchild that is financially dependent on you in their RDSP

Consider leaving your RRIF/RRSP to a child or grandchild that is financially dependent on you in their RDSP
If you are a U.S. person potentially subject to this tax, but have not filed as such, contact us to discuss your options
Failing to make source deductions,
may expose directors personally to the liability
Deducting personal expenses in a corporation can lead to a very costly bill, as in Tax Court of Canada case, July 23, 2020
Claim amount increased to $23 from $17 per meal, for a total of $69/day
Taxability of unreported income all beyond the normal reassessment period- French Court of Quebec case, June 10, 2020.
U.S. Economic Impact payments and Canada Emergency Wage Subsidy program extension announcements
Consider whether starting CPP before, after, or at age 65, would be the most advantageous
The homepage is the most important page of your business’s website. It is the virtual shop front to your business, providing your customers a first impression of what you have to offer. You only have seconds to grab your customer’s attention so it is key to make sure that they can find what they’re looking for quickly and easily.
While you’re free to be creative with the design of your homepage, there are some standard items that a user will expect to see when they arrive at your website.
Branding can be in a name, sign, symbol, slogan, words or design, or a combination of these elements, that identify the products or services of your business and help you stand out from your competitors.
A call to action is an image or text that prompts your user to take some form of action.
A good site navigation will help customers to find the different areas in your website.
Typography is the visual component of the written word, the art and technique of arranging print.
Make your first impression count! A clean and appealing web design, which is easy to navigate and highlights the key points of your business, can better attract customers than a website full of irrelevant information. If your audience can’t identify what it is your business can offer, they won’t stick around.
In a June 9, 2017 Tax Court of Canada case (Gingras vs. H.M.Q., 2013-4696(IT)G), at issue was whether an ABIL could be claimed in respect of the loan from a taxpayer to his daughter’s start-up company.Within approximately two years, operations had ceased and the daughter had claimed personal bankruptcy.
One of the conditions required to claim an ABIL is that the loan was advanced to earn income(Subparagraph 40(2)(g)(i)). The loan agreement stipulated that interest at 6% was to be charged, but payments would not commence until 2009, which, as it would turn out, was after the business eventually ceased. The Minister argued that no interest was charged, and therefore, there was no intent to earn income. This was partially based on accounting records of the daughter’s company which were inconsistent in their reflection of accruing the interest.
Taxpayer wins Despite the conflicting records the Court opined that the interest rate included in the agreement was legitimate and that there was an intent to earn income. The ABIL was allowed.
PRINCIPAL RESIDENCE EXEMPTION (PRE) –DESTROYED PROPERTY In a July 13, 2017 Technical Interpretation (2017-0702001E5, Robinson, Katie), at issue was the applicability of the principal residence exemption to the sale of the land remaining after the principal residence that was previously located on it was destroyed by fire.
CRA opined that for calendar years subsequent to fire, the conditions for designation as a principal residence (Section 54) would not be met.Presumably, CRA was referring to the requirement that the property be ordinarily inhabited in the year. However, it was noted that the full gain could be eliminated by the “+1” rule in the formula if the land were sold in the subsequent year to the fire, and the property eligible for designation in all prior years.
SETTLEMENT OF FORWARD CONTRACTS – INCOME OR CAPITAL In an August 8, 2017 Tax Court of Canada case (MacDonald vs. H.M.Q., 2013-4032(IT)G), an individual entered into a forward contract (FC) to speculate against a short-term increase in the trading price of Bank of Nova Scotia (BNS) shares. Although the taxpayer also held actual BNS shares, the FC was to be settled in cash with no exchange of shares. As the stock value increased, the taxpayer suffered $9.9 million in lossesrelated to the FC. At issue was whether the loss was on account of income or capital.
Taxpayer wins CRA argued that the contract was obtained to hedge against the taxpayer’s capital investments in BNS shares and was, therefore, capital in nature. However, the taxpayer argued that the FC was not a hedge, the intent was to profit in the short-term, that it was pure speculation, and simply an adventure in the nature of trade.
The Court found the taxpayer to be a credible witness. Also, it examined the taxpayer’s investment history, including the quantum and timing of transactions, but found insufficient evidence to tie the FC to the BNS shares as a hedge. As such, the loss was determined to be on account of income