Corporate Tax Planning

New Report Calls for Increased Regulation to Address Money-Laundering in Canada

This week, CBC News is reporting that lax regulations have made Canada a prime location for money laundering. These headlines come in the wake of a recent report issued by well-known policy think-tank C.D. Howe Institute titled “Why We Fail to Catch Money Launderers 99.9 percent of the Time” in which the Institute highlights ways in which Canada has been deficient in fighting money laundering. Why Money… Read More

Corporate Tax Planning

CRA Successful in Appeal of $1.7 Million Malicious Prosecution Case

We’ve previously blogged about a ground-breaking decision in which the B.C Supreme Court ordered the Canada Revenue Agency (CRA) to pay more than $1 million in damages for the malicious prosecution of two British Columbia business owners who the agency had claimed had engaged in tax evasion. Since then, the CRA appealed that decision, and the B.C. Court of Appeal recently overturned it. Now, after more than a decade-long battle with… Read More

Corporate Tax Planning

Federal Budget 2019: How Will it Affect Taxes?

The Liberal government’s 2019 budget was tabled on March 19, 2019. In short, the budget seeks to support and build Canada’s middle class through: Making homeownership more affordable for first-time buyers;Helping workers gain new skills;Preparing young Canadian for good jobs;Helping Canadians with the cost of prescription drugs;Supporting low-income Canadian seniors who choose to remain in the workforce;Giving all Canadians access to high-speed internet;Lowering the cost of energy;Advancing reconciliation with Indigenous Peoples; andLowering taxes. Read More

Corporate Tax Planning

The Tax Cuts and Jobs Act and #metoo: Addressing Sexual Harassment in the Workplace Through Tax Reform

Last week, we blogged about the tax implications of Colin Kaepernick’s recent multi-million dollar settlement with the NFL. This week, we explore another aspect of legal settlement and tax: how settlements stemming from sexual harassment in the workplace (proliferating recently due to the massive #metoo movement) are being treated following recent tax reforms. #metoo and the Growing Awareness of Problematic Workplace Behaviours The #metoo movement exploded virally in October 2017, with millions of women… Read More

Corporate Tax Planning

Canada’s Biggest Loyalty Points Company Facing Significant Tax Reassessment

A Canada Revenue Agency (CRA) audit of Montreal based Aimia Inc. (Aimia) has concluded. Aimia, which is responsible for customer loyalty programs worldwide, may now be facing a large tax bill. Aimia – An Overview Aimia Inc. which describes itself as a “global data-driven marketing and loyalty analytics company” providing “clients with the customer insights they need to make smarter business decisions” and also “partner[ing] with companies to help generate, collect and… Read More

Corporate Tax Planning

CRA Continuing Investigations into Canadians Linked to Panama Papers and Paradise Papers

We have previously blogged about the Canada Revenue Agency’s (CRA’s) increased crackdowns on the use of offshore tax shelters. Previously, the CRA was focused primarily on Canadian taxpayers who had been implicated in the Panama Papers leak, including search warrants executed as a result of the leak as well as the first Canadian investigated as a result of the now infamous leak of financial information. Now, Canadian news sources are reporting that the… Read More

Corporate Tax Planning

New Year- New Federal Tax Changes in Canada

A new year brings with it new year’s resolutions, a fresh start, and, for Canadian taxpayers and small businesses: tax changes at the federal level. Below is a quick brief on what changes can be expected as we push into 2019. CPP and EI An increase in Canada Pension Plan premiums (CPP)- beginning in January, CPP contributions increase from 4.95% to 5.1% on earnings between $3,500-$57,400. This is the first year of five planned years… Read More

Corporate Tax Planning

Tax Fairness for Americans Abroad Act: Potential Tax Relief for Canadian Residents with U.S. Citizenship

On December 21, 2018, North Carolina Republican Congressman George Harding tabled the Tax Fairness for Americans Abroad Act, a bill which, if passed, would exempt Americans living in Canada (and other countries abroad) from having to pay tax on income earned outside of the U.S. Citizenship-Based Taxation Holding said he introduced the proposed legislation because the U.S.’ current system imposes an unfair burden on taxpayer who have American citizenship but live outside… Read More

Corporate Tax Planning

In a “Game Changing” Move, the CRA Seizes Property Following Sentencing for Tax Evasion

Earlier this fall, the Canada Revenue Agency (CRA) seized six rental properties as well as a car belonging to two Ottawa residents recently charged with tax evasion. This marks the first time that the “proceeds of crime” provisions of the Criminal Code were used in a situation of tax evasion. Until this case, these provisions have only been used in cases involving money laundering or suspected terrorist financing. What Happened? The two taxpayers in… Read More

Corporate Tax Planning

Auditor General: CRA Not Treating All Taxpayers Equally in Audits and Reviews

According to a new report by the federal Auditor General, the Canada Revenue Agency (CRA) is not treating all taxpayers equally when it comes to auditing or reviewing tax files. Taxpayer Bill of Rights The Canada Revenue Agency has a Taxpayer Bill of Rights which is intended to build on the CRA’s corporate values of professionalism, respect, integrity, and collaboration and further, is intended to protect taxpayers from inappropriate treatment and to protect… Read More