Feigenbaum Law

Personal Tax Planning

A sign noting the emergency related to COVID-19

Personal Tax Planning

Changes To Tax Deadlines As A Result Of COVID-19

The arrival of COVID-19 has upended the lives of all Canadians, interrupting not only employment and health care but also other institutions that allow Canada to function on a day-to-day basis. The Canada Revenue Agency is no exception to this. We’d like to take a moment to share what changes have already been announced in regard to this year’s tax season in response to the challenges currently being faced by all Canadians as a result… Read More

A closeup of a Mercedes Benz emblem

Corporate Tax Planning

A Tale of Three Cars

A requirement to use your own car at work can allow for associated expenses to be claimed on your income tax returns. However, not everyone is entitled to such claims (for example, you can’t make a claim if an employer already reimburses you), and it is critical to keep detailed records, especially if more than one vehicle is used for work. A recent decision from the Tax Court of Canada highlights… Read More

Two ATMs representing a mistaken TFSA deposit

Personal Tax Planning

A Reminder To Be Careful When Contributing To A TFSA

A Tax-Free Savings Account (“TFSA”) can be a great way to invest some extra money in order to collect interest on it without paying tax. However, the amount of money someone can contribute to a TFSA in any given year is limited, and individuals should be careful about putting too much money into a TFSA, even if by accident. This was a lesson a taxpayer recently learned following a decision from… Read More

An airplane in the sky representing a commercial pilot in tax dispute with CRA

Personal Tax Planning

Transferring Tax Debt in Addition to Money

Some people might go to great lengths to avoid paying a tax debt. One tactic that shows up from time to time is the transferring of cash or assets to a family member. A recent decision from the Tax Court of Canada serves as a helpful reminder that trying to escape a tax debt through these means can leave both the original tax debtor as well as their family member in… Read More

Four assorted cryptocurrency coins

Bitcoin

Tax Implications of Mining Cryptocurrency

The advent of Bitcoin and other digital currencies provides opportunities for people to use currencies outside of those controlled by traditional financial institutions. The explosion in the value of Bitcoin, the most well-known digital currency (also known as cryptocurrency) brought talks that the Canada Revenue Agency would be finding ways to tax it. With tax season approaching, it is worth taking a look at how the CRA currently determines the taxation of cryptocurrency when it… Read More

A closed sign in a doorway

Personal Tax Planning

Key Amnesty Programs for US Taxpayers Living in Canada Set to Close

We have written in previous blogs about the increased lengths that the IRS and Canadian financial institutions are going to uncover dual US/Canadian citizens living in Canada who have failed to report US income tax. Some Americans living in Canada may have previously taken advantage of amnesty programs offered by the IRS such as the Offshore Voluntary Disclosure Program (OVDP) in order to file old income tax statements and avoid the potential financial penalties… Read More

An empty chair representing a deceased spouse and the importance of proper tax and estate planning

Cross-Border Estate Planning

Failure to Designate a Beneficiary When Converting an RRSP to a RRIF Results in Tax Bill

One of the primary reasons you may engage in estate planning can be to limit the amount of tax that is payable by the estate in the event of your death. A recent story shared by CTV News in Calgary covers the story of a woman who was left with a $270,000 bill to the Canada Revenue Agency as the result of an oversight in her husband’s retirement planning. A Small… Read More

A person holding dentures, representing a sales rep for a dental supply company

Corporate Tax Planning

Deducting an Assistant’s Salary As a Salaried Employee

People who run their own businesses enjoy the ability to deduct a number of expenses from their income, such as instances where a spouse provides work for them in exchange for payment. Salaried employees, however, are not able to make similar claims without jumping through some significant hurdles. A recent decision from the Tax Court of Canada serves to highlight this important distinction. A Full-Time Sales Manager Working From Home The… Read More

An American passport, representing the idea of renouncing citizenship

Personal Tax Planning

Renouncing US Citizenship As a Tax-Avoidance Strategy: Is it Worth It?

In last week’s blog, we discussed the case of an American business owner facing stiff penalties from the IRS for failing to report income held in Canadian accounts. The obligation to file taxes in the United States on income earned in foreign jurisdictions should not be news to Americans or dual citizens since the implementation of the Foreign Account Tax Compliance Act (FACTA), but the reality of satisfying this obligation may involve more work… Read More

FATCA

Personal Tax Planning

FATCA Fight Heads to the E.U.

Last week we blogged about the sharp increase in the number of financial records of Canadian taxpayers sent by the Canada Revenue Agency (CRA) to the Internal Revenue Service (IRS) under the often-controversial Foreign Account Tax Compliance Act (also known as FATCA). As uncovered by CBC News, the CRA sent 900,000 records to the IRS in September 2019: up from 700,000 the previous year. Overall, more than 2.5 million records have been provided to… Read More