Latest tax blog: Underused Housing Tax (UHT)
January 23, 2023
The federal government’s new Underused Housing Tax (UHT) will primarily impact non-residents of Canada but may also apply to Canadian owners in some situations. For example, where a residential property is held in trust for Canadian resident beneficiaries, there may be a requirement to file a return even though no non-residents have an interest in the property and no tax is payable after applying an exemption. The penalty for not filing a return can be significant. Read our latest blog post to know more about the requirements and exemptions applicable to the UHT.
CRA responds to questions from CPAs across Canada
January 12, 2023
During 2022, CPAs across the country were canvassed to pose the top questions they have for the CRA. View the CRA’s responses to these questions.
January 4, 2023
Finance Canada and the Canada Revenue Agency (CRA) announced several updates as 2022 came to a close.
December 12, 2022
As we wrap up 2022, here is a summary of some significant tax developments that took place in the second half of the year.
Watch Now: CRA Update on Scientific Research and Experimental Development (SR&ED) Program
December 6, 2022
CPA Canada co-hosted a webinar with the CRA to review updates to the SR&ED program. In this session, the CRA provided an overview of the program and highlighted upcoming initiatives that will transform it. Watch this video to learn more about the most common trends seen on the field and hear the answers to some of the top questions from CPA Canada's SR&ED Committee.
Tax-Free First Home Savings Account
November 23, 2022
The federal government has released new details about the Tax-Free First Home Savings Account, a new registered account to help individuals save for their first home. Read our latest blog post to find out who qualifies and other key features of these plans.
November 16, 2022
It has come to our attention that some businesses have received notices stating they don’t qualify for the CEBA loan.
Updated CRA taxable benefit guidance on social events, gifts and awards
November 15, 2022
The CRA has recently updated its webpages, Gifts, awards, and long-service awards and Social events and hospitality functions, which include a number of new or revised CRA administrative policies that address the following scenarios:
- Employer provided in-person (or hybrid) social events for employees
- Employer provided virtual social events for employees
- Gift cards provided by an employer to employees and, in particular, situations where these cards will not be considered “near cash” gifts
For further information, please see the CRA webpages.
November 11, 2022
As part of Bill C-32 (Fall Economic Statement Implementation Act, 2022), proposed legislation to implement the new FHSA program was included and there were several revisions from the previous draft legislation released on August 9, 2022.
Proposed trust reporting rules postponed for one year under Bill C-32
November 7, 2022
On November 4, 2022, Bill C-32 (Fall Economic Statement Implementation Act, 2022) was tabled in the House of Commons. This bill implements some of the tax proposals from the 2022 Fall Economic Statement, along with several previously announced tax changes. In one major change, the coming into force date for the trust reporting rules has been postponed by one year. These rules will now apply to trust taxation years that end after December 30, 2023. Otherwise, it appears that the legislation for the trust reporting rules is unchanged.
We are in the process of reviewing the legislation and will provide more information as it becomes available.
November 4, 2022
On November 3, the Deputy Prime Minister and Minister of Finance released the federal government’s 2022 Fall Economic Statement (FES), which contained several new tax announcements along with an update on previously announced tax measures.
Update on electronic notices of assessment
October 31, 2022
As mentioned in our August 22, 2022 news item, “Update on electronic notices of assessments”, Finance Canada recently proposed legislation that would allow the Minister of National Revenue to provide a notice of assessment (NOA) electronically to an individual who filed their personal income tax return electronically, and has authorized that notices or other communications may be made available in this manner.
From a recent discussion with the Canada Revenue Agency (CRA), it is our understanding that there will be no changes in the process for issuing personal NOAs until at least 2024. We will keep you posted as we get additional information.
New questions and answers on Form T1134
October 26, 2022
We received a number of questions regarding the revised version of form T1134, which we passed along to the CRA. The CRA has responded to all our queries and plans to update its T1134 Q&A page as soon as the French translation has been completed. The CRA has asked us to share the English responses with our members as it recognizes the October 31 filing due date for many reporting entities is fast approaching. We will post an update when these responses are on the CRA’s website in both languages.
October 19, 2022
As a follow up to our September 12, 2022 news item, “Questions on the new Form T2054 – Election for a Capital Dividend Under Subsection 83(2)”, the Canada Revenue Agency (CRA) has responded to our question on whether taxpayers can continue to use the previous version of the T2054 until tax software developers have incorporated the new T2054 into their products.
October 17, 2022
As you may be aware, the Canada Revenue Agency (CRA) has enhanced security requirements in Represent a Client (RAC), which could impact your ability to log into RAC and access client data.
Further details released on the Canada Emergency Benefit Account (CEBA) repayment extension
October 13, 2022
The CEBA website has been updated to reiterate that the December 31, 2022 forgiveness repayment deadline will be extended to December 31, 2023 for eligible CEBA loan holders in good standing. If CEBA participants are in good standing and qualify for the new extended term, they will be contacted by their financial institution with details regarding the new repayment date. The website also provides more guidance on repayment and forgiveness terms in the FAQ section.
October 7, 2022
Due to increased concerns with identify theft, Confirm my Representative was introduced by the Canada Revenue Agency (CRA) as a new two-factor authorization process for confirming the representative and preventing client information from being given to unauthorized representatives.
October 6, 2022
As discussed in prior news items and tax blog, the federal government has announced proposals that will require additional reporting for “reportable transactions” and “notifiable transactions.”
Latest tax blog: New rules for trust reporting are coming for 2022 returns
October 4, 2022
Trust reporting rules are changing for 2022 returns due in 2023. Under this new regime, trusts will be required to file a T3 Trust Income Tax and Information Return annually for tax years ending on or after December 31, 2022, including trusts that have never filed before. Our latest tax blog on trust reporting outlines the expanded reporting requirements for trusts set out in the August 9, 2022 draft legislation.
September 29, 2022
Due to the widespread damage caused by Hurricane Fiona in Atlantic Canada and part of Quebec, the Canada Revenue Agency (CRA) has confirmed it will be providing relief to impacted individuals, businesses and charities