CRA campaign focuses on personal services businesses: Are you ready?
September 9, 2022
The Canada Revenue Agency is escalating their scrutiny of personal services businesses. In a recent stakeholder email, the CRA announced its newest educational campaign focusing on potential PSB arrangements. In response to this campaign, our newest tax blog presents an overview of the PSB rules and sets out some leading practices to consider for taxpayers that deliver services through a corporation.
August 22, 2022
The 2021 federal budget included measures that would amend electronic filing thresholds for prescribed information returns.
August 22, 2022
As we have previously reported, the government announced in the 2021 federal budget, followed by draft legislation released on February 4, 2022, that it would be providing the CRA with the ability to send certain Notices of Assessments (“NOAs”) electronically without the taxpayer having to authorize the CRA to do so (“NOA proposal”).
August 17, 2022
On August 9, Finance Canada released draft legislation on a broad range of initiatives including revised trust reporting rules.
August 9, 2022
On August 9, 2022, the federal Department of Finance (Finance Canada) released a large package of draft legislation covering several tax measures from the 2022 federal budget and previous announcements.
CRA opens registration for luxury tax
July 25, 2022
The CRA has recently opened registration for the new luxury tax, which will come into effect on September 1, 2022. To help impacted businesses determine the application of the luxury tax, the CRA has launched a dedicated phone line, a rulings and interpretations process and has also published some technical guidance.
July 19, 2022
We know you’re busy and it can be hard to keep track of what’s new. We’ve put together a list of some past news items and blogs that you may have missed but are still worth a read.
CRA updates T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit
July 14, 2022
Further to our June 13 news item, the CRA has now published an updated T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit which appears to now correctly compute the credit. We understand that tax software providers have included the update, or will soon be including it, in their software.
July 8, 2022
As part of the digital economy measures the government introduced as part of Budget 2021, certain accommodation and digital platform operators are required under the Excise Tax Act to file an information return with the CRA each year.
CRA updates Q&A on Disability Tax Credit promoter fee cap
July 7, 2022
As reported in our November 9, 2021, news item, the Disability Tax Credit Promoters Restriction Act (DTCPRA) has been suspended until further notice due to a court injunction.
While the court case has not yet concluded, the CRA has updated its interpretation of the services to be included in the $100 DTC fee cap. Question 7 on the CRA Q&A to the DTCPRA webpage now indicates that the $100 DTC fee cap on promoters will not apply to work done to assist with the filing of notices of objection, where previously the CRA only listed work related to appeal to the Tax Court of Canada.
CRA updates Disability Tax Credit form and other related resources
July 4, 2022
The CRA has updated Form T2201, Disability Tax Credit Certificate, Guide RC4064 Disability-Related Information, and other online resources and tools to reflect amendments included in Bill C-19 (Budget Implementation Act, 2022, No. 1) to improve access to the Disability Tax Credit (DTC). The CRA has indicated that it will continue to enhance the DTC webpages to make it easier for individuals to review eligibility for the credit, to apply and to learn what other benefits they may have access to if they qualify.
We continue to provide feedback to the CRA on the DTC forms, tools and resources and will keep you informed of relevant new developments.
June 15, 2022
On June 9th, 2022, Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures, received Royal Assent.
CRA T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit
June 13, 2022
We have learned that there is an issue with new T2 Schedule 63 (Return of Fuel Charge Proceeds to Farmers Tax Credit) as the calculation on this form does not appear to agree with the draft legislation for the credit contained in Bill C-8 (Economic and Fiscal Update Implementation Act, 2021). For corporations that are allowed to claim the credit, the credit is based on the total of all amounts deducted in the year by the corporation in computing Part I income from farming activities, excluding inventory adjustments and non-arm’s length transactions. However, on Schedule 63, the CRA has used line 9898 from T2 SCH 125 as the starting point for the calculation. This is incorrect, as this line represents total farm expenses for accounting purposes from the corporation’s financial statements which may not necessarily agree with what the corporation actually deducted for tax purposes. The CRA is reviewing the issue.
We will provide an update as more information is obtained.
June 8, 2022
We understand that the CRA has released a new version of T2 Schedule 141 in the May 2022 tax preparation software updates. The new form allows CPAs to better describe their involvement in T2 preparation. We have summarized how we assume the new form will be completed for the following common engagements.
May 31, 2022
The Joint Committee on Taxation of the Canadian Bar Association and CPA Canada made a submission to the Department of Finance on the EIFEL proposals that were first announced in the 2021 federal budget.
May 30, 2022
The Joint Committee on Taxation (JC) made a submission in response to the government’s consultation on the draft legislation released on February 4, 2022 relating to the Reporting Requirements for Trusts.
Updates to the Tourism and Hospitality Recovery Program (THRP)
May 24, 2022
The CRA recently updated its THRP webpages to provide additional guidance to applicants. This includes more examples of activities that qualify for the THRP, as well as information on how businesses can change their THRP or Hardest-Hit Business Recovery Program (HHBRP) claim online.
May 19, 2022
As noted in our April 27, 2022 news item, the CRA has indicated that since the final draft legislation on immediate expensing has been released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction.
May 2, 2022
Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures, was introduced by the government on April 28, 2022 (it contains the draft legislation we referred to in our April 27, 2022 item).
April 29, 2022
The CRA recently updated Excise and GST/HST News – No. 110 to provide clarification and further details on the process for requesting administrative relief on the new GST/HST digital economy measures.