Notice of Ways and Means Motion for certain Budget 2022 measures released
April 27, 2022
The federal government has recently released a Notice of Ways and Means Motion (with draft legislation) to implement certain provisions included in the 2022 federal budget as well as some other previously announced measures. Included in the release are final draft rules on the immediate expensing rules first announced in the 2021 federal budget and then expanded in the 2022 budget.
In a communication to us, the CRA stated that since final draft legislation was released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction. However, adjustment requests to recognize immediate expensing for returns that have already been filed cannot be processed until after Royal Assent has been received.
Reminder on proposed refundable credits for individuals
April 22, 2022
On April 20, the Canada Revenue Agency (CRA) posted a reminder on the EFILE news and programs update page on the proposed Return of Fuel Charge Proceeds to Farmers Tax Credit and the Eligible Educator School Supply Tax Credit. The CRA has again stated that returns containing a claim for these credits cannot be assessed until Bill C-8 (Economic and Fiscal Update Implementation Act, 2021) receives Royal Assent. We provided more background information on this issue in our March 3 news item and considerations for taxpayers who are in a refund position.
April 14, 2022
As noted previously in our December 21, 2021 news item, Bill C-2 (An Act to provide further support in response to COVID-19) contained a change that may restrict Canada Emergency Wage Subsidy (CEWS) claims made by a publicly traded company or a subsidiary of such a company that paid dividends to an individual who held common shares. One area of confusion was on the effective date of the change.
April 12, 2022
The Canada Revenue Agency (CRA) recently posted an update on the filing requirements for individuals who are applying the tax changes in Bill C-208 for intergenerational transfers.
2022 Federal Budget
April 8, 2022
Watch now: 2022 Federal Budget Tax Highlights webinar
Deputy Prime Minister and Minister of Finance Chrystia Freeland tabled Canada’s federal budget on April 7, 2022. CPA Canada hosted a webinar in English and French to provide an overview of the most important tax measures contained in this year’s budget and to address some key questions raised by members. In addition, you can download the Tax Highlights.
March 21, 2022
The Canada Revenue Agency (CRA) publishes its audit manuals and policy documents on the following page. The CRA has recently published 3 updated policies.
CRA Revised Guidance on Submitting T3 Return Notes
March 16, 2022
The CRA has recently informed us that it has revised its guidance, which we originally summarized in our March 8 update, on how to deal with questions 1, 3, 4, 6, 7, 8 and 9 where a note must be attached to a T3 return that is being EFILED. The CRA has now advised us that this information only has to be retained by the taxpayer in their records in the event the CRA asks to see it at a later date.
March 15, 2022
Further to our March 8 update on T3 EFILE, we have received a communication from the CRA on the proposed changes on electronic filing for tax preparers contained in subsections 150.1(2.2) and (2.3) of the Income Tax Act.
Draft legislation released for Luxury Tax
March 14, 2022
On March 11, Finance Canada released draft legislation on the Luxury Tax that was proposed in the 2021 Federal Budget. Subject to parliamentary approval, the tax will apply beginning on September 1, 2022. Finance Canada’s news release states that “two notable new provisions” are included in the legislation:
- relief is proposed to be provided to after-sale improvements that are made to vehicles, aircraft or vessels purchased below the relevant price threshold; and
- relief for aircraft is proposed to be expanded to take into account qualifying flights that are conducted in the course of a business with a reasonable expectation of profit.
March 8, 2022
We have received additional information from the Canada Revenue Agency (CRA) on T3 EFILE, which we wanted to pass on along with some other issues to keep in mind with the introduction of T3 EFILE.
March 3, 2022
As noted in our recent tax blog, there are several Budget 2021 proposed tax measures that would impact 2021 personal income tax returns. As these measures have not yet been enacted, there has been uncertainty on how affected taxpayers should file T1 returns.
February 11, 2022
On February 9, the government announced it intends to extend the expanded access to the Local Lockdown Program and Worker Lockdown Benefit (originally announced on December 22, 2021) by one month, until March 12, 2022.
February 10, 2022
Further to a recommendation we made last spring, the CRA has recently updated its MFA process by allowing users to opt whether they want to input the MFA passcode each time they sign in, or to just input the “one-time” MFA passcode once every 8 hours if the user is using the same device.
February 9, 2022
On February 4, 2022, Finance Canada released draft legislation and a detailed backgrounder on Budget 2021’s proposal on immediate expensing of certain capital property of up to $1.5 million per year.
February 8, 2022
On February 4, 2022, Finance Canada released draft legislation that included revisions to the trust reporting rules that were originally announced in the 2018 Federal Budget.
February 7, 2022
On February 4, 2022, Finance Canada released draft legislative proposals to implement previously announced tax measures.
January 26, 2022
The CRA has shared with us the following update on the Budget 2021 proposal which would allow for the immediate expensing of certain assets.
January 24, 2022
The CRA has asked us to remind our members of their Dedicated Telephone Service (DTS) for small and medium-sized income tax service providers.
CRA releases 2021 versions of forms T2200S and T777S for home office expense claims
January 19, 2022
The CRA released the 2021 versions of the T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19 (T2200S) and T777S Statement of Employment Expenses for Working at Home Due to COVID-19 (T777S) for employee home office expense claims. Both forms are similar to last year’s versions. The CRA has also highlighted the criteria that must be met for employers interested in automating the completion of electronic T2200S forms.
January 18, 2022
As noted in our January 4, 2022 news item, the CRA published their administrative positions for employer-provided benefits and allowances pertaining to home office expenses, commuting and parking for 2021.