December 2020 Newsletter

If you haven’t yet made your RRSP contribution for 2020 and are under 71, you can make it any time up to and including March 1, 2021 (60 days after year-end).

Other than “approved” shelters such as RRSPs, TFSAs and flow-through shares, there are few if any tax shelters that still work to reduce your tax bill.

If you operate a business (whether personally or in a corporation), you are likely claiming GST/HST input tax credits (ITCs) to recover GST or HST that the business pays on purchases.

If you are considering emigrating from Canada, tax considerations will be extremely important. The tax implications can be (and are) the subject of a whole book; below we review just some of the most important highlights. It is generally wise to obtain professional advice that is tailored to your specific situation.

Business losses denied as not (yet) being a real business

In the recent Tremblay decision of the Tax Court of Canada (2020 TCC 100), the CRA denied business expenses on the basis there was no real “business”, and the Court agreed.