September 2016 Newsletter

Beware of getting money, gifts or transfers of property from a family member, including your spouse, if that person owes (or might possible owe) any money to the Canada Revenue Agency (CRA), for either income tax or GST.

If you report no employment income (including income from being a director of a corporation), but you have a corporation that pays you either dividends or as an independent contractor*, here is a small planning tip.

Some Canadian chartered banks have recently stopped accepting cheques for payment of thirdparty bills (such as property taxes and utilities). They require such payments to be made electronically.

The real estate sector is a major area of attack for CRA auditors. Because the dollar amounts involved in real estate transactions are very large, the “profit” to the CRA on any file can be very substantial. Both income tax and GST/HST assessments can be extraordinarily expensive for the person assessed.

Medical marijuana is subject to GST and HST, it seems

In Gerry Hedges v. The Queen, 2016 FCA 19, the Federal Court of Appeal recently ruled that medical marijuana was subject to GST.