December 2017 Newsletter

On July 18, 2017, the federal government announced wide-ranging income tax proposals affecting private corporations. In the Economic Statement of October 24, 2017, they backed down from the original proposals, though some will remain. Here’s a quick overview of the current status of the July 18, 2017 proposals:

In January 2014, the Canada Revenue Agency (CRA) began consultations on whether to introduce a system that requires anyone who prepares tax returns for a fee to be registered with the CRA. (Some other countries, including the United States, already have such a requirement.) We reported on this in our March 2015 Tax Letter.

For many decades, the rule when selling stocks on the market was that “settlement” — actual completion of the sale — would happen in three days. This rule came into place long before there was computerized trading and electronic delivery of shares.

It’s December, and time to think of some tax planning ideas. If you wait until your tax return is due next April or June, it will generally be too late to change your tax situation for this year.

Orthodontist denied GST/HST input tax credits

Most businesses can claim a full “input tax credit” (ITC) to recover all the GST/HST they pay on their expenses. That way, the real cost of the GST and HST is imposed only on consumers.