Articles & Newsletters

Recent articles that may be of interest.

As always, if you have any questions in relation to these articles, please contact your KRP Advisor, or call our offices at 780.424.3000.

Federal Budget Commentary 2022

On April 7, 2022, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable, to the House of Commons.

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Economic & Fiscal Update

Summary of 2021 Economic and Fiscal Update - Announced December 14, 2021

For Individuals: 

  • One-time payments for seniors whose Guaranteed Income Supplement eligibility has  been reduced due to receiving the Canada Emergency Response Benefit of the Canada Recovery Benefit. No further details were provided.
  • Allowing students who received Canada Emergency Response Benefits they were not eligible for a debt reduction for any Canada Emergency Student Benefit they would have been eligible for, but did not apply for.
  • The government will extend the simplified rules for deducting home office expenses and increase the temporary flat rate to $500 annually.  These rules will apply to the 2021 and 2022 tax years.
  • The Eligible Educator School Supply Tax Credit will be enhanced from 15% to 25% of up to $1,000, and expand the list of eligible supplies, effective for 2021.  This was included in draft legislation.
  • The previously announced ability for individuals without an arm’s length employment benefit to claim a Northern Residents Travel Deduction, commencing in 2021, is included in draft legislation.

For Businesses: 

  • The government proposes a refundable Small Businesses Air Quality Improvement Tax Credit of 25 per cent on eligible air quality improvement expenses incurred by small businesses to make it more affordable for them to invest in safer and healthier ventilation and air filtration. Businesses would receive the credit on eligible expenses incurred between September 1, 2021, and December 31, 2022, related to the purchase or upgrade of mechanical heating, ventilation and air conditioning (HVAC) systems and the  purchase of standalone devices designed to filter air using high efficiency particulate air (HEPA) filters, up to a maximum of $10,000 per location and $50,000 in total.  Draft legislation for this credit was also released.
  • A new tax credit for farmers will be implemented to return costs of carbon pricing measures in the provinces where federal carbon tax applies, including Alberta. This was included in draft legislation, and is to be effective for 2021. 
  • The speech indicated that the deadline for the repayment of Canada Emergency Business Account loans will be extended. 
  • The government is extending the Highly Affected Sectors Credit Availability Program to March 31, 2022. This program was set to expire on December 31, 2021.

Other Measures:

Previously announced measures including the following were updated:

  • The Underused Housing Tax on non-residents will be implemented effective for 2022.  81 pages of draft legislation, forming a new Act, was also released.
  • The Digital Services Tax will be implemented as a 3% tax on revenue earned by large businesses from certain digital services, as a backstop top OECD measures.  If a new multilateral tax regime is implemented by January 1, 2024, it will not apply.  Otherwise, it will apply retroactive to January 1, 2022.  Presumably, these large international businesses will increase their fees on the assumption they will be paying this tax.  This Act is 95 pages of draft legislation.
  • The Luxury Tax on automobiles, boats and aircraft will proceed, with draft legislation (including coming-into-force details) to be released in early 2022. Presumably, the previous plan to make this effective Jan 1/22 has been changed.
  • The proposed tax credit for capital invested in carbon capture, utilization, and storage (CCUS) projects with the goal of substantially reducing emissions will be detailed in Budget 2022.

For detailed information please visit: https://www.budget.gc.ca/efu-meb/2021/home-accueil-en.html

 

See below for other newsletters, updates and tax tips-and-traps. 

Tax Tips and Traps - 2021 - Year-End Tax Planning

Read our Year-End Tax planning tips attached.

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Post-Pandemic Economic Fortunes Decline - International Accounting Bulletin

Learn what many accounting firms and their clients are saying the post-Covid landscape will look like. Featuring quotes from KRP Partner, Chad Knippel.

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COVID-19 | Comparison of Wage Subsidies for Employers | April 27, 2020

This chart compares the 10% Temporary Wage Subsidy and the Canada Emergency Wage Subsidy programs.

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COVID-19 | Client Update | March 14, 2020

With increasing concern and spread of COVID-19, the health and safety of our clients, colleagues, and families is our utmost concern. Kingston Ross Pasnak wants to assure you that we are closely monitoring the situation, and have taken a number of precautionary measures including a full response plan in accordance with Health Canada’s guidance to help mitigate the risks from COVID-19.

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DFK Canada - The Year 2018 in Review

To review

The US Supreme Court Changes the US State and Local Tax Landscape

To view article

Tax considerations of First Nations People in Canada

The article, written by Rob Picton, CPA, CA, Partner Assurance and Advisory Services with significant insight from Hugh Neilson, FCPA, CFA, TEP , Director, Taxation, was recently published in the Alberta Native News.

To read the full article

Are you experiencing problems using "legacy software"?

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Tax Facts October 18 2017

Review

Final Countdown - Sign by September 27, 2017 - by Joseph Devaney

Final Countdown- Sign by September 27, 2017, 5pm MDT 

It is the final countdown. The consultation is slated to close October 2. The 20,105+ supporters of this petition say that is not right. We will be delivering this petition to the Honourable Minister of Finance, Bill Morneau later this week. The petition will be downloaded and printed Wednesday, September 27, 2017 after 5pm MDT. However, we will leave it open to continue collecting input....
To view article & link to petition

Is a 117.80% tax increase fair? Hugh Neilson discusses the proposed tax changes on Alberta Prime time.

To view the video

CTV News Power Play video: Changes 'very unfair' for farmers

To view video 

Coalition for Small Business Tax Fairness

The Coalition for Small Business Tax Fairness have written a letter to the Minister of Finance, Bill Morneau.  The Coalition comprises 42 business groups (as of August 31) representing hundreds of thousands of business owners across Canada, and it is gaining momentum.  They are asking the government to "take these proposals off the table and launch meaningful consultations..."  Follow this link to read the letter

Proposed Federal Liberal Government Legislative Changes and Their Far-Reaching Impact

On July 18, 2017, the Federal Liberal government announced proposed legislative changes that will have a far-reaching tax impact on private companies and their shareholders.  The draft legislation would mean significant policy changes to the taxation of:
     1.  Payments to shareholders of private companies,
     2.  Capital gains realized on the sale of certain private company shares,
     3.  Income from passive investments inside a private corporation, and
     4.  The conversion of a private corporation’s income into capital gains.

As a member of DFK Canada, we have compiled four papers that discuss the proposed changes and the potential impact on the taxation of small businesses and their owners.  For a copy of each detailed paper, please click on the links below to access our website.

Payments_To_Shareholders_of_Private_Companies
Capital_gains_realized_on_the_sale_of_certain_private_company_shares
Income_from_passive_investments_inside_a_private_corporation
The_conversion_of_a_private_corporations_income_into_capital_gains

What Are We Doing?
As part of DFK Canada, we are pro-actively seeking changes to these proposals by discussing their impact with our clients and contacting local MP’s to advise them of the far-reaching impact these rule changes will have on small businesses in Canada. Those most impacted by the proposals are being portrayed as the wealthiest of Canadians. We know otherwise. We will continue to keep our clients up to date as we learn more about the proposed changes.

If you have any questions, please do not hesitate to contact our offices.  780.424.3000

Potential Changes to Tax Planning Using Private Corporations

Important discussion paper from the Federal Department of Finance released July 18, 2017 regarding potential changes to Tax Planning Using Private Corporations.  To review the article CLICK HERE 

Another Viewpoint on the July 2017 Proposed Tax Changes.

Proposed tax reforms don't crack down on the wealthy; they threaten small business.  Chad Saikaley, of our associates, Ginsberg Gluzman Fage & Levitz, LLP in Ottawa, has penned an article published in the Ottawa Citizen this morning regarding the proposed changes to federal income tax legislation.  The federal Department of Finance is characterizing the proposed changes as a crackdown on the wealthy.  Read Chad's article for a different perspective.

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July 2017 Proposed Tax Changes May Hit Your Family Farm Hard!

On July 18, 2017, the Department of Finance released shocking changes to the Lifetime Capital Gains Deduction, Income Sprinkling and released other extremely complex rules involving corporations and trusts.  These changes do affect your farm so we encourage you to read this article.

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Is a 93% Tax Rate Fair to Canadian Small Business Owners?

The new tax policies introduced by the Canadian Federal Government on July 18, 2017 appear likely to materially harm the Canadian economy including, by exposing Canadian small business owners to tax rates of 93% or even more. 

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KRP and DFK Canada Give Back to the Community Through Movember!

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Taxation for Students

Published June 15, 2016

By Gunnar Rawe, Kingston Ross Pasnak LLP

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Protect Yourself Against Scams Posing as CRA

Published April 2016

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Starting a Small Business

Published April 2016

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Currency Swaps: CRA's Linkage Principle Overturned

Published May 2, 2015

By Mathew Desilets, Manager - Taxation, Kingston Ross Pasnak LLP

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Marriage Breakdown Affects Taxes and Child Benefits

Published January 5, 2016

By Christie Hoem-McNall - Taxation, Kingston Ross Pasnak LLP

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Married vs. Common Law - What's the Difference Anyway?

Published March 8, 2015

By Brad Taylor, CA, Manager - Taxation, Kingston Ross Pasnak LLP

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Six Stepping Stones

Published Fall, 2014

By Jeannette Blumentrath, Human Resources Manager, Kingston Ross Pasnak LLP

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The Calculation of Child Support: A Basic Guideline

Published November 5, 2014

By Mark G. Jones, BCom, CA, CBV, Principal - Business Valuations & Financial Litigation Support, Kingston Ross Pasnak LLP

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Is Good Luck Taxable?

Published September 5, 2014

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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The Indian Act - Exemption from Taxation

Published July 7, 2014

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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Tax Issues for New Canadians

Published August 30, 2013

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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Your Principal Residence and Taxes

Published July 1, 2013

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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The Tax Implications of Marital Breakdown

Published April 26, 2013

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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Credit where Credit is Due: Personal Credits in the Canadian Tax System

Published September 1, 2012

By Hugh Neilson, FCA, TEP, Director - Taxation, Kingston Ross Pasnak LLP

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April 2016 Alberta Budget Release

Published April 2016

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2016 Federal Budget Commentary

Published March 2016

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