As 2018 comes to an end, tax advisors across Canada are busy restructuring and planning many corporations to respond to the new tax rules that came into existence this year.
2017 has been a year of drama for Vancouver tax advisors and I am happy that it is coming to an end. I have to admit, it is not so much January 1, 2018 I am looking forward to. I am anxiously waiting for the 2018 budget date which may bring all Canadian private corporations more clarity on their financial and tax future. Vancouver Tax Planning - Changes For Private Coporations On July 18, 2017, Ottawa proposed dramatic changes to the taxation of private corporations. Since then, Ottawa has ... Read More
While at dinner recently, a friend of mine, Carla, informed me that she sold her rental property and was curious about the amount of tax that she would owe on the gain. Upon further questioning, I uncovered that, in the past, my friend had lived in this rental property (a condo) for many years. She purchased a second condo a few years back and moved into it. She had then rented out the first condo—the one she just sold. From her line of questioning, I realized that, other than the tax ... Read More
As we reach the mid-point of the 2017 calendar year, it has been a good financial year for many British Columbian investors. Real estate gains continue and, for equity investors, the stock market has been on a tear since the fall of 2016. Vancouver Corporate Tax Planning With the conclusion of the personal tax-filing season, summer and fall is the time for corporate tax planning. The one tax planning item that should be looked at this year, due to such favorable macro-financial conditions, is ... Read More
Tax Benefits for IT Consultants?Major city centers in British Columbia are experiencing a high tech boom, resulting in many IT specialists and engineers converging in the province to offer their highly demanded skills to the highest bidder. The nature of the IT industry is very project-driven, producing vibrant short-term work opportunities for skilled and highly specialized professionals. Because of the nature of the work, it’s not unusual for an “employer” to hire self-employed ... Read More
2016 Checklist for Corporations & Shareholders Year End Taxes As the calendar year-end approaches, taxpayers have a few more weeks to organize their financial affairs. All financial transactions affecting the 2016 tax year will have a December 31, 2016 cutoff, with the exception of the RRSP contributions, which allow for an extra 60 days after year-end for contributions that will count towards the 2016 tax year. Every Canadian has the opportunity to do some year-end tax planning, but ... Read More
As a non-resident, a little bit of extra tax planning is required when selling Canadian real estate.
The 25% Withholding TaxThe CRA requires that the purchaser withhold 25% of the gross sale amount from a non-resident. (Note that the 25% of the gross sale proceeds withheld would normally be in the seller’s lawyer’s trust account, and this individual has the undertaking of releasing the funds to the CRA and the balance to the seller once the Certificate of Compliance has been obtained ... Read More
Canadians moving abroad have the option to either continue maintaining their residential ties to Canada or sever them (or most of them) completely. By continuing ties, the obligation to pay Canadian taxes will continue. Similarly, if a Canadian plans to not pay taxes on income earned outside of Canada, they must sever ties with Canada so that they’re no longer considered a Canadian “resident” for taxation purposes.
When Cutting TiesIf a Canadian chooses to sever ties, steps must be ... Read More
When a Canadian is deciding if they should work abroad for a few years, thought should be given to whether or not they want to continue holding ties to Canada and pay Canadian taxes on worldwide income or sever most of their ties with Canada so that their obligations to pay Canadian taxes are limited only to income earned from Canadian sources. Many taxpayers automatically assume that taxes will be lower if ties to Canada are severed. Although this might be correct, taxpayers should pay close ... Read More