Post-Mortem Tax Planning: CRA Allowing Quicker Access to Cash with Pipeline
For deceased individuals who owned shares of a private corporation, the so-called “pipeline” transaction is a commonly used post-mortem tax planning strategy designed to minimize taxes on death. While the Canada Revenue Agency (the “CRA”) has, historically, consented to the use of pipeline transactions, it has usually imposed strict timing requirements that restrict the ability of the estate to access corporate funds in the years following death. In a recent tax ruling, the CRA relaxed its position when corporate funds were used to pay taxes of the deceased.
New Trust Reporting Rules Starting 2021
Starting 2021, new trust income tax return filing and information reporting requirements will come into effect for most Canadian trusts. Non-resident trusts that are required to file a T3 trust tax return are also subject to the new rules. The changes were announced in the 2018 federal budget and will be applicable for trust taxation year ending on or after December 31, 2021.
Tax Update: Canada Emergency Rent Subsidy (“CERS”) – Open for Application
The federal government’s Canada Emergency Rent Subsidy (“CERS”) opened for application on November 23, 2020. The CERS program replaces the Canada Emergency Commercial Rent Assistance program (CECRA) and is designed to subsidize businesses, charities and non-profits that have suffered a revenue drop due to COVID-19.
Ontario 2020 Budget – Tax Measures
On November 5, 2020, Ontario Minister of Finance Rod Phillips announced the province’s 2020 Budget. Highlights of the tax measures in the 2020 Budget are discussed below:
Tax Update: Real Estate Agents can now Incorporate
On October 1, 2020, the Government of Ontario announced a change under the Trust in Real Estate Services Act, 2020 that will allow real estate agents (“Agents”) to incorporate and be paid through a Personal Real Estate Corporation (“PREC”).
Tax Update – COVID-19: Latest Relief Measures for Small Businesses
The developments on the COVID-19 pandemic have been numerous and developing rapidly since the Government of Canada passed the first COVID-19 Emergency Response Act approximately one month ago.
This Tax Update looks at some of the more recent measures intended to provide relief to Canadian small businesses and taxpayers:
- the Canada Emergency Wage Subsidy
- the Canada Emergency Business Account loan program
- the Business Credit Availability Program
- Canada Emergency Commercial Rent Assistance