On October 1, 2022, the Canada Revenue Agency (CRA)’s prescribed interest rate is expected to increase from 2% to 3%. Despite the previous increase in the rate introduced on July 1, 2022, prescribed rate loans used with a family trust are still viable tax planning strategies. For more information on how prescribed rate loans work with a family trust structure, please refer to our previous article ‘Lock in Prescribed Interest Rate Loans by June 30, 2022’ (click here). This article will illustrate how a prescribed rate loan can still lead to significant tax savings when implemented prior to the rate increase on October 1, 2022.

Audit ready or audit readiness is just as the name implies: ensuring that your organization is prepared for an audit. Achieving audit readiness not only supports the external auditor’s objectives, but it also benefits the organization internally through the tracking of financial results against operations, and externally, through the reporting to lenders and investors. The following steps will ensure your team is audit ready all year round!

Marital breakdowns can be some of the most difficult and emotional experiences for individuals to face. In a recent article, we discussed the calculation of income for support obligations. This article will focus on the Family Law concept of the division of assets, known as Net Family Property (“NFP”).

One may think that the main objective of a business is unequivocally about the “bottom line” (i.e., profits). However, this is often a mistake that may cause a business a lot of trouble and ultimately, negatively impact profitability. While we can all agree that the bottom line is extremely important to an organization’s success, several other aspects are intertwined with the overall value of the entity. This value extends far beyond mere economic factors to include social and environmental factors mending together as “the company”.

Budget 2021 had announced the introduction of Luxury Tax on the sale or import of certain vehicles, boats, and aircraft. With the Luxury Tax set to take effect as of September 1, 2022, now is the time to buy the luxury goods subject to the tax, before the tax comes into effect. This article will discuss how the Luxury Tax works, as well as the implications to the vendors that may be required to register.

Marital breakdowns can be some of the most difficult, emotional experiences for individuals to face. Among the many issues to consider are the financial elements related to the division of Net Family Property (i.e. equalization of net assets) along with Spousal and/or Child Support obligations.

In our prior article “Valuations FAQ – The Beginning”, we explored a situation where “Seller”, the owner of TargetCo (Target), a family-owned and managed business, had been approached by BuyerCo (Buyer), who has offered to buy all of Target’s shares for $2 million.

A low prescribed rate can provide plenty of tax-saving opportunities for you and your family. With the Canada Revenue Agency (CRA)’s prescribed rate currently at a historical low of 1% per annum and the expected increase of the prescribed rate to 2% starting July 1, 2022, now is an excellent time to take advantage of the prescribed rate loan family trust strategy.

The Deputy Prime Minister and Finance Minister Chrystia Freeland tabled the 2022 Federal Budget on April 7, 2022. This article provides our summary of some of the tax measures proposed in the Budget. 

Personal tax season has arrived, and it is time to get ready to file your 2021 tax return! This article will not only remind you of the requirements related to your filing obligations, but also help you understand some of the new tax changes for 2021.