Tax Alert – Canada
Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.
Quebec: meet the automobile insurance premium tax remittance deadline
No. 43, 29 June 2015
On 2 December 2014, Finance Quebec announced that the reduced tax rate of 5% on automobile insurance premiums would be abolished effective 1 January 2015. Accordingly, the 9% general tax rate applies to all automobile insurance premiums paid after 31 December 2014.
TCC rejects mark-to-market accounting for option contracts
No. 42, 24 June 2015
Recently, the Tax Court of Canada (TCC) issued its judgement in the tax appeal of Kruger Inc. v. The Queen, 2015 TCC 119. The primary issue was the computation of income under s. 9 of the Income Tax Act and specifically whether "mark-to-market" accounting is an acceptable method of computing profit for tax purposes trading foreign currency option contracts.
Measure to support the BC mining sector comes into force
No. 41, 24 June 2015
On 22 May 2015, the BC Government extended the period for the new mine allowance for qualifying capital costs through to 31 December 2019. It was previously set to expire in 2015.
CRA requests tax working papers
No. 40, 22 June 2015
The Federal Court of Canada recently released its decision in Minister of National Revenue v BP Canada Energy Company with respect to whether the Minister of National Revenue is entitled to compel a taxpayer to produce tax accrual working papers.
Prince Edward Island budget 2015-16
No. 39, 19 June 2015
Finance Minister Allen Roach tabled Prince Edward Island's fiscal 2015-16 budget on 19 June 2015.
Alberta increases corporate and personal income tax rates
No. 38, 18 June 2015
Alberta Finance Minister Joe Ceci tabled Bill 2, An Act to Restore Fairness to Public Revenue. The bill will give effect to a 2% corporate income tax rate increase and a new system of progressive personal income taxes.
CRA changes policy for approval of customized forms
No. 37, 16 June 2015
Recaptured input tax credits to be phased out in Ontario
No. 36, 16 June 2015
The Canada Revenue Agency recently released GST/HST Info Sheet GI-171, Phasing out of Recaptured Input Tax Credits in Ontario. The info sheet explains the process under which the current requirement for certain large businesses to recapture input tax credits will be phased out starting 1 July 2015.
Proposed changes to section 55
No. 35, 8 June 2015
The 2015 federal budget proposes to amend the anti-avoidance rule in subsection 55(2) of the Income Tax Act. The proposed amendments, together with other changes to section 55, represent a significant revision of the provisions in section 55 and their application. The amendments, as currently proposed, may inadvertently affect internal reorganizations, as well as the movement of cash or other assets within Canadian corporate groups.
Extractive Sector Transparency Measures Act now in force
No. 34, 1 June 2015
The Extractive Sector Transparency Act came into force on 1 June 2015. Extractive companies subject to the act will be required to report payments including taxes, royalties, fees and production entitlements of $100,000 or more to all levels of government in Canada and abroad.
Synthetic equity arrangements
No. 33, 4 May 2015
Budget 2015 proposes to modify the dividend rental arrangement rules to deny a deduction for an inter-corporate dividend on a share in respect of which the taxpayer has entered into a "synthetic equity arrangement" with a person not subject to tax in Canada. The provisions will apply to dividends that are paid or become payable after October 2015.
Manitoba budget 2015-16
No. 32, 1 May 2015
Finance Minister Greg Dewar tabled Manitoba's fiscal 2015-16 budget on 30 April 2015.
Newfoundland and Labrador budget 2015-16
No. 31, 1 May 2015
Finance Minister Russ Wiseman tabled Newfoundland and Labrador's fiscal 2015-16 budget on 30 April 2015.
Ontario budget 2015-16
No. 28, 23 April 2015
Finance Minister Charles Sousa tabled Ontario's fiscal 2015-16 budget on 23 April 2015.
Federal budget 2015–16
No. 25, 21 April 2015
Also available: Video-on-demand viewing of the post-budget breakfast hosted by the Ottawa Chamber of Commerce and the Ottawa Business Journal. Minister of Employment and Social Development Pierre Poilievre, Abacus Data Chairman Bruce Anderson and National Post columnist John Ivison joined EY’s Fred O’Riordan to discuss the budget’s political, economic and tax impacts.
- Welcome relief from tax withholding obligations for nonresident employers with frequent business travellers to Canada
Tax Alert No. 26, 22 April 2015
- Budget 2015 proposes enhancements to RRIFs and TFSAs
Tax Alert No. 27, 22 April 2015
- Welcome news for the charitable sector in federal budget 2015
Tax Alert No. 29, 27 April 2015
- Captive insurance arrangements
Tax Alert No. 30, 29 April 2015
- Synthetic equity arrangements
Tax Alert No. 33, 4 May 2015
Yukon budget 2015-16
No. 23, 2 April 2015
Finance Minister Darrell Pasloski tabled Yukon's fiscal 2015-16 budget on 2 April 2015.
New Brunswick budget 2015-16
No. 22, 1 April 2015
Finance Minister Roger Melanson tabled New Brunswick's fiscal 2015-16 budget on 31 March 2015.
Alberta budget 2015–16
No. 21, 26 March 2015
Finance Minister Robin Campbell tabled Alberta's fiscal 2015-16 budget on 26 March 2015.
Quebec budget 2015–16
No. 20, 26 March 2015
Finance Minister Carlos J. Leitão tabled Quebec's fiscal 2015-16 budget on 26 March 2015.