Taxing times

Posted by & filed under Personal Tax.

Description: There has been considerable protest over the current federal government’s proposal to close tax loopholes for private corporations. Small business owners and professionals have been using various forms of ‘income sprinkling’ to lower their tax burden. One Liberal MP, Wayne Long, has broken ranks with his government colleagues, expressing his concern about the impact… Read more »

Using tax policy to help home buyers

Posted by & filed under Accounting Careers, Personal Tax.

Description: With an overheated housing market in Toronto, Canadian Finance Minister Bill Morneau is set to meet with provincial and municipal officials to develop ideas on how policy makers might tame this housing bubble. Tax policy offers a number of options for intervention. For example, the federal government could raise the capital gains tax on… Read more »

Doctors heading south?

Posted by & filed under Accounting Principles, Personal Tax.

Description: Doctors are warning that specialists may flee this country for the United States in the face of changing Canadian tax regulations. Canada’s March 2016 budget promised changes that would block certain partnerships and corporations from accessing the small business tax rate. Physicians initially thought that the government had simply swept their group up into… Read more »

Implementation failures

Posted by & filed under Auditing, Personal Tax.

Description: In his latest report the Auditor General of Canada expressed frustration with what the Government of Canada has done – or not done – with his previous recommendations. Half way through his ten year term, Michael Ferguson said that when his auditors go back to audit a program for a second time, they often… Read more »

Tough budget

Posted by & filed under Canadian governments, Personal Tax.

Description: Canada’s oil producing provinces are facing pressures on their finances with decreasing royalty revenues. This past week, the Province of Newfoundland and Labrador released its budget for 2016-17, showing an increase in a range of taxes and fees. This included an increase in the Harmonized Sales Tax as well as a special deficit reduction… Read more »

BC Budget takes action on house prices

Posted by & filed under Canadian governments, Personal Tax.

Description: Last week this blog featured a discussion on the shadow flipping phenomenon in BC, examining some of the ethical issues around the over-heated housing market. In this week’s provincial budget, the BC government took a number of steps to ease the pain. One of the efforts is a tax-break on the Property Transfer Tax… Read more »

Protect that RRSP

Posted by & filed under Personal Tax, Tax Planning.

Description: When faced with a financial challenge or a big purchase, Canadians might look longingly towards the funds they have stored away in their RRSPs. But dipping into the RRSP probably should be a last resort. One exception might betaking advantage of the federal home buyers program to make a tax free withdrawal of up… Read more »

Tax rates: Who’s highest?

Posted by & filed under Canadian Economy, Personal Tax.

Description: This week the New Brunswick government released its budget for the coming fiscal year. And one budget item got first page attention on the front page of Canada’s national newspaper, the Globe and Mail. The Globe featured an article noting how New Brunswick’s budget promises a tax cut for the wealthiest citizens in order… Read more »

Waiting for tax changes

Posted by & filed under Personal Tax, Tax Planning.

Description: During the recent federal election  the Liberals, while supporting cuts in the small business tax rate, expressed concern about businesses being set up mainly to avoid paying higher rates of taxes. Now that the Liberals  are in office, some doctors and lawyers fear that the new government may alter the rules on Canadian controlled… Read more »

Valeant story continues

Posted by & filed under Executive Compensation, Personal Tax.

Description: Valeant pharmaceuticals continues to be in the business press, with word this week that Goldman Sachs sold a huge chunk of CEO Michael Pearson’s shares in order to collect on a $100 million loan it had made Mr. Pearson. Apparently Mr. Pearson did not want his shares to be sold, though they had been… Read more »