CRA shares best practices for SR&ED claims
May 31, 2023
The Canada Revenue Agency (CRA) has recently published some best practices for businesses and tax preparers making a Scientific Research and Experimental Development (SR&ED) tax credit claim. To ensure an efficient process for claimants, the CRA also shares common errors seen in SR&ED claims. See the CRA’s website for further information.
May 30, 2023
The Canada Revenue Agency (CRA) has updated its website to include some guidance on the new legislation which will require certain trusts to provide additional information regarding beneficial ownership on an annual basis.
May 30, 2023
The Canada Revenue Agency (CRA) has updated its website to include some guidance on the new legislation which will require certain trusts to provide additional information regarding beneficial ownership on an annual basis.
May 23, 2023
While the Canada Revenue Agency’s (CRA) announcement of an administrative extension for Underused Housing Tax (UHT) returns and payments for the 2022 calendar year was welcome, we know many members are still concerned about the impact of the UHT on Canadian owners.
Latest tax blog: Business succession — New tax rules to consider for family business transfers
May 16, 2023
Budget 2023 announced two sets of tax rules to consider when owners transfer their businesses to family members and employees. Read our latest blog to understand the implications of these measures on business succession in 2024 and later years.
In case you missed it – CRA drop boxes reopening
May 10, 2023
The Canada Revenue Agency (CRA) has been reopening drop boxes across Canada after being shut down for several years due to the pandemic. The CRA indicates that the reopening will be phased in as drop boxes become ready for use. For further information, see CRA’s webpage.
April 21, 2023
As previously reported, revised Mandatory Reporting rules were included in the Notice of Ways and Means Motion that was released on April 17, 2023.
April 19, 2023
Finance has released a Notice of Ways and Means Motion (NWMM) to implement some of the proposals included in the 2023 federal budget as well as a number of other previously announced measures.
CRA updates the UHT Q&A page
April 17, 2023
The Canada Revenue Agency (CRA) has recently updated the Underused Housing Tax Notice (UHTN15) Questions and Answers About the Underused Housing Tax with more Q&As. Many of these questions are ones we have passed along to the CRA. We understand the CRA will continue to update this page as more questions arise, and/or as further guidance can be provided.
CRA updates on possible labour disruption
April 12, 2023
The Canada Revenue Agency (CRA) has recently created a webpage where it indicates it will provide updates on how potential labour disruptions may impact their services along with some preliminary information. We will also keep you updated as we learn of any new developments, and pass on feedback to the CRA as issues arise.
2023 Federal Budget
March 29, 2023
Watch now: 2023 Federal Budget Tax Highlights webinar
Deputy Prime Minister and Minister of Finance Chrystia Freeland tabled this year’s federal budget on March 28, 2023. Watch CPA Canada’s webinar in English and French to better understand the most important tax measures contained in this year’s budget. In addition, don’t forget to download the Tax Highlights document.
CRA publishes Q&As on the Underused Housing Tax
March 28, 2023
The CRA has recently published a number of questions and answers on the Underused Housing Tax (UHT).
We understand from the CRA that more UHT Q&As will be published soon. We will you keep you updated on this.
CRA announces administrative extension for Underused Housing Tax
March 28, 2023
To provide more time for taxpayers, the Canada Revenue Agency (CRA) has announced that penalties and interest will be waived under the Underused Housing Tax Act for the 2022 calendar year, provided the return is filed and any UHT due is paid by October 31, 2023. For further details, please see CRA’s news release.
March 9, 2023
As discussed in our recent blog, the UHT is intended to apply to underused residential property in Canada owned directly or indirectly and wholly or partly by non-resident, non-Canadians.
Latest tax blog: CRA e-services – Key updates for tax practitioners
March 8, 2023
As the CRA continues to enhance its online processes for interacting with taxpayers and practitioners, we’ve collated some of the recent key changes introduced. Read our latest blog to know more
March 7, 2023
Sole proprietors who may want to use the same representative for both their business and personal taxes may now be eligible to do so without them having to register for the Canada Revenue Agency’s My Business Account and go through the Confirm my Representative process.
More updates to our Underused Housing Tax (UHT) blog
February 15, 2023
As noted in our February 8, 2023, news item, the CRA recently published additional UHT Notices (UHTN6 through UHTN11). As such, we’ve updated our UHT blog to provide further information on determining the primary place of residence, as well as continuous occupancy for UHT purposes. We’ve also added a new section that highlights some considerations for partnerships versus co-ownerships.
CRA updates Form T1134 Q&As
February 14, 2023
As noted in our October 26, 2022, news item, the CRA had provided us with their responses to questions we posed to them on the new Form T1134. The CRA has recently updated its Questions and answers about Form T1134 webpage to include these questions and responses.
Latest tax blog: 2023 personal tax season – Key changes to consider
February 13, 2023
As T1 season approaches, it is important to take note of new tax measures and other changes for 2022 personal income tax returns so you can better serve your clients. Read our latest blog to learn more about key considerations for this year’s filing season.
February 8, 2023
Registration for an Underused Housing Tax (UHT) program account (RU) is now open. For owners who will be required to file a UHT return for 2022 and will need to register for an RU program account, we recommend you do this soon.
February 3, 2023
The CRA has recently published the Underused Housing Tax Return and Election Form (UHT-2900) on its website.
January 27, 2023
As you may have read in our latest blog, the new Underused Housing Tax (UHT) is aimed primarily at non-residents of Canada, but others may also be caught. It’s important to understand the rules to ensure you, or your clients, are not subject to the tax, and/or required to file the UHT return.
January 25, 2023
As many firms and practitioners prepare for the upcoming 2023 tax filing busy season, we wanted to remind you of the new security requirements that CRA implemented to Represent a Client (RAC) last fall.
Latest tax blog: Underused Housing Tax (UHT)
January 23, 2023
The federal government’s new Underused Housing Tax (UHT) will primarily impact non-residents of Canada but may also apply to Canadian owners in some situations. For example, where a residential property is held in trust for Canadian resident beneficiaries, there may be a requirement to file a return even though no non-residents have an interest in the property and no tax is payable after applying an exemption. The penalty for not filing a return can be significant. Read our latest blog post to know more about the requirements and exemptions applicable to the UHT.
CRA responds to questions from CPAs across Canada
January 12, 2023
During 2022, CPAs across the country were canvassed to pose the top questions they have for the CRA. View the CRA’s responses to these questions.
January 4, 2023
Finance Canada and the Canada Revenue Agency (CRA) announced several updates as 2022 came to a close.
December 12, 2022
As we wrap up 2022, here is a summary of some significant tax developments that took place in the second half of the year.
Watch Now: CRA Update on Scientific Research and Experimental Development (SR&ED) Program
December 6, 2022
CPA Canada co-hosted a webinar with the CRA to review updates to the SR&ED program. In this session, the CRA provided an overview of the program and highlighted upcoming initiatives that will transform it. Watch this video to learn more about the most common trends seen on the field and hear the answers to some of the top questions from CPA Canada's SR&ED Committee.
Tax-Free First Home Savings Account
November 23, 2022
The federal government has released new details about the Tax-Free First Home Savings Account, a new registered account to help individuals save for their first home. Read our latest blog post to find out who qualifies and other key features of these plans.
November 16, 2022
It has come to our attention that some businesses have received notices stating they don’t qualify for the CEBA loan.
Updated CRA taxable benefit guidance on social events, gifts and awards
November 15, 2022
The CRA has recently updated its webpages, Gifts, awards, and long-service awards and Social events and hospitality functions, which include a number of new or revised CRA administrative policies that address the following scenarios:
- Employer provided in-person (or hybrid) social events for employees
- Employer provided virtual social events for employees
- Gift cards provided by an employer to employees and, in particular, situations where these cards will not be considered “near cash” gifts
For further information, please see the CRA webpages.
November 11, 2022
As part of Bill C-32 (Fall Economic Statement Implementation Act, 2022), proposed legislation to implement the new FHSA program was included and there were several revisions from the previous draft legislation released on August 9, 2022.
Proposed trust reporting rules postponed for one year under Bill C-32
November 7, 2022
On November 4, 2022, Bill C-32 (Fall Economic Statement Implementation Act, 2022) was tabled in the House of Commons. This bill implements some of the tax proposals from the 2022 Fall Economic Statement, along with several previously announced tax changes. In one major change, the coming into force date for the trust reporting rules has been postponed by one year. These rules will now apply to trust taxation years that end after December 30, 2023. Otherwise, it appears that the legislation for the trust reporting rules is unchanged.
We are in the process of reviewing the legislation and will provide more information as it becomes available.
November 4, 2022
On November 3, the Deputy Prime Minister and Minister of Finance released the federal government’s 2022 Fall Economic Statement (FES), which contained several new tax announcements along with an update on previously announced tax measures.
Update on electronic notices of assessment
October 31, 2022
As mentioned in our August 22, 2022 news item, “Update on electronic notices of assessments”, Finance Canada recently proposed legislation that would allow the Minister of National Revenue to provide a notice of assessment (NOA) electronically to an individual who filed their personal income tax return electronically, and has authorized that notices or other communications may be made available in this manner.
From a recent discussion with the Canada Revenue Agency (CRA), it is our understanding that there will be no changes in the process for issuing personal NOAs until at least 2024. We will keep you posted as we get additional information.
New questions and answers on Form T1134
October 26, 2022
We received a number of questions regarding the revised version of form T1134, which we passed along to the CRA. The CRA has responded to all our queries and plans to update its T1134 Q&A page as soon as the French translation has been completed. The CRA has asked us to share the English responses with our members as it recognizes the October 31 filing due date for many reporting entities is fast approaching. We will post an update when these responses are on the CRA’s website in both languages.
October 19, 2022
As a follow up to our September 12, 2022 news item, “Questions on the new Form T2054 – Election for a Capital Dividend Under Subsection 83(2)”, the Canada Revenue Agency (CRA) has responded to our question on whether taxpayers can continue to use the previous version of the T2054 until tax software developers have incorporated the new T2054 into their products.
October 17, 2022
As you may be aware, the Canada Revenue Agency (CRA) has enhanced security requirements in Represent a Client (RAC), which could impact your ability to log into RAC and access client data.
Further details released on the Canada Emergency Benefit Account (CEBA) repayment extension
October 13, 2022
The CEBA website has been updated to reiterate that the December 31, 2022 forgiveness repayment deadline will be extended to December 31, 2023 for eligible CEBA loan holders in good standing. If CEBA participants are in good standing and qualify for the new extended term, they will be contacted by their financial institution with details regarding the new repayment date. The website also provides more guidance on repayment and forgiveness terms in the FAQ section.
October 7, 2022
Due to increased concerns with identify theft, Confirm my Representative was introduced by the Canada Revenue Agency (CRA) as a new two-factor authorization process for confirming the representative and preventing client information from being given to unauthorized representatives.
October 6, 2022
As discussed in prior news items and tax blog, the federal government has announced proposals that will require additional reporting for “reportable transactions” and “notifiable transactions.”
Latest tax blog: New rules for trust reporting are coming for 2022 returns
October 4, 2022
Trust reporting rules are changing for 2022 returns due in 2023. Under this new regime, trusts will be required to file a T3 Trust Income Tax and Information Return annually for tax years ending on or after December 31, 2022, including trusts that have never filed before. Our latest tax blog on trust reporting outlines the expanded reporting requirements for trusts set out in the August 9, 2022 draft legislation.
September 29, 2022
Due to the widespread damage caused by Hurricane Fiona in Atlantic Canada and part of Quebec, the Canada Revenue Agency (CRA) has confirmed it will be providing relief to impacted individuals, businesses and charities
CRA campaign focuses on personal services businesses: Are you ready?
September 9, 2022
The Canada Revenue Agency is escalating their scrutiny of personal services businesses. In a recent stakeholder email, the CRA announced its newest educational campaign focusing on potential PSB arrangements. In response to this campaign, our newest tax blog presents an overview of the PSB rules and sets out some leading practices to consider for taxpayers that deliver services through a corporation.
August 22, 2022
The 2021 federal budget included measures that would amend electronic filing thresholds for prescribed information returns.
August 22, 2022
As we have previously reported, the government announced in the 2021 federal budget, followed by draft legislation released on February 4, 2022, that it would be providing the CRA with the ability to send certain Notices of Assessments (“NOAs”) electronically without the taxpayer having to authorize the CRA to do so (“NOA proposal”).
August 17, 2022
On August 9, Finance Canada released draft legislation on a broad range of initiatives including revised trust reporting rules.
August 9, 2022
On August 9, 2022, the federal Department of Finance (Finance Canada) released a large package of draft legislation covering several tax measures from the 2022 federal budget and previous announcements.
CRA opens registration for luxury tax
July 25, 2022
The CRA has recently opened registration for the new luxury tax, which will come into effect on September 1, 2022. To help impacted businesses determine the application of the luxury tax, the CRA has launched a dedicated phone line, a rulings and interpretations process and has also published some technical guidance.
July 19, 2022
We know you’re busy and it can be hard to keep track of what’s new. We’ve put together a list of some past news items and blogs that you may have missed but are still worth a read.
CRA updates T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit
July 14, 2022
Further to our June 13 news item, the CRA has now published an updated T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit which appears to now correctly compute the credit. We understand that tax software providers have included the update, or will soon be including it, in their software.
July 8, 2022
As part of the digital economy measures the government introduced as part of Budget 2021, certain accommodation and digital platform operators are required under the Excise Tax Act to file an information return with the CRA each year.
CRA updates Q&A on Disability Tax Credit promoter fee cap
July 7, 2022
As reported in our November 9, 2021, news item, the Disability Tax Credit Promoters Restriction Act (DTCPRA) has been suspended until further notice due to a court injunction.
While the court case has not yet concluded, the CRA has updated its interpretation of the services to be included in the $100 DTC fee cap. Question 7 on the CRA Q&A to the DTCPRA webpage now indicates that the $100 DTC fee cap on promoters will not apply to work done to assist with the filing of notices of objection, where previously the CRA only listed work related to appeal to the Tax Court of Canada.
CRA updates Disability Tax Credit form and other related resources
July 4, 2022
The CRA has updated Form T2201, Disability Tax Credit Certificate, Guide RC4064 Disability-Related Information, and other online resources and tools to reflect amendments included in Bill C-19 (Budget Implementation Act, 2022, No. 1) to improve access to the Disability Tax Credit (DTC). The CRA has indicated that it will continue to enhance the DTC webpages to make it easier for individuals to review eligibility for the credit, to apply and to learn what other benefits they may have access to if they qualify.
We continue to provide feedback to the CRA on the DTC forms, tools and resources and will keep you informed of relevant new developments.
June 15, 2022
On June 9th, 2022, Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures, received Royal Assent.
CRA T2 Schedule 63 – Return of Fuel Charge Proceeds to Farmers Tax Credit
June 13, 2022
We have learned that there is an issue with new T2 Schedule 63 (Return of Fuel Charge Proceeds to Farmers Tax Credit) as the calculation on this form does not appear to agree with the draft legislation for the credit contained in Bill C-8 (Economic and Fiscal Update Implementation Act, 2021). For corporations that are allowed to claim the credit, the credit is based on the total of all amounts deducted in the year by the corporation in computing Part I income from farming activities, excluding inventory adjustments and non-arm’s length transactions. However, on Schedule 63, the CRA has used line 9898 from T2 SCH 125 as the starting point for the calculation. This is incorrect, as this line represents total farm expenses for accounting purposes from the corporation’s financial statements which may not necessarily agree with what the corporation actually deducted for tax purposes. The CRA is reviewing the issue.
We will provide an update as more information is obtained.
June 8, 2022
We understand that the CRA has released a new version of T2 Schedule 141 in the May 2022 tax preparation software updates. The new form allows CPAs to better describe their involvement in T2 preparation. We have summarized how we assume the new form will be completed for the following common engagements.
May 31, 2022
The Joint Committee on Taxation of the Canadian Bar Association and CPA Canada made a submission to the Department of Finance on the EIFEL proposals that were first announced in the 2021 federal budget.
May 30, 2022
The Joint Committee on Taxation (JC) made a submission in response to the government’s consultation on the draft legislation released on February 4, 2022 relating to the Reporting Requirements for Trusts.
Updates to the Tourism and Hospitality Recovery Program (THRP)
May 24, 2022
The CRA recently updated its THRP webpages to provide additional guidance to applicants. This includes more examples of activities that qualify for the THRP, as well as information on how businesses can change their THRP or Hardest-Hit Business Recovery Program (HHBRP) claim online.
May 19, 2022
As noted in our April 27, 2022 news item, the CRA has indicated that since the final draft legislation on immediate expensing has been released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction.
May 2, 2022
Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures, was introduced by the government on April 28, 2022 (it contains the draft legislation we referred to in our April 27, 2022 item).
April 29, 2022
The CRA recently updated Excise and GST/HST News – No. 110 to provide clarification and further details on the process for requesting administrative relief on the new GST/HST digital economy measures.
Notice of Ways and Means Motion for certain Budget 2022 measures released
April 27, 2022
The federal government has recently released a Notice of Ways and Means Motion (with draft legislation) to implement certain provisions included in the 2022 federal budget as well as some other previously announced measures. Included in the release are final draft rules on the immediate expensing rules first announced in the 2021 federal budget and then expanded in the 2022 budget.
In a communication to us, the CRA stated that since final draft legislation was released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction. However, adjustment requests to recognize immediate expensing for returns that have already been filed cannot be processed until after Royal Assent has been received.
Reminder on proposed refundable credits for individuals
April 22, 2022
On April 20, the Canada Revenue Agency (CRA) posted a reminder on the EFILE news and programs update page on the proposed Return of Fuel Charge Proceeds to Farmers Tax Credit and the Eligible Educator School Supply Tax Credit. The CRA has again stated that returns containing a claim for these credits cannot be assessed until Bill C-8 (Economic and Fiscal Update Implementation Act, 2021) receives Royal Assent. We provided more background information on this issue in our March 3 news item and considerations for taxpayers who are in a refund position.
April 14, 2022
As noted previously in our December 21, 2021 news item, Bill C-2 (An Act to provide further support in response to COVID-19) contained a change that may restrict Canada Emergency Wage Subsidy (CEWS) claims made by a publicly traded company or a subsidiary of such a company that paid dividends to an individual who held common shares. One area of confusion was on the effective date of the change.
April 12, 2022
The Canada Revenue Agency (CRA) recently posted an update on the filing requirements for individuals who are applying the tax changes in Bill C-208 for intergenerational transfers.
2022 Federal Budget
April 8, 2022
Watch now: 2022 Federal Budget Tax Highlights webinar
Deputy Prime Minister and Minister of Finance Chrystia Freeland tabled Canada’s federal budget on April 7, 2022. CPA Canada hosted a webinar in English and French to provide an overview of the most important tax measures contained in this year’s budget and to address some key questions raised by members. In addition, you can download the Tax Highlights.
March 21, 2022
The Canada Revenue Agency (CRA) publishes its audit manuals and policy documents on the following page. The CRA has recently published 3 updated policies.
CRA Revised Guidance on Submitting T3 Return Notes
March 16, 2022
The CRA has recently informed us that it has revised its guidance, which we originally summarized in our March 8 update, on how to deal with questions 1, 3, 4, 6, 7, 8 and 9 where a note must be attached to a T3 return that is being EFILED. The CRA has now advised us that this information only has to be retained by the taxpayer in their records in the event the CRA asks to see it at a later date.
March 15, 2022
Further to our March 8 update on T3 EFILE, we have received a communication from the CRA on the proposed changes on electronic filing for tax preparers contained in subsections 150.1(2.2) and (2.3) of the Income Tax Act.
Draft legislation released for Luxury Tax
March 14, 2022
On March 11, Finance Canada released draft legislation on the Luxury Tax that was proposed in the 2021 Federal Budget. Subject to parliamentary approval, the tax will apply beginning on September 1, 2022. Finance Canada’s news release states that “two notable new provisions” are included in the legislation:
- relief is proposed to be provided to after-sale improvements that are made to vehicles, aircraft or vessels purchased below the relevant price threshold; and
- relief for aircraft is proposed to be expanded to take into account qualifying flights that are conducted in the course of a business with a reasonable expectation of profit.
March 8, 2022
We have received additional information from the Canada Revenue Agency (CRA) on T3 EFILE, which we wanted to pass on along with some other issues to keep in mind with the introduction of T3 EFILE.
March 3, 2022
As noted in our recent tax blog, there are several Budget 2021 proposed tax measures that would impact 2021 personal income tax returns. As these measures have not yet been enacted, there has been uncertainty on how affected taxpayers should file T1 returns.
February 11, 2022
On February 9, the government announced it intends to extend the expanded access to the Local Lockdown Program and Worker Lockdown Benefit (originally announced on December 22, 2021) by one month, until March 12, 2022.
February 10, 2022
Further to a recommendation we made last spring, the CRA has recently updated its MFA process by allowing users to opt whether they want to input the MFA passcode each time they sign in, or to just input the “one-time” MFA passcode once every 8 hours if the user is using the same device.
February 9, 2022
On February 4, 2022, Finance Canada released draft legislation and a detailed backgrounder on Budget 2021’s proposal on immediate expensing of certain capital property of up to $1.5 million per year.
February 8, 2022
On February 4, 2022, Finance Canada released draft legislation that included revisions to the trust reporting rules that were originally announced in the 2018 Federal Budget.
February 7, 2022
On February 4, 2022, Finance Canada released draft legislative proposals to implement previously announced tax measures.
January 26, 2022
The CRA has shared with us the following update on the Budget 2021 proposal which would allow for the immediate expensing of certain assets.
January 24, 2022
The CRA has asked us to remind our members of their Dedicated Telephone Service (DTS) for small and medium-sized income tax service providers.
CRA releases 2021 versions of forms T2200S and T777S for home office expense claims
January 19, 2022
The CRA released the 2021 versions of the T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19 (T2200S) and T777S Statement of Employment Expenses for Working at Home Due to COVID-19 (T777S) for employee home office expense claims. Both forms are similar to last year’s versions. The CRA has also highlighted the criteria that must be met for employers interested in automating the completion of electronic T2200S forms.
January 18, 2022
As noted in our January 4, 2022 news item, the CRA published their administrative positions for employer-provided benefits and allowances pertaining to home office expenses, commuting and parking for 2021.
Clarification: CRA Q&A session on new COVID-19 support measures
January 17, 2022
It has come to our attention that during the CRA Q&A session on January 13, there was an issue with an answer provided in respect of T4 reporting, and, in particular, whether amounts are required to be reported for T4 codes 57 to 60 for 2021 T4s. The CRA has confirmed that this additional reporting requirement applied only for the 2020 calendar year and therefore, no additional reporting is required for 2021.
Further update on proposed trust reporting rules
January 14, 2022
The CRA has updated their webpage on the proposed trust reporting rules with the following message:
The legislation to support this proposed measure is pending. The CRA will administer the new reporting and filing requirements once there is supporting legislation that receives Royal Assent. The CRA will continue to administer the existing rules for trusts, under enacted legislation. The proposed beneficial ownership reporting requirements will not be part of the published 2021 T3 income tax return. This note will be updated when more information is available. You should not delay filing your 2021 T3 tax return.
January 13, 2022
Further to our update on December 20 (see “Update on trust reporting proposals”), there have been some developments on this issue.
January 12, 2022
Today, the government announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.
January 11, 2022
Yesterday afternoon, CRA sent an email notifying key stakeholders that the CRA is hosting interactive question and answer sessions on the Canada Recovery Hiring Program, the Tourism and Hospitality Recovery Program, and the Hardest-Hit Business Recovery Program.
January 6, 2022
The CRA recently provided an important update to its My Account (MyA) services. Starting in February 2022, the CRA will require taxpayers to provide their email address to use MyA as an additional security measure to protect taxpayers’ personal information.
January 5, 2022
On December 30, the CRA launched the application site for the expanded Canada Worker Lockdown Benefit (CWLB), which includes its list of eligible lockdown regions.
January 4, 2022
As you may recall, the CRA announced a number of administrative rules to provide relief on employment benefits due to the pandemic for 2020. The CRA has now provided an update on how these rules will apply for 2021.