Tax thought leadership roundup (July 2015)

Keep up with the latest thinking on tax from CPAs in Canada with our latest roundup of new tax-related alerts, articles, white papers and thought leadership releases.

Here you’ll find a selection of recent tax-related information from members of Canada’s tax community. For even more insights and resources, follow the links below to the tax websites of Canada’s seven largest professional services firms and to their Tax Rates and Research Tools.

GENERAL INTEREST

2015 Ontario budget – Tax highlights (PwC)

Find out about the key tax measures introduced in the 2015 Ontario budget.

Can your clients have tax-free income? (CPA Canada)

There are a surprising number of kinds of income that are not subject to tax under the Income Tax Act. It may be useful to know about these when preparing clients’ returns.

CRA’s letter campaign (BDO)

The Canada Revenue Agency (CRA) is sending about 33,000 “education letters” to randomly selected Canadian taxpayers about claims made on one or more of their income tax and benefit returns. What should you do if you receive one?

CRA round-up: Recent CRA technical interpretations of interest to your practice (Part 1 and Part 2) Canada Revenue Agency (CRA) interpretations can be very helpful in understanding how the CRA will apply tax law to your clients’ cases. These articles summarize some recent CRA letters that may help you advise your clients.

CORPORATE TAX

Are your tax-free inter-corporate dividends in jeopardy? (KPMG)

Canadian corporations that receive dividends from other Canadian corporations may be adversely affected by a recently expanded anti-avoidance rule that re-characterizes certain tax-free inter-corporate dividends as capital gains subject to tax.

OWNER-MANAGED BUSINESSES

New rules benefiting small businesses (Grant Thornton)

Budget 2015 included some positive proposals for small businesses, but the increase in personal tax rates on the receipt of dividends from small businesses somewhat tempered the good news.

PERSONAL TAX

Canada Revenue Agency’s My Account for individuals (BDO)

With My Account, you can access your personal income tax and benefit information and manage your personal tax affairs online.

CRA online mail — is it right for you? (BDO)

Receiving your mail from the CRA online may be convenient, but there are some things you should consider before you sign up for this new service.

Introduction of the Home Accessibility Tax Credit (Grant Thornton)

Will you be entitled to claim the new federal tax credit for home renovations and improvements to improve the accessibility and safety of your home for 2016 and later years?

Upcoming changes to the taxation of trusts benefiting disabled individuals (BDO)

In January 2016, new legislation will allow the creation of a new type of trust specifically for the benefit of individuals with disabilities.

New RRIF and TFSA rules — benefiting seniors and savers (Grant Thornton)

Changes announced Budget 2015 aim to help Canadians manage their finances before and during retirement.

Using direct deposit for CRA payments (BDO)

With Canada Revenue Agency’s (CRA) direct deposit service, you can have your tax refund deposited directly into your bank account, along Canada Child Tax Benefit, GST/HST credit and other CRA payments. Find out how to enrol.

CHARITIES AND NOT-FOR-PROFITS

2015 federal budget announces good news for the charitable sector (Grant Thornton)

Find out what measures were introduced in Budget 2015 to encourage Canadians to donate funds and assets to charities.

INDIRECT TAXES

GST/HST — transfer of assets of deceased persons (MNP)

This article answers a number of questions about the steps that need to be taken on the death of a business owner registered for GST/HST purposes.

Indirect tax developments in 2015 (EY)

This guides features EY’s annual roundup of developments in VAT, GST, consumption taxes, excise duties, customs duties and other indirect taxes in more than 100 jurisdictions around the world.

2015 Worldwide VAT, GST and Sales Tax Guide (EY)

This guide summarizes the value-added tax, goods and services tax and sales tax systems in 113 countries and the European Union.

CANADA-U.S. TAX ISSUES

Health and welfare trusts and FATCA (BDO)

How might a health and welfare trust be classified under the U.S. Foreign Account Tax Compliance Act (FATCA), and what are the implications of these classifications for the trust’s FATCA reporting obligations?

U.S. tax rules for snowbirds, U.S. rental property investors and U.S. citizens (BDO)

If you spend an extended period of time in the U.S. each year or own property there, it is important to consider the U.S. tax consequences.

INTERNATIONAL TAX

2015 federal budget: Good news for foreign employers with frequent business travellers to Canada (PwC)

Foreign employers with non-resident employees temporarily working in Canada will welcome a proposal that provides relief from payroll withholding requirements.

2015 federal budget: Updates on BEPS, exchange of tax information (MNP)

This article summarizes the budget’s updates on Canada’s involvement in the OECD’s base erosion and profit shifting (BEPS) project and how Canada intends to fulfill its obligations to implement automatic exchange of tax information.

Navigating the transfer pricing minefield of related-party loans (KPMG)

As transfer pricing for related-party loans attracts increasing tax authority scrutiny, this article provides a practical, high-level framework for some key considerations to think about when selecting terms and conditions for related-party loan arrangements.

OECD seeks to unify controlled foreign company regimes (KPMG)

Canadian multinationals with foreign affiliates will want to closely monitor the Organization for Economic Co-operation and Development (OECD)’s recent recommendations for potential changes to member countries’ controlled foreign company rules.

The changing environment for transfer pricing documentation (BDO)

Read a summary of the recommendations of the Organization for Economic Co-operation and Development, including the latest on country-by-country reporting.

2015 Worldwide Corporate Tax Guide (EY)

Covering 161 countries, the chapters in this guide feature both at-a-glance information and details of taxes on corporate income and gains, determination of trading income, other significant taxes and treaty withholding tax rates.

Worldwide Tax Summaries (PwC)

Available in a number of online formats, this guide gives you quick access to information about the corporate and individual tax systems in over 150 countries.

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