Canada’s new Canadian Entrepreneurs Incentive (CEI) draft legislation, introduced by the federal government, offers Canadian small and medium-sized businesses (SMBs) a favourable tax framework to boost investment and growth in the Canadian economy. By offering tax advantages on capital gains for eligible Canadian-owned businesses, the CEI aims to stimulate entrepreneurship and innovation. This incentive arrives at a pivotal time when SMBs face intensified domestic and international competition, underscoring the need to foster a robust entrepreneurial ecosystem in Canada.

The Canada Carbon Tax Rebate was created to ease the burden of carbon tax costs on small businesses, aligning with Canada's efforts to reduce greenhouse gas emissions. The rebate, part of a $2.5 billion initiative, is intended to offset the increased expenses for businesses, especially those reliant on carbon-heavy processes. While the rebate is aimed at aiding companies during this transition, there are notable concerns about the system, including delays in disbursements and the impact on smaller enterprises. Here’s a breakdown of the rebate and how it affects businesses.

💼 How will Canada’s 2024 tax changes impact you?

From higher capital gains taxes to a new incentive for investing in small businesses, our blog breaks down what you need to know.

Stay informed and strategically plan for the future.

#CanadaTax #BusinessPlanning #InvestSmart

In the world of corporate governance, transparency and accountability are paramount. The concept of Individuals with Significant Control (ISC) plays a crucial role in ensuring these principles are upheld. An Individual with Significant Control (ISC) is someone who holds significant influence over a corporation. This can include ownership of 25% or more of the shares or voting rights, or any other form of control that allows significant influence over decisions made by the corporation. The definition is broad to capture various forms of control and influence beyond mere ownership.

Navigating disability benefits and tax credits in Canada is essential for individuals and families managing disabilities. The Canadian government offers various programs and credits aimed at providing financial assistance, support services, and tax relief to eligible persons with disabilities. Understanding these resources and how to access them can greatly impact the quality of life and financial well-being of individuals and their caregivers.

Are you dreaming of owning your first home? Saving for that down payment just got easier with First Home Savings Accounts (FHSAs). In this detailed guide, we'll walk you through everything you need to know about opening and managing your FHSA, and providing tips to maximize your savings potential.

The Canadian business landscape is ever-evolving, and most recently the trend of individuals and sole proprietors opting to incorporate their businesses has gained significant traction. With this latest trend towards corporate structures, there is a growing need to navigate the complex world of Personal Services Business (PSB) rules.

On April 16, 2024, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2024 – Fairness for Every Generation, to the House of Commons.

No changes were made to personal or corporate tax rates. Some highlights include the following:

A. Personal Measures

An increase to the capital gains inclusion rate to 2/3, however individuals will retain the 1/2 inclusion rate on the first $250,000 of capital gains annually.

An increase to the lifetime maximum capital gains exemption, and two new incentives on specific types of business sales.

Modifications to the proposed amendments to focus the alternative minimum tax regime on high-income individuals.

B. Business Measures

A Canada carbon rebate for small businesses that will begin by delivering payments to eligible CCPCs for five years of carbon tax.

Accelerated capital cost allowance on purpose-built residential rental properties.

Immediate expensing of certain productivity-enhancing assets, including computer hardware, acquired on or after April 16, 2024.

C. International Measures

A crypto-asset reporting framework that will require annual reporting by crypto- asset service providers on their clients’ activities using these assets.

D. Sales and Excise Measures

Extension of the GST exemption for new purpose-built rental housing projects to not-for-profit universities, public colleges and school authorities.

E. Other Measures

Details on the Canada disability benefit intended to commence in July 2025.

F. Previously Announced Measures

Intention to proceed with previously announced measures, including the denial of expenses for non-compliant short-term rental activities; the exemption of certain services of psychotherapists and counselling therapists from GST/HST; proposals related to the underused housing tax; temporarily pausing the fuel charge on heating oil; various clean energy tax credits; and other initiatives related to the clean economy.

New rules aimed at providing more transparency on beneficial ownership of assets now require that more trusts (and estates) file tax returns. These changes will catch many individuals and businesses that may not be aware of their trust-like relationships, exposing them to potential penalties and other consequences for non-compliance. The rules become effective in 2023, with a filing deadline of April 2, 2024.

There are lots of circumstances to be aware of when it comes to the way your assets will (or won’t) be taxed after you pass away.

At some point, we will all have to deal with the death of a loved one, with all the emotional and psychological stress that entails. But, from a purely financial point of view, there are lots of questions to be answered.

Apart from legal costs, a deceased person’s assets may be subject to two main types of levies: income taxes and probate taxes or fees.

Taxes and other fees can take a big dent out of your assets when you die. So, consider using insurance and other vehicles in your estate planning.

You may have been putting considerable energy into saving for retirement, but what about estate planning? If you want your assets to pass through as easily as possible to your beneficiaries, it’s worth speaking to an advisor and doing some planning early on.  

One of the key focus areas in the 2022 federal budget (Budget 22) was to improve housing affordability, particularly for first-time buyers. Here is a summary of the new initiatives proposed in Budget 22, and the existing government programs to support first-time home buyers.

On April 7, 2022 the Honourable Chrystia Freeland introduced her second Budget (Budget 22). Here is a summary of the individual and corporate income tax changes that were included in the budget.

Find out about some of the legal and tax implications of a rental unit before you sign on a tenant.

For people currently renting or considering renting a portion of the home they own, the tax considerations can be complex and the fallout costly if you don’t do it right. In fact, earning income from renting a portion of your home can be subject to different rules and reporting requirements to the Canada Revenue Agency.

Taking advantage of senior discounts isn’t the only way to have more funds once you’ve retired.

Those retirement savings you’ve squirreled away have to last for an unknown amount of time. But that doesn’t mean you have to give up on dreams of enjoying new experiences. Here are some ways you can stretch every dollar of those savings.

Notice packages and products are getting smaller, with no reduction in prices? Here are three tips for keeping your bills for groceries and other products in check.

If you’re seeing fewer chips in the bag, smaller toilet paper rolls or a different shape to your usual jug of orange juice, you’re not imagining things.

Shrinkflation – a term used to describe the practice of selling products with less quantity or volume at the same price by reducing their size or packaging – is having an impact on store shelves.

With much of Canada returning to a modified lockdown due to the spread of the Omicron variant of COVID-19, the federal government has enhanced and extended some of its support programs for individuals and businesses.

Here are the highlights of the changes announced from fall 2021 through to January 12, 2022.

Loaning money to a friend or child may be well-intentioned, but it’s important to consider all the implications, especially in the current context, experts suggest.

The COVID-19 pandemic has wreaked havoc on many Canadians’ finances. By April, 2020 the economy had lost more than three million jobs and the unemployment rate rose to 13 per cent. During stressful financial times like this, it’s inevitable people will turn to loved ones for monetary help. How do you respond to such a request? We asked the experts.

For many Canadians, property ownership is a lifelong dream. Sadly, real-estate scams are commonplace, and it could get worse with the COVID-19 pandemic.

Even with a range of financial support measures being offered to Canadians as a result of the COVID-19 pandemic, many property owners will find it difficult to make their mortgage payments in the months to come due to a lack of work and income. The Canadian Bankers Association (CBA) reported that member banks have already processed more than 710,000 mortgage deferrals or skipped payments.