Tax Issues

Total 356 Posts

Requirement to File a Tax Return Expanded

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As written previously, the requirement to file a tax return for trusts has been expanded. Thanks to new legislation, there are now exceptions to the exception to file. Generally speaking, a trust (other than a trust established by law or judgment) that is resident in Canada must file a tax return, unless the trust had been in existence for less than three months at the end of the year or….

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Canada Revenue Agency, Estate Administration, In the News, Investments, Tax Issues, Trusts

Source of Income and the TOSI Rules: Clarification?

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Since the Tax on Split Income (“TOSI”) legislation was released, there has been considerable consternation amongst professionals as to how the rules apply. Even the most sophisticated readers of the legislation agree that it contains provisions that are both ambiguous and somewhat complicated. Somewhat out of exasperation, many deal with the TOSI rules on the assumption that all income amounts received by shareholders, beneficiaries, and partners are subject to TOSI,….

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Canada Revenue Agency, Estate Planning, In the News, Investments, Property, Real Estate, Small Business, Tax Issues, Trusts

Safe Income and an Estate

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In a recent technical interpretation, the Canada Revenue Agency (CRA) made the point that safe income of a corporation owned by a person that died did not flow through to the estate of that person.  The reason was not clearly stated but appears to be that the safe income became encompassed in the adjusted cost base of the shares to the estate. The situation described in the technical interpretation involved….

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Canada Revenue Agency, Estate Planning, Tax Issues

Fair Market Value Used to Test the Meaning of All or Substantially All of the Assets Used in an Active Business

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Under The Income Tax Act (“ITA”), if a taxpayer disposes of property that is all or substantially all of the assets used in an active business for consideration that includes shares of a corporation, the shares are deemed to be capital property. The disposal is considered to be a capital gain and may be eligible for the lifetime capital gains exemption for qualifying companies. This is a very important piece….

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Business Succession Planning, Canada Revenue Agency, Estate Planning, In the News, Investments, Property, Small Business, Tax Issues, Uncategorized

Creation of a Trust

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The Canada Revenue Agency (CRA) provided guidance on when a testamentary trust is considered to have been created for purposes of the 21 year deemed disposition rule. A trust is deemed to have disposed of its capital property for proceeds equal to the fair market value of the property at the end of the deemed disposition date and to have re-acquired the property immediately after the day for an amount equal….

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Canada Revenue Agency, Estate Planning, Executors, Tax Issues, Wills

Out-of-Date? You Could be Out of Luck!

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          This Blog was written by: Emily Racine It is a hard truth that after a client confirms they have a will done, the first comment to follow is often “but it was done years ago”. The reality is that even when clients have a will, often it has not been reviewed in many years. With the ever-changing landscape of estate law, this neglect can have….

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Estate Administration, Succession Planning, Tax Issues, Wills
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