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Tax Strategies

Tax Planning Strategies

2022 Federal Budget Review

As expected, Budget 2022, entitled “A Plan to Grow Our Economy and Make Life More Affordable,” contains significant spending initiatives focused on housing affordability, child care, dental care, transition to a green economy, productivity and innovation. The Budget announced over $31 Billion of new spending, anticipates a deficit of $113.8 Billion for fiscal 2021-22, a deficit of $52.8 Billion for 2022-23, and more modest deficit amounts thereafter.

Wealth Planning Facts & Figures 2019

The 2019 Wealth Planning Facts and Figures provides important tax, retirement and estate planning information to help you stay informed.

Registered Retirement Income Funds (RRIF)

Selecting the right retirement income option for your Registered Retirement Savings Plan (RRSP) is one of the most important financial and estate planning decisions you’ll make.

Update on Canada's COVID-19 Economic Response Plan

In response to the COVID-19 outbreak, on March 18, 2020, the Federal government announced an initial economic proposal that included many significant fiscal and tax measures. Since this date, several measures have been enacted into law and additional measures proposed to boost the amount of support to Canadians and businesses. The aid package includes a deferral of certain tax return filing deadlines, deferral of certain personal and corporate tax liabilities, a 25% reduction in required 2020 RRIF minimum withdrawals and wage subsidies for Canadian businesses.

Taxation of Employee Stock Options

A common incentive program provided by Canadian employers is a stock option plan. These programs grant employees (including directors) the right to acquire a set number of shares of the employer (or parent) company at a fixed price (“exercise price”) within a set timeframe. The intention of these programs is to align employee/ employer interests by providing a long-term incentive in which employees benefit from the success of their employer, and likewise, employers benefit from long-term, loyal employees. This publication provides an overview of the Canadian tax implications of stock options issued to employees who are resident in Canada for tax purposes.1

Claiming Home Office Expenses on Your 2020 Personal Income Tax Return

As noted in our publication, Update on Canada’s Covid-19 Economic Response Plan, the Canada Revenue Agency (“CRA”) will allow employees to claim up to $400 in expenses incurred as a result of working from home in 2020 due to COVID-19, without the need to track detailed expenses. The allowable amount is based on the amount of time spent working from home and does not require a signed form from employers. Alternatively, employees with larger claims for home office expenses can still choose to use the existing Detailed Method (modified for 2020) to calculate their home office expenses deduction. For Quebec tax filers, Revenu Québec (“RQ”) has paralleled these Federal changes for Quebec provincial income tax purposes for 2020.

Spending to Immunity and Beyond

Canada's federal government budget for FY21.22, the first official such document in 25 months, is a wide-ranging and ambitious document. Given the huge build-up ahead of the budget, perhaps the one surprise is the absence of any big surprises in the plan. Clocking in at a bulky 724 pages, this is a highly detailed budget that sets the stage for post-pandemic policy in Canada or, if necessary, has all the makings of an election platform.

Wealth Planning Facts & Figures 2021

The 2019 Wealth Planning Facts and Figures provides important tax, retirement and estate planning information to help you stay informed.

The CRA’s Foreign Reporting Requirements

Since Canada represents only a small portion of the world’s capitalization, it may make sense to include some foreign investments in your portfolio. However, it is important to understand Canadian and other foreign tax implications of owning investments outside of Canada.

Tax Tips For Investors

Knowing how tax rules affect your investments is essential to maximizing your after-tax return. In addition, keeping up to date on changes to the tax rules ensures that you take advantage of all the tax savings available to Canadian-resident individuals. This article provides an overview of select strategies to assist you in reducing your tax bill.

Canadian Snowbirds and U.S. Income Tax

Although Canadian snowbirds reside in the U.S. for only a part of the year, there is the potential of being considered a U.S. resident and, in turn, having to pay U.S. income tax on the same basis as a permanent U.S. resident. This article outlines how the U.S. government determines whether you are a resident for income tax purposes; namely, it covers the criteria for meeting the Substantial Presence Test, Closer Connection Exception and the Canada U.S. Income Tax Treaty Tie-Breaker Rules.