Professionals in every province have been permitted to incorporate their practices for many years. This list of professionals generally includes physicians, architects, accountants, dentists, engineers, veterinarians and lawyers. The rules that govern incorporation are established by the professional bodies in each province. Such rules may include limitations associated with the selection of the corporation’s name along with […]

When a taxpayer suffers a capital loss on the disposition of a capital asset, tax relief is available in the form of an offset against capital gains. To utilize this offset, of course, the taxpayer needs a capital gain. The capital gain may have been realized in the current year from the disposition of another […]

The claw-back of Old Age Security (OAS) payments has been a part of the fabric of planning for many years. Many articles discuss planning strategies designed to avoid the claw-back. However, planning should not be limited to avoiding a single tax provision or minimizing exposure to a tax at the expense of broader planning objectives; […]

The federal government and all provinces allow a tax credit based on pension income received. The federal tax credit is 15 per cent of the lesser of $2,000 and the eligible pension income of the individual, while provincial percentages and limits vary. What qualifies as “pension income,” however, is not as clear as one might […]

The 2014 Federal Budget has proposed to conduct a public consultation of the income tax rules with, in respect to eligible capital property, a view to “levelling the playing field” with other types of property. Among other changes, the proposed rules will impact taxpayers that sell the assets of their business when some of the […]

The Canada Pension Plan (CPP) provides a number of benefits, the most significant of which is the retirement pension that forms an integral part of most Canadians’ financial plans for retirement. The Quebec Pension Plan (QPP) provides parallel benefits for Quebec residents. Every contributor to these government-sponsored pension plans will eventually need to make important […]

Family cottages often represent great memories. The cottage can be an important retreat where families congregate in a relaxed environment, developing close relationships with successive generations. Alternatively, the cottage may be an economical vacation spot that families count on year after year. The cottage could be a simple structure on a remote lake, or a […]

Agriculture is an important industry for Canada, with over 200,000 farms averaging approximately 800 acres currently in operation. Farm performance remains strong, and asset values, particularly land, continue to grow. Like other business owners, farmers need to carefully plan for succession of their business operations. Important considerations include: Funding any income tax liability that arises […]

In general terms, a shareholder is subject to tax on the value of any assets withdrawn, whether directly or indirectly, from his or her company. This would include physical assets or money, such as dividends, a draw or a loan. Some of the exceptions to this general rule include a withdrawal of paid-up capital, payment […]