Introduction
March 22, 2016, was Federal Budget day. The Budget contains relatively few tax measures specific to charities and non-profit organizations. Unfortunately, the most significant measure – the reversal of the previously-proposed capital gains exemption on the donation of proceeds of...
Business Income Tax Measures
IN THIS SECTION: Expanding Tax Support for Clean Energy Emissions Trading Regimes Small Business Taxation Life Insurance Policies Debt Parking to Avoid Foreign Exchange Gains Valuation for Derivatives Eligible Capital Property Expanding Tax Support for Clean Energy Currently, the Tax...
Previously Announced Measures in Budget 2015
No Capital Gains Exemption for Donations of Real Estate and Shares of Private Corporations Budget 2016 announces the Government’s intention to reverse proposals made in Budget 2015 with respect to donations of the cash proceeds from sales of real estate...
Split-Receipting Treatment of GST/HST on Charitable Donations
The Budget proposes a new relieving measure related to the application of the sales tax regime (whether GST or HST depending on the province) to charitable donations. The measure will effectively apply the split-receipting regime that applies to charitable gifts...
International Tax Measures
IN THIS SECTION: Base Erosion and Profit Shifting Cross-Border Surplus Stripping Extension of the Back-to-Back Rules Back-to-Back Shareholder Loan Rules Base Erosion and Profit Shifting Base erosion and profit shifting (“BEPS”) is the term used to refer to tax planning...
Personal Income Tax Measures
Canada Child Benefit The Canada child tax benefit (the “CCTB”) is a non-taxable benefit which is paid based on a family’s adjusted net income and the number of children in the family. There are three general components to the CCTB:...
Commitment to Review and Clarify Political Activity Rules
In his November 2015 Mandate Letter to the Minister of National Revenue, Diane Lebouthillier, Prime Minister Trudeau mandated her to work to “modernize” Canada’s charity law and clarify the rules in the Income Tax Act that deal with political activities. ...
Charitable Donation Tax Credit Rate for Estate Donations
In December 2015, the Federal Government announced that it would increase the personal income tax rate for top earners in Canada, with corresponding changes to the charitable donation tax credit rates to introduce a top donation tax credit rate of...
Sales and Excise Tax Measures
IN THIS SECTION: Health Measures Exported Call Centre Services Reporting of Grandparented Housing Sales GST/HST on Donations to Charities De Minimis Financial Institutions Application of GST/HST to Cross-Border Reinsurance Closely Related Test Restricting the Relief of Excise Tax on Diesel...
Investments in Charitable Sector
While the Budget contains relatively few tax measures specific to the charitable or non-profit sector, it does announce several initiatives and investments that will be of interest to certain organizations within the sector including: an investment of $339 million over...
