Consultations on measures announced in Budget 2023 begin
On Friday, August 4, 2023, the Department of Finance released for public consultation extensive legislative proposals accompanied by explanatory notes (the “August Proposals”). The August Proposals relate to various measures previously announced in Budget 2023. See here for our 2023...
New considerations when seeking to multiply access to the lifetime capital gains exemption
Proactive planning to multiply access to the lifetime capital gains exemption (“LCGE”) for shares of a qualified small business corporation (“QSBC”) or qualified family farm property (“QFFP”) remains of ongoing interest to taxpayers and their family members that may be...
New reportable transaction rules receive Royal Assent
Bill C-47 received Royal Assent on June 22, 2023, bringing into effect the new expanded reportable transaction rules. A failure to report as required by the new rules could result in substantial penalties for both taxpayers and their advisors. Taxpayers...
Zero-rated supplies: Do not forget the burden of proof!
The burden of proof in tax matters is a topic frequently addressed by commentators and dealt with in provincial and federal case law. However, the concept itself is sometimes confused with other tax concepts. For example, many taxpayers consider the...
Underused housing tax – Canada Revenue Agency publishes additional guidance
The underused housing tax (the “UHT”) is a new 1% federal tax aimed at taxing vacant or underused housing owned by non‑Canadians. Specifically, the UHT affects “owners” (except “excluded owners”) of “residential property” located in Canada. While many Canadian and...
Employee ownership trusts in Canada: Plan carefully to avoid unintended tax consequences
In the United States and the United Kingdom, an employee ownership trust (“EOT”) is a common option for business owners seeking to transfer their business to employees or to establish an employee remuneration plan. In Canada, several different provisions of...
Intergenerational business transfers: Bill C-208 developments
Prior to 2021, section 84.1 of the Income Tax Act (“Act”) created a real impediment to a tax-efficient succession of a family business from one generation to the next, effectively penalizing a sale to a family member compared to an...
Fairness and economic substance: Select comments on the proposed changes to the General Anti-Avoidance Rule
Canada’s 2023 federal budget was released on March 28, 2023 and contained proposals for changes to the general anti-avoidance rule (“GAAR”). We published a summary overview of the proposed changes to the GAAR on March 28. This article provides some...
Federal Court of Appeal affirms application of Subsection 84(2) of the Income Tax Act (Canada) to a hybrid business sale transaction
In the context of a sale of a business operated by a corporation, the seller and buyer typically have competing interests. Whereas sellers tend to prefer selling their shares of the corporation so that they can receive the sale proceeds...
Hydrogen: Hollywood fiction, tax facts, and what’s in it for producers
Hollywood loves science fiction and the future. So-called “genre” films, featuring futuristic scenarios, humans with fantastic supernatural abilities, and new technologies dominate the cinemas and streaming market. Many commentators have speculated that the enduring fascination with such productions lies in...
