Recent Publications

Recent Publications

January 5, 2018 by Marlin Miller

Infographic: The new rules of the road

On Dec. 13, 2017, Finance Canada released Amendments to the Income Tax Act and Regulations and Explanatory Notes, simplifying measures to restrict income sprinkling. This infographic will focus on the changes to the July 18 proposals, exclusions, reasonableness test and a brief update on the status of the proposed measures related to passive investments. 

December 21, 2017 by Kevin Tippett

Personal U.S. tax changes

*Updated January 9 2017

On November 2, 2017, the Ways and Means Committee of the U.S. House of Representatives released a tax reform bill entitled The Tax Cuts and Jobs Act. Since then, the House and Senate Tax Cuts and Jobs Act Conference Committee released its final version of the legislation that is expected to become law in the coming days. It is the most comprehensive U.S. tax reform in more than 30 years.

December 19, 2017 by Shelley Smith

How government pensions work for cross-border employees

If you have worked in both Canada and the United States or are contemplating a move to the U.S. after years of working in Canada (or vice versa), you may wonder about paying into both the Canada Pension Plan (CPP) system and the U.S. Social Security system. Will you be able to collect pensions from both countries? 

December 19, 2017 by Guy Desmarais

Just a spoonful of TOSI may help the medicine go down

The Department of Finance released its long-awaited proposed amendments to the tax on split income (TOSI) rules on December 13. The release completes a tumultuous year for small business owners, tax professionals, Department of Finance officials, Members of Parliament and the Minister of Finance. The initial July 18 proposals and the short consultation period precipitated a groundswell of consternation and frustration. 

December 19, 2017 by Ranjan Thiruchelvam

Farm corporations and claiming the small business deduction

Historically, the Government of Canada has supported the agricultural sector with favourable rules in the Income Tax Act (the Act), among other strategies. Recently, the government announced its intention to lower the small business tax rate from 10.5 per cent to 10 per cent, effective January 1, 2018, and to 9 per cent on January 1, 2019.

December 15, 2017 by Maxine Laforest, Caroline Morin, Julie Chrétien

The tech-savvy era of cloud accounting – Risks and benefits

In today’s increasingly digital world, having tools and programs that are as advanced as those of the competition plays a critical role in the success of any business. Cloud computing allows businesses to access their data anytime and anywhere via an internet connection, while reducing the headache of managing accounting records and transactions.

December 14, 2017 by Marlin Miller, Heather Forbes

Amendments to the Income Tax Act and status of proposed measures

On December 13, 2017, Amendments to the Income Tax Act and Regulations and Explanatory Notes to simplify measures to restrict income sprinkling were released by Finance Canada. Today’s Tax Flash will focus on the changes to the July 18 proposals, exclusions, reasonableness test and a brief update on the status of the proposed measures related to passive investments.

November 22, 2017 by Bill Crowther

Changes proposed to taxation of private corporations and their shareholders

On July 18, 2017, the federal government of Canada introduced proposals (“announcements”) curtailing the use of private corporations to gain tax advantages over other individuals in Canada who do not utilize such corporations. The proposals were positioned by the government as measures to ensure that the wealthy pay their fair share and the Canadian tax system is applied in a manner that is fair for all Canadians. If enacted as introduced, these proposals represent arguably the most significant changes to the taxation of private corporations in over 40 years. 

November 22, 2017 by Jim King, Inna Kleiman

Technical Bulletin: November 2017

Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada. Since this is not intended to be a complete reproduction or summarization of the standard or document reviewed, we recommend that you refer to the original document(s) discussed in this Bulletin and/or discuss the matter with your professional advisor before acting upon any of the matters discussed herein.

November 2, 2017 by John S. Lee

U.S. Congress Releases Draft Legislation on Tax Reform

On November 2, 2017, the US House of Representatives Committee on Ways and Means released long-awaited draft legislation on federal tax reform. Many of the highlights from the initial tax reform proposal released by the Republican “Big 6” on September 27, 2017 was kept unchanged in the draft legislation. Please contact your local Collins Barrow representative to see how this development may impact you and your US/cross-border business.

October 31, 2017 by Bob Boser

Post-mortem planning: reprieve for the pipeline?

When individuals die, they are deemed to have disposed of all of their assets at fair market value at the time of death. This deemed disposition applies to capital property such as vacation properties, rental properties and shares of public and private corporations. An exception to this rule applies where there is a surviving spouse, in which case the assets may be transferred to the surviving spouse with no tax consequences. If there is no surviving spouse, any income resulting from the deemed dispositions is included in a final tax return filed on behalf of the deceased. 

October 31, 2017 by Peter Savoni

Pitfalls to consider in family business succession

We have been hearing it for decades: 30 per cent of family firms survive to the second generation and only 10 per cent survive to the third generation. This statistic is generally cited without context, implying that family firms are the business organizations that are most likely to fail, but that assumption is incorrect. We know that family businesses facing succession are successful to begin with. Otherwise, they would not have been in business for so long, waiting for the next generation to take over.

October 26, 2017 by Michael Nicoló

When opportunity knocks, can your firm afford it?

This article originally appeared on The Lawyer’s Daily website published by LexisNexis Canada Inc.

Consider one of the following scenarios: Your firm’s leadership wants to become the employer of choice for young professionals — and this includes a workplace that appeals to them — calling for significant leasehold improvements.

October 20, 2017 by Derek de Gannes

Venture Capital concerns are heard

On October 20, 2017, the Department of Finance (“Finance”) responded to several concerns raised by the venture capital and angel investor sectors in respect of the proposed taxation of private corporation measures (see CBT’s summary here). 

October 19, 2017 by Salome Victor, Sankalp (Sunny) Jaggi

Finance abandons the surplus stripping rules for now

On October 19, 2017, the Department of Finance (“Finance”) announced that it will abandon the proposed tax measures aimed at restricting the conversion of income into capital gains (“anti-surplus stripping rules”).

October 18, 2017 by Salome Victor, Sankalp (Sunny) Jaggi

Proposed changes: Finance takes hard stance on passive income of private corporations

On October 18, 2017, the Department of Finance (“Finance”) provided more details on its proposals (see CBT’s summary here) to target the deferral of tax benefits of passive investments within a private corporation.   .