Grant Thornton Feed: Tax services

Recent changes for Retirement Compensation Arrangements

2012-05-17T15:26:01-05:00

A Retirement Compensation Arrangement (RCA) is a savings arrangement often used by private companies to fund the portion of an employee’s pension benefit that exceeds the benefits permitted under a defined benefit or defined contribution pension plan. click to open PDF

The not-so-thin “thin-capitalization” rules

2012-04-19T14:31:09-05:00

The Income Tax Act (Canada) (ITA) contains rules which limit the deductibility of interest expense that is incurred by a Canadian-resident corporation where the amount of interest-bearing debt owed to certain non-residents exceeds a 2-to-1 debt-to-equity ratio. click to open PDF

2012 Prince Edward Island budget—a summary

2012-04-19T10:58:04-05:00

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2012 Manitoba budget—a summary

2012-04-18T16:49:25-05:00

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Supreme Court of Canada addresses residency of trusts

2012-04-17T16:26:36-05:00

On April 12, 2012 the Supreme Court of Canada (SCC) released its unanimous decision on the issue of the residency of a trust for the purpose of determining the trust’s Canadian income tax liability and reporting obligations. Of key importance was the SCC’s finding that the residency of a trust should be determined not necessarily by the residence of the majority of its trustees, but rather by the location where the central management and control of the trust resides or was exercised. click to open PDF

New rules for EPSPs

2012-04-16T13:58:22-05:00

For many years Employee Profit Sharing Plans (EPSPs) have been used to defer tax and provide income splitting benefits. These plans have also been promoted on the basis that allocations from an EPSP are not subject to CPP and EI premiums. click to open PDF

The impact of the Federal budget on Scientific Research and Experimental Development

2012-04-05T14:48:14-05:00

According to several economic studies, Canada continues to lag behind peer countries in terms of overall innovation performance. This is particularly true for private sector investment in research and development (R&D) and the commercialization of research into products and processes—two sectors that create high-value jobs and economic growth. click to open PDF

2012 New Brunswick budget—a summary

2012-04-04T15:28:02-05:00

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2012 Nova Scotia budget—a summary

2012-04-03T17:09:45-05:00

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Federal budget 2012—A majority budget: on the road to a surplus for 2015-2016

2012-03-30T11:28:45-05:00

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2012 Ontario budget—a summary

2012-03-27T18:43:50-05:00

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Does your RRSP or RRIF own shares which have become a prohibited investment?

2012-03-15T13:13:05-05:00

New anti-avoidance rules for RRSPs and RRIFs introduced in the 2011 federal budget could mean that shares that were previously a “qualified investment” for RRSP/RRIF purposes may now have become a “prohibited investment.” click to open PDF

2012 British Columbia budget—a summary

2012-02-22T17:02:08-05:00

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History repeating

2012-02-22T14:56:52-05:00

Highlights of the Federal and British Columbia HST Transitional Rules, as released February 17, 2012. click to open PDF

GST/HST registration: Change to the rules for voluntary registration

2012-02-17T10:05:41-05:00

The CRA has recently changed its administrative policy around the timelines for voluntary registration of GST/HST. This means that every new business should likely be registered immediately, if the expectation is that it might make an acquisition in respect of a commercial activity. click to open PDF

Straight from the source—Canada’s first Supreme Court transfer pricing case

2012-02-07T09:27:46-05:00

On January 13, 2012, arguments were heard by the Supreme Court of Canada in the matter of Her Majesty the Queen v. GlaxoSmithKline Inc. The case involves the pricing of intercompany transactions between Glaxo Canada, a Canadian corporation, and related corporations in the United Kingdom and Switzerland, Glaxo Group Ltd. (“Glaxo Group”) and Adechsa S.A. (“Adechsa”), respectively, during the 1990 to 1993 taxation years. The appeal was brought by the Crown. click to open PDF

2012 automobile deduction limits and expense benefit rates

2012-01-12T15:54:02-05:00

When an automobile is used for business purposes, the Income Tax Act allows for a deduction of the automobile’s related expenses, subject to certain restrictions or limits.

Grace period ends for most tax-exempt entities

2012-01-10T14:05:14-05:00

Municipalities and most other tax-exempt entities that do not complete and file their corporate income tax returns may find that their GST/HST rebates and refunds will be withheld by the Canada Revenue Agency (CRA). click to open PDF

Elimination of tax deferral for joint venture participants

2011-12-16T10:16:42-05:00

Since 1989, the Canada Revenue Agency (CRA) has administratively permitted a joint venture (JV) to have a fiscal period that was different from the fiscal periods of the JV participants. In many cases, this policy has allowed a JV participant to realize a tax deferral similar to that enjoyed by corporate partners of a partnership. click to open PDF

2011-12-09T14:40:59-05:00

The IRS has recently released a fact sheet to address a number of issues of concern to US citizens or dual citizens who reside outside of the US. The issues revolve around the failure to make certain required filings—specifically, federal income tax returns and Reports of Foreign Bank and Financial Accounts (FBARs). click to open PDF