Taxes

As the government gradually transitions towards a more forward-looking agenda, now is a good time to examine tax legislative processes and consider better practices for managing tax change.

Learn more: A better way of designing new tax legislation

Your source for the latest Canadian tax news and updates on changing tax laws. Working collaboratively with the Canada Revenue Agency (CRA) we aim to bring clarity on pressing tax questions and tax updates.

Read more: CPA Canada - Canadian Tax News

CPA Canada canvassed CPAs nationwide for their questions to the CRA. Responses to the top questions have been received.

Read more: CRA Responds to CPA Canada's Questions

CPA Canada co-hosted a webinar with the CRA to review updates to the SR&ED program. In this session, CRA provides an overview of the program and highlights upcoming initiatives that will transform it. CRA also reviews some of the most common trends they are seeing on the field and answers some of the top questions heard from CPA Canada's SR&ED Committee.

Watch on YouTube:  CRA update on SR&ED Program

In some cases, it’s possible to apply for relief from penalties and interest, although the taxes themselves cannot be waived. 

Learn more: Your taxpayer relief program questions answered

Here is CRA's updated announcement regarding the capital gains changes following prorogation of Parliament.

On September 23, 2024, the government tabled a Notice of Ways and Means Motion (NWMM) to introduce a bill entitled An Act to amend the Income Tax Act and the Income Tax Regulations. This Notice of Ways and Means Motion modified the motion tabled on June 10, 2024. For more information about the capital gains tax changes, please visit the Notice of Ways and Means Motion.

Notwithstanding that Parliament is prorogued, the Canada Revenue Agency (CRA) will continue to administer the proposed capital gains legislation.

Read more: CRA's updated announcement regarding capital gains following prorogation of Parliament

In Budget 2023, the federal government introduced new requirements for employers and pension plan administrators to report dental coverage offered to employees and plan members. Beginning with the 2023 tax year, issuers of T4 and T4A slips must complete:

• Box 45 (T4)
• Box 015 (T4A)

These boxes use codes to indicate the status of dental coverage:

• Code 1: No access to dental care insurance or coverage of dental services.
• Codes 2-5: Indicate dental insurance or coverage is provided and the recipients.

Health Canada has the authority to collect and use Social Insurance Numbers (SINs) for individuals applying to the Canadian Dental Care Plan for plan administration and enforcement.

Temporary Administrative Relief

For the 2023 tax year, issuers were not required to complete Box 45/015 when Code 1 (no coverage) applied, provided all reasonable efforts were made to comply with the reporting requirements.

We have learned that the federal government will extend this administrative relief to the 2024 tax filing season. As in 2023, issuers will not be required to complete Box 45/015 when Code 1 applies under these same conditions.

Looking Ahead: Full Compliance Expected in 2025

We are told this temporary administrative relief will not be extended beyond 2024. Employers and plan administrators should familiarize themselves with the full reporting requirements and ensure their systems and processes are prepared for compliance starting in 2025.

Next Steps for Employers and Plan Administrators

Employers and plan administrators are encouraged to:

• Review the updated T4/T4A reporting requirements.
• Ensure payroll systems are equipped to handle the new reporting codes.
• Consult with tax professionals or review CRA guidance to stay informed.
  
  

Blue J is proud to partner with CPA Canada in strengthening the accounting profession in Canada. Together, we’re empowering Canadian tax professionals to research efficiently, communicate confidently, and drive superior client outcomes. 

Whether you joined us live or couldn’t attend, you can still access key insights from this session featuring CPA Canada’s Vice President of Taxation, John Oakey. Discover how the latest in generative AI can equip you to navigate Canada’s complex tax landscape.

In this session, we cover: 

• Exclusive Access for CPA Canada Members: Learn how CPA Canada members can access an exclusive 50% discount on Blue J.
• Empowering Your Practice:  CPA Canada’s Vice President of Taxation, John Oakey, shares how this partnership strengthens the influence and impact of the Canadian accounting profession.
• Efficiency at Your Fingertips: Blue J’s CRO, Sean Erjavec, showcases how Blue J transforms how Canadian CPAs work, covering key features like accelerated research, automated drafting, and access to a comprehensive library of Canadian tax cases, statutes, regulations, and commentary.

Watch the webinar: CPA Canada Exclusive with Blue J

Here are some key considerations to keep in mind when dealing with income tax objections for taxpayers.

As tax practitioners know, clients sometimes receive a notice of assessment or determination that does not agree with their income tax return. And, depending on the complexity of the issue, the solution can range from requesting a simple adjustment to objecting, to eventually filing an appeal with the Tax Court of Canada.

Read more: What to do when your tax client disagrees with the CRA