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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 COVID-19 tax updates.

It’s been a busy year in the tax world, with ever changing tax legislation and administration to keep on top of. We’ve rounded up some key tax developments that practitioners should have on their radar as we enter the fall:

Government releases significant draft tax legislation package – On August 4, 2023, the Department of Finance released a package of draft legislative proposals, to implement various tax measures, update certain previously released draft legislation, and make certain technical changes.

The draft legislation covers a wide variety of measures, and includes:

- Intergenerational business transfers
- Employee ownership trusts
- Alternative Minimum Tax
- Revised Excessive Interest and Financing Expenses Limitations (EIFEL) rules and GAAR amendments
- Digital services tax and the global minimum tax (Pillar two)
- Numerous green initiatives

Finance has launched public consultations on the proposals, with comments to be submitted by September 8, 2023 (or by September 29, 2023, for submissions on the global minimum tax).

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.

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

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.

A better way of designing new tax legislation

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.

CPA Canada Resources

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 COVID-19 tax updates.

Tax Resources for CPAs

Get fresh perspectives on trending tax issues through our news roundup, blog, webinars, and other practical tools. Created for CPAs and the broader tax community, our resources will help you stay current on changing tax laws.

On November 21, the Deputy Prime Minister and Minister of Finance released the federal government’s 2023 Fall Economic Statement (FES), which contained some new tax announcements along with an update on previously announced tax measures. Please see our summary of key changes and updates below.On November 21, the Deputy Prime Minister and Minister of Finance released the federal government’s 2023 Fall Economic Statement (FES), which contained some new tax announcements along with an update on previously announced tax measures. Please see our summary of key changes and updates below.

During 2023, CPAs across the country were canvassed to pose the top questions they have for the CRA. Some of the topics covered include:

Update on audit initiatives and the future of desk audits and other remote work
Guidance on exempt income and research grants
Home office expenses and automobile expenses
Automatic adjustments
Misallocated personal tax payments in My Account
Communicating with CRA
Electronic services enhancements
Update on special elections and returns
Policy on electronic signatures
Guidance on cryptocurrency

CPA Canada recognizes that the Canada Revenue Agency’s (CRA) initial guidance, released on July 5th, did not address all our members questions regarding administration of the rules. The objective of CRA’s initial guidance was to ensure timely guidance was provided to taxpayers and their advisors.

Baker Tilly Canada’s John Oakey, CPA, offers an overview of what we know—and don’t know—about the tax implications around crypto in Canada today.
Since crypto investing and trading have become mainstream, the tax implications of cryptocurrency have become an increasingly important issue. At this stage, there are a number of areas where there is still some confusion around compliance with tax rules. We spoke to CPA John Oakey, national director of tax services at Baker Tilly Canada, about what we know—and don’t know—about the current tax implications of cryptocurrency.

A number of factors need to be considered before filing a voluntary disclosures program application, including the size of the sum in issue and whether any intentional conduct was involved.
Practitioners who deal with cases under the CRA’s Voluntary Disclosures Program typically prefer to pursue the general program which, as the CRA points out, is intended for taxpayers who want to come forward and correct unintentional errors. But there is a limited program as well. According to the CRA, this generally applies to taxpayers who have somehow intentionally avoided their tax obligations.

From policies and education to system implementation and documentation, a good tax practice embraces the need for more rigour in all aspects of operations. Any practitioner who performs tax services knows how inherently complex and challenging the area can be. “Since the rules are constantly changing, this kind of work is risky by nature,” says FCPA Bruce Ball, vice-president of taxation at CPA Canada.

Important asks for the 2023 federal budget include a national whistleblower protection framework; compensation study released and other news from the accounting profession.
PRE-BUDGET CONSULTATION: CPA CANADA’S RECOMMENDATIONS RELEASED
CPA Canada has released its annual pre-budget submission with three key recommendations for the 2023 federal budget:

CPA Canada responds to the budget’s delivery on issues relating to fiscal anchoring, sustainable finance and AML efforts.
In response to the impacts of the pandemic, the war in Ukraine, and other economic pressures, including inflation and supply chain disruptions, on April 7, the federal government tabled its first budget since the last federal election.

FCPA Bruce Ball, vice-president of taxation at CPA Canada, shares the three main considerations for governments to consider when developing new tax laws.

When the pandemic took hold and the country locked down, the federal government had to act fast. Regular processes for making laws were sped up or skipped to get financial support into the hands of Canadians and their businesses as quickly as possible. More recently, the government has turned to its broader agenda, seeking to implement a host of tax measures promised in recent election campaigns and federal budgets.

The Canada Revenue Agency is escalating their scrutiny of personal services businesses, and the consequences for breaching these tax rules can be severe. Find out what you need to know about the CRA’s campaign.

As more individuals and sole proprietors in Canada are choosing to incorporate, it has become essential to assess if the formed corporation is operating as a PSB and how that can impact the entity’s tax situation. 

Finance releases draft legislation for 2021 budget measures

On 4 February 2022, the Department of Finance released for public comment draft legislative proposals (and accompanying explanatory notes) to implement most of the remaining measures from the 2021 federal budget, postpone application of previously announced measures pertaining to new reporting requirements for trusts, introduce amendments relating to allocations to redeemers by mutual fund trusts (including extending the rules to mutual fund trusts that are exchange-traded funds), introduce rules respecting the application of GST/HST to crypto asset mining, and make certain other technical amendments.

Self-employed? Talk to a CPA long before filing your taxes

Tax time can be tricky for almost anyone, but this can be especially true for those who work for themselves. Turning to a CPA when filing—or better yet, in the months before—can help reduce the inevitable headache and possibly the amount of money owed in late fees or missed deductions through several well-prepared steps.

The tax implications of employees working remotely abroad

Before granting an employee’s request to telework from another country, employers need to ensure the organization is meeting all its obligations.

You’ve just learned CRA intends to review your tax return. Now what?

By educating yourself on the process and making sure you have all your important records on hand, you can save yourself a lot of unnecessary worry.

Dentons - Employee or independent contractor?

The issue of whether an individual is an employee or an independent contractor can have far-reaching effects on both the individual and the company for whom they provide services. However, companies often pay little attention to either the distinction between the two statuses or the possible effects of an incorrectly described relationship.

Rise of electric vehicles raises tax concerns

As EVs are poised to take over the roadways in the decades ahead, what will become of the gas tax?

Tax treatment of cryptocurrency for income tax purposes.

The following pages outline the income tax implications of common transactions involving cryptocurrency. When we refer to cryptocurrency in this publication, we are talking about Bitcoin or other similar virtual currencies.

Tips on running a high-quality tax practice

Practicing tax is complex and missteps are costly. Learn about some common issues leading to recent professional liability claims and how you can mitigate tax risk to make your practice more productive and profitable.

New standard on compilation engagements: What does it mean for tax work?

What’s the impact of the new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, on tax compliance work? Understand how the new standard applies to tax-related engagements and more.

Other Resources

AICPA Supports Setting Standards for Tax Preparers

The American Institute of Certified Public Accountants announced its support for a recent U.S. proposal to provide the Department of the Treasury with undefined authority to regulate paid tax-return preparers.

Auditing Accounting Estimates in the Current Evolving Environment Due to COVID-19

This publication has been prepared to highlight key areas of focus in the current environment when undertaking audit procedures relating to accounting estimates and related disclosures in accordance with the International Standards on Auditing™(ISA™).

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