Finance Canada Drops Draft Legislation August 15

All professional tax practitioners, financial advisors should take note of an important mid-summer release of draft legislation to implement some of the proposals from the November 2024 Fall Economic Statement, the April 2024 Budget, the EIFEL rules announced on August 12, 2024, and rules relating to passive income of foreign affiliates announced in the 2022 federal budget.  This draft legislation also introduces more modifications to new trust filing requirements. Brief highlights appear below;  technical details will be discussed in the September 17 and November 5 CE Summits and Knowledge Bureau’s certificate course on T3 Filings. 

The new Registration of Tax Preparers Program, proposed to come into effect in two years, will keep track of errors associated with a particular registrant in an effort of improve compliance. CRA is seeking input on this change in its relationship with professionals.

The Canada Revenue Agency (CRA) recently released a new booklet that explains how to take business deductions from the income of a daycare. It’s an important issue for those who work taking care of children from their personal home as opposed to those who work taking care of children in the home of the parents.

In the recently decided case of Mallon v. MNR, the Tax Court of Canada provided further insight into the determination of the status of relationships: employee or independent contractor under the Income Tax Act (the Act).

It’s February, and that means that the Groundhog and Cupid vie for our attention. They seem to personify the challenge Canadians have with their fiscal balancing act: the ongoing lure to demonstrate love through wallets, with the fiscal obligations to spend and plan for our futures responsibility. 

Earning her DFA-Tax Services Specialist designation in 2007, Margaret Hodgson has been an active alumna of Knowledge Bureau ever since, regularly attending our live Distinguished Advisor Workshops and making the annual trip to the Distinguished Advisor Conference.

Self-reported pension sources can include amounts received from foreign pension sources. Depending on the terms of the tax treaty between Canada and the country in question, some or all of that income may be deductible.