Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

December is just around the corner and it’s high time to finalize the estimation of 2013 taxes payable income in order to determine the correct amount of the final tax instalments (December 15 for all taxpayers except farmers, who must submit one instalment on December 31).

The Supporting Small Businesses Act recently passed a second reading in the Ontario Legislature. Also known as Bill 105, the object of the legislation is to provide relief from the Employer Health Tax to small businesses, charities and not-for-profit entities.

On October 31, the Canada Revenue Agency (CRA) announced changes to the Scientific Research and Experimental Development (SR&ED) claim form, which incorporates changes announced in the 2012 and 2013 budgets.

With all the political shenanigans of late (both federal and local), the respect – or lack thereof – of the taxpayers’ dollars emerges on front page news daily. If this is particularly irksome to you, you might be interested in a little history of taxation in Canada. 

Those involved in criminal tax evasion cases are advised to bear civil tax consequences in mind when negotiating plea bargains and making admissions because the Tax Court of Canada (TCC) may admit evidence that may be otherwise inadmissible, if unchallenged in prior criminal proceedings.

If you adopt a child, you may claim a credit for the adoption expenses in the year that the adoption becomes final. This amount may be claimed by either spouse.