Context: As part of the avalanche of new draft legislation, the Department of Finance has released revised excessive interest and financing expenses limitation (EIFEL) rules. The attached Excel is a high-level and technical summary of the new EIFEL regime. …
The recently enacted “flipped property” rules in the Income Tax Act (Canada) (the “Act”) have wide ranging implications. Several tax practitioners have written about the problematic nature of the rules (see, for example: Evan Crocker and Kenneth Keung, “Related-Party Transfers…
On July 24, 2023, the Canada Revenue Agency (CRA) released the new and revised forms applicable to the enhanced mandatory disclosure rules under the Income Tax Act (Canada) (the “Act”).
On August 4, 2023, the Department of Finance released draft legislative proposals relating to certain measures that were announced as part of the 2023 federal budget (“Budget 2023”) as well as other previously-announced measures. Included is draft legislation on…
When is an allocation of costs amongst supplies “fair and reasonable” for calculating input tax credits (“ITCs”)? In Marine Atlantic Inc. v The King (2023 TCC 95), the Tax Court confirmed that a “fair and reasonable” allocation:
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The CRA has published two separate documents relating to the new and expanded mandatory disclosure rules, which became law on June 22, 2023. For discussion of those rules, see our previous tax alert and blog post.
The first…
On June 22, 2023, Bill C-47 – An Act to implement certain provisions of the budgets tabled in Parliament on March 28, 2023 received Royal Assent. As a consequence, new or expanded mandatory reporting rules for certain “reportable” or “notifiable”…
On June 20, 2023, the Province of British Columbia (the “Province”) released a Provincial Sales Tax (PST) Notice to providers and purchasers of cloud software and services (the “Notice”). The Notice came in response to the B.C. Supreme Court…
The amendments to section 84.1 implemented by Bill C-208 (43rd Parliament, 2nd session) permit intergenerational share transfers to corporations controlled by a child or grandchild to be executed on a tax-efficient basis. If certain conditions are met, parents and grandparents…
The application of British Columbia’s provincial sales tax (“BC PST”) to digital services is controversial. A main issue has been whether the services should be taxed as “software”. The British Columbia Supreme Court in Hootsuite Inc. v British Columbia (Finance),…