Tax Alert Archives

Reminder: Pay the interest on prescribed-rate loans or indebtedness by January 30

Prescribed-rate loans or indebtedness generally refer to loans or indebtedness that meet the following statutory requirements to qualify for an exception to certain attribution rules in the Income Tax Act (Canada):

  1. interest is charged on the loan or indebtedness

Prepared by: Alvin Lun

Alvin’s practice focuses on domestic and international tax planning for individuals, trusts, and corporations, as well as representing taxpayers in their disputes with the Canada Revenue Agency. He is fluent in Cantonese and Mandarin Chinese. Prior to joining Thorsteinssons, Alvin… more »

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Speculation and Vacancy Tax: Rental Restriction Exemption Extended Through to 2021

On December 23, 2019, the BC Government issued Order in Council No. 723 (the “Order”).  Among other things, the Order establishes the Exemptions from Tax Regulation (the “Regulation”) and amends the Regulation to extend the exemption for properties subject to…

Prepared by: Alvin Lun

Alvin’s practice focuses on domestic and international tax planning for individuals, trusts, and corporations, as well as representing taxpayers in their disputes with the Canada Revenue Agency. He is fluent in Cantonese and Mandarin Chinese. Prior to joining Thorsteinssons, Alvin… more »

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Update on Proposed Amendments to Stock Option Rules

On June 17, 2019, the federal government tabled a notice of ways and means motion proposing legislative amendments to the stock option regime. Consistent with the intention announced in the 2019 federal budget, the draft legislation imposes a $200,000 annual…

Prepared by: Jenna Himelfarb

Jenna is an associate at the Toronto office of Thorsteinssons. Jenna advises clients on the tax aspects of a wide variety of matters, including corporate reorganizations and restructurings, mergers and acquisitions and cross-border structures. She also practises in the areas… more »

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Federal Court Rejects Charter Challenge of FACTA Related Provisions of the Income Tax Act

On July 22, 2019, the Federal Court released its reasons for judgement in rejecting a constitutional challenge of sections 263-269 of the Income Tax Act (Canada) (the “ITA”). The full reasons can be found at 2019 FC 960 (“Deegan”).…

Prepared by: Ian Humphries

Ian Humphries is a partner working out of the Vancouver office of Thorsteinssons LLP. Ian joined Thorsteinssons after articling and practicing securities law at a national law firm. Prior to law school, Ian worked as an investment banker in the… more »

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163(1) Repeated Failure to Report Penalty Upheld

In the recent decision in Polubiec (2019 TCC 146), the Tax Court of Canada upheld the assessment of approximately $140,000 in penalties under the repeated failure to report income penalty under s. 163(1) of the Income Tax Act (Canada). In…

Prepared by: Ian Humphries

Ian Humphries is a partner working out of the Vancouver office of Thorsteinssons LLP. Ian joined Thorsteinssons after articling and practicing securities law at a national law firm. Prior to law school, Ian worked as an investment banker in the… more »

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Proposed Changes to GST/HST Rules

On May 17, 2019, the Minister of Finance published proposed amendments to the GST/HST portion of the Excise Tax Act.  Notable among the proposed amendments is the inclusion of “virtual payment instrument” in the definition of “financial instrument”.  A virtual

Prepared by: Tyler Berg

Tyler is an Associate working in the Vancouver office. During his law degree, Tyler participated in the Law Students’ Legal Advice Program and the UBC Law Review, and played intramural ice hockey for the UBC Law Legal Eagles. Tyler also… more »

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Top Saskatchewan Court Rules Carbon Tax Constitutional

On May 3, 2019, the Saskatchewan Court of Appeal released its decision in the Saskatchewan government’s reference regarding the constitutionality of the federal government’s carbon tax.  In a 3-2 decision, the Court ruled that the federal carbon tax “backstop”…

Prepared by: Tyler Berg

Tyler is an Associate working in the Vancouver office. During his law degree, Tyler participated in the Law Students’ Legal Advice Program and the UBC Law Review, and played intramural ice hockey for the UBC Law Legal Eagles. Tyler also… more »

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Speculation and Vacancy Tax Declaration Deadline Approaching

The deadline to complete the 2018 Speculation and Vacancy Tax declaration is set for this Sunday, March 31, 2019. All registered owners or co-owners of residential property in affected areas in BC should declare before this deadline using the Declaration…

Prepared by: Zheting Su

Zheting is an associate at the firm’s Vancouver office. Zheting’s practice focuses on all aspects of commodity tax, including the Harmonized Sales Tax (HST), Goods and Services Tax (GST), provincial sales taxes, and customs law. Prior to joining Thorsteinssons, Zheting… more »

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Bill C-86 Receives Royal Assent

On December 13, 2018, Bill C-86 received Royal Assent.  This bill implements various income and excise tax measures, including the introduction of a refundable tax credit for certain individuals who will be subjected to the federal carbon tax in…

Prepared by: Tyler Berg

Tyler is an Associate working in the Vancouver office. During his law degree, Tyler participated in the Law Students’ Legal Advice Program and the UBC Law Review, and played intramural ice hockey for the UBC Law Legal Eagles. Tyler also… more »

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Audit of CRA Reveals Inconsistent Treatment of Taxpayers

On November 20, 2018, the Office of the Auditor General of Canada released its 2018 Fall Reports, including a report on the compliance activities of the Canada Revenue Agency.  The Auditor General’s audit focused on whether the CRA consistently…

Prepared by: Tyler Berg

Tyler is an Associate working in the Vancouver office. During his law degree, Tyler participated in the Law Students’ Legal Advice Program and the UBC Law Review, and played intramural ice hockey for the UBC Law Legal Eagles. Tyler also… more »

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