A Canadian business owner who carries on an active business through a corporation may be eligible for an $800,000 lifetime capital gains exemption (indexed for inflation after 2014) on the sale of his/her corporation shares or on the deemed disposition of his/her corporation shares immediately before his/her passing. For a Canadian business owner in the…
Canadians earning income from US rental property can be fraught with unexpected cross-border tax problems, which could severely hurt their after-tax return on investment. It is important to consult a cross-border tax professional before the purchase to understand all the US and Canadian tax implications of owning US rental property and to make the best…
If your company is a foreign corporation doing business in Canada, this presentation will give you an overview of how Canada taxes your company’s profits from carrying on a business in Canada. Just by way of background, my name is Claudia Ku. I am a Chartered Professional Accountant and a Chartered Accountant in Toronto, Ontario….
Below are highlights of the proposed tax measures introduced in the 2014 federal budget delivered by Finance Minister Jim Flaherty on February 11, 2014. Measures concerning individuals Personal Income Tax Rates No proposed changes to the progressive personal income tax rates of 15%, 22%, 26% and 29%. Taxation of Estates and Testamentary Trusts The 2014…
Canada federal income taxes (both personal and corporate) and indirect taxes (i.e., goods and service tax) are levied under the provisions of the Income Tax Act and the Excise Tax Act. Provincial and territorial income and sales taxes are levied under various provincial statutes. Pursuant to tax collection agreements signed with all provinces and territories,…
Although there are no increases in the CPP contribution rate and the EI premium rate in 2014, if your earning for the year will exceed the maximum pensionable/insurable earnings, your annual CPP and EI contributions may still go up slightly (by approximately 2.9% and 2.5% respectively) due to the increases in the maximum pensionable/insurable earnings.
The EHT is a payroll tax imposed pursuant to the Employer Health Tax Act on all employers who have a permanent establishment in Ontario. An exemption from the EHT is available for eligible employers (or an associated group of employers) such as: private sector employers; organizations that receive financial assistance from the government (but are…
This article provides a general overview of the Canadian income tax framework relevant to non-resident multinational corporations doing business in Canada directly or indirectly through a partnership. This article does not cover the scenario where the non-resident corporations carrying on a business in Canada through a Canadian subsidiary.
You may find this article relevant to your estate planning if you are: a Canadian resident but not a US citizen and the fair market value of your US-situs assets exceeds US$60,000; or a Canadian resident and a US citizen and the fair market value of your worldwide assets exceeds the “unified credit exemption” amount…
