On November 21, 2024, the government of Canada announced its intention to introduce legislation in Parliament that would provide for a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries, restaurant meals and holiday essentials. Many of the items relieved of the application of the GST/HST federal component, at 5%, under the current announcement are already subject...

Concurrent with increasing the capital gains inclusion rate from 50% to two‑thirds, the government has increased the lifetime capital gains exemption to $1.25 million and introduced a new incentive ⁠–⁠ the Canadian Entrepreneurs’ Incentive (CEI) ⁠–⁠ available to business owners realizing capital gains on the sale of certain qualifying small business corporation shares or qualified farming and...

On April 18, 2024, the Ministère des Finances du Québec announced its intention to amend Québec’s tax legislation and regulations to incorporate, with adaptations on the basis of their general principles, measures relating to: the increase in the lifetime capital gains exemption; the introduction of the Canadian Entrepreneurs’ Incentive; the increase in the capital gains inclusion rate and...

Canada’s 2024 Federal Budget (Budget 2024), delivered by Deputy Prime Minister and Finance Minister Chrystia Freeland on April 16, 2024, addresses critical economic challenges faced by Canadians and businesses.   Audit & enforcement measures The government announced a variety of targeted anti-avoidance measures to enhance the CRA’s compliance efforts and enforcement actions.  ...

We have sent out numerous updates about trust, in trust, and bare trustee reporting. If any of these situations apply to you and we are NOT aware of it, please contact your LCA advisor: 1.  Trustee of a formal trust 2.  Hold an in-trust account for someone else. a.  For example, a parent or grandparent being the name on a bank account or investment account in trust for a child or grand child...

Dear clients and contacts of LCA, We have previously written about the new trust reporting rules which impose additional filing requirements for most trusts, many of which were previously exempt from filing a T3 Trust and Income Tax Return with CRA. We want to remind you of the new rules that are in effect for taxation years ending on or after December 31, 2023, as pending due dates approach. In...

Effective January 1, 2024, payments over 10,000$ must be remitted electronically, meaning either by online banking or by payment directly from a financial institution, and this is for both Canada Revenue Agency and Revenu-Québec. This rule only applies to businesses and not personally. Payments of over 10,000$ made by cheque can be subject to penalties effective this new rule. CRA As of January...

Dear Clients and Friends, The Canada Emergency Business Account (CEBA) program offered interest-free loans of up to $60,000 to small businesses and not-for-profits. CEBA loans were available from more than 220 financial institutions across the country. For eligible CEBA loan holders in good standing, repaying the balance of the loan on or before January 18, 2024 will result in loan forgiveness...