Episode 027 – Basic Principles in Remuneration Planning For Private Business Owners

In our firm’s latest podcast, Kenneth Keung and Kim G C Moody briefly discuss the 2023 Federal Budget proposals to amend the alternative minimum tax regime under Canadian tax law. Specifically, Kenneth and Kim discuss: The history of the AMT; The architecture of the AMT; The 2021 Liberal Party election policy platform promise to introduce a “15% minimum tax; The 2022 Federal Budget update on election policy promise; The 2023 Federal Budget proposals; The release of the draft legislation for the AMT amendments on August 4, 2023; The impact of the AMT proposals on charitable giving, capitals gains and trusts; and What should Canadian taxpayers and their advisors do about these proposals? Happy listening!

In our firm’s latest podcast, Kenneth Keung and Kim G C Moody briefly discuss Canadian COVID era supports and the fact that the Canada Revenue Agency are auditing some of the support claims. Specifically, Kenneth and Kim discuss: A brief and very general history of the larger supports provided during the COVID era.   The fact that the supports were broadly accessible and in many cases fraudulently or inappropriately accessed.   What you should do if the Canada Revenue Agency comes knocking on the door wanting to do an audit. Happy listening!

In our firm’s latest podcast, Kenneth Keung and Kim G C Moody discuss tax issues that need to be considered when non-residents of Canada purchase Canadian real estate. Specifically, Kenneth and Kim discuss: Some recent legislative changes that have impacted the ability of or have consequential impacts such as a ban on foreigners from buying Canadian real estate from January 1, 2023 – December 31, 2024, the Underused Housing Tax Act (and its onerous filing requirements and penalties) and various vacancy taxes in certain municipalities across Canada.   What legal form should be considered when purchasing property in Canada?   If the Canadian property will be rented out, what are some of the tax issues that need to be considered (Part XIII withholding requirements, section 216 reporting)?   If the Canadian property is sold, what are some of the tax, withholding and reporting requirements (section 116 requirements)?   The surprising result when personal-use Canadian real estate property is acquired by a foreigner through a foreign corporation (subsection 15(1) in conjunction with subsection 214(3) resulting in a withholding tax remittance requirement) and the recent comments about this at the STEP Canada CRA RoundTable in June 2023. Happy listening!

In our firm’s latest podcast,  Kenneth Keung and Kim G C Moody discuss the frustrations that Canadian individual taxpayers experience when claiming foreign tax credits.  Specifically, Kenneth and Kim discuss: What are foreign tax credits?  What’s the purpose of them and what are some of the high level eligibility requirements. Using a US citizen resident in Canada as an example, what are some of the common administrative issues that are experienced by such a person in order to claim US taxes paid on their US sourced income as a foreign tax credit on their Canadian tax return? For US taxes paid, what does the Canada Revenue Agency typically require in order to have the foreign tax credits granted for Canadian tax purposes?  Is this an easy process?  Does it take a long time? Some unusual experiences that our firm has recently experienced in trying to protect the rights of our clients to claim the applicable foreign tax credits. The comments by the Canada Revenue Agency recently at the June 2023 STEP Canada Roundtable regarding foreign tax credit claims. Is all of this frustrating experience necessary? Happy listening!  

In our firm’s latest podcast, Kenneth Keung and Kim G C Moody discuss a topic that has becoming very prevalent in the past few years: Canadians wanting to move to the U.S. for either personal or business reasons (or both). They discuss: The reasons why Canadians are interested in this topic. Important non-tax considerations when planning a move to the U.S. with the most important consideration being immigration planning. Tax considerations such as dealing with the “departure tax”, dealing with future dispositions of property when in the U.S. and ensuring your holdings are “cleaned up” to avoid future reporting and tax complications. What will your life look like after you are living in the U.S.? The importance of ensuring your estate planning is revised to consider such an important change. Happy listening!

In our latest episode of TaxBreaks, Kenneth Keung and Kim G C Moody discuss Canadian tax considerations – including recent policy changes – with respect to Canadian residential real estate. Specifically, Kenneth and Kim discuss: The principal residence exemption – is it too generous? Should there and will there be amendments to this generous exemption? The newly implemented “property flipping” rule – is it necessary? The new Underused Housing Tax Act – why was this introduced and a brief discussion of the numerous traps associated with this new legislation; The new “Prohibition on the Purchase of Residential Property by Non-Canadians Act” or the so-called “foreign buyers ban” – is this necessary? A brief discussion about provincial and municipal speculation / vacancy taxes. A lot of the new policy responses are to purportedly respond to the housing shortages that many Canadians are experiencing. However, are such responses more political than grounded in sound public policy? Are they necessary? Join Kenneth and Kim as they have a lively discussion on the above topics.

Join us for a listen as Kenneth Keung, Aasim Hirji and Kim G C Moody have a spirited and wide ranging discussion about the implications of Deans Knight. On May 26, 2023, the Supreme Court of Canada released its landmark decision in Deans Knight Income Corp. v. Canada cited as 2023 SCC 16. The case involved whether the application of the general anti-avoidance rule (“GAAR”) applied to deny a loss-utilization plan by the taxpayer. In light of the Tax Court of Canada’s decision (which decided in favor of the taxpayer) and the subsequent reversal of that decision by the Federal Court of Appeal, the tax community was eagerly awaiting the decision. The majority of the Supreme Court found that the GAAR applied to deny the taxpayer’s loss utilization plan. The Court’s reasonings are interesting and will have wide implications to the taxpayer community especially in light of the government’s recent attempts to “modernize” the GAAR and its release of draft proposals.  

In this episode of TaxBreaks, Kenneth Keung and Kim GC Moody provide their predictions on what might be included – or not – in the 2023 Canadian Federal Budget (that will be released on March 28, 2023). Kenneth and Kim provide their best “guesstimates” on: Will personal and/or corporate tax rates increase or decrease? Will the Budget contain the long-awaited Bill C-208 amendments that deal with inter-generational transfers of private businesses? Will the capital gains inclusion rate increase? Will we see amendments to the alternative tax regime? Will we see proposals released for the often-promised employee ownership trusts? Will the principal residence exemption be amended? Will there be new personal tax credits released? Will there be amendments released to clean up the technically deficient Underutilized Housing Tax Act? Will there be legislative proposals released to amend the general anti-avoidance rule? Will there be windfall taxes introduced that attack, say, the oil and gas sector? Will a wealth tax be introduced?  And some other predictions you’ll just have to listen to and find out! Happy listening!

In this episode of TaxBreaks, Kenneth Keung and Kim GC Moody take it back to basic principles for owner-managers of private corporations regarding how they should pay themselves. This basic principle is not so basic and requires a core understanding of tax principles. In addition, the mathematics needs to be run when considering options and alternatives. Kenneth and Kim discuss these core principles for owner-managers to consider.

In this episode of TaxBreaks, Kenneth Keung and Kim GC Moody discuss year-end tax loss selling that is very common towards the end of the calendar year. The objective of tax loss selling is to try to claim losses on non-registered investments against realized capital gains so as to reduce capital gains taxation upon filing of the relevant individual tax returns for the applicable year. But what should you consider? Kenneth and Kim discuss the “30 day rule” known as the superficial loss rule, how to calculate adjusted cost bases, losses that are denied when a “personal-use property” loss is triggered and planning that might be available when transferring property to non-affiliated individuals. Happy listening!