Canada Revenue Agency

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Beneficial ownership reporting for trusts – the uncertainty is almost here!

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The beneficial ownership reporting for trusts (BORT) rules, originally announced in the 2018 Federal Budget on February 27, 2018, has made its way into the House of Commons. The original draft legislation released by Department of Finance on July 27, 2018 was updated on February 4th and on August 9th of 2022. This final update of the BORT draft legislation is now included in the 172 pages of Bill C-32[1]….

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Canada Revenue Agency, Estate Administration, Tax Issues, Trusts

New Trust Reporting Requirements Postponed Yet Again!

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Today’s blog was written by Pritika Deepak, Associate at Fasken LLP. Several tax practitioners and professionals alike breathed a sigh of relief on November 3rd, 2022, when Parliament confirmed that the enhanced tax reporting obligations for trusts shall be postponed once more. As per draft legislation published on August 9, 2022, the application of such enhanced rules was expected to apply to taxation years ending after December 30, 2022. Fortunately,….

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Canada Revenue Agency, Tax Issues, Trusts, Uncategorized

Beneficial ownership reporting – beware of penalties

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Proposed regulation subsection 204.2(1) of the Income Tax Act (ITA) introduces a requirement for all trusts, that are required to file a return of income, to provide additional information[1] for each person who, in the year, is a trustee (or protector[2]), beneficiary or settlor[3]. This additional information includes: name, address, date of birth (in the case of an individual other than a trust), and jurisdiction of residence and taxpayer identification….

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Canada Revenue Agency, Trustee

Disability Tax Credit – 2021 Federal budget proposals – now law

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The 2021 Federal budget[1] announced proposed changes to the Disability Tax Credit (DTC) to broaden its scope and provide more clarity.  These proposed legislative changes are now law with an effective date of January 1, 2021[2]. The Disability Tax Credit A taxpayer has access to the DTC when Canada Revenue Agency (CRA) formally approves the T2201 – Disability Tax Credit Certificate. This approved certificate confirms that the taxpayer has a….

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Canada Revenue Agency, Disability

A family trust and its beneficiaries – think twice before including your niece or nephew

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Discretionary family trusts used to be a staple in most private company corporate structures. The income splitting benefits were obvious, and professionals were more than happy to implement a family trust in almost any corporate structure. The popularity of using family trusts eventually led to complacency from some professionals in understanding the detailed tax rules that applied to implementing those trusts. In the earlier years of drafting trust documents, professionals….

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Canada Revenue Agency, Tax Issues, Trusts

Valuation for Estate Planning – Some Hard Lessons

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In a recent case in Tax Court, Lauria v HMQ 2021 TCC 66, the taxpayers, both officers and directors of a company held shares in the company as a result of employee share option agreements granted to them.  In early 2006, the company founders decided to pursue an initial public offering (“IPO”) of the company and hired an underwriter for that purpose. Apparently upon the advice of the company’s chief….

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Canada Revenue Agency, Courts, Estate Planning, Investments, Limitation periods, Tax Issues, Trusts, valuation
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