Canada Revenue Agency

Total 280 Posts

Disability Tax Credit

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The 2021 Federal Budget included proposals that would see an expansion of the Disability Tax Credit to more Canadians. The Disability Tax Credit (DTC), with a value of $1,299 for 2021, is a non-refundable credit intended to offset the impact of disability-related costs. In order to claim this credit, a taxpayer must have a certificate confirming they have a severe and prolonged impairment in physical or mental function, or be….

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Canada Revenue Agency, Capacity Law, Caregiving, Disability, Elder Care, Estate Administration, Estate Planning, Executors, Tax Issues

Inheritance and Tax

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There is renewed discussion on whether Canada will become another jurisdiction where specific gift or estate taxes will be imposed on inheritances. There is speculation that the discussion will lead to something concrete as early as next week’s Federal Budget. In the meantime, there are situations where inheritances can come with a tax burden, such as the one described in a recent Tax Court of Canada case (Goldman v. the….

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Attorney Compensation, Canada Revenue Agency, Compensation, Costs, Courts, Estate Administration, Estate Administration and Probate Applications, Estate Litigation, Executors, Investments, Liability, Tax Issues, Trustee, Trustee Compensation, Trusts, Uncategorized

Tax returns for deceased persons

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The Canada Revenue Agency (CRA) will occasionally post requests to help improve the Agency’s processing efficiency. Recent posts caught my attention given their application to returns for deceased individuals. Date of Death The CRA noticed that tax preparers occasionally include a deceased person’s date of death on the living spouse’s tax return. This may result in the CRA mistakenly recording the living spouse as deceased. This error can cause major….

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Canada Revenue Agency, Executors, Tax Issues, Uncategorized

Death Benefit Payments

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The Canada Revenue Agency (CRA) recently released a translated technical interpretation with helpful guidance on the tax treatment of a death benefit payment in certain specific situations. A death benefit is income of either the estate or the beneficiary who receives it. Up to $10,000 of the total of all death benefits paid (other than CPP or QPP death benefits) is not taxable. The CRA had the following to say….

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Canada Revenue Agency, Estate Planning, Executors, Small Business, Tax Issues

Professional fees incurred in the context of a litigation with CRA

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On occasion, the personal representative of an estate may have to incur costs to either settle or disclose a matter with the Canada Revenue Agency (CRA). In a translated technical interpretation, the CRA provided some of its own guidance on how to navigate the relevant rule in the Income Tax Act (ITA). The ITA generally permits a deduction in computing a taxpayer’s income for a taxation year for amounts paid….

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Canada Revenue Agency, Costs, Estate Administration, Executors, Tax Issues, Trustee

TFSA’s and Non Resident Penalties – An Update

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A couple years ago, one of my blog colleagues wrote on the residency rules regarding tax free saving accounts (TFSA’s). Generally, as an owner of TFSA, if you leave Canada, the accumulated funds may remain in the TFSA without Canadian tax consequences. You can’t make any further contributions but you can make withdrawals. The penalties for not abiding by the non-residency contribution rules are severe – essentially 1% per month….

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Canada Revenue Agency, International, Investments, Liability, Tax Issues, Uncategorized
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