Canada Revenue Agency

Total 281 Posts

Inconsistency in CRA policy for dividends paid to a deceased beneficiary

• • 0 Comments

A recent article discussed taxation anomalies that occur due to timing differences between when a trust receives a dividend and subsequently pays and allocates a dividend to a beneficiary. CRA view 2016-0647621E5 provides that when a trust receives a dividend in the year and subsequently pays and allocates the dividend to a beneficiary in the same year, the allocation of the dividend for tax purposes occurs on December 31 of the year because….

Inconsistency in CRA policy for dividends paid to a deceased beneficiary Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Tax Issues

Disability Tax Credit

• • 0 Comments

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….

Disability Tax Credit Continue Reading »

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

Inheritance and Tax

• • 0 Comments

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….

Inheritance and Tax Continue Reading »

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

• • 0 Comments

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….

Tax returns for deceased persons Continue Reading »

Canada Revenue Agency, Executors, Tax Issues, Uncategorized

Death Benefit Payments

• • 0 Comments

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….

Death Benefit Payments Continue Reading »

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

Professional fees incurred in the context of a litigation with CRA

• • 0 Comments

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….

Professional fees incurred in the context of a litigation with CRA Continue Reading »

Canada Revenue Agency, Costs, Estate Administration, Executors, Tax Issues, Trustee
Scroll to Top