Tax Issues

Total 358 Posts

Extended tax payment deadlines and interest relief on tax debt

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Further tax payment deadline extensions and interest relief on tax debt are on offer by the Canada Revenue Agency (CRA) during the COVID-19 pandemic. As announced on July 27, 2020, trusts now have until September 30, 2020, to pay income tax balances and instalments that would have otherwise been due on or after March 18, 2020 and before September 30, 2020. The CRA also says that all penalties and interest….

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Canada Revenue Agency, Executors, Liability, Tax Issues

Someone else’s tax bill – Sometimes there is no getting away from it!

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In Dreger et al v the Queen (2020 TCC25), the beneficiaries of an estate bequest appealed assessments for unpaid taxes by the deceased. In this case, the deceased was an annuitant of a life income fund (“LIF”) and prior to his death, he designated to each of his daughters as his beneficiaries under a beneficiary designation in respect of the LIF. In his will, the deceased named his daughters as….

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Canada Revenue Agency, Courts, Estate Administration, Estate Litigation, Executors, Investments, Liability, Tax Issues, Trustee, Trusts, Uncategorized, Wills

Foreign reporting and the foreign pension plan

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The Canada Revenue Agency (CRA) was asked whether a Canadian-resident individual is required to file Form T1135 (Foreign Income Verification Statement) in respect of their interest in a US pension plan.  The foreign property reporting rules are in section 233.3 of the Income Tax Act (ITA). Generally, these rules require certain taxpayers resident in Canada and certain partnerships to file an information return (Form T1135) with respect to their “specified….

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Canada Revenue Agency, Tax Issues

BARE TRUSTS

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A bare trust, also referred to as a naked trust, exists where a person, the trustee, is merely vested with the legal title to property and has no other duty to perform or responsibilities to carry out as trustee, in relation to the property vested in the trust. The sole duty of a bare trustee would be to convey legal title to the trust property on demand of and according….

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Canada Revenue Agency, Courts, Estate Planning, Investments, Joint Tenancy, Property, Resulting Trust, Tax Issues, Trustee, Trusts, Uncategorized

LIFE INSURANCE IN THE COVID-19 ERA

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As someone who has been around the life insurance industry in a professional and personal capacity for several decades, I am always curious about what motivates people to buy or not buy life insurance. I understand that few people spend time thinking about the consequences of low-probability events and are therefore disinclined to consider the need for life insurance. I would have thought the COVID-19 pandemic would increase public awareness….

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Business Succession Planning, Estate Administration, Estate Planning, Funeral Planning, In the News, Insurance, Investments, Property, Tax Issues, Uncategorized

TFSA’s and Survivor Payments: Impact of Fair Market Value.

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In this space, sometime ago, a fellow blogger wrote about how survivor payments made out of a deceased’s tax free savings account (TFSA)  to the deceased’s spouse TFSA would qualify as an “exempt contribution” (i.e. the contribution room in the surviving spouse’s TFSA would not be affected by the addition of these funds), even if the spouse was not designated beneficiary of the TFSA. What are the implications to the….

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Canada Revenue Agency, Estate Administration, Investments, Property, Tax Issues, Uncategorized, Wills
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