Commentary

  • 2011 Federal Budget—Tuition Tax Credit—Examination Fees

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011.   Fees relating to certain examinations will be eligible for the Tuition Tax Credit, effective for fees paid for exams taken in 2011 and subsequent years. The fees must be […]

  • 2011 Federal Budget—Education Tax Measures—Study Abroad

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Various education tax measures have been modified in recognition of the fact that programs at many foreign universities are based on semesters that are shorter than 13 weeks. Currently, a […]

  • 2011 Federal Budget—RESPs—Asset Sharing Among Siblings

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The Income Tax Act imposes a penalty tax that applies to over-contributions to registered education savings plans (“RESPs”). There is an exception that generally applies to transfers from one RESP […]

  • 2011 Federal Budget—RDSPs—Shortened Life Expectancy

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Under current rules governing registered disability savings plans (“RDSPs”), some provision is made to alleviate potential adverse consequences for beneficiaries that have shortened life expectancies. For example, for a “specified […]

  • 2011 Federal Budget—RRSPs—Anti-Avoidance Rules

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The Budget proposes to subject Registered Retirement Savings Plans (“RRSPs”) and Registered Retirement Income Funds (“RRIFs”) to certain penalty taxes that currently apply to Tax Free Savings Accounts (“TFSAs”), in […]

  • 2011 Federal Budget—Individual Pension Plans

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. An individual pension plan (“IPP”) is a type of Registered Pension Plan (“RPP”) that is established by the employer for one individual (generally an owner of the business or executive). […]

  • 2011 Federal Budget—Tax on Split Income—Capital Gains

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. In 2000, a tax often referred to as the “kiddie tax”, but officially referred to as “tax on split income”, was introduced. This tax was intended to reduce income splitting […]

  • 2011 Federal Budget—The Charitable Sector

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Budget 2011 targets some potential abuses in the charitable sector. Proposals include, among other measures: extension of rules applicable to a “registered charity” to certain other entities, such as amateur […]

  • 2011 Federal Budget—Qualifying Environmental Trusts

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The qualifying environment trust (“QET”) tax regime applies to certain trusts set up to fund future reclamations costs relating to mines, quarries and waste disposal sites. The Budget proposes that, […]

  • 2011 Federal Budget—Stop-Loss Rules on the Redemption of a Share

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The Income Tax Act contains a basic rule which provides that dividends paid between Canadian corporations may be received free of income tax.  This concept is taken into account, in […]

  • 2011 Federal Budget—Partnerships—Deferral of Corporate Tax

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The Budget proposes some changes that will have significant consequences to any corporation that carries on business through a partnership (or multiple tiers of partnerships) where the partnership does not […]

  • 2011 Federal Budget—Capital Cost Allowance—Machinery and Equipment

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Assets described in Class 29 are eligible for capital cost allowance at a rate of 50% on a straight-line basis (subject to the “half-year rule”). These assets are machinery and […]