TAX UPDATE 2019
LIVE in 17 cities across Canada | 1 Online Session | 2-days of practical tax information
Early Bird Discount Deadline: August 30, 2019, 4:30 MDT
Join Video Tax News and tax professionals across Canada at the 35th annual Tax Update 2019 to discuss the most current and relevant tax planning tips and traps for the owner-managed business.
This fast-paced and highly detailed 2-day course offers practical insights and suggestions in a simple and straightforward manner. With consistent top ratings from attendees, you can be confident that this session will offer a strong and effective base for the upcoming season of planning and compliance.
Rated 4.6/5 by 2018 Tax Update Registrants.
TRACKING OF CORPORATE OWNERSHIP INFORMATION – CANADA BUSINESS CORPORATIONS ACT
Bill C-86, the Second 2018 Budget Bill, which received Royal Assent on December 13, 2018, included changes to the Canada Business Corporations Act which may begin to affect these discussions. The Bill sets out a criterion for identifying individuals who have significant control over a corporation. It also sets out a requirement for corporations that meet certain criteria to keep a register of these individuals
For these purposes an individual may have significant control over a corporation if the individual has any of the following interests or rights, or any combination of them, in respect of a significant number of shares (more than 25% of voting rights or value) of the corporation:
the individual is the registered holder;
the individual is the beneficial owner; or
the individual has direct or indirect control or direction over.
A group of two or more individuals whose joint holdings meet these criteria are considered to be an individual with significant control.
Also, an individual who has any direct or indirect influence that, if exercised, would result in control in fact of the corporation would be considered to have significant control. The legislation also provides that other prescribed situations may result in an individual having significant control.
Directors, shareholders and creditors of the corporation may, on application, be able to access the register.
Failure to comply with the requirements to maintain a registry may be subject to a $5,000 penalty. A director or corporation who “knowingly authorizes, permits or acquiesces” in not fulfilling this requirement or who provides false or misleading information in the registry may be subject to a fine of up to $200,000 and/or imprisonment of up to six months.
This requirement will come into force six months after Royal Assent, that is June 13, 2019.
For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 449.
This FREE 10-minute video for Canadian Tax Professionals includes rapid-fire discussion of select recent developments in the wonderful world of Canadian tax presented by the Video Tax News Team.
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LEGAL EXPENSES – DEDUCTIBILITY
In an April 11, 2018 Technical Interpretation (2017-0699751E5, McCarthy, Kathryn), CRA discussed a number of issues related to the deductibility of legal expenses from employment income (Paragraph 8(1)(b)). CRA first noted that such fees must be paid and incurred by the taxpayer to collect (or establish the right to collect) amounts which will be taxable as employment income. The deduction must be made in the year the legal feesare paid, which may not be the same year in which any employment income is reported.
The claim need not succeed in generating employment income. CRA noted that their Interpretation Bulletin IT-99R5, Legal and Accounting Fees, is incorrect in this regard, as determined in a Federal Court of Appeal case (John Loo vs. H.M.Q., A-206-03) decided subsequent to the most recent update of the Interpretation Bulletin. However, the purpose must still be to collect employment income owing. Other purposes, such as obtaining a raise or promotion or reinstatement of employment with no retroactive pay, would not qualify for a deduction.
For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 446.