,

Watch! Life in the Tax Lane - January 2022

,

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. 

Sources:

Life in the Tax Lane is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2022, All Rights Reserved.

Featured upcoming seminars:

7 hours of practical tax information | 11 virtual live sessions | recording available

3-hours | pre-recorded online | 1-week access | 2022 edition

Expanded Eligibility to Lockdown Support Programs

On December 22, 2021 the government announced that it will:

  • Expand the Local Lockdown Program to include employers subject to capacity-limiting restrictions of 50% or more; and reduce the current-month revenue decline threshold requirement to 25% (it was previously 40%). Eligible employers will receive wage and rent subsidies from 25% up to a maximum of 75%, depending on their degree of revenue loss. The rate of subsidy will continue to be calculated on a 1:1 basis (e.g. 25% revenue decline = 25% subsidy). The 12-month revenue decline test continues to not be required in order to access this support.

  • Expand the Canada Worker Lockdown Benefit to include workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50% or more. Furthermore, these regulatory changes would include reducing the minimum number of days a lockdown order needs to be in place to meet the new definition to 7 consecutive days, down from 14 consecutive days. As announced previously, this benefit will provide $300 a week in income support to eligible workers who are directly affected by a COVID-19-related public health lockdown, and who have lost 50% or more of their income as a result.

These updated regulations will apply from December 19, 2021, to February 12, 2022, during which time it is expected that public health authorities will continue to implement “circuit-breaker” restrictions that limit the spread of the Omicron variant of COVID-19 across Canada.

Backgrounder

Application Portal for Modified Rent and Wage Subsidies Now Open

On December 21, 2021, the government of Canada announced that Bill C-2, which included extensions and updates to COVID-19 business subsidies, received Royal Assent. 

Numerous CRA webpages and resources have been updated to reflect these legislated changes. Applications for period 22 (Oct 24 – Nov 20, 2021) are now open for the following programs:

Once an applicant has determined that they are eligible for a subsidy pursuant to one of the aforementioned program criteria, applications for the wage and rent subsidies must be made separately.

Useful links:

2021 Economic and Fiscal Update - Summary

On December 14, 2021, Economic and Fiscal Update 2021 and the related Notice of Ways and Means Motion were released along with the following backgrounders:

Tax and related items provided for in the Update include:

  • Eligible Educator School Supply Tax Credit: This refundable tax credit is proposed to increase from 15% to 25%, effective for 2021. Some durable goods and electronic devices would be added as eligible supplies.

  • Small Business Air Quality Improvement Tax Credit: The credit is proposed at 25% of an eligible entity’s qualifying expenditures (to a maximum of $10,000 in expenditures per qualifying location and a maximum of $50,000 across all qualifying locations).  Qualifying expenditures would include expenses directly attributable to the purchase, installation, upgrade, or conversion of mechanical heating, ventilation and air conditioning (HVAC) systems, as well as the purchase of devices designed to filter air using high-efficiency particulate air (HEPA) filters, the primary purpose of which is to increase outdoor air intake or to improve air cleaning or air filtration.  This would apply to expenditures incurred between September 1, 2021 and December 31, 2022.

  • Underused Housing Tax: This tax is proposed to be effective for the 2022 calendar year. Expanded exemptions for significant use by the owner’s family and rural vacation/recreational properties personally used by the owner for at least 4 weeks were also proposed.

  • Simplified home office deduction method: It is proposed that the simplified rules for deducting home office expenses would be extended and the temporary flat rate method would be increased to $500 annually. This would apply to the 2021 and 2022 tax years.

  • GIS support: It is proposed that one-time payments will be made to alleviate the financial hardship of GIS and Allowance recipients who received the CERB or CRB in 2020. The amount of payment was not provided.

  • Student relief: The government proposed to provide debt relief to students who, although ineligible, received the CERB, by allowing their CERB-related debt to be offset by the amount they would have received from the CESB.

  • Expanded access to the Northern Residents’ Deduction (NRD): The government reiterated their intention to bring forward legislation to extend the NRD so eligible individuals can claim up to $1,200 in eligible travel expenses starting “next month.”

  • Pollution pricing – payments to farmers: It is proposed that fuel charge proceeds will be directly returned to farming businesses in backstop jurisdictions (Ontario, Manitoba, Saskatchewan, and Alberta) via a refundable tax credit, starting for the 2021-22 fuel charge year.

  • CEBA repayment: It is proposed that legislation would be brought forward to extend small businesses’ deadline for the repayment of Canada Emergency Business Account loans.

  • Highly Affected Sectors Credit Availability Program: This program is proposed to be extended to March 31, 2022 (it was set to expire on December 31, 2021).

  • EI Seasonal Workers Pilot Project: The government intends to ensure that seasonal workers who received pandemic benefits can still qualify for the EI Seasonal Workers Pilot Project.

  • Luxury Tax: Budget 2021 proposed to introduce a tax on the sale of select luxury goods (new cars and aircraft with a retail sale price over $100,000 and to new boats over $250,000). Draft legislation, including details on coming into force, will be released in early 2022.

Still need to complete your 2021 PD hours? Check out our pre-recorded course options here.

Ethics 4 Course Bundle

Pre-recorded | 4 hours | December 15-31, 2021 | $297/individual or $897/location

 

Registration closes
Dec 31, 2021, 12pm MT

Practicing tax ethically is a constant challenge, especially in a time of limited resources and constant client, CRA and business pressures. Would you like tips for practicing in an ethical manner? Our ethics courses are specifically designed for the public practitioner dealing with owner-managed businesses.

Includes:

  • Practicing Tax Ethically | 1 hour

  • Ethics and Dealing with the CRA | 1 hour

  • Ethical Leadership in Tax | 1 hour

  • Ethics Under Pressure | 1 hour

Register Here | Learn more

Tax Update 2021

Registration closed
Dec 29, 2021

Pre-recorded | Canada-wide | 14 hours | Available Dec 15-31, 2021 | $575/registrant*

Tax specialists Joseph R. Devaney CPA, CA, Caitlin L. Butler CPA, CA and Hugh Neilson FCPA, FCA, TEP lead this fast-paced and highly detailed 14-hour course offering hundreds of practical insights and suggestions in a straightforward manner.

These highly valued sessions will also feature mini-presentations, from top of their field guests, on key tax and associated changes, effective strategies and pitfalls.

This course covers (but is not limited to) the following topics:

  • COVID-19 impacts and government supports

  • 2021 federal budget

  • tax on split income

  • remuneration strategies for owner-managers

  • loss utilization and planning

  • corporate passive investment income

  • small business deduction

  • planning and compliance of intercorporate dividends (Section 55)

  • CRA initiatives, projects and administrative changes

  • trust and estate planning

  • divorce and family changes

  • corporate reorganizations and ownership changes

  • employer/employee issues

  • tax-effective compensation for employees

  • business/property income matters

  • GST/HST

  • charities and NPOs

  • provincial/territorial budget changes

Register Here | Learn More

*the printed textbook will not be available for this session so this price includes a $25 discount.

Newbies to Ninjas: Corporate Tax

Registration closes
Dec 31, 2021, 12pm MT

Pre-recorded | 3 hours | December 15-31, 2021

Newbies to Ninjas: Personal Tax is targeted to improve the efficiency and accuracy of newer preparers. This concise pre-recorded online 3-hour topic-by-topic course provides a standardized tool to train your team. Used in conjunction with your firm's presentation of administrative procedures, newer preparers will be preparing T1s with increased efficiency, accuracy, and the tools to identify possible planning opportunities.


Register Here | Learn More