Watch! Crypto Asset Transactions: Reporting and Taxation

Interview with crypto asset taxation specialist David Rotfleisch of Taxpage.com on the following topics:

  • Crypto tax basics: capital versus income; T1135 reporting

  • Proof of work versus proof of stake

  • Taxation of bitcoin mining-proof of work: hobbyist-wind fall; trader-inventory; service provider-income

  • Taxation of proof of stake (eg, Ethereum)

  • NFTs (Non-fungible tokens)

  • CRA’s overall position

  • Voluntary disclosures and CRA activity

Sources:

Recorded February 28, 2022

This video 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.

Watch! Corporate Life Insurance Policies – Valuation Issues

Kevin Wark, CALU Senior Advisor, discusses the recent decision in Crichton et al. vs. HMQ in the context of corporately held life insurance upon death and valuation of the corporate shares for probate purposes.

Sources:

Recorded March 15, 2022

This video 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.

More T3 Updates

On March 15 and 16, 2022, CPA Canada made blog posts about their recent communications with CRA regarding T3 filings. They include:

  • Additional notes required to be submitted with the T3 as a result of questions 1, 3, 4, 6, 7, 8 and 9 will now only have to be retained by the taxpayer in their records in the event the CRA asks to see them at a later date.

  • “In this transition year, the CRA will not assess the penalty for tax preparers who are liable to the penalty solely as a result of the proposed reduction of the threshold from 10 to 5 returns or the removal of the exemption for trust returns.” (Subsections 150.1(2.2) and (2.3))

T1 Filing Issues: Update

In a March 3, 2022 CPA Canada Post (released publicly on March 8), new guidance was provided in respect of claiming certain credits and deductions for items included in Bill C-8 that have not yet received Royal Assent. They include:

Northern Residents Deduction - Taxpayers can file based on proposed legislation without the return processing being delayed by CRA.

Eligible Educator School Supplies Tax Credit - Previously CRA indicated that they cannot process claims based on the proposed legislation until it is passed. CRA has now confirmed that this means that returns including such enhanced claims will be held and not processed until C-8 has passed.

Farmers Tax Credit (returns of carbon tax) - Previously CRA indicated that they cannot process claims based on the proposed legislation until it is passed. CRA has now confirmed that this means that returns including such enhanced claims will be held and not processed until C-8 has passed.

For details on CRA’s original announcement, see this web tip.

Also, comments were provided in respect of the February 4, 2022 proposals for penalties relating to prescribed information returns (such as T4s and T5s) not being filed electronically (if more than 5 of one type of prescribed information return are required to be filed in a calendar year). Although the draft legislation states that the rules would be effective January 1, 2022, penalties on these proposals will not be assessed for returns filed in 2022 since legislation has not yet passed.

Canada Digital Adoption Program

On March 3, 2022 the Canada Digital Adoption Program (CDAP) was launched and opened for application. This $4 billion program provides:

Funding through:

  • Grow Your Business Online Initiative - provides micro-grants and access to e-commerce advisors to help applicants go digital. Businesses must also be registered or incorporated and have at least one employee. For-profit businesses, including co-operatives and social enterprises, are eligible for this $2,400 micro-grant. Businesses must also be registered or incorporated and have at least one employee.

  • Boost Your Business Technology Initiative - provides a grant to help you develop a digital plan, and leverage funded work placements to help applicants with their digital transformation. Eligible businesses must have between 1 and 499 employees and have annual revenue between $500,000 and $100 million. SMEs can apply for a grant to cover 90%, up to a maximum of $15,000, of the cost of developing a digital adoption plan. SMEs will also be able to apply for an interest-free loan of up to $100,000 from the Business Development Bank of Canada.

Resources and Tools in respect of :

  • becoming a digital advisor;

  • an update service;

  • assessing digital maturity;

  • getting cyber certified; and

  • a variety of events and webinars.

CDAP website

Press Release

Backgrounder