2/3 Isn’t Bad…It’s Criminal!

On April 16, 2024 the Federal Government released Budget 2024.  Of particular interest is the increase in the capital gains inclusion rate from 1/2 to 2/3, effective for dispositions realized after June 24, 2024.   As a quick refresher, capital gains are taxed differently from other types of income.  When a capital gain is realized, only a portion of the …

Notifiable Transactions

Generally, the notifiable transaction rules will trigger a reporting obligation where a person enters into a transaction or series of transactions that is the same as, or substantially similar to, certain transactions or series of transactions that have been “designated” by the Minister of National Revenue, with the concurrence of the Minister of Finance.   The rules are drafted broadly …

Budget 2022 – Will this be the end of capital gains planning?

With a top personal tax rate in Ontario of 53.53%, the tax spread between dividend income and capital gains is significant.  As a result, planning has evolved over the last number of years whereby a taxpayer creates a capital gain as a means of extracting corporate funds in lieu of or in combination with paying themselves a dividend/salary, which would …

5 Strategies Where COVID-19 Can Reduce Taxes

There are are at least 5 strategies that can be executed under existing tax legislation to use COVID-19 to generate tax relief.  These strategies were originally posted by us 7 weeks ago on March 19th.  In particular, strategy No. 5 discussed below anticipated a reduction in the prescribed interest rate to 1% from the current rate of 2%, which will now be …

Choosing the Will or Family Law – A Surviving Spouse Has the Choice

On the death of a spouse, the surviving spouse has the right to choose between accepting his / her entitlement under their partner’s will (where there is a will) or claim an equalization of net family property (an “equalization payment”) under section 6 of the Family Law Act.[1]   Where there is no will, the surviving spouse has the right …