![]() ![]() ![]() Business Income Tax Measures Supporting Employee Ownership Trustsīudget 2023 introduced tax rules to facilitate the creation of Employee Ownership Trusts to provide an alternative business succession option for retiring business owners.Ĭonsistent with the message from the Canadian Employee Ownership Coalition (CEOC), CPA Canada expressed concern to senior officials at the Department of Finance Canada that employee ownership trusts would be underutilized without additional incentives for business owners. These measures would apply to deny all expenses incurred on or after January 1, 2024. ![]() for short-term rental operators who are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements.in provinces and municipalities that have prohibited short-term rentals.The government intends to deny income tax deductions for expenses incurred to earn short-term rental income, including interest expenses: The federal government is acting to disincentivize short-term rentals. single claim of vacation property exemption is effective in respect of 2024 and subsequent calendar years.proposed changes to the penalties and the definition of rental property for unitized apartment buildings applies to 2022 and subsequent calendar years.Most of these changes would apply in respect of 2023 and subsequent calendar years, except as follows: ensuring that an individual or a spousal unit can claim the UHT “vacation property” exemption for only one residential property for a calendar year.providing that unitized (condominiumized) apartment buildings are not “residential property” for UHT purposes.introducing a new UHT exemption for residential properties held as a place of residence or lodging for employees (excluding property located in a metropolitan area with 30,000 or more residents).reducing the minimum non-filing penalties from $5,000 for individuals ($10,000 for non-individuals) to $1,000 and $2,000 respectively.expanding the definitions “excluded owner”, “specified Canadian partnership” and “specified Canadian trust”.These excluded owners would no longer have UHT reporting obligations. ![]() In line with CPA Canada’s recommendation, the government is proposing to make “specified Canadian corporations”, partners of “specified Canadian partnerships” and trustees of “specified Canadian trusts”, “excluded owners” for UHT purposes. In May 2023, CPA Canada submitted a letter to the Deputy Minister of Finance highlighting concerns with this tax and its impact to Canadian owners, and recommended legislative changes. The government introduced a national, annual 1 per cent tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, which took effect on January 1, 2022. Personal Income Tax Measures Underused Housing Tax (UHT) Please see our summary of key changes and updates below. On November 21, the Deputy Prime Minister and Minister of Finance released the federal government’s 2023 Fall Economic Statement (FES), which contained some new tax announcements along with an update on previously announced tax measures. ![]()
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