RLB Blog

The 2024 Federal Budget of Canada was made public on April 16, 2024. Delivered by Deputy Prime Minister and Finance Minister Chrystia Freeland, The Budget will address many concerns at the forefront of the Canadian business economy. It will offer insight into measures in critical areas that will affect many of our clients, such as audit and enforcement, business tax, credits and incentives, international tax, and private client services. Upon review of the Budget, we have highlighted some of the more considerable changes and the implications of these measures for the Canadian economy, businesses, and individuals.

Canada’s 2024 Federal Budget (Budget 2024), delivered by Deputy Prime Minister and Finance Minister Chrystia Freeland on April 16, 2024, addresses critical economic challenges faced by Canadians and businesses.

In today's fast-paced and competitive world, the success of any organization hinges not just on its bottom line, but also on the well-being and satisfaction of its employees. A company's greatest asset is its workforce, and nurturing their holistic health and wellbeing goes beyond simply providing perks or benefits—it's about fostering a culture that prioritizes employee wellness and psychological safety.

In a previous blog, we discussed proposed changes to Underused Housing Tax (UHT) legislation in the 2023 Fall Economic Statement which may alleviate UHT filing requirements for many Canadians. As we approach the April 30, 2024, filing deadline for 2023 UHT returns, we revisit these proposals and review their current status.

While there has been increased discussion surrounding Artificial Intelligence (AI) in Human Resource practices, it's important to acknowledge that AI has been prominent in recruitment for many years. Consider your Applicant Tracking System (ATS) for example. Does it recommend top candidates? Have you ever received personalized job or candidate recommendations from platforms like Indeed or LinkedIn? These actions and more are powered by AI.

For businesses beginning to provide goods and/or services into a new jurisdiction, a frequent question is whether they have an obligation to register and collect sales tax. An often-underappreciated aspect of the Canadian federal value added tax system was the decision to harmonize the provincial sales tax with the administration of the federal goods and services tax, together forming GST/HST. Currently five provinces have opted for their provincial sales tax to form part of the federal GST/HST system (Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island). The GST/HST system requires one registration and return that covers the federal tax and the provincial tax for each of the harmonized provinces.

Nexus refers to a connection or presence in a state that gives the state authority to require a business to collect and remit sales tax on transactions within that state. Historically, physical presence, such as having a store or warehouse in a state, was the primary factor in determining nexus. However, with the rise of e-commerce and remote sales, the physical presence requirement has become less clear, leading to confusion for both businesses and states.

Many people are unaware that there is more than one way to prepare financial records. There are two methods: cash accounting which involves recording revenue and expenses at the time they are paid, and accrual accounting which records revenue and expenses in the period that services are applicable to. Although cash accounting can be easier than accrual accounting, it does not provide an accurate picture of a corporation’s annual revenue and expenses. Accrual accounting not only gives a more accurate picture of the corporation’s revenue, expenses, assets, and liabilities, it is also required under the Generally Accepted Accounting Principles (GAAP). This means that auditors only audit based on the accrual method, therefore, if cash accounting was used to prepare the financial records, the books must be updated to reflect accrual accounting before having an audit completed.

ZACHARY BRONSTEIN JOINS RLB AS ASSOCIATE PARTNER

Bill C-47, Budget Implementation Act, 2023, No. 1 was enacted on June 22, 2023, after receiving Royal Assent. Bill C-47 outlines various tax measures such as the extended mandatory disclosure rules, extension of residential property flipping rule to assignment sales, and new reporting requirements for digital platform operators.