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 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.

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.

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.

Whether you are a US resident or not, it is important that all individuals understand US estate tax and how it can affect them upon death. Estate taxes are taxes that are imposed on the transfer of a person’s estate after their death. These taxes can be imposed by both the United States government and the Canadian government, and they can significantly impact the value of an estate.  

Initially proposed during the 2021 Federal Budget, the Underused Housing Tax (“UHT”) and the commentary around it has continued to evolve over recent months. Intended as a tax on vacant or underused housing in Canada owned by non-residents, the UHT has attracted a lot of additional attention primarily due to its wide-reaching filing requirements and severe late filing penalties. 

The division of income for state corporate income tax purposes is an important consideration for businesses operating in multiple US states, including Canadian businesses expanding into the US. For more information on the corporate income tax considerations for Canadian companies expanding into the US, we recommend reviewing our post on this topic, available here. 

It’s that time of year again!  It is time for the annual minimum wage increase.  On October 1st, 2023the minimum wage will increase to $16.55 per hour.  These increases are tied to the Ontario Consumer Price Index for 2023.