RLB Blog

Some important changes to the taxation of psychotherapy and counselling therapy services were announced this week. While the House of Commons has recently adjourned for summer recess, a number of sales tax measures introduced prior to the break. This includes details contained in Bill C-59 receiving Royal Assent on June 20, 2024.

On June 10, 2024, drafted legislation was released regarding the proposed changes to capital gains previously announced in the earlier 2024 Federal Budget.  The announcement reaffirmed that the changes are intended to become effective beginning June 25, 2024, and additional information was provided regarding the transition to these rules.

Effective June 25, 2024, Federal Budget 2024 proposed to increase the capital gains inclusion rate from 50% to 66.7%. Individuals will have an annual $250,000 capital gains safe harbour at which the old inclusion rate will continue to apply. This change has many Canadians reconsidering their succession plans for their family cottages and asking whether it’s better to sell their property or gift it to the next generation.

Effective June 25, 2024, Federal Budget 2024 proposed to increase the capital gains inclusion rate from 50% to 66.7%. Individuals will have an annual $250,000 capital gains safe harbour at which the old inclusion rate will continue to apply. This change has many Canadians considering their options for triggering capital gains in their portfolio. Is now the right time, and how do you know?

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.

.author-area {display:none !important} 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.