RLB Blog

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.

On September 14, 2023, Prime Minister Justin Trudeau announced plans to introduce new legislation to enhance the GST Rebate on new rental apartments. The new legislation is intended to incentivize construction of new rental homes and improve housing affordability for Canadians. 

Successful Canadian businesses commonly expand into the United States to continue their revenue growth. Many of these Canadian-founded companies do not realize that extending business activities to the United States could potentially expose the company to US tax implications, which are not considered in advance. Tax planning and structuring are critical considerations when expanding across borders so you can focus on your business growth instead of retroactively defending against possible assessments and potentially substantial penalties.  

A recent court case may have a significant impact on the way GST/HST registrants resolve GST/HST audits and examinations, confirming the general approach from the Canada Revenue Agency (“CRA”) is often overly strict. As you may know, registrants charge GST/HST on their sales and pay GST/HST on their purchases, with the difference being remitted to the CRA or eligible to claim back as a refund. If you have had the pleasure of dealing with CRA review, you will know that documentation is often one of the most prevalent issues under audit.

The Underused Housing Tax Act (the “UHTA”) came into effect from January 1, 2022. The rules for UHTA were enacted June 9, 2022, for residential properties owned on December 31 each year starting December 31, 2022. The Underused Housing Tax (“UHT”) rules require residential property owners to file an annual return, unless certain exemptions apply, even if no tax is due.

At RLB, we want to provide our clients with the tools required to assist with preparing for an efficient year end engagement and to ensure that your organization is sufficiently prepared. The additional effort to be more prepared will save time and money, allow you to have more organized records (both at year end and through the year) and ensure your annual deadlines are met.

As part of the 2021 Federal Budget, the Government of Canada announced plans to add an annual tax of 1% on the value of residential real estate owned by any non-resident, non-Canadian that is considered vacant or underused. The rules for UHT were enacted June 9, 2022 for residential properties owned at December 31st each year starting December 31st, 2022.