On April 19, 2021, Deputy Prime Minister and Finance Minister Chrystia Freeland tabled in the House of Commons the Liberal Government’s first federal budget in more than two years, A Recovery Plan for Jobs, Growth, and Resilience (Budget 2021). Budget 2021 contains tax measures that provide additional COVID-19 support to Canadian businesses, promote clean energy, introduce new sales and excise tax measures, limit interest deductibility and address certain cross-border financing structures. These measures include:

 COVID-19 Support and Recovery

  • Extending existing COVID-19 emergency business supports and introducing a new Canada Recovery Hiring Program;
  • Promoting immediate expensing of the acquisition of certain depreciable capital property (up to $1.5 million per year) by Canadian-controlled private corporations;

 Clean Energy Investment

  • Amending the list of eligible Class 43.1 and 43.2 clean energy equipment;
  • Offering limited corporate income tax rate reductions for manufacturers of zero-emission technologies;
  • Creating a new input tax credit for certain capital investments in carbon capture, utilization, and storage projects;

 International Tax/General Corporate Tax

  • Introducing new rules to limit the amount of net interest expense that may be deducted in computing Canadian taxable income and to limit the deduction of amounts paid or received under hybrid mismatch arrangements;
  • Proposals to overhaul Canada’s transfer pricing rules following the Federal Court of Appeal decision in Her Majesty The Queen v Cameco Corporation(2020 FCA 112);
  • Committing to continuing the Government’s work to modernize the general anti-avoidance rule (GAAR);

 Sales/Excise Taxes

  • Committing to creating an interim digital services tax applicable to digital services businesses and to enact previously announced GST/HST measures applicable to e-commerce platforms;
  • Introducing an excise duty on vaping products and a luxury tax on personal use vehicles, boats, and planes;

 Compliance/Audit Powers

  • Restructuring Canada’s transaction disclosure rules, introducing a new class of “notifiable transactions,” and requiring disclosure of uncertain tax positions; and
  • Strengthening the CRA’s audit authority to compel persons to answer all proper questions for any purposes related to the administration or enforcement of, amongst other statutes, the Income Tax Act(Canada) and the Excise Tax Act(Canada).

Source: McCarthy

Newsletters

Events & Sponsorship

Toronto Entrepreneurs Conference @ Mississauga

May 08, 2019 Our B.E.S.T. (Business Entrepreneurs Services Team) Group has participated in this event for first time. Toronto Entrepreneurs Conference and Trade Show is the largest Entrepreneurs event in Canada. The event which targets business owners, partners or...

Hispanic Fiesta 2018

September 04, 2018 RGB Accounting will participate in this event for a second year in a row. Hispanic Fiesta will be held at Mel Lastman Square in Toronto during the Labour Day Weekend, August 31st, Sept. 1, 2, & 3, 2018. Hispanic Fiesta is a four-day celebration...

Secure Your Future Seminar 2018

June 20, 2018 This event gathered business owners running a small or medium-sized business, self-employed and incorporated businesses willing to learn tax saving strategies to help them utilize their company assets to secure their retirement. We are proud of having...

2nd Latino Business Expo Show

May 19, 2018 The 2nd Latino Business Expo Show held on May 19th at Daniels Spectrum gathered a wide range of entrepreneurs and business owners avid to learn how to take their businesses to the next level. RGB Accounting participated as vendor and speaker at this...

Hispanic Fiesta 2017

September 04, 2017 Hispanic Fiesta, a celebration of Spanish and Latin-American: Arts, Food, Music and Entertainment, is a four-day celebration filled with the splendid sounds, tempting treats and colorful culture featuring 300 local, national and International...

Articles & Publications

All You Need to Know About Trust Funds in Canada

All You Need to Know About Trust Funds in Canada A trust is a vehicle for holding and passing on the family property. As such, it typically serves at least one of two purposes: It can reduce a family's taxes by shifting income to members in lower tax brackets, and it...

Non-Resident Canadian Tax Clearance Certificates

People who are not Canadian Residents for Tax Purposes may be subject to a withholding tax when they sell Canadian property. All non-resident Canadian for tax purposes may be subject to this withholding tax if they sell real estate in Canada. This holds if they own...

Moving to the U.S. for more affordable Real Estate

Moving to the U.S. for more affordable Real Estate? Home prices have run-up in the U.S. but are mostly more affordable than major Canadian markets. Like many real estate markets worldwide, U.S. home prices have run up during the pandemic to the point of some saying...

New Goods and Services/Harmonized Sales Tax Rules

This article intends to illustrate how the new proposed Goods and Services/Harmonized Sales Tax (GST/HST) rules are to apply to the sale of goods made on July 1, 2021, or later, by a retailer that is a non-resident of Canada and not registered for GST/HST purposes,...

Share This