Matlen Accounting & Income Tax Services
Suite 207 - 15240 56 Ave. V3S 5K7 Surrey, BC, Canada

https://www.ctvnews.ca//how-to-apply-for-ei-sickness-benef

https://www.cbc.ca//budget-at-a-glance-10-key-takeaways-fr

Finance provides Relief for Income Sprinkling Measures: Finance has simplified its proposed private company tax measures to address tax planning involving income sprinkling. These proposed measures, which will apply to the 2018 and subsequent taxation years, address feedback that Finance received on its recent public consultation on its controversial private company tax proposals. Finance has once again confirmed that the tax on split income rules will not apply to limit the... lifetime capital gains exemption (LCGE) and notes that these measures will be legislated as part of the 2018 federal budget. Family members who receive dividends from a private corporation but who do not contribute to the business will be subject to tax on split income (TOSI) and their income will be subject to a top flat-rate of personal tax. The government has announced certain exclusions to the TOSI rules: 1. TOSI will not apply to amounts received by adults aged 18 or over who make or have made a substantial contribution to the business during any previous five years. Finance has suggested an average of 20 hours per week would be considered substantial. For businesses with seasonal operations (e.g., farms and fisheries), Finance specifies that the 20 hours per week labour contribution requirement will be applied for the part of the year in which the business operates. 2. TOSI will not apply to amounts received by adults aged 25 or over who own 10% or more of the shares that have votes and value of a corporation (other than a professional corporation or a corporation that earns less than 90% of its income from the provision of services). 3. TOSI will not apply to amounts received by a business owner’s spouse, provided that the owner meaningfully contributed to the business and is 65 or older. 4. TOSI will not apply to amounts that do not exceed a reasonable return, which would require an analysis of labour contributions, capital contributions, risks assumed, etc. The CRA has released new guidance on Finance's proposed new income sprinkling rules. Among other things, the CRA has clarified factors it will consider to determine whether a payment is a "reasonable return". The CRA has provided several examples of how it intends to apply the rules, although it notes that its approach will develop over time based on its experiences. The CRA advises that taxpayers should be prepared to support their position that a payment is a reasonable amount not subject to the income sprinkling rules.

Partnership Distributions Face New GST/HST Rules: Certain limited partnership distributions may now be subject to additional GST/HST. Finance has proposed new amendments that would subject certain investment limited partnership distributions to GST/HST where they were paid or became payable to general partners as of September 8, 2017. This unexpected tax measure was included in draft tax legislative and regulatory proposals that Finance released on September 8, 2017, along wi...th the changes to expand the selected listed financial institution (SLFI) rules to include investment limited partnerships first announced in the Finance consultation paper released July 22, 2016. Due to the complexities related to the proposed changes to the taxation of investment limited partnership distributions, all limited partnership arrangements should carefully review their structures to assess the impact of these changes. Finance will accept comments on the draft legislation until October 10, 2017.

The Minister of Finance, Carol James delivered the Province’s September update to the 2017 Budget on September 11th. Highlights of the tax measures announced in the Budget are summarized below. Corporate Tax Changes Corporate Income Tax Rates... The Government confirmed that the small business corporate income tax rate will be reduced from 2.5% to 2% effective April 1, 2017. This was previously announced by the former government. The combined federal and BC corporate tax rate for small business (on the first $500,000 of active business income) will be 12.5% (previously 13.0%). The Government announced a 1% increase in the general corporate tax rate effective January 1, 2018. The combined general federal and BC corporate tax rate for active business income will be 27.0% (previously 26.0%). PST on Electricity Phased Out The Government confirmed the previously announced phase out of the PST on electricity. The rate will be reduced to 3.5% effective October 1, 2017 and will fully exempt electricity effective April 1, 2019. Personal Tax Changes Personal Income Tax Rates The Government created a new marginal tax bracket for taxable income greater than $150,000 effective January 1, 2018. The new bracket will be subject to a provincial marginal tax rate of 16.8%, which effectively raises the highest marginal rate by 2.1%. The dividend tax credits for eligible dividends will be increased as a result of the increase in the general corporate tax rate. Medical Service Plan Premiums Medical Service Plan (MSP) Premiums will be reduced by 50% effective January 1, 2018. The previous government announced a similar reduction, but only for households with annual net incomes up to $120,000. The Government will also establish a MSP Task Force to advise the Government on the best way to eliminate the MSP premiums and replace those revenues within the next four years. Other Tax Changes Carbon Tax The Government announced an increase in the carbon tax by $5 per tonne of carbon dioxide emissions per year starting January 1, 2018 until the rates are equal to $50 per tonne in April 1, 2021. The Government also will repeal the requirement that any increase in carbon tax revenues to be revenue neutral.

https://beta.theglobeandmail.com//concer/article36123252/

The Minister of Finance, Bill Morneau delivered the 2017 budget on March 22, 2017. Highlights of the tax measures announced in the budget are summarized below. The budget did not contain any significant tax changes, including the widely rumourded and anticipated increase to the capital gains inclusion rate. CORPORATE TAX CHANGES: Tax Planning Using Private Corporations:...Continue reading

Is this good or bad??? https://www.linkedin.com//arthur-andersen-restarts-26-offi

http://www.cra-arc.gc.ca/nwsrm/txtps/2017/tt170316-eng.html

Fraudulent emails and phone calls - Protect yourself! The CRA is warning Canadians that fraudulent emails and phone calls purporting to be from the Agency are currently being reported. Find out more about these scams and learn how you can protect yourself. http://www.cra-arc.gc.ca/scrty/frdprvntn/menu-eng.html

http://www.fin.gc.ca/n16/data/16-113_3-eng.asp