Media & News
Plain-English Canadian tax writing.
Articles for taxpayers, accountants, and lawyers — written by the lawyers who handle the cases.
April 15, 2026
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March 11, 2026
February 25, 2026
February 18, 2026
February 11, 2026
August 1, 2023
September 7, 2021
- Directors’ Liability and Section 160 Assessments
- Tax Guidance with Respect to Real Estate Property for Canadian Non-Residents
- Section 116: A Purchaser's Liability in a Real Estate Transaction When Buying from a Potential Non-resident
- Conditions of a Valid Voluntary Disclosure Program Application
- Voluntary Disclosure Program – Guidance from a Canadian Tax Lawyer
August 18, 2021
July 25, 2021
July 5, 2021
January 28, 2021
January 25, 2021
January 21, 2021
December 7, 2020
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September 29, 2020
March 30, 2020
November 22, 2019
October 10, 2019
April 9, 2019
April 8, 2019
August 3, 2018
June 18, 2018
April 24, 2018
January 13, 2018
May 12, 2016
- Vehicle Expenses
- Transfers of Property while Having a Tax Debt
- Transfer Pricing
- Tax Residency
- GST/HST Small Supplier
- Small Business Deduction
- Qualified Small Business Corporation Shares
- Qualified Fishing Property
- Principal Residence Exemption (PRE)
- Precious Metals
- Personal Services Business
- Permanent Establishment
- Lifetime Capital Gains Exemption
- Income Splitting Through Loans
- Illegal Income
- Gross Negligence Penalties
- Gifts and Inheritances
- General Anti-Avoidance Rule (GAAR)
- Fraudulent Filing
- Directors Liabilities
- Change in Use
- Allowable Business Investment Loss
- Active Business Income
- Canadian Controlled Private Corporation
- Attribution Rules
- Employee v. IC
- Vehicle Expenses - Keeping a Log
- Qualified Farm Property
- Non-Taxable Income
May 10, 2016
March 22, 2016
February 25, 2016
December 2, 2015
November 6, 2015
October 29, 2015
October 27, 2015
September 14, 2015
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August 26, 2015
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April 1, 2015
March 31, 2015
March 25, 2015
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March 16, 2015
March 10, 2015
March 9, 2015
June 28, 2013
April 24, 2013
April 23, 2013
February 26, 2013
February 20, 2013
February 13, 2013
October 12, 2012
November 14, 2011
Estate Freeze: Locking In Today's Value, Transferring Tomorrow's Growth
An estate freeze caps your business's value at today's price in your hands and shifts future appreciation to the next generation. Here's how the mechanics work and when they pay off.
Read more →Leaving Canada: How Departure Tax Catches Your Net Worth
When you cease to be a Canadian tax resident, section 128.1 of the Income Tax Act treats most of your worldwide assets as sold at fair market value the day you leave. Here's the rule and how to plan around it.
Read more →Multiplying the Lifetime Capital Gains Exemption Across Your Family
The LCGE shelters $1,016,836 per individual on the sale of qualifying small-business-corporation shares. A properly-structured family trust can multiply that exemption across multiple beneficiaries.
Read more →Section 94: How Canadian Tax Reaches Foreign Trusts
Section 94 of the Income Tax Act can deem a non-resident trust to be a Canadian-resident trust — and make Canadian contributors and beneficiaries jointly liable for its tax — whenever a Canadian touches the structure.
Read more →Salary vs Dividend: The Owner-Manager Question for 2026
For most Canadian owner-managers, the salary-vs-dividend mix is the largest annual tax decision. Here's the framework, the math, and the changes for 2026.
Read more →Snowbirds and the IRS: How Many Days Is Too Many?
The IRS's substantial-presence test counts your US days on a rolling three-year formula. Cross 183 and you become a US tax resident — unless you file the right form, in the right window, with the right facts.
Read more →The 21-Year Rule and What to Do About It
Every family discretionary trust faces a deemed disposition under ITA s. 104(4) every 21 years. The unwind, the restate, and the rollout — three responses depending on what the family needs.
Read more →FIRPTA: Why Canadian Sellers of US Real Estate Often Over-Pay at Closing
When a Canadian sells US real estate, the buyer is required to withhold up to 15% of the gross sale price under FIRPTA — far more than the actual tax in most cases. Form 8288-B reduces the hold-back if filed early.
Read more →When Your Business Actually Needs a Holdco
Holding companies are sometimes pitched as a one-size-fits-all answer for Canadian business owners. They're not — but when they're the right structure, they're the right structure for serious reasons.
Read more →Streamlined Filing Procedures: A Path Back to US Compliance
The IRS's Streamlined Foreign Offshore Procedures provide a structured, penalty-free path for US persons abroad who haven't been filing. Three years of returns, six years of FBARs, one signed certification — and the file is closed.
Read more →Section 85 Rollovers: How Tax-Deferred Restructuring Works
Section 85 of the Income Tax Act lets you transfer property to a Canadian corporation at any agreed amount between cost and FMV — the backbone of estate freezes, incorporations, and most corporate reorganizations.
Read more →US Estate Tax for Canadians: Who's Exposed and Why
Canadians who own US-situs assets — Florida condos, US-corporation shares, tangible US property — are exposed to US estate tax at death. The treaty's prorated unified credit helps, but doesn't eliminate the risk for larger estates.
Read more →TOSI: How the Tax on Split Income Rules Apply to Your Family
Section 120.4 of the Income Tax Act applies top marginal rates to most family-member dividends from a related business. The exceptions matter — here's how to use them.
Read more →Cross-Border Estate Planning When One Spouse is American
A US citizen who leaves property to a non-US-citizen spouse loses the unlimited marital deduction. The QDOT defers the estate tax, but at the cost of trustee complexity. The right structure depends on where the survivor will live.
Read more →Post-Mortem Tax Planning: Pipeline, Bump, and Loss Carryback
When a Canadian shareholder dies owning private-company shares, the estate has 36 months to deploy three coordinated tax strategies. Skipping them costs heirs hundreds of thousands.
Read more →RRSP Withdrawals for US Residents: How the Treaty Mechanics Work
An RRSP earned while you lived in Canada is sheltered from US tax during accumulation under Article XVIII of the Canada-US treaty. Withdrawals are US-taxable in the year received, with foreign tax credit relief for the Canadian withholding.
Read more →Pre-Immigration to Canada: Resetting Your Tax Cost Base
When you become a Canadian tax resident, paragraph 128.1(1)(b) of the Income Tax Act gives you a fair-market-value cost base reset on most of your worldwide assets. Pre-immigration planning ensures the reset captures the right gains.
Read more →Becoming a US Resident: Year-One Planning for Canadians
The Canadian who moves to the US triggers Canadian departure tax in the year of move AND a US tax-residency transition mid-year. The dual-status return, the Form T1244 election, and the PFIC clean-up all need to happen in the same calendar year.
Read more →Support Payments as Deductible Expenses and Taxable Income
By Martina Caunedo This memorandum is intended to provide information regarding the deductibility of support payments as expenses for the payor and their taxation as income for the recipient. Support payments are deductible expenses for the payor and taxable income for …
Read more →Victim Surcharge – Section 737 of the Criminal Code
Victim Surcharge – Section 737 of the Criminal Code By Matthew Rochester Introduction This memo seeks to identify how a defendant can successfully apply for exemption to the imposition of a victim surcharge under section 737 of the Criminal Code. Exceptions under statut…
Read more →Intercompany Loans: Mitigating Tax Risks under Canadian Law
Intercompany Loans: Mitigating Tax Risks under Canadian Law By Dale Barrett Navigating the business landscape is no easy task, particularly when it comes to intercompany loans between corporations with a common owner. If you are a business owner who owns multiple compan…
Read more →Maximizing The Small Business Deduction: Preventing Corporations from Being Associated
Maximizing The Small Business Deduction: Preventing Corporations from Being Associated Barrett Tax Law The Small Business Deduction. The government giveth a wondrous gift, but if you're not careful, they taketh back. In Ontario, there are preferential tax rates that app…
Read more →Directors’ Liability and Section 160 Assessments
Directors can be held liable for a corporation’s debt Under Canadian tax law, directors of a corporation can be held personally liable for certain components of a corporation’s tax debt which the corporation cannot pay, such as in the case of an insolvency. Generally sp…
Read more →Tax Guidance with Respect to Real Estate Property for Canadian Non-Residents
When a non-resident of Canada earns income from a rental property or disposes of a real property in Canada, the tenant or purchaser may be required to withhold certain amount of tax which is usually 25% and remit that to the Canada Revenue Agency (CRA). This article wil…
Read more →Section 116: A Purchaser's Liability in a Real Estate Transaction When Buying from a Potential Non-resident
A non-resident is generally taxable in Canada on the disposition of Canadian real estate. It is more difficult for the Canada Revenue Agency (CRA) to collect tax from a non-resident, so there are additional provisions to ensure the tax is pre-paid to protect against the…
Read more →Conditions of a Valid Voluntary Disclosure Program Application
What is the Voluntary Disclosure Program In recent years, the CRA has taken a rather aggressive approach in recovering uncollected taxes. The Offshore Tax Informant Program awards informants 5 to 15 percent of the federal tax collected if their leads result in more than…
Read more →Voluntary Disclosure Program – Guidance from a Canadian Tax Lawyer
What is the Voluntary Disclosure Program Taxpayers in Canada are supposed to file their tax returns accurately and timely, otherwise there may be interest and penalties or even criminal prosecutions depending on the situation. If a taxpayer fails to do so, he is not ent…
Read more →Section 216 election – guidance from Canadian tax lawyers on rental income and non-resident tax.
Section 216 election – guidance from Canadian tax lawyers on rental income and non-resident tax. When non-residents receive rental income from rental or immovable property in Canada, the tenant or agent must withhold non-resident tax which is 25% on the gross rental inc…
Read more →Tax Residence Determination in Canada – guidance from Canadian tax lawyers
The basis for Canadian taxation The Canadian income tax system is based on residence status. Under subsection 2(1) of the Income Tax Act , an income tax is payable on the taxable income of every person resident in Canada at any time in the year. There is a common misund…
Read more →Canada Revenue Agency Focussing on Staffing (Employment) Agency Audits – Guidance from Canadian Tax Lawyers
Canada Revenue Agency is shifting attention to Staffing Agencies Recently the Canada Revenue has been ramping up their audits of Employment Agencies, an industry which is estimated to have defrauded the CRA of hundreds of millions of dollars of HST. The problem (for the…
Read more →How to Deal with Tax Search Warrants – Guidance from Canadian Tax Lawyers
The CRA cannot use its civil audit powers in a criminal investigation When the Canada Revenue Agency (CRA) investigates potential tax fraud, they will typically rely on search warrants in order to seize books and records to gather evidence. This is because when the CRA …
Read more →Specified Foreign Property - Guidance from Canadian Tax Lawyers
Foreign property reporting requirements in Canada – A Canadian tax lawyer’s guidance on T1135 obligations When a Canadian resident holds specified foreign properties with a cost exceeding $100,000 anytime during the taxation year, he or she must file the T1135 form – Fo…
Read more →The “Unnamed Persons” Search: An Enhanced Ability For The CRA To Identify Taxpayers To Audit.
By Alex Kerslake Taxpayers are often aware of the common triggers for a Canada Revenue Agency (CRA) audit, such as claiming large expenses, failing to report a tax slip, or simply working in an industry known to underreport their income. There are many other methods the…
Read more →Deducting life insurance costs: Why opportunity may be overlooked (Originally on The Lawyer’s Daily)
By Dale Barrett and Simon Townsend (January 26, 2021, 12:42 PM EST) -- In part one, we discussed paragraph 20(1)(e.2) in the Income Tax Act (the Act), which allows an individual or business to deduct the reasonable cost of life insurance in the event it is used as colla…
Read more →Social media influencers and game streamers: Beware of CRA (Originally on The Lawyer’s Daily)
Social media influencers and game streamers can earn hundreds of thousands of dollars per year and are paid in both cash and merchandise. What many of them don’t realize is that the $3,000 free trip to Hawaii that they received as promotional consideration may end up co…
Read more →Deducting life insurance costs: Paragraph 20(1)(e.2) of Income Tax Act explained (Originally on The Lawyer's Daily)
By Dale Barrett and Simon Townsend (January 18, 2021, 3:21 PM EST) -- The cost of life insurance is a cost which is usually borne by individuals and is not something that people think of as a deductible expense. With numerous deductions for loss from a business (or prop…
Read more →Year End RESP Considerations
While many Canadians are aware that the government provides annual grants on contribution to RESPs, many people are simply unaware of the small but important nuances in maximizing those grants. The Canada Education Savings Grant (“CESG”) is currently limited to 20% of t…
Read more →COVID-19 — Updates on Employment Expenses
To Whom It May Concern: On September 11, 2020 the Canada Revenue Agency (“ CRA ”) conducted a consultation hosted by the Canadian Chamber of Commerce. At this consultation, the CRA provided guidance on the deductibility of home office expenses as a result of the COVID-1…
Read more →COVID 19 - New Deductions From Income Sources
The following are considerations on deductions that independent contractors and salaried employees may count against their income due to the current COVID-19 pandemic. If salaried employees are required by contract (written or implied) to maintain a home office, they fu…
Read more →So You’re Working From Home – Deduct your Expenses and Pay Less Tax
Almost all of us have been working from home during the Covid-19 pandemic and many of us will continue to work from home for some time to come. Google just announced that it is going to have its employees to work from home for at least the next year, and personally I ha…
Read more →Estate Freezes: A Silver Lining of COVID-19 (Originally On The Lawyer’s Daily)
With the world in flux and an unprecedented shutdown of the world’s economy, those who were planning to transfer businesses to the next generation have been given what is (hopefully) a once-in-a-lifetime opportunity to defer additional taxes for many years. As valuation…
Read more →Wondering about Canada's 75% Emergency Wage Subsidy?
Here is what we know so far about Canada's Emergency Wage Subsidy, a government program helping businesses avoid having to lay-off their employees during the Covid-19 Pandemic. We will be updating this article as new details are released. The Canada Emergency Wage Subsi…
Read more →A Sad Story about Mr. X. from Country Y (Originally on The Lawyer's Daily)
Meet Mr. X. Don’t judge him by his country of residence. It is not his fault. It wouldn’t be fair. He was taken there as a child by his parents who were fleeing another country for a better life. They could never have predicted how the government of Mr. X’s adopted coun…
Read more →I Lost My Battle with the CRA, but I Won the War (originally on The Lawyer’s Daily)
My law firm cannot make the claim that we have won all of our cases in the Tax Court of Canada, but what we can tell you is that every single case we have won in tax court — either in trial or a settlement — was lost at the CRA objection stage. And in many cases, beside…
Read more →A Tale of Two Taxpayers: The Fiscal Arbitrators Client (originally on The Lawyer’s Daily)
In part one of this series , I considered the situation of a hypothetical wealthy client who was involved in the KPMG tax scheme promoted by a big accounting firm. In the end, the taxpayer signed a settlement with the CRA. Part two relates the story of a typical client …
Read more →20 Tax Audit Triggers
Sometimes a taxpayer is randomly selected for an audit. It’s like winning the worst lottery in the world, and there’s nothing you can do to change that. But apart from a random tax audit, the odds of being targeted for an audit are dependent on a variety of risk factors…
Read more →A Tale of Two Taxpayers: the Wealthy Client (originally on The Lawyer's Daily)
By Dale Barrett – Managing Partner at Barrett Tax Law, Founder of Lawyers & Lattes Legal Cafe , Author of Tax Survival for Canadians: Stand up to the CRA , Editor of the Family Law and Tax Handbook, and Tax Columnist at the Lawyer’s Daily. Originally published by Th…
Read more →The Peril of Family Asset Transfers (originally on The Lawyer’s Daily)
By Dale Barrett – Managing Partner at Barrett Tax Law, Founder of Lawyers & Lattes Legal Cafe , Author of Tax Survival for Canadians: Stand up to the CRA , Editor of the Family Law and Tax Handbook, and Tax Columnist at the Lawyer’s Daily. Originally published by Th…
Read more →Dale Barrett Answers Your Pressing Tax Questions (originally on Global News)
As seen on GlobalNews.ca, Dale Barrett, Managing Partner at Barrett Tax Law, answers your pressing tax questions: THE QUESTION: I don’t understand the implications of adding my adult child as a joint tenant on my home. I know that there can be capital gains tax implicat…
Read more →More Reasons to Abandon the HST (originally on Lawyer's Daily)
By Dale Barrett – Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer’s Daily. Originally published by the Lawyer’s Daily . In my first article in this series, I expressed the opinion that the entire Harmonized Sales Tax system and its legal framework are…
Read more →HST Hurts Economy and Should be Abandoned (originally on Lawyer's Daily)
By Dale Barrett – Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer’s Daily. Originally published by the Lawyer’s Daily . According to the 2008 federal budget, the Harmonized Sales Tax (HST) was claimed by the federal government to be “the single most i…
Read more →CRA Auditors Less Concerned with Correctness than with the Size of Reassessments (originally on Lawyer's Daily)
By Dale Barrett - Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer's Daily. Originally published by the Lawyer's Daily . In any self-reporting or honour system like we have in Canadian taxation, there must be a means by which the state can verify the c…
Read more →Ombudsman Not Protecting Rights of Taxpayers (originally on Lawyer's Daily)
Dale Barrett - Managing Partner of Barrett Tax Law This article was originally published by The Lawyer’s Daily , part of LexisNexis Canada Inc. Although not an actual law as it is in the United States, the Taxpayer “Bill of Rights” sets out sixteen rights, eight of whic…
Read more →Beware The Net Worth Audit
Beware The Net Worth Audit (re-published from TheGaap.net) August 1, 2018 Dale Barrett Managing Partner Barrett Tax Law Arguably, the cheapest, fastest, and dirtiest way in which the CRA can audit a taxpayer is by employing the “net worth” method. It throws all principa…
Read more →Taxation of a Partnership - The Basics
June 18, 2018 By Vivian Esper Tax Lawyer Barrett Tax Law 1-866-278-8424 416-907-8429 TAXATION OF A PARTNERSHIP - THE BASICS The Canadian common law of all provinces defines a partnership as the relation that subsists between or amongst persons carrying on a business in …
Read more →AON Inc. - Current vs. Capital Expenditures
On September 6, 2017, the Tax Court released its decision of AON Inc. v. Canada 2015-1043 (IT) G ruling on the issue of classification of expenditures (current vs. capital). The Honourable Justice Gaston Jorre confirmed the established legal test used to determine the n…
Read more →Late Filing Penalties for RRSP Over-Contribution Canceled by Tax Court
On August 31, 2017, the Tax Court of Canada released a judgment Chiang v. The Queen (2016-2715(IT)I where Sommerfeldt J. canceled late filing penalties under section 204.3 and section 162(1) of the ITA.In brief, the appellant, Mr. Chaing, over-contributed to his RRSPs d…
Read more →Cryptocurrency Profits in Canada: Capital Gains vs. Business Income
March 12, 2018 By Dale Barrett Managing Partner Barrett Tax Law 1-866-278-8424 416-907-8429 Cryptocurrency Profits in Canada: Capital Gains vs. Business Income I am asked all the time whether somebody has to pay capital gains tax on their cryptocurrency gains or whether…
Read more →Tax Treatment of Cryptocurrency Theft and Loss
January 13, 2018 By Dale Barrett Managing Partner Barrett Tax Law 1-866-278-8424 416-907-8429 So, after investing in Bitcoin and Ethereum, the North Koreans hacked one of your cryptocurrency exchanges and you lost a Bitcoin after it had hit $20,000 USD (and you bought t…
Read more →A Canadian First – Battered Women’s Syndrome can help prove Due Diligence
Barrett Tax Law successfully litigated what could be a first in Canada. Using the defence of battered women’s syndrome to show L (shortened for privacy of client) never had the opportunity to file her taxes and exercised due diligence. In the case of R v. L. a woman was…
Read more →Vehicle Expenses
When a vehicle is used for both personal and business purposes, it is necessary to keep a log to record the business use of the vehicle. Please see our article on keeping a vehicle log found here: Unincorporated Business An unincorporated business may write off (deduct)…
Read more →Transfers of Property while Having a Tax Debt
Income Tax Act Subsection 160 ( http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-160.html ) Excise Tax Act Subsection 325 ( http://laws-lois.justice.gc.ca/eng/acts/E-15/section-325.html ) Subsection 160 and subsection 325 assessments are the most powerful collectio…
Read more →Transfer Pricing
Income Tax Act Subsection 247 Transfer prices are the prices at which services, tangible property, and intangible property are traded across international borders between related parties. Canada’s transfer pricing legislation requires, for tax purposes, terms and condit…
Read more →Tax Residency
Income Tax Act Subsection 250(1) Canada allows its citizens to be residents of Canada for tax purposes, and non-residents of Canada for tax purposes. This is an important distinction as a non-resident of Canada for tax purposes will only be subject to Canadian taxation …
Read more →GST/HST Small Supplier
Excise Tax Act s. 148 A small supplier is a supplier whose worldwide annual GST/HST taxable solutions are less than $30,000, or less than $50,000 for public service bodies. The supplies include zero-rated supplies, and includes the supplies of all associates. An importa…
Read more →Small Business Deduction
Income Tax Act subsection 125 The small business deduction is available on active business income for a Canadian Controlled Private Corporation. It provides a reduction in the corporate tax rate up to the federal limit of $500,000. What the above means is if you are ear…
Read more →Qualified Small Business Corporation Shares
Income Tax Act Subsection 110.6(1) and 110.6(2.1) In order to claim the lifetime capital gains exemption on a share sale, the shares must meet certain conditions to qualify for the special treatment. If the shares qualify, then the seller would be able to use his or her…
Read more →Qualified Fishing Property
Income Tax Act Subsection 110.6(1), 110.6(1.2), and 110.6(2.2) In 2015, the amount increased that a taxpayer can claim for the lifetime capital gains exemption as it relates to qualified fishing property. The amount is now $1,000,000. The definition of qualified fishing…
Read more →Principal Residence Exemption (PRE)
Income Tax Act s. 40(2)(b) The benefit of the principal residence exemption is obvious. The gain is not subject to tax if the property has been the individual’s principal residence for the entire time it has been owned by that individual. When you normally sell a proper…
Read more →Precious Metals
Income Tax Act subsection 123(1) A "precious metal" is a bar, ingot, coin or wafer of gold, platinum or silver that is refined to a purity level of at least: 5% in the case of gold and platinum; and 9% in the case of silver. If a “precious metal” is sold, then the sale …
Read more →Personal Services Business
Income Tax Act subsections 125(7) and 123.4(1) A personal services business (PSB) is a corporation that carries on business through an individual, and that individual performs services while actually acting like an employee. This is occasionally known as the incorporate…
Read more →Permanent Establishment
Income Tax Act Subsections 124(1) and 124(4) Income Tax Regulations subsection 400(2) A permanent establishment is a fixed place of business, which allows a certain jurisdiction to tax the income being made at that fixed place of business. The typical types of permanent…
Read more →Lifetime Capital Gains Exemption
Income Tax Act subsection 110.6 The Lifetime Capital Gains Exemption (LCGE) allows a taxpayer to receive $800,000 or $1,000,000 of otherwise taxable capital gains on a tax-free basis. The difference in tax-free amounts directly relates to the property that the gain rela…
Read more →Income Splitting Through Loans
Income Tax Act Subsection 74.5(2) Income Tax Regulations Subsection 4301(c) Income splitting is an attempt by one taxpayer to send taxable income to another taxpayer in a lower bracket. Typically this is done by splitting income between family members. Income splitting …
Read more →Illegal Income
Taxpayers are typically surprised to learn that income from illegal activities is still subject to tax here in Canada. The scenario usually plays out that someone is convicted of a crime (drug-dealing), and following this, that same individual is then audited for unrepo…
Read more →Gross Negligence Penalties
Income Tax Act Subsection 163(2), 163(3) If you, knowingly or under circumstances amounting to gross negligence, made a false statement or omission on your tax returns, the Canada Revenue Agency (“CRA”) may charge you with a penalty. The penalty is equal to the greater …
Read more →Gifts and Inheritances
In Canada, there will be no amount of taxes due from the receipt of a gift or inheritance in most circumstances. The giver of the gift may have a taxable event occur if they are gifting capital property. The gift will be deemed to have occurred at fair market value, and…
Read more →General Anti-Avoidance Rule (GAAR)
Income Tax Act Subsection 245 The General Anti-Avoidance Rule essentially states that where a transaction, or a series of transactions results in a reduction, avoidance, or deferral of taxes owing, and the transaction or the series of transactions are only being attempt…
Read more →Fraudulent Filing
Fiscal Arbitrators, Demara Consulting, and various other companies will tell you they know the secret to Canadian Income Tax. They will tell you they can file your returns in such a way that you will retrieve all taxes paid for the last 3, 7, or even 10 years. Should yo…
Read more →Directors Liabilities
Income Tax Act Subsection 227 Excise Tax Act Subsection 323 Typically in Canada, your debts are your own. However, where corporations are involved that is not always the case. The Canada Revenue Agency (“CRA”) can assess director’s of a corporation for certain kinds of …
Read more →Change in Use
Deemed Disposition Where there is a change in use of property (real estate), the owner of the property is deemed to have sold the property, and to have immediately re-purchased it. This occurs whether the change in use is from personal use to income producing, or from i…
Read more →Allowable Business Investment Loss
Income Tax Act Subsection 3(d), 38(c), 39(1)(c), 40(2)(g)(ii), and 50 An allowable business investment loss (“ABIL”) is half of a capital loss, which was incurred on the sale of shares, or a debt of a small business corporation. The importance of receiving and ABIL rath…
Read more →Active Business Income
Income Tax Act subsection 125(7) A Canadian Controlled Private Corporation’s first $500,000 of active business income is taxed at a much lower rate. This is known as the small business deduction. Active business income is essentially exactly what is sounds like. Active …
Read more →Canadian Controlled Private Corporation
A Canadian Controlled Private Corporation (or "CCPC") is a private corporation being controlled by Canadian residents. The definition strictly prohibits public companies from qualifying, and also those run by non-residents. The major benefit of being a CCPC is access to…
Read more →Attribution Rules
Income Tax Act subsections 74.1(1), 74.2(1), 74.5(2) The rules of attribution come into play when income-producing property is transferred or loaned to a non-arms length party with certain exeptions (directly or indirectly or by means of a trust). The income from the pr…
Read more →Employee v. IC
Many individuals choose to categorize themselves as an independent contractor (self employed) because of the various tax advantages. The Canada Revenue Agency has its own rules regarding whether a person is in a business relationship (independent contractor), or in an e…
Read more →Vehicle Expenses - Keeping a Log
If you use the same vehicle for business and pleasure, a logbook should be kept to identify the business, and personal use. If you are able to deduct vehicle expenses, then only the business portion can be deducted from income. If a business is providing you with a vehi…
Read more →Qualified Farm Property
Income Tax Act Subsection 110.6(1), 110.6(1.3), 110.6(2) In 2015, the amount increased that a taxpayer can claim for the lifetime capital gains exemption as it relates to qualified farm property. The amount is now $1,000,000. The definition of qualified farm property co…
Read more →Non-Taxable Income
You do not have to report certain amounts in your income, including the following: Any GST/HST credit or Canada child tax benefit payments, as well as those from related provincial and territorial programs ; Child assistance payments and the supplement for handicapped c…
Read more →CANADIANS LINKED TO THE PANAMA PAPERS
Below is the complete list of Canadian officers of entities associated with the Panama Papers. If your name is in the list below, it means that you have been linked to the Panama Papers. If you are affected, call Barrett Tax Law at 1-866-278-8424 or visit www.barretttax…
Read more →Hey Mr. Putin and Mr. Signumdur … We can help you with your Panama Papers tax problems
For most understanding tax matters can be a brain-numbing experience. With the recent stories of the Panama papers, it may be a challenge to truly comprehend what this international tax scandal is really about, why it affects Canada, and how the Canada Revenue Agency (“…
Read more →Scammers Impersonate Barrett Tax Law Employees
It has come to our attention that there are scammers claiming to be working with Barrett Tax Law, when in fact they do not. If you receive a call from a man named Timothy Rufus, claiming to be working with our firm, or calling from this phone number: (613) 366-5293, ple…
Read more →The Forgotten Tax: Withdrawing from US Dollar Accounts
The Canadian dollar has dropped more than 25% since only a short while ago when it was on par with the US dollar. As a result, not only has the cost of living increased dramatically, but also costs for those visiting the United States have skyrocketed. The depressed loo…
Read more →Watch out tax shelter participants: The CRA may be able to collect 50% of disputed amounts before the courts rule!
Many taxpayers have participated in tax shelters and donation schemes and have filed objections with respect to reassessments issued by the Canada Revenue Agency. Many of these objections are outstanding, and some are already before the courts. Generally when you file a…
Read more →Trouble Ahead for Taxpayers Involved in the GLGI Program
The Tax Court has concluded that the donation program known as Global Learning Gift Initiative (or “GLGI”) is in fact a “sham”. The GLGI website states that this program works as a “gifting arrangement tax shelter where Canadians are able to utilize available tax incent…
Read more →Eligible Dependant Tax Credit Requirements
If you’re a parent interested in the eligible dependant tax credit, then being aware of the rules and regulations is crucial. The reason why is quite simple. There are a number of rules involved in the eligible depend tax credit which could prevent you from eligibility.…
Read more →CRA Scams Continue Nationwide
Canadians beware: The RCMP has issued yet another warning about Canada’s ongoing tax scams. It has come to light that there are people impersonating Canada Revenue Agency employees in an attempt to steal your hard earned money. According to Global News Edmonton , “in th…
Read more →Government Toughens Up on Snowbirds
If you’re a Canadian who moves to a warmer country in the winter then beware of Canada’s new border exit-tracking system. CTV News reports that the federal government plans on cracking down on snowbirds that leave Canada for too long but still collect social benefits - …
Read more →Thinking of Purchasing a Franchise? Buyer Beware!!
If you are thinking of purchasing a franchise, it is imperative that you be protected and that you fully understand your rights and obligations prior to getting started. Although there are many perks to entering into a franchise, there are also heavy restrictions and hi…
Read more →The Canada Revenue Agency (“CRA”) is investigating KPMG for a tax avoidance scheme
In 2000, a wealthy B.C. family invested approximately $26 million in a KPMG tax product in the Isle of Man, a self-governing territory. This tax product was targeted for high net worth Canadian residents, resulting in the family paying close to no tax over several years…
Read more →DeMara Consulting Update
Donna Marie Stancer and Deanna Lynn Lavalley have been convicted of six fraud related charges after filing nearly $192-million in false expenses for themselves and 224 clients of their now closed Vernon tax preparation company, DeMara Consulting. Here at Barrett Tax Law…
Read more →Michael Citrome’s Article “A Defective GST/HST New Housing Rebate Claim Can Lead to Costly Tax Trouble”
August 31, 2015 - Michael Citrome's article 'A Defective GST/HST New Housing Rebate Claim Can Lead to Costly Tax Trouble' published in the Ottawa Business Journal touches on the issues that arise if you didn't give a lot of thought to the GST/HST New Housing Rebate. "If…
Read more →Income Splitting
Income Splitting is a tax planning strategy designed to shift income from a taxpayer paying a high rate of tax to another taxpayer paying tax at a lower rate. The Income Tax Act has many provisions attempting to limit income splitting, but you should be aware of the opp…
Read more →The Liaison Officer Initiative – Have you been asked to participate?
This summer, a number of small and medium-sized business owners have been asked by the Canada Revenue Agency (CRA) to participate in the Liaison Officer Initiative (LOI) - a part of the CRA’s 3-point plan to provide early tax compliance support to businesses. Through th…
Read more →Uber GST/HST Issue
Self-employed cab drivers are required by the Canada Revenue Agency to register, collect and remit HST/GST from their fares to the government. This requirement does not correspond to a certain amount of money being made by cab drivers. Rather, if you drive a cab as a se…
Read more →Michael Citrome's Article "Moving Provinces? Avoid a Tax Bill"
August 7, 2015 - Michael Citrome's blog post "Moving Provinces? Avoid Surprise Tax Bill" that was posted in the Ottawa Business Journal discusses the issues regarding income taxes and moving between provinces. "People move between provinces all the time. Here in Ottawa,…
Read more →Has your IRS filing deadline changed?
Many IRS filing deadlines have recently been changed by Congress, in H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Effective as of December 31, 2015, if you are required to file with the IRS for your C corporation, partne…
Read more →How will the Budget 2015 affect your Foreign Income Reporting requirements?
The Department of Finance Canada’s Budget 2015 proposes to put into operation a new streamline reporting system for foreign assets. Presently, Canadian resident individuals, partnerships, corporations, and trusts that own a total value of more than $100,000 of specified…
Read more →Bitcoins: Are They Considered Specified Foreign Property?
If a Canadian taxpayer owns certain foreign property, the collective cost of which exceeds $100,000 CDN, the taxpayer must file a Form T1135 (Foreign Income Verification Statement). The Canada Revenue Agency (“CRA”) recently provided its views on whether digital currenc…
Read more →Dale Barrett was interviewed for Global News' 'Booming shared economy leaves governments of all levels scrambling to keep up on taxes'
July 22, 2015 - Global News reports on the issues surrounding taxes and companies such as Uber and Etsy in their "Booming shared economy leaves governments of all levels scrambling to keep up on taxes." See Dale Barrett's comments regarding the issue and planning ahead …
Read more →Tax Scam Update: DeMara Consulting Inc. has been found guilty of Tax Evasion
In 2010, Donna Marie Stancer and Deanna Lynn Lavalley started a tax consultation company by the name of DeMara Consulting Inc. It wasn’t until March of 2012 that the Canada Revenue Agency (the “CRA”) raided the DeMara Consulting Inc. office in downtown Vernon looking fo…
Read more →Cross-border Real Estate Planning: Have you done your due diligence?
Today, many Canadians own real property in the U.S. as vacation or rental property. There are various ways to hold such property, and the choice of how to hold your foreign real estate depends on the goal(s) you wish to achieve. Some of these goals may include avoiding …
Read more →First Court Decision on Provincial Residency of a Trust
Generally, the test applied to determine the residency of a trust is where its “central management and control” is located. The Newfoundland Supreme Court rendered a decision which recognizes the reality of the “trust” relationship. In Discovery Trust v. Minister of Nat…
Read more →Taking the CRA to Court
July 20, 2015 - The Ottawa Business Journal published a blog post written by Barrett Tax Law's Ottawa Managing Lawyer, Michael Citrome. "Here in Ottawa, many people think of the government as an employer, rather than as an obstacle to doing business. Even still, for man…
Read more →Tax Planning & The Solicitor-Client Privilege: Are You Covered?
There is a common misconception that all communications with a lawyer are privileged. A recent Federal Court case, Canada (National Revenue) v. Revcon Oilfield Constructors Incorporated, 2015 FC 524, is a reminder that not all communications with a lawyer are protected …
Read more →Dividends as Compensation to Shareholder/ Employees
Are you a shareholder of a non-arm’s length company and also employed for the same corporation? If so, you should think carefully before making an agreement where you are paid in dividends instead of being paid a salary or other form of compensation. If dividends are di…
Read more →Section 225.1 and Tax Shelters
With the passing of this new section, the Minister is now allowed to collect 50% of the amount assessed in respect of a tax shelter even if the related assessment is in dispute. Meaning even if you object, or appeal to Tax Court, the Minister can still come after you fo…
Read more →Is your agreement with the CRA binding?
Rosenberg v. Canada , 2015 FC 549 The taxpayer in the above noted case entered into an agreement with the CRA’s auditor. The CRA agreed not to reassess the 2006 and 2007 taxation year, except to make one specific adjustment. Three years later, the CRA commenced a second…
Read more →Tax Scam: Jason White
Have you received a call from someone calling themselves Jason White? He typically calls from 1-613-912-4377. This Jason White may be pretending to be a Canada Revenue Agency employee who claims there is a warrant out for your arrest. He then informs taxpayers that the …
Read more →FAPI (Foreign Accrual Property Income)
In Canada, residents are taxed on their worldwide income. Some Canadians think that they can invest in corporations outside of Canada, and because corporations are separate entities, there is no taxes to pay on the income the corporation is earning. While this can be co…
Read more →Group RRSPs
A Group Registered Retirement Savings Plan ("RRSP") is an employer-contribution retirement plan, that it similar to an individual RRSP. However, it is administered by the employer. The significant advantage to a Group RRSP is that contributions from your employer are ma…
Read more →Dale Barrett was quoted in "What to do if the CRA comes calling"
April 27, 2015 - Augusta Dwyer from The Globe and Mail wrote an informative piece on What to do if they CRA comes calling. Mr. Barrett suggests meeting with CRA staff in a neutral atmosphere free of details about the business owner’s personal life, such as vacation phot…
Read more →Barrett Tax Law in "Tax advice for entrepreneurs, no strings attached"
April 27, 2015 - Diane Jermyn from The Globe and Mail wrote a helpful article "Tax advice for entrepreneurs, no strings attached." Barrett Tax Law: This Toronto-based business offers a toll-free number throughout Canada (1-877-8-TAX-TAX) where small business owners, the…
Read more →Dale Barrett was quoted in Yahoo Finance's article "Can the CRA use your social media accounts against you?"
April 24, 2015 - Andrew Seale from Yahoo Finance wrote a riveting article on whether or not the CRA can use your social media accounts against you. Of course, technically and ethically, they should start by looking at your books and records to determine how much you’re …
Read more →Barrett Tax Law in "Be Prepared When Canada Revenue Agency Comes Calling"
April 18, 2015: Brian McCullough from National Post wrote a very informative article "Be Prepared When Canada Revenue Agency Comes Calling" Tax lawyer Dale Barrett has one simple question for small-business owners and self-employed people who run afoul of the Canada Rev…
Read more →How to Hold Title to Property Ownership in Florida to Avoid Ancillary Probate
Many Canadians who own property in Florida are inadvertently bound by Florida probate law. This means that upon the death of a Canadian or nonresident, if real property was owned and located in Florida, ancillary probate is required by Florida State Law despite having a…
Read more →Capital Gains Exemption for Qualified Small Business Corporations
The Lifetime Capital Gains Exemption is a tax planning technique that is available to business owners who are selling shares of their private companies. This is an economic incentive to help raise the level of investment in small businesses, however, not everyone meets …
Read more →Reporting Foreign Property
Form T1135 – Foreign Income Verification Statement Are you a Canadian resident who is an individual, corporation, partnership, or trust? If so, you are required to report holdings of Specified Foreign Property that, collectively, costs $100,000 or more at any time durin…
Read more →Jeopardy or Collection Orders
If a taxpayer does not agree with an assessment from the Canada Revenue Agency (“CRA”), there are a number of avenues the taxpayer may explore to dispute the assessment. Once an assessment is in dispute, the taxpayer usually does not have to pay the amount in dispute un…
Read more →Yet Another CRA Tax Scam to be Aware of
With the growth of technology has come an increase with ways in which scammers can reach victims. Within the past few weeks we have been made aware of an email that has been going around claiming that they are the Canada Revenue Agency (the “CRA”). If you have received …
Read more →Income From Illegal Activities
Canadians are always surprised to learn that an illegal business must pay tax on its income. Be it drugs, prostitution, theft, etc., the Canada Revenue Agency (the “CRA”) still wants their cut. If a taxpayer is caught committing a criminal act they will obviously be bro…
Read more →Real Estate Audits
Have you bought and sold a new condo over the past seven years? The Canada Revenue Agency (“CRA”) has deployed abusive audit practices and has been targeting the booming real estate markets in Toronto and Vancouver. The focus of this audit trend is primarily on individu…
Read more →Is now a good time to come forward to the IRS?
U.S. Citizens worldwide have recently learned, especially through the enactment of FACTA, that they have a responsibility to come forward to the IRS. U.S. Citizens, whether residents or non-residents, dual citizens, and even non-U.S. Citizens who are deemed U.S. Residen…
Read more →Do you have assets, investments or a savings account outside of Canada?
If you are a Canadian with offshore property and/or income, be advised that there are new reporting requirements due to changes imposed by the federal government. There have been signs to indicate that they are serious about making people pay. It is important to note th…
Read more →Spike in the Number of Nurses being Audited
I have seen a huge spike in the number of nurses being audited. The number has increased dramatically over the last year. The CRA is steadfast in going after the homecare sector and appears to be attempting to disallow virtually all of their deductions – despite the fac…
Read more →The CRA is Financially Destroying Victims of Tax Scams
The Canada Revenue Agency is financially destroying victims of tax scams through the imposition of gross negligence penalties! You may have fallen victim to a tax scam, or perhaps one of your family members, friends or co-workers has been victimized. After a wave of tax…
Read more →Dale Barrett’s Book is on Amazon’s Bestseller list for the millionth week in a row!
March 16, 2015: For the millionth week in a row Dale Barrett’s book is featured on Amazon’s bestsellers list. No other Canadian tax lawyer’s book appears in the top 100! Tax Survival for Canadians: Stand up to the CRA, which was published in March 2013, ranks 7th in tax…
Read more →Have you ever wondered whether you are getting correct advice from the CRA?
Have you ever phoned the Canada Revenue Agency seeking advice or clarification about an important tax matter? Have you ever wondered whether you are getting correct advice? Well a recent internal survey (conducting by the government itself) asking that very question pro…
Read more →Barrett Tax Law was referenced in the Yahoo Finance article, " What happens when your tax return gets audited"
February 23, 2015: Gail Johnson from Yahoo Finance wrote a useful article on "What Happens when your tax return gets audited" According to Barrett Tax Law , the CRA performed more than 370,360 audit and review actions in the 2008-09 tax season. During that period, it co…
Read more →Barrett Tax Law was quoted in CBC’s article “10 ways to attract a CRA auditor’s attention”
March 2, 2015: Tom McFeat, from CBC News, wrote a very informative article on how to attract a CRA auditor's attention. The tax department "has tools to investigate and gather information about your industry," says Barrett Tax Law . "If your numbers don't fit the typica…
Read more →Dale Barrett's contribution to the Toronto Star's tax article, "7 triggers that may lead to a tax audit"
May 19, 2013: Business reporter, Madhavi Acharya-Tom Yew, of the Toronto Star, wrote a useful article informing readers of the common triggers that increase the likelihood of a CRA tax audit, which are: Being self-employed Any big changes Recurring losses Big expenses N…
Read more →April 23, 2013: BNN (Business News Network) news broadcast: "Surviving a tax audit: Debunking CRA myths"
Canadian tax lawyer at Barrett Tax Law, Dale Barrett, looks at the various myths many Canadians have about the Canada Revenue Agency in this informative interview on the Business News Network. The first myth debunked is "The CRA will not find out what I have not told th…
Read more →Financial Post article: "How to handle tax audits — and how to avoid them in the first place"
April 13, 2013: Dale Barrett of Barrett Tax Law provided Financial Post reporter, Melissa Leong, with effective tax tips for avoiding CRA tax audits: "You face a higher risk of being audited if you are self-employed or in an industry with a lot of cash transactions such…
Read more →Tax Survival for Canadians: Stand up to the CRA, a valuable tax resource written by Canadian tax lawyer Dale Barrett and published by Self Counsel Press, is now available for purchase!
If you are currently involved in a tax dispute with the Canada Revenue Agency or if you're simply looking to be proactive and avoid tax problems with the often heavy-handed CRA, Tax Survival for Canadians: Stand up to the CRA , is a useful tax guide (and interesting rea…
Read more →Vancouver Sun investigates Jeff Eshun of DSC Lifestyle Services
February 16, 2013: David Baines, reporter at the Vancouver Sun, continues his investigation of Jeff Eshun, owner of JV Raleigh Superior Holdings Inc. who has been fined $6.95 million by the B.C. Securities Commission and consequently banned from selling investment notes…
Read more →ATTENTION WINDSOR, ONTARIO COMMUNITY! Free Emergency Tax Seminar on Wednesday, February 27 at 6:30pm
In light of events recently reported in the media regarding tax savings schemes that have instead resulted in significant tax reassessment bills and penalties issued by the Canada Revenue Agency to many hardworking residents of Windsor , Dale Barrett, Canadian tax lawye…
Read more →Dale Barrett's book, Tax Survival for Canadians: Stand Up to the CRA, is now available for purchase on Amazon.ca
Canadian tax lawyer and principal at Barrett Tax Law, Dale Barrett, had his book published, Tax Survival for Canadians: Stand up to the CRA, by Self-Counsel Press and is now available for purchase on Amazon.ca. This valuable tax resource explains how hardworking Canadia…
Read more →Members of the Peterborough and Kawarthas Association of Realtors will be given a special tax seminar presented by Dale Barrett, Canadian tax lawyer and principal at Barrett Tax Law
Dale Barrett, Canadian tax lawyer and principal at Barrett Tax Law, will be presenting an informative tax seminar to members of the Peterborough and Kawarthas Association of Realtors at their annual general meeting to be held at the Peterborough Golf and Country Club on…
Read more →The Windsor Star interviews Dale Barrett from Barrett Tax Law regarding the Fiscal Arbitrators tax program
Dale Barrett, Canadian tax lawyer at Barrett Tax Law, was interviewed for an article published in the Windsor Star on February 12, 2013 regarding the Fiscal Arbitrators tax program. Barrett Tax Law is currently defending approximately 200 taxpayers across Canada against…
Read more →Attention Kincardine community & surrounding areas:
October 7, 2012 Dale Barrett, expert tax lawyer and principal at Barrett Tax Law, will be giving a free seminar this Saturday, October 13th for Canadians concerned about illegal tax schemes. The seminar, How to Protect Yourself from Fraudulent Tax Schemes, consists of a…
Read more →Article as published in the Canadian Real Estate Wealth magazine: "The dreaded Canada Revenue Agency tax audit: tax tips for the self-employed"
Dale Barrett, expert tax lawyer and owner of Barrett Tax Law, briefly explores strategies on avoiding as well as facing a tax audit. Does the CRA target small business owners and the self-employed? The CRA focuses on the groups who are more likely to omit or misrepresen…
Read more →Canada: Safe to Apologize
Canada: Safe to Apologize Article by Dale Barrett and Barry Leon, November 8, 2006 Originally published in Mediation Committee Newsletter , September 2006 The province of British Columbia is the first Canadian jurisdiction to introduce a law providing a safe harbour for…
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