Tax

Case challenges tax picture for those hit by scandal

Last month, the Ontario Securities Commission announced that the five mutual fund companies implicated in late-trading and market timing activities back in 2003 have been given an additional two years to distribute any remaining settlement monies to affected investors. Coincidentally, the taxation of the settlement amounts received by mutual fund investors who held units in […]

August 1, 2009

3 min read

Tax News

How does bankruptcy affect an RRSP?

Is my RRSP protected from creditors? Whether it’s nervous clients reviewing their depleted nest eggs, or troubled clients readjusting to a job loss, this is one question financial advisors have probably been asked fairly often in recent times. The easiest answer is: Indeed—in the case of bankruptcy—except for deposits made within the 12 months leading […]

August 1, 2009

4 min read

Estate Planning

Insurance and the U.S. estate tax

Individuals in Canada often purchase insurance to help fund tax liabilities that arise on death. In addition, some insurance products are purchased as an investment vehicle to shelter income from tax. Generally speaking, estate planning with insurance is effective in Canada because insurance proceeds are received tax-free. However, for U.S. citizens living in Canada, great […]

By Nadja Ibrahim |July 21, 2009

4 min read

Tax Strategies

Refinancing spousal loans

Now that the CRA has set the prescribed interest rate at a historical low of 1%, you may be setting up spousal loans for clients to achieve income splitting. You may also be faced with the challenge of trying to refinance existing spousal loans to access the new, lower CRA prescribed rate. (See previous article […]

By Carol Bezaire |July 14, 2009

4 min read

Estate planning 101

A reluctance to tackle touchy subjects can prove costly. I remember a long-ago conversation with one of my earliest personal tax clients about aging parents and estate planning. The client — let’s call him Bob — was the only child of a well-to-do couple. Bob had no children of his own, and was relatively well […]

5 min read

Employment versus self-employment

Alex recently lost his job with a local plumbing company. After several weeks off, he was approached by a competing firm, Charlie’s Plumbing Agency, with an offer for his services. The offer was an interesting one — Alex could choose to work as part of a contract of service, or he could enter into a […]

6 min read

IFRS: Managing change for the tax function

The move to International Financial Reporting Standards (IFRS) from the current Canadian Generally Accepted Accounting Principles (GAAP) will fundamentally change the way Canadian organizations report their business results. The tax function will not be immune to these changes. In fact, IFRS may affect the measurement and reporting of income taxes for financial statement purposes, the […]

4 min read

Taxing transaction fees

I’m asked regularly about whether commissions received by an advisor on the sale of life insurance and/or investment products for his or her own personal use are taxable. A 2003 tax case—Delisle v The Queen, 2003 TCC 751—dealt with such an advisor. Gilbert Delisle, an executive at Sun Life, became self-employed after leaving in July […]

3 min read

An estate freeze can be a good idea

Many of you have clients who implemented estate freezes in previous years. The planning strategy involves exchanging company shares— whether a family business or an investment holding company— for fixed value preferred shares, and then having other family members, or in many cases a trust for those family members, subscribe for nominal value common shares. […]

By Gena Katz |June 1, 2009

3 min read

Tax preparation opens doors with clients

Some years I wonder why I do it? The long hours. The time away from my family. The last-minute procrastinators. Given that our fee-only practice specializes in comprehensive fi nancial planning for affl uent individuals with challenging Canada/U.S. fi nancial, tax and estate matters, for many of our clients tax season doesn’t end on April […]

8 min read