Month: March 2017

Corporate-class funds and fee deductibility

Corporate-class funds and fee deductibility Last time, we talked about how charging a management expense ratio (MER) fee, versus a direct fee, can affect fee deductibility for mutual fund trusts. This article will look at deductibility for corporate-class funds, or mutual fund corporations. Two characteristics of mutual fund corporations Mutual fund corporations house a number

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Month: March 2017

Budget changes donation rules

Budget changes donation rules This year’s budget included a few notes relating to charitable giving and donations. The goal, says Curtis Davis, is to start simplifying the tax code. Davis, who’s director of tax and estate planning at Mackenzie Investments in Toronto, highlights the budget’s mention that the First-Time Donor’s Super Credit will expire at

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Month: March 2017

Feds will keep asking for more to bolster middle class: Morneau

Feds will keep asking for more to bolster middle class: Morneau “It is not lost on me that, for many in this room, our plan has asked more from you,” said Finance Minister Bill Morneau during a post-budget speech on Friday in Toronto. Still, Morneau delivered a clear message to Toronto’s business community: the government

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Month: March 2017

Tax-News.com: Canadian Budget Focuses On 'Tax Fairness'

Tax-News.com: Canadian Budget Focuses On 'Tax Fairness' by Mike Godfrey, Tax-news.com, Washington 23 March 2017 The tax measures contained Canadian Finance Minister Bill Morneau’s second Budget are focused on closing loopholes, cracking down on tax evasion, and improving tax reliefs for the “middle class.” Morneau delivered the Budget on March 22. In his Budget speech,

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Month: March 2017

Good and bad tax news from Budget 2017

Good and bad tax news from Budget 2017 It’s no surprise that the federal government has continued to target boutique tax credits and deductions in its latest budget. For you and your clients, “there are some good news stories here and some bad news stories,” says Debbie Pearl-Weinberg, executive director of tax and estate planning

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Month: March 2017

Niche nuggets in Budget 2017

Niche nuggets in Budget 2017 Tax expert John Sliskovic is more enthusiastic about the government’s pending review of the current tax system than he is about Budget 2017. “What caught our eye the most was the comments about the government releasing a paper that will talk about some of the issues that concern them,” says

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Month: March 2017

How to avoid factual control of a corporation? Avoid influence

How to avoid factual control of a corporation? Avoid influence Clients should stay away from wielding influence over businesses they don’t want associated with their own corporations for tax reasons. That’s the conclusion of tax advisors after reviewing Ottawa’s latest rules on factual control of private corporations, released in the federal budget on Wednesday. “They’re

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Month: March 2017

How Finance might curb tax advantages for private corps

How Finance might curb tax advantages for private corps Your business owner clients may think of themselves as middle class, but according to the Trudeau government, they aren’t. In its 2017 federal budget, “Building the Middle Class,” the government reveals it will be reviewing how private corporations create unfair advantages for “high-income individuals.” Read: Liberals

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Month: March 2017

Liberals reviewing private corporations, high-income tax strategies

Liberals reviewing private corporations, high-income tax strategies The federal government’s budget plan issued a warning to financial advisors and their clients: Your tax strategies are under review. The government said it is launching a tax review of strategies for the use of private corporations and other advantages for “high-income individuals.” Outlined in Liberal’s 2017 budget

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Month: March 2017

Federal budget takes aim at associated corporations

Federal budget takes aim at associated corporations If you have married clients who each legally own separate small businesses, but one of them takes care of operations for both, watch out. The Finance Department, in the federal budget released Wednesday, says it wants to “ensure taxpayers do not inappropriately access certain tax preferences” related to

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