Tax-News.com: Think Tank: British Columbia Carbon Tax Not Revenue Neutral

Tax-News.com: Think Tank: British Columbia Carbon Tax Not Revenue Neutral

by Mike Godfrey, Tax-news.com, Washington

20 February 2017

British Columbia’s carbon tax is no longer revenue neutral and could result in almost CAD900m (USD687.7m) in higher taxes over the six-year period to 2018-19, according to a new study by think tank the Fraser Institute.

The carbon tax was introduced in 2008 at CAD10 per tonne of CO2 equivalent. To offset the revenue raised, the Government reduced personal and business tax rates and introduced a new tax credit for low income earners.

The carbon tax was gradually increased to CAD30 per tonne in 2012. Last year the Government said that the carbon tax will only rise if it remains revenue-neutral and every dollar is returned to residents in the form of tax relief.

According to the Fraser Institute, the province’s carbon tax ceased to be revenue neutral in 2013-14 “because the Government no longer provided new tax cuts to sufficiently offset the additional carbon tax revenue.”

It said: “Beginning in 2013-14, the Government started counting as offsets a number of existing tax credits that pre-dated the introduction of the carbon tax. Indeed, some of the tax credits date back to the 1990s.” It calculated that, once the pre-existing tax reductions are excluded, British Columbia taxpayers “paid CAD226m in increased taxes in 2013-14 and CAD151m in increased taxes in 2014-15.”

The Institute added that the Government had in fact estimated that the carbon tax will result in a cumulative CAD865m tax increase between 2013-14 and 2018-19.

(Why?)

Published at Mon, 20 Feb 2017 00:00:00 +0000

Tax-News.com: Hong Kong Ranked As Freest Economy For 22nd Year

Tax-News.com: Hong Kong Ranked As Freest Economy For 22nd Year

by Mary Swire, Tax-News.com, Hong Kong

17 February 2017

For the 22nd consecutive year, Hong Kong has maintained its position as the
world’s freest economy in the 2017 Index of Economic Freedom from the Heritage
Foundation (HF).

HF highlighted Hong Kong’s high degree of economic resilience, high-quality
legal framework, a high degree of government transparency, regulatory efficiency,
and its openness to global trade and investment.

Hong Kong’s “regulatory efficiency and openness to global commerce strongly
support entrepreneurial activity,” it said. As “one of the world’s
most competitive financial and business hubs, … Hong Kong is by far the
most significant transit point for exports and imports to and from China.”

It also pointed to Hong Kong’s low, simple, and efficient tax regime. The overall
tax burden equals 14.4 percent of total domestic income, and government spending
has amounted to only 18.3 percent of total gross domestic product (GDP) over
the past three years. Budget surpluses have averaged two percent, and public
debt is equivalent to 0.1 percent of GDP.

Finally, HF welcomed the importance of trade to Hong Kong’s economy, with the
value of exports and imports totaling 400 percent of GDP. The average applied
tariff rate is zero percent.

The 2017 Index of Economic Freedom ranks the degree of economic freedom in
178 economies around the world. Twelve factors are assessed: tax burden, government
spending, fiscal health, business freedom, labor freedom, monetary freedom,
trade freedom, investment freedom, financial freedom, property rights, judicial
effectiveness, and government integrity.

Hong Kong achieved an overall score of 89.8 (on a scale from 0 to
100), an increase of 1.2 points compared with last year. This score was significantly
above the global average of 60.9. Singapore was ranked second with 88.6, followed
by New Zealand (83.7), Switzerland (81.5), and Australia (81).

“Of the 180 economies whose economic freedom has been graded and ranked
in the 2017 Index,” HF pointed out that only [these] five have sustained
very high freedom scores of 80 or more, putting them in the ranks of the economically
‘free.'”

A further 29 countries, including Chile, the United Arab Emirates, the United
Kingdom, the United States, and Mauritius, have been rated as “mostly free”
economies with scores between 70 and 80.

The United States scored 75.1 (an annual fall of 0.3), making its economy only
the 17th freest in the 2015 Index, below the United Kingdom (76.4) in 12th place,
and Canada (78.5) in 7th place. HF noted that the United States has “registered
its lowest economic freedom score ever. … Large budget deficits and a
high level of public debt, both now reflected in the Index methodology, have
contributed to the continuing decline in America’s economic freedom.”

(Why?)

Published at Fri, 17 Feb 2017 00:00:00 +0000

Tax-News.com: EU: Canadian Free Trade Agreement Could Apply From April

Tax-News.com: EU: Canadian Free Trade Agreement Could Apply From April

by Ulrika Lomas, Tax-News.com, Brussels

16 February 2017

Members of the European Parliament have approved the Comprehensive Economic and Trade Agreement (CETA) with Canada, in a decision that could allow the deal to be applied provisionally from April.

CETA was approved on February 15 by 408 votes to 254, with 33 abstentions.

The free trade deal could be applied provisionally from the first day of the second month following the date both sides have notified each other that they completed all necessary ratification procedures. MEPs expect this to be the case on April 1, 2017, at the earliest. However, as CETA is classed as a “mixed agreement,” it will also need to be ratified by national and regional parliaments.

Upon CETA’s entry into force, Canada will eliminate duties worth EUR400m (USD425.5m) each year for goods originating from the EU. Once the agreement is fully implemented, that figure will rise to more than EUR500m a year.

According to the European Parliament’s site, “CETA will not remove tariff barriers in the fields of public services, audio-visual and transport services, or from certain agricultural products such as dairy, poultry, and eggs. Imports from Canada will have to satisfy all EU product rules and regulations.”

CETA also contains a new mechanism for the resolution of investor-state disputes: a public Investment Court System.

Artis Pabriks, Parliament’s rapporteur for CETA, said: “By adopting CETA, we chose openness and growth and high standards over protectionism and stagnation. Canada is a country with whom we share common values and an ally we can rely on. Together we can build bridges, instead of a wall, for the prosperity of our citizens. CETA will be a lighthouse for future trade deals all over the world.”

Trade Commissioner Cecilia Malmström welcomed the vote. She commented: “Canada is an important economic partner, with yearly trade between us worth nearly EUR1 trillion. Once the Canadian Parliament has ratified this agreement, the next step is to put it provisionally in place, which I hope can be done swiftly and effectively. Citizens and companies on both sides of the Atlantic should start reaping these benefits very soon.”

Commission President Jean-Claude Juncker called on EU member states to “conduct an inclusive and thorough discussion at national level with the relevant stakeholders in the context of the national ratification process of the agreement.”

(Why?)

Published at Thu, 16 Feb 2017 00:00:00 +0000

Study reveals hidden tax in B.C.

Study reveals hidden tax in B.C.

green-dollar-invest-environment

Clients in B.C. are paying higher taxes without knowing it. And soon, all Canadians could be.

That’s because a study by the Fraser Institute reveals the province’s carbon tax isn’t revenue neutral, as originally designed. And, as other provinces follow suit, Canadian taxpayers across the country could be similarly affected.

Read: Carbon tax rebates coming for lower-income Alberta clients

By 2018, the federal government requires all provinces to adopt a carbon pricing system.

As it stands, taxpayers in B.C. could be paying almost $900 million more in taxes over a six-year period, finds the study.

When the carbon tax was introduced in 2008, the B.C. government offset the new revenue with cuts to personal and business tax rates and a new tax credit for low-income earners.

Five years later, however, the government no longer provided new tax cuts to offset additional carbon tax revenue. Instead, starting in fiscal year 2013/14, the government started counting existing tax credits as offsets — credits that pre-dated the carbon tax.

That violates the basic principle of revenue neutrality, says Charles Lammam, director of fiscal studies at the Fraser Institute, in a release.

Once the pre-existing tax reductions are excluded, B.C. taxpayers paid $226 million in increased taxes in 2013/14 and $151 million in 2014/15, reveals the study.

The carbon tax is projected to result in a cumulative $865 million tax increase on taxpayers through fiscal year 2018/2019.

Read the full study here.

Also read: 4 Canadian financial firms lauded for sustainability efforts

Uncollected tax tally could be $50 billion: report

(Why?)

Published at Thu, 16 Feb 2017 20:21:29 +0000

Tax-News.com: Canada Urged To Measure Tax Gap To Boost Revenues

Tax-News.com: Canada Urged To Measure Tax Gap To Boost Revenues

by Mike Godfrey, Tax-news.com, Washington

15 February 2017

Canada would benefit from undertaking accurate tax gap analyses, says a new report, which attempts to estimate the amount of revenue that goes uncollected each year.

A new briefing by the Conference Board, commissioned by the SAS Institute, says that the tax gap – the amount of revenue that is lost due to non-collection, error, or evasion – could be as low as CAD8.9bn (USD6.8bn) or as high as CAD47.8bn.

The report says the Government should apply more sophisticated evaluation and auditing techniques, engage in regular consultations with other tax administrations, and make increased use of data analytics to boost revenue collections. Measures to simplify the tax code and smooth tax administration could help reduce filing errors and increase revenue collection, it added.

“When some individuals and companies do not pay their fair share of taxes, it increases the burden of funding public services on compliant taxpayers,” said Matthew Stewart, Associate Director, National Forecast at The Conference Board of Canada. “It is not easy to estimate the tax gap, but doing so is an important step in eventually collecting the revenues that support government activities.”

(Why?)

Published at Wed, 15 Feb 2017 00:00:00 +0000

Clients have unique tax needs? Here are tips

Clients have unique tax needs? Here are tips

calculating-budget-tax

During tax season, the last thing you want is to miss out on savings for your clients. But that can be hard when they all have different lifestyles, professions and circumstances.

To help, we’ve put together some quizzes that outline how to help Canadians with unique needs. Check them out and go through them with clients.

Taxes for East Coast Canadians

Help Canada’s veterans save tax

Help Canada’s representatives to the world

Tax tips for cottage owners

Help amateur athletes reach their peak

Taxes for professionals and union members

Also, here are some additional articles.

Taxes for West Coast Canadians

Top tax credits and benefits for seniors

What’s new for the 2017 tax-filing season?

Taxes for Canadians in the North

Taxes for collectors

Principal Residence Exemption: What’s changed, what hasn’t

Originally published on Advisor.ca

(Why?)

Published at Tue, 14 Feb 2017 14:59:06 +0000

Uncollected tax tally could be $50 billion: report

Uncollected tax tally could be $50 billion: report

hook-fish-catch

Uncollected tax from evasion, avoidance and simple mistakes could be almost $50 billion, reveals a report by the Conference Board of Canada (CBoC).

Read: Tax-dodging dentist gets jail time for failing to pay fine

(While the actual amount of uncollected tax is unknown, the report calculates a range of $9 billion to $50 billion by using data about the tax gap in other countries.)

Reclaiming that tax not only increases government revenues but also restores fairness to taxpayers, says the CBoC.

Last year, the CRA set up an offshore tax evasion tip line in the wake of the revelations from the Panama Papers. This, along with other CRA measures, is expected to increase the tax collected by $7.6 billion over five years.

Read: CRA may be watching clients’ social media

But, with the amount of money at stake potentially far greater than that estimated reclamation, the CBoC recommends using advanced data analytics technology to close the tax gap. Other world governments effectively use analytics to reduce fraud and other types of tax evasion, says the report.

For instance, in the U.K., data analytics is used to derive risk profiles and improve the targeting of resources to boost tax compliance. As a result, a 2014 report shows that the U.K. increased its year-to-date tax yield by £2.6 billion while employing 40% fewer staff.

The CBoC also suggests Canada simplifies its tax code and streamlines tax administration, thereby reducing filing errors and increasing the revenue collected by governments.

Read the full report here.

Also read:

IRS can revoke passports of Americans in Canada

CRA minister on tax evasion: “No one will be immune”

(Why?)

Published at Mon, 13 Feb 2017 17:36:13 +0000

Tax-News.com: Canada News

Tax-News.com: Canada News

Tax-News.com: Canada NewsTax-News.com: Canada Opposed To New US TariffsTax-News.com: Canadians Weigh Up Tax Options For Funding Media ContentTax-News.com: Sugary Drinks Tax Proposed For Canada's Northwest TerritoriesTax-News.com: Canada Confirms Loss Of Data On 28,000 TaxpayersTax-News.com: CRA's Offshore Informant Program Nets CAD1m

http://www.tax-news.com Global tax news, continuously updated through the day. http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2> <h3>09 February 2017</h3> <!– SHARE –> <span class=”st_fblike_hcount” displaytext=”Facebook Like”></span> <span class=”st_facebook_hcount” displaytext=”Facebook”></span> <span class=”st_twitter_hcount” displaytext=”Tweet”></span> <span class=”st_googleplus_hcount” displaytext=”Google +”></span> <span class=”st_linkedin_hcount” displaytext=”LinkedIn”></span> <span class=”st_delicious_hcount” displaytext=”Delicious”></span> <span class=”st_reddit_hcount” displaytext=”Reddit”></span> <!– SHARE END –> <p>Canadian Trade Minister Chrystia Freeland has said that her Government would be “strongly opposed to any imposition of new tariffs between Canada and the United States.” </p> <p>Freeland undertook a two-day visit to Washington, D.C. from February 7 to 8. She met with her counterpart, the new US Secretary of State Rex Tillerson, House Speaker Paul Ryan, and the chairs of the Senate committees on armed services and foreign relations. </p> <p>Speaking to reporters after her meeting with Tillerson, Freeland said: “I did make the point that Canada will have no position on the [US Government’s] tax reform plan or the border adjustment tax idea until it is fully formed and it is a concrete proposal. But I did make clear that we would be strongly opposed to any imposition of new tariffs between Canada and the US, that we felt tariffs on exports would be mutually harmful.” </p> <p>She added that “if such an idea were ever to come into being, Canada would respond appropriately.” </p> <p>US President Donald Trump has promised “massive” tax cuts for American companies. He has however also threatened a “major border tax” of up to 35 percent on imports from US multinational companies that move their production facilities outside the country. </p> Wed, 08 Feb 2017 18:00:00 -0600 EN text/html http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2> <h3>08 February 2017</h3> <!– SHARE –> <span class=”st_fblike_hcount” displaytext=”Facebook Like”></span> <span class=”st_facebook_hcount” displaytext=”Facebook”></span> <span class=”st_twitter_hcount” displaytext=”Tweet”></span> <span class=”st_googleplus_hcount” displaytext=”Google +”></span> <span class=”st_linkedin_hcount” displaytext=”LinkedIn”></span> <span class=”st_delicious_hcount” displaytext=”Delicious”></span> <span class=”st_reddit_hcount” displaytext=”Reddit”></span> <!– SHARE END –> <p>A majority of Canadians are opposed to the introduction of a new tax on internet and mobile phone bills, according to a new poll for campaign group OpenMedia. </p> <p>The survey asked respondents about the potential for the federal Government to create a new revenue source to support Canadian media content. OpenMedia said that 53 percent of respondents supported the idea, while 20 percent were opposed. </p> <p>When asked for their opinions on specific options for a new revenue source, 70 percent of participants said that they were opposed to the prospect of a new tax on internet and mobile phone bills, with 51 percent saying they were strongly opposed. Only 14 percent supported the idea. </p> <p>However, OpenMedia said that there was more support for the possible extension of the goods and services tax/harmonized sales tax to foreign online companies. 47 percent of respondents said they would support the option if revenues were directed to Canadian content, while 29 percent were opposed to the suggestion. </p> <p>The research was conducted by Innovative Research Group Inc.</p> Tue, 07 Feb 2017 18:00:00 -0600 EN text/html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2> <h3>07 February 2017</h3> <!– SHARE –> <span class=”st_fblike_hcount” displaytext=”Facebook Like”></span> <span class=”st_facebook_hcount” displaytext=”Facebook”></span> <span class=”st_twitter_hcount” displaytext=”Tweet”></span> <span class=”st_googleplus_hcount” displaytext=”Google +”></span> <span class=”st_linkedin_hcount” displaytext=”LinkedIn”></span> <span class=”st_delicious_hcount” displaytext=”Delicious”></span> <span class=”st_reddit_hcount” displaytext=”Reddit”></span> <!– SHARE END –> <p>Canada’s Northwest Territories will introduce a sugary drinks tax in 2018-19. </p> <p>In his 2017-18 Budget address, Finance Minister Robert McLeod said that the Government intends to introduce the tax in 2018-19 but will “take the time during the upcoming fiscal year to ensure our approach is as effective as possible.” </p> <p>The tax would act as “a price incentive to discourage the consumption of sugary drinks that are linked to health issues such as obesity and diabetes,” he explained. </p> <p>There have previously been calls for a federal tax on sugar-sweetened and artificially-sweetened drinks. </p> <p>In March 2016, the Standing Senate Committee on Social Affairs, Science, and Technology recommended that the Government “assess the options for taxation levers” for reducing consumption of such drinks. In addition, industry body Dietitians of Canada has called for the application of an excise tax of at least 10-20 percent on sugar-sweetened drinks. </p> Mon, 06 Feb 2017 18:00:00 -0600 EN text/html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html http://www.tax-news.com/news/Canada_Confirms_Loss_Of_Data_On_28000_Taxpayers____73401.html http://www.tax-news.com/news/Canada_Confirms_Loss_Of_Data_On_28000_Taxpayers____73401.html <h2>by Mary Swire, Tax-News.com, Hong Kong</h2> <h3>07 February 2017</h3> <!– SHARE –> <span class=”st_fblike_hcount” displaytext=”Facebook Like”></span> <span class=”st_facebook_hcount” displaytext=”Facebook”></span> <span class=”st_twitter_hcount” displaytext=”Tweet”></span> <span class=”st_googleplus_hcount” displaytext=”Google +”></span> <span class=”st_linkedin_hcount” displaytext=”LinkedIn”></span> <span class=”st_delicious_hcount” displaytext=”Delicious”></span> <span class=”st_reddit_hcount” displaytext=”Reddit”></span> <!– SHARE END –> <p>The Canada Revenue Agency (CRA) has confirmed that a DVD containing encrypted taxpayer information has been lost by a courier service. </p> <p>The CRA said that the DVD, sent by a registered courier service and destined for the Government of Yukon, contained the tax information of approximately 28,000 taxpayers who were residents of the Yukon Territory in the 2014 tax filing year. It added that the courier service has launched a search to locate the missing DVD, and that the Office of the Privacy Commissioner of Canada has been informed of the incident. </p> <p>According to the CRA, there is no indication that the data has been accessed or used. It stressed that there are strong security measures in place and that there is a very low risk that taxpayers’ information would be compromised. The encryption module used on the DVD has been approved by the Communications Security Establishment, it said. </p> <p>The CRA noted that the use of encrypted CDs and DVDs is a common practice when it comes to exchanging information for tax purposes, and that there are stringent requirements for how storage devices and hard copies are handled. It said that an initial internal investigation indicates that CRA personnel complied with government and CRA policies. </p> <p>The CRA said that although the risk to affected taxpayers is thought to be very low, it will formally notify those concerned. It has set up an information telephone line. </p> Mon, 06 Feb 2017 18:00:00 -0600 EN text/html http://www.tax-news.com/news/Canada_Confirms_Loss_Of_Data_On_28000_Taxpayers____73401.html http://www.tax-news.com/news/CRAs_Offshore_Informant_Program_Nets_CAD1m____73395.html http://www.tax-news.com/news/CRAs_Offshore_Informant_Program_Nets_CAD1m____73395.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2> <h3>06 February 2017</h3> <!– SHARE –> <span class=”st_fblike_hcount” displaytext=”Facebook Like”></span> <span class=”st_facebook_hcount” displaytext=”Facebook”></span> <span class=”st_twitter_hcount” displaytext=”Tweet”></span> <span class=”st_googleplus_hcount” displaytext=”Google +”></span> <span class=”st_linkedin_hcount” displaytext=”LinkedIn”></span> <span class=”st_delicious_hcount” displaytext=”Delicious”></span> <span class=”st_reddit_hcount” displaytext=”Reddit”></span> <!– SHARE END –> <p>The Canada Revenue Agency (CRA) has reassessed more than CAD1m (USD1.07m) in federal tax and foreign reporting penalties as a result of information submitted to the Offshore Tax Informant Program (OTIP). </p> <p>Replying to parliamentary questions, Revenue Minister Diane Lebouthillier said that as of November 30, 2016, the date to which current figures are available, the OTIP has received 398 written submissions. </p> <p>Of these, 127 are active submissions. The CRA has entered into more than 20 contracts with informants and is reviewing the remaining submissions. The CRA has not paid any awards to date. Lebouthillier said that, “if the CRA assesses and collects more than CAD100,000 in additional federal tax, the amount of the reward will be between five percent and 15 percent of the federal tax collected, not including interest or penalties.” </p> <p>Lebouthillier added that of the 271 cases that did not qualify under the OTIP, 94 have been closed and 177 were referred to other areas within the CRA for possible compliance action. </p> <p>Of the leads received in part through the OTIP, the CRA has completed or is currently conducting audits involving more than 218 taxpayers. </p> <p>Lebouthillier also explained that, “while the CRA is unable to confirm the amount recovered, to date, the CRA has reassessed more than CAD1m in federal tax and foreign reporting as a result of information submitted to the OTIP. As these are multi-year audits, this represents a small number of the over 218 taxpayers that were or are currently under audit.” </p> <p>From January 2014 to November 2016, the CRA’s operating costs for the OTIP were CAD1.9m. </p> <p>The OTIP was launched in January 2014 and enables the CRA to make financial rewards to individuals who provide information related to major international non-compliance if the CRA’s investigation leads to the collection of owed taxes. The CRA will offer an informant a contract leading to an award only if the potential assessment of federal taxes, excluding interest and penalties, exceeds CAD100,000. The payment process begins once CAD100,000 of federal tax relating to the assessments has been collected and all recourse rights associated with the assessments have expired. </p> <p>Lebouthillier said of the process: “An OTIP analyst will consider the information provided by the informant, evaluate the merits of the case, and make a recommendation about inclusion in the program. If a case is recommended for inclusion in the program, it is referred to an oversight committee of senior management representatives for approval to enter into a contract.” </p> <p>”Once approved, the informant and the CRA will enter into a contract. A payment can be denied and a contract can be terminated in certain situations. The CRA works to conclude the process as efficiently as possible. However, it may take several years from the date of entering into a contract with the CRA until the additional federal tax is assessed, the taxpayer’s appeal rights have expired, and the amount owing is collected.”</p> Sun, 05 Feb 2017 18:00:00 -0600 EN text/html http://www.tax-news.com/news/CRAs_Offshore_Informant_Program_Nets_CAD1m____73395.html

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Published at

Tax-News.com: Canada News

Tax-News.com: Canada News

Tax-News.com: Canada NewsTax-News.com: Canada Opposed To New US TariffsTax-News.com: Canadians Weigh Up Tax Options For Funding Media ContentTax-News.com: Sugary Drinks Tax Proposed For Canada&#039;s Northwest Territories

http://feeds.feedburner.com/taxnewscanada Global tax news, continuously updated through the day. http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2><h3>09 February 2017</h3><p>Canadian Trade Minister Chrystia Freeland has said that her Government would be “strongly opposed to any imposition of new tariffs between Canada and the United States.”</p><p>Freeland undertook a two-day visit to Washington, D.C. from February 7 to 8. She met with her counterpart, the new US Secretary of State Rex Tillerson, House Speaker Paul Ryan, and the chairs of the Senate committees on armed services and foreign relations.</p><p>Speaking to reporters after her meeting with Tillerson, Freeland said: “I did make the point that Canada will have no position on the [US Government’s] tax reform plan or the border adjustment tax idea until it is fully formed and it is a concrete proposal. But I did make clear that we would be strongly opposed to any imposition of new tariffs between Canada and the US, that we felt tariffs on exports would be mutually harmful.”</p><p>She added that “if such an idea were ever to come into being, Canada would respond appropriately.”</p><p>US President Donald Trump has promised “massive” tax cuts for American companies. He has however also threatened a “major border tax” of up to 35 percent on imports from US multinational companies that move their production facilities outside the country.</p><p><strong><a href=”https://blockads.fivefilters.org”></a></strong> <a href=”https://blockads.fivefilters.org/acceptable.html”>(Why?)</a></p> Thu, 09 Feb 2017 00:00:00 +0000 EN text/html http://www.tax-news.com/news/Canada_Opposed_To_New_US_Tariffs____73431.html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2><h3>08 February 2017</h3><p>A majority of Canadians are opposed to the introduction of a new tax on internet and mobile phone bills, according to a new poll for campaign group OpenMedia.</p><p>The survey asked respondents about the potential for the federal Government to create a new revenue source to support Canadian media content. OpenMedia said that 53 percent of respondents supported the idea, while 20 percent were opposed.</p><p>When asked for their opinions on specific options for a new revenue source, 70 percent of participants said that they were opposed to the prospect of a new tax on internet and mobile phone bills, with 51 percent saying they were strongly opposed. Only 14 percent supported the idea.</p><p>However, OpenMedia said that there was more support for the possible extension of the goods and services tax/harmonized sales tax to foreign online companies. 47 percent of respondents said they would support the option if revenues were directed to Canadian content, while 29 percent were opposed to the suggestion.</p><p>The research was conducted by Innovative Research Group Inc.</p><p><strong><a href=”https://blockads.fivefilters.org”></a></strong> <a href=”https://blockads.fivefilters.org/acceptable.html”>(Why?)</a></p> Wed, 08 Feb 2017 00:00:00 +0000 EN text/html http://www.tax-news.com/news/Canadians_Weigh_Up_Tax_Options_For_Funding_Media_Content____73418.html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html <h2>by Mike Godfrey, Tax-news.com, Washington</h2><h3>07 February 2017</h3><p>Canada’s Northwest Territories will introduce a sugary drinks tax in 2018-19.</p><p>In his 2017-18 Budget address, Finance Minister Robert McLeod said that the Government intends to introduce the tax in 2018-19 but will “take the time during the upcoming fiscal year to ensure our approach is as effective as possible.”</p><p>The tax would act as “a price incentive to discourage the consumption of sugary drinks that are linked to health issues such as obesity and diabetes,” he explained.</p><p>There have previously been calls for a federal tax on sugar-sweetened and artificially-sweetened drinks.</p><p>In March 2016, the Standing Senate Committee on Social Affairs, Science, and Technology recommended that the Government “assess the options for taxation levers” for reducing consumption of such drinks. In addition, industry body Dietitians of Canada has called for the application of an excise tax of at least 10-20 percent on sugar-sweetened drinks.</p><p><strong><a href=”https://blockads.fivefilters.org”></a></strong> <a href=”https://blockads.fivefilters.org/acceptable.html”>(Why?)</a></p> Tue, 07 Feb 2017 00:00:00 +0000 EN text/html http://www.tax-news.com/news/Sugary_Drinks_Tax_Proposed_For_Canadas_Northwest_Territories____73409.html

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Published at

Are RRSPs better for business owners?

Are RRSPs better for business owners?

small-business-owner-tax-law

Is your business-owner client investing within her corporation? If so, it might be time for a portfolio overhaul.

That’s because in the long run, investing within an RRSP yields better results, reveals a report by Jamie Golombek, managing director of tax and estate planning at CIBC Wealth Strategies Group.

His findings are significant because most Canadian business owners hold excess profits in their corporations (87%), the CIBC poll shows, and more business owners invest in corporate accounts than in RRSPs (27% versus 21%).

Golombek says in his report that RRSP investing yields superior results.

For example, after 30 years, the after-tax amount a business owner would realize with an RRSP is $46,200. With corporate investing, the business owner would earn only $24,500 to $44,600, depending on whether the income derives from interest, dividends or capital gains.

There are exceptions.

Over the short term, corporate investing can beat RRSP investing. And, if a client defers 100% of capital gains and realizes no annual income, holding in a corporation always yields a greater amount than an RRSP ($55,100 over 30 years, compared to the RRSP amount of $46,200). But few business owners would be able to do that over the long term.

Angus Reid conducted the survey for CIBC, polling 526 Canadian business owners and senior professionals in January 2017.

Read Golombek’s full report here.

Also read: 

Why Canadians aren’t contributing to RRSPs

21% of Canadians use RRSP funds for daily expenses: poll

How tax rules disadvantage family business succession

What happens when the foreign tax credit is denied

(Why?)

Published at Thu, 09 Feb 2017 20:53:14 +0000