Advanced Income Tax Rulings

The federal government has taken steps recently to attract more investment in Canada. That’s sure to create some new tax questions that require Advanced Income Tax Rulings (AITR). A new measure to facilitate a faster response was announced on September 14 and is intended to attract business investment of large amounts. Specifically, for investments of $1 billion or more, the CRA will prioritize advance income tax rulings. The measure took effect the day it was announced. Here’s what you need to know:

The prescribed interest rates for April 1 to June 30, 2017, remain unchanged on overdue taxes and tax overpayments, and for calculations of taxable benefits and shareholder loans. However, the interest rates on PLOI—Pertinent Loans or Indebtedness—have been changed this quarter.

In the recent federal budget, the federal government continued its commitment to supporting and funding innovation to grow Canada’s economy and build a strong middle class. There is evidence all around us that technology is fueling new enterprises all over the globe, in what has become known as “the sharing economy.”

With recent changes to the taxation of trusts, more beneficiaries may find themselves reporting trust income personally, when they are in a lower tax bracket than the trust itself. Executors, too, need to be informed about the best planning strategies. For these reasons, tax advisors must prepare themselves to answer questions about trust filing and planning.

Tax and financial advisors need to pay attention to cross-border taxation issues for Canadian clients who have real estate or financial assets in the US, and for US citizens who live in Canada or face the real possibility of legal action for any failure to report to either government. The Distinguished Advisor Workshops (DAW) being held in six cities May 29 to June 6 will cover the most pressing questions advisors have in this area, together with detailed analysis of the March 22, 2017, federal budget.

It's time once again for our skill-testing financial trivia contest—your chance to win a free registration to DAC in beautiful Kelowna, British Columbia, where this year’s theme will be CANADA 150: Financial Advice at the Crossroads of Change.

Making new progress and refreshing your knowledge: Lori Campbell, Master Financial Advisor, Manitoba