Canadian Tax Podcast for the week of November 30, 2021. This week we cover:
- Bill C-2;
- Remote Work;
- CRA’s Cryptocurrency guide;
- Digital Service Tax;
- Deducting medical dues from multiple Provinces;
- Application of non-capital losses;
- Adding a spouse to house title;
[INTRO]:
“This is the Canadian Tax Podcast, Episode # 026, hosted by me, Cameron Ware. Good morning”
[NEWS SECTION]
- “Happy Tuesday, it is the week of November 30, 2021. We’ll start with the news.
ITEM [1] – New COVID-19 AID Bill-c2 to support businesses and workers
- The liberal government has tabled bill C-2, giving more support to businesses recovering Covid.
- Bill C-2 aims to deliver targeted support to workers and businesses
- The government recently phased out other pandemic era benefits (CEWS and CERS)
- Cdn Hiring Recovery Program (wage subsidy) extended to May/22. (10% loss in revenue when compared to prior periods)
- Canada Worker Lockdown Benefit – $300/wk for affected workers
- https://globalnews.ca/news/8398662/canada-covid-benefit-update-chrystia-freeland/
- https://www.parl.ca/DocumentViewer/en/44-1/bill/C-2/first-reading
[ITEM 2] – The Need for Canada to address payroll barriers article
- Working remotely big thing lately.
- Nearly 2/3 of Canadian employers were hire or open to hire remote employees across Canada, and 1/3 even said they would be open to hiring international employee.
- Issue here is tax reporting. Report by PWC says the tax reporting complexity is stalling hiring.
- One suggestion was to nix the T2200 form;
- Another was aligning Province of Employment with Province of Residence, and not where the employer is located.
- https://www.advisor.ca/news/economic/to-be-competitive-canada-must-address-payroll-barriers-to-remote-work
[ITEM 3] – Tax and Cryptocurrencies in canada
- Are earnings made from crypto considered business income or capital gains?
- The CRA has treated cryptocurrencies as commodities and not currencies.
- When crypto is used to pay for goods, the CRA considers it to be a barter transaction.
- The treatment of crypto from tax perspective is an evolving situation.
- It depends a lot on holder’s behaviour. Very generally, at present it appears that if they are long term holds, it is treated as a capital asset, but short term is business inventory or business earnings.
- https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
[ITEM 4] – Liberals move ahead with Digital Service tax
- Liberals are moving ahead with a digital services tax targeting tech giants.
- Potentially bringing in 3.4 billion over 5 years.
- BUT: Remember the OECD “minimum tax” agreement? = Might make the proposed Netflix Tax irrelevant.
- At present: Canada says they won’t phase in the OECD minimum tax til 2024, but it will be retroactive to 2022. In interim, Digital Services tax has go-ahead from Ottawa.
- US is grumpy about the Digital Services tax.
- https://nationalpost.com/news/politics/liberals-to-proceed-with-digital-services-tax-on-tech-giants
VIEWER QUESTIONS
- Out of Province membership dues question
- [Question]
- Physician living in Ontario but travels to BC each month to practice. Would membership fees be deductible?
- Short answer: Yes
- Non-capital loss balance
- [Question]
- How do use non-capital loss and how long can it be carried?
- Back 3 years/Forward 20 years
- Adding a spouse on house title
- [Question]
- When refinancing a rental property to include spouse, will it trigger capital gains?
- SS 73(1) assumed tsf’d at cost. Trap: Attribution.
That will wrap things up for today. Like always, if you have any questions, send them to questions@canadiantaxpodcast.ca, or find us on twitter: https://twitter.com/cdntaxpodcast
This is Canadian Tax Podcast, thanks for listening.
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