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;
“This is the Canadian Tax Podcast, Episode # 026, hosted by me, Cameron Ware. Good morning”
- “Happy Tuesday, it is the week of November 30, 2021. We’ll start with the news.
ITEM  – 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
[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.
[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.
[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.
- Out of Province membership dues 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
- 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
- When refinancing a rental property to include spouse, will it trigger capital gains?
- SS 73(1) assumed tsf’d at cost. Trap: Attribution.
This is Canadian Tax Podcast, thanks for listening.