Tax circles have been buzzing over the recent changes to the Income Tax Act relating to Bill C-208 which aims to put private company share sales to children and grandchildren on level footing with private company share sales to external third parties. Prior to these changes, certain private company owners would have to sell their company’s shares to non-family members to realize their Lifetime Capital Gains Exemption (“LCGE”) – which could amount to significant tax savings depending on the type of company being sold:
One of the most frequent questions we receive is, “when is my U.S. tax return due?” Unlike Canada, which has very few exceptions to the filing deadline of April 30th, the U.S. system has many.
On May 19, 2021, the Government of Alberta announced the new Alberta Jobs Program aimed at helping private and not-for-profit businesses support for hiring unemployed or underemployed Albertans.
With all the spending measures and no revenue raising measures, many in the tax community were taken off-guard by this budget. There were various rumors about how the government might pay for accumulating more national debt in 2 terms than all other governments in Canada’s history combined. We were expecting increases to corporate tax rates, an increase in the capital gains inclusion rate, a one-time wealth tax, or changes to the principal residence exemption, or a combination of these.
Budget 2021 announced that the Canadian Emergency Wage Subsidy (“CEWS”) and Canadian Emergency Rent Subsidy (“CERS”) have both been extended until September 2021. The budget announced a claw back on period 17 CEWS and beyond for public company’s whose top executives’ compensation was higher in 2021 than in 2019.