CRA PROJECTS AND INITIATIVES – AN UPDATE

CRA and CPA Canada have recently released a number of questions and answers on the Liaison Officer Initiative (LOI) noting that:

• The LOI is voluntary and there is no link between not wishing to participate and future compliance/enforcement actions.
• Taxpayers who do not fix errors identified in the LOI could still be exposed as they may be evaluated through CRA’s separate risk assessment program as high risk.
• The LOI was originally a pilot project from 2014 to 2016 and was only offered to select industry groups across much of Canada. The program is now permanent and will be expanded to include new businesses in any sector.
• A LOI visit does not constitute an enforcement action and, therefore, would not preclude a Voluntary Disclosure by a taxpayer.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 422

Watch! BP CANADA - CRA REQUEST FOR DOCUMENTS DENIED

Interview with litigator Robert A. Neilson of Felesky FLynn LLP on the results of the BP Canada case where the Federal Court of Canada overturned a Compliance Order to provide tax risk working papers.

For further information, click here.

This video is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2017, All Rights Reserved.

Watch! TIPS FOR OBJECTIONS

Dean Blachford, Tax Litigator at HazloLaw, discusses some tips for filing a successful notice of objection.

This video is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2017, All Rights Reserved.

For further information, Click here

ELIGIBLE EDUCATOR SCHOOL SUPPLY TAX CREDIT

The Eligible Educator School Supply Tax Credit, worth 15% of up to $1,000 of eligible supply expenses, has now received Royal Assent. CRA has also published a Question and Answer providing commentary on this new refundable tax credit available in 2016 and subsequent years.

Who Qualifies?
The new tax credit can only be claimed by an eligible teacher or early childhood educator employed at an elementary or secondary school or a regulated child care facility.

What Expenditures Qualify?
An eligible supply expense is an amount paid in the year for supplies used or consumed in the school or regulated child care facility in the performance of the taxpayer’s employment. Supplies include:

• construction paper, flashcards, items for science experiments, art supplies, and stationary items; and
• durable goods limited to games, puzzles, books, containers and educational support software. Computers, tablets and rugs (for kids to sit on) are provided as examples of expenses which are not eligible.

The expense must not be reimbursable, nor subject to an allowance or other form of assistance. As well, the credit cannot be claimed for an expense which is deducted by any person for the year. The credit is available for the year in which it was purchased rather than when it was used.

Documentation Requirements

CRA may ask taxpayers to provide certification from their employer attesting to the eligible supplies expense. Employers providing this certification should not also provide a T2200, Declaration of Conditions of Employment, which relate to the supplies.

For further information see VTN Monthly Tax Update Seminar, Issue No. 422

Watch! Federal Budget 2017 - Billed-Basis Accounting Video

In this FREE video commentary, Hugh Neilson FCPA FCA TEP, Joseph Devaney CPA, CA and Caitlin Butler CPA, CA discuss the Federal Budget's proposal to eliminate the WIP exclusion for professionals.

Sources:  2017 FEDERAL BUDGET - budget.gc.ca/2017/home-accueil-en.html

This video is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2017, All Rights Reserved.