www.liptonllp.com
21
APR
2017

Ontario Introduces a New 15% Property Tax on Foreign Buyers

As expected, Ontario has announced that effective April, 21, 2017, a new tax of 15% will be payable on the purchase or acquisition of residential property located in specified parts of Ontario by non-resident individuals, foreign corporations and certain taxable trustees. The new Non-Resident Speculation Tax (NRST) is part of several measures to address strong demand for housing in Ontario, including changes to rent controls as well as allowing municipalities to consider imposing additional taxes (for example, a vacant homes property tax). The NRST would apply in addition to Ontario’s land transfer tax.

While the NRST will be effective as of April 21, 2017, it will not apply to binding agreements of purchase and sale signed on or before April 20, 2017. The NRST will also not apply to transfers of multi-residential rental apartment buildings, agricultural land or commercial/industrial land.

Please contact your Lipton adviser if you would like to discuss any of these changes further.

comment : 0
23
MAR
2017

2017 Federal Budget Commentary

The Federal Government’s 2017-18 Budget gives Canadians a taste of what they might expect over the next couple of years: attempted efficiencies, closed tax loopholes, steady deficits, and a touch of caution. Budget 2017 outlines only $200 million in net new spending, but also an increase to the deficit of more than $5 billion for 2017-18, partly due to commitments from the previous budget, reduced revenues and increased general expenses.

There are no changes to corporate or personal income tax rates or the small business deduction threshold and no changes to capital gains taxation. In addition, the government did not address in the Budget a number of tax issues it has discussed since Budget 2016, indicating it will release more details on its plans to limit tax-planning strategies later this year. Concerns over potential changes to taxes, trade agreements and regulations in the United States have no doubt caused Canada’s Federal Government to reconsider its own tax strategy.

We can expect to see more substantial proposals for change as the year progresses. The government has clearly signaled that it will be looking for additional ways to prevent tax avoidance.

Please Click Here to read our full Federal Budget commentary

comment : 0
22
FEB
2017

Do you need to complete a US 1040 Personal Tax Return?

The 2016 U.S. tax return for an individual; Form 1040 is due on April 18th, 2017. However, if a U.S. tax person is out of the U.S. on April 18th, the filing due date is automatically extended to June 15th. The extension allowed is for the filing of the tax return but does not extend the payment due date. Because of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, we encourage you to gather your required tax information as soon as possible.

Provided below, is a link to everything you will need to allow us to prepare your 2016 1040 US Income Tax Return.

Click Here to view our 1040 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2016 1040 Income Tax Return, please feel free to contact your Lipton advisor.

comment : 0
16
FEB
2017

Are you ready for Tax Time?

The May 1, 2017 deadline to file your 2016 personal income tax return is quickly approaching. As a result of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, please gather your required tax information (as outlined in the attached 2016 Personal Tax Checklist) and submit them to us no later than Monday, April 3rd, 2017.

Provided below, is a link to everything you will need to allow us to prepare your 2016 T1 Income Tax Return.

Should you have any questions or concerns about anything pertaining to the preparation of your 2016 T1 Income Tax Return, please feel free to contact your Lipton advisor.
comment : 0
23
FEB
2016

Are you ready for Tax Time?

The May 2, 2016 deadline to file your 2015 personal income tax return is quickly approaching. As a result of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, please gather your required tax information(as outlined in the attached 2015 Personal Tax Checklist) and submit them to us no later than Monday, April 4th, 2016.

Provided below, is a link to everything you will need to allow us to prepare your 2015 T1 Income Tax Return.

Click here to view the Summary & Checklist

Should you have any questions or concerns about anything pertaining to the preparation of your 2015 T1 Income Tax Return, please feel free to contact your Lipton advisor.

comment : 0
25
NOV
2015

Preparing for the Federal Government’s promised Personal Income Tax Measures

It now appears that the recently elected Federal Government will introduce their new personal income tax measures as promised. These include:

  • Reducing the second lowest personal tax rate to 20.5% from 22%;
  • Increasing the personal tax rate on income over $200,000 to 33% from 29%.

 

As a result, the top marginal tax rate in Ontario will increase from 49.53% in 2015 to 53.53% in 2016 (assuming a January 1, 2016 effective date).

Furthermore, the top marginal rate on dividends (eligible and non-eligible) will be 39.34% and 45.30% respectively (up from 33.82% and 40.13% respectively) and the new effective rate on capital gains will be 26.76% (up from 24.76%.).

Given these new tax rate changes, consideration should be given to accelerating personal income to 2015 instead of 2016 and future years.

This may be done by paying bonuses in 2015 that would normally be accrued in 2015 but not paid until 2016. Furthermore, also consider declaring dividends (either eligible or ineligible) in 2015 instead of 2016.

Consideration should also be given to deferring certain discretionary deductions (including RRSP’s and loss carry forwards) to future years when the top tax rate and therefore the tax benefit will be higher.

Everyone’s tax planning situation is unique. If you would like to discuss the various options further, please contact your Lipton advisor.

comment : 0
17
SEP
2015

Changes to the Employer Health Tax Exemption

Effective January 1, 2014, the amount of annual Ontario payroll that may be exempt from Employer Health Tax (EHT) is increased from $400,000 to $450,000. This exemption is eliminated for private-sector employers with annual Ontario payrolls over $5 million. Registered charities, including those with payrolls over $5 million, continue to be eligible for the exemption.

Eligible employers are exempt from EHT on the first $450,000 of total Ontario remuneration each year. This exemption will be adjusted for inflation every five years using the Ontario Consumer Price Index. Employers with annual Ontario payroll over $5 million cannot claim the exemption.

Only one annual exemption is available for an associated group of employers. Employers that are associated at any time during the year must take into account the total Ontario remuneration of each associated entity in determining whether they can claim the exemption. When the combined total Ontario remuneration of all the employers that are associated exceeds $5 million, these employers are not eligible for the exemption.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Lipton LLP to discuss these matters in the context of your particular circumstances. Lipton LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
comment : 0
25
MAR
2015

Fraudulent Communications from persons claiming to represent the Canada Revenue Agency

On occasion, taxpayers may receive either by telephone, mail and/or email, a communication that claims to be from the Canada Revenue Agency (CRA). In all of these cases, any communication that requests personal information, such as a social insurance, credit card, bank account or passport number from a taxpayer is fraudulent.

The communication usually states that this personal information is required so that the taxpayer can receive a refund or benefit payment. Another common technique refers the person to a website resembling the CRA’s. The person is then asked to verify their identity by entering personal information. Taxpayers should not respond to these fraudulent communications.

To better equip taxpayers to identify communications that do not come from the CRA, they should ask themselves the following questions:

  • Am I expecting a refund from the CRA?
  • Does this sound too good to be true?
  • Is the requester asking for information that I would not otherwise include in my tax return?
  • Is the requester asking for information that I know the CRA already has on file?
  • How did the requester get my email address?
  • Am I confident I know who is asking for the information?

 

Below is an example of a fraudulent letter that is currently being circulated:

 

 

 

 

 

 

 

 

 

 

 

 

 

In the event you receive a communication that claims to be from the CRA and you have any doubts as to it’s authenticity, please feel free to contact your Lipton advisor.

comment : 0
04
FEB
2015

Tax Planning Update – RRSP/TFSA

In order to assist you with your 2014 and 2015 tax planning, we are pleased to provide you with the following information in connection with Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA) as follows:

RRSP
  • The maximum contribution limit for 2014 is $24,270
  • The deadline for 2014 contributions is March 2, 2015
  • Your contribution limit for 2014 is noted on your 2013 Notice of Assessment
  • The maximum contribution limit for 2015 is $24,930

TFSA
  • The contribution limit for 2015 is $5,500
  • The cumulative contribution limit in 2015 is $36,500

The rules regarding RRSP and TFSA contributions are not as simple as they may appear.  Please contact your Lipton LLP advisor if you would like to discuss your particular situation further.
comment : 0
04
DEC
2014

Congratulations to our Latest Graduates

Lipton LLP Chartered Accountants is proud to announce that Gracie Gong and Joshua Himmel were successful in passing the recent Canadian Institute of Chartered Accountants (CICA) 2014 Uniform Evaluation (UFE).

   

The UFE is the final examination that Chartered Professional Accountant (CPA) students take in pursuit of the CPA designation.

For over thirty-five years, Lipton is proud to have assisted many of our CPA students in obtaining their designation.  This year we are especially pleased that both of our UFE candidates were successful.

comment : 0