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20
MAR
2019

Federal Budget Commentary 2019

Finance Minister Bill Morneau’s March 19, 2019 Federal Budget message was that, thanks to the Federal Government’s investments over the past three years, things are going well, especially for the middle class: more Canadians have full-time jobs, unemployment is at historic lows, wages are growing, consumers and businesses are confident, economic growth is good, and our debt is manageable.

Nonetheless, says Morneau, more needs to be done to ensure Canadians’ prosperity over the coming years. For the most part, that means adding tax credits and other incentives and enhancing existing ones, giving the Canada Revenue Agency more resources to recover unpaid taxes and to help businesses comply, measures to reduce tax evasion and aggressive tax avoidance, improving retirement and disability savings plans, and introducing the framework for a national prescription drug plan.

It does not mean making changes to personal and business tax rates, making substantive effort to improve the efficiency of the Income Tax Act or making significant cuts intended to reduce the deficit.
In brief, the 2019 Budget includes $22.8 billion in new spending over the next five years. The government expects revenues to steadily increase by nearly $60 billion in 2023 and projects program spending to increase by $40 billion that year. Debt payments are projected to increase by $7 billion.

Based on these growth and spending assumptions, the government expects the federal deficit to increase to nearly $20 billion in 2019-2020 and 2020-21 and then decline to $9.8 billion at the end of the next five years.

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15
FEB
2019

Are you ready for Tax Time?

The April 30, 2019 deadline to file your 2018 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 2018 Personal Tax Checklist) and submit them to us no later than Monday, April 1st, 2019.

Provided below is a link to everything you will need to allow us to prepare your 2018 T1 Income Tax Return.

Click Here to view our T1 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2018 T1 Income Tax Return, please feel free to contact your Lipton advisor.

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15
FEB
2019

Filing Your 2018 US Tax Returns

The 2018 U.S. tax return for an individual; Form 1040 is due on April 15th, 2019. However, if a U.S. tax person is out of the U.S. on April 15th, the filing due date is automatically extended to June 17th.

The extension allowed is for the filing of the tax return but does not extend the payment due date.

Due to 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 2018 1040 US Income Tax Return.

Click to view our 1040 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2018 1040 Income Tax Return, please feel free to contact your Lipton advisor.

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21
JAN
2019

2018 T4 Information

In order to facilitate the accurate preparation of your 2018 T4 information returns, we are pleased to enclose a summary of significant taxable benefits that may apply to your employees.

Click Here to view the Summary 

It should be noted that, as mentioned last year, if you are submitting more than 50 information returns (slips) you are required to file electronically.   If you fail to comply with this requirement, you may be subject to an incorrect filing format penalty.  We can assist you in ensuring your compliance with these new rules.

If your T4 information return is being prepared by Lipton LLP, we will be electronically filing all 2018 T4 information returns whenever possible.

If you have any questions concerning the preparation of 2018 T4 information returns and slips, please contact our office.

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14
JAN
2019

Tax Planning Update – RRSP/TFSA

Tax Planning Update – RRSP/TFSA
 
In order to assist you with your 2018 and 2019 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 2018 is $26,230.
  • The deadline for 2018 contributions is March 1, 2019.
  • Your contribution limit for 2018 is noted on your 2017 Notice of Assessment.
  • The maximum contribution limit for 2019 is $26,500.

TFSA

  • The contribution limit for 2019 is $6,000.
  • The cumulative contribution limit from 2009 to 2019 is $63,500.

The rules regarding RRSP and TFSA contributions can be complex.  Please contact your Lipton LLP advisor if you would like to discuss your particular situation further.
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29
MAR
2018

2018 Ontario Budget Commentary

On March 28, 2018, Ontario’s Finance Minister Charles Sousa delivered the 2018 budget. This budget anticipates a surplus of $500 million in 2017-18 and deficits of $6.7 billion for 2018-19 and $6.6 billion for 2019-20.

The budget also includes changes to Ontario’s personal income tax rates and brackets although these proposed changes have no impact on the top marginal income tax rates. No changes to corporate income tax rates were announced.  The budget also provides increases to the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit as well as changes to the Employer Health Tax exemption.

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22
FEB
2018

Are you ready for T1 Tax Season?

The April 30, 2018 deadline to file your 2017 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 2017 Personal Tax Checklist) and submit them to us no later than Monday, April 2nd, 2018.

Provided below is a link to everything you will need to allow us to prepare your 2017 T1 Income Tax Return.

Should you have any questions or concerns about anything pertaining to the preparation of your 2017 T1 Income Tax Return, please feel free to contact your Lipton advisor.
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16
FEB
2018

U.S. House and Senate Conference Committee Releases Final Tax Bill

On December 15, 2017, the final version of the U.S. “Tax Cuts and Jobs Act” was released, which reflected a compromise between the United States House and Senate versions of the tax reform legislation.

We are pleased to provide you this comprehensive update prepared by the law firm Hodgson Russ, LLP. Headquartered in Buffalo, New York, we have had the pleasure of working with this widely respected firm for a number of years on behalf of clients who are either U.S. persons for tax purposes or those having business interests in the United States.

Click here to access the US Update Newsletter.

If you have any questions regarding any of the content found in this update, please feel free to contact your Lipton advisor.

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12
FEB
2018

Income Splitting Using Prescribed Interest Rate Loans

Prescribed interest rate loans allow higher income earners to split income with lower income earning family members. The steps involve the higher income earner loaning money directly or via a trust to the lower income earner. The lower income earner then invests the funds in order to earn investment income. If assets other than cash are loaned, consideration must be given to potential taxes that may arise on the transfer.

In order to avoid the application of the income attribution rules (which cause the income earned from the loaned property to be taxed back into the hands of the higher income earner), the loan must bear interest at least at the “prescribed interest rate”. At the moment, the prescribed interest rate is at the historically low rate of 1%. This rate will be increasing to 2% as of April 1, 2018. This plan creates a tax-saving opportunity due to the spread between the prescribed interest rate paid and the income actually earned. As a result, now is a good time to implement or even increase an existing prescribed interest rate loan plan.

The advantage of setting up the loan when the prescribed interest rate is 1% is that the Income Tax Act only requires the lender to charge the prescribed interest rate at the time the loan is originally made.

It should be noted that the tax rules require that the prescribed interest rate is actually paid for each calendar year to the lender by January 30th of the following year.

If the lender or borrower is a U.S. person for tax purposes, the implications of this type of planning must also be considered.

Please contact your Lipton advisor if you would like to discuss this tax planning opportunity further.
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01
DEC
2017

Congratulations to our 2017 CFE Graduates

Lipton LLP Chartered Accountants is proud to announce that all six of our writers, Nimesh Ratnarajah, Julie Ann Sedore, Taraneh Rashed, Sierra De Sousa, Mo Du and Cecilia Lam (not pictured), were successful in passing the 2017 Chartered Professional Accountants of Canada (CPA) Common Final Examination (CFE).

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

For 40 years, Lipton is proud to have assisted many of our CPA students in obtaining their designation.
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