December 2020

This year has been filled with unprecedented challenges due to the COVID-19 pandemic. Many Canadians unexpectedly had to work from home which resulted in millions of Canadians setting up their work space in their kitchens, bedrooms and living rooms.

In response, the Canada Revenue Agency has now provided additional details and simplified the way employees can claim home office expenses on their personal income tax return for the 2020 tax year. Employees with larger claims for home office expenses can still choose to use the existing detailed method to calculate their home office expenses deduction.

To review this announcement and further details, click here.

For more information, please contact your Lipton advisor.

On November 30, 2020, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020.

The economic statement does not change personal or corporate income tax rates, but does:

• Clarify proposed rules for the taxation of employee stock options, to be effective for stock options granted after June 30, 2021

• Provide details for the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS) and Lockdown Support programs for December 20, 2020 to March 13, 2021

• Announce a simplified home office tax deduction for 2020 for employees

• Require non-resident vendors supplying digital products or services to consumers in Canada to register for Goods and Services Tax/Harmonized Sales Tax (GST/HST), effective July 1, 2021

• Immediate support for families with young children

• Registered Disability Savings Plan – Cessation of eligibility for the disability tax credit.

Please click here to read the income tax and sales tax highlights.

If you have any questions, please contact your Lipton advisor.