www.liptonllp.com
15
OCT
2021

2021 Lipton Promotions

We are pleased to share the following promotions, effective October 1, 2021.

Supervisor

Prince Dimude, Toby Lo, Fiona Wei

Senior Accountant

Jamie Borenstein, Chasina Chasina, Emily Chen, Justin Fu

Administrative Supervisor

Monika Serafin

Each promotion recognizes the significant time, effort and achievement of each person. We are proud of our people and wish each of them congratulations and continued success as a member of the Lipton team.

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13
OCT
2021

New Trust Reporting Rules

For taxation years ending on or after December 31, 2021 new reporting measures will take effect for most trusts resident in Canada or those otherwise required to file tax returns in Canada. These rules are intended to help Canada Revenue Agency assess the tax liability for the trust and its beneficiaries. The new rules are also intended to increase the transparency of how Canadian trusts are used. 

New Disclosure Requirements 

More specifically, all express trusts resident in Canada and all non-resident trusts that have a Canadian filing requirement will now be required to file a trust return annually with few exceptions. An express trust is a trust that is created with the settlor’s express intent and is usually established with a written document. Express trusts normally include family trusts and prescribed rate loan trusts. Under these new rules, the CRA will require the name, address, date of birth, place of residence and social insurance number (or taxpayer identification number) for the settlor, trustee, beneficiary and any other person who has the ability to override trustee decisions regarding the allocation of income or capital of the trust, such as a Protector. This information must be reported on a new prescribed beneficial ownership schedule and will be required to be filed with the trust return. 

Exceptions 

The following are some of the exceptions to these new disclosure rules: 

  1. Trusts that hold assets with a fair market value of less than $50,000 if the assets are held are cash, listed securities or certain government debt obligations.
  2. Trusts governed by registered plans (i.e. RRSPs. RESPs. RRIFs, DPSPs, RDSPs, and TFSAs).
  3. Graduated rate estates and qualified disability trusts.
  4. Lawyers’ general accounts.
  5. Trusts that qualify as non-profit organizations or registered charities.
  6. Trusts that have been in existence for less than three months at the end of 2021.

Penalties 

Any trust that has a filing requirement that does not file or does not provide these new disclosures will be subject to a penalty of $25 per day for each day of non-filing with a minimum penalty of $100 and a maximum penalty of $2,500. Gross negligence penalties of 5% of the maximum value of all properties held during the relevant year by the trust may also apply for making a false statement, omission or failure to file a trust return with a minimum penalty of $2,500. 

For further information, please contact your Lipton LLP advisor.

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20
APR
2021

2021 Federal Budget Highlights

On April 19, 2021, Deputy Prime Minister and Finance Minister Chrystia Freeland presented the first federal budget in over two years. This budget contains various measures that include providing additional COVID-19 support to Canadian businesses, promoting clean energy, introducing new sales and excise tax measures, and placing limits on interest deductibility and certain cross-border financing structures.

Contrary to pre-budget rumours, the budget does not include measures increasing the capital gains inclusion rate, eliminating the principal residence exemption or imposing a wealth tax. In addition, it does not propose any increase to personal or corporate tax rates.

For further budget highlights please click here.

For any questions or assistance, please contact your Lipton advisor.

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08
APR
2021

Using Microsoft Lens to Upload your Tax Information

Do you have paper documents that you need to scan before you can upload them to us on our Secure Portal? Microsoft Lens is the recommended app that allows you to use your phone as a scanner.

Use this video tutorial to help you use the app.

Happy Tax Season

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29
MAR
2021

Using the Secure File Portal

With T1 Season is full swing, we have asked our clients to send us their files using Lipton’s Secure File Portal.

Having difficulties? This video should help you get started!

Click here to view our instructional video.

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04
MAR
2021

Canada Emergency Wage Subsidy (CEWS) and Rent Subsidy (CERS) rates extended to June

On Wednesday, Prime Minister Justin Trudeau announced the federal government will extend the current rate of the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) programs through to June.

Rates for the Lockdown Support program, which supports property owners subject to a lockdown, will also remain the same as the most recent period. The available Lockdown Support will remain at 25 percent.

CEWS will remain at 75 percent for the upcoming period. The federal government brought CEWS back to 75 percent for the period of December 20 to March 13 after promising to do so last year. The 75 percent rate is the maximum amount companies can receive from the program if they qualify (the base rate for the wage subsidy is 40 percent, with a potential top-up of 35 percent for eligible businesses). The amount each company can receive is proportional to its revenue drop and is based on a single month’s revenue decline.

The rent and wage subsidies are currently set to only continue until June.

For more information, please contact your Lipton advisor.

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09
FEB
2021

Your 2020 T1 Income Tax Guide

The April 30, 2021 deadline to file your 2020 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 2020 Personal Tax Checklist) and submit them to us no later than Thursday April 1, 2021.

Provided below is a link to everything you will need to allow us to prepare your 2020 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 2020 T1 Income Tax Return, please feel free to contact your Lipton advisor.

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09
FEB
2021

Filing Your 2020 US Tax Returns

The April 15, 2021 deadline to file your 2020 U.S. Form 1040 – U.S. Individual Income Tax Return is quickly approaching. However, if you reside outside the U.S. on April 15, 2021, the deadline to file your 2020 U.S. From 1040 is automatically extended to June 15, 2021.

Please note that all taxes owing must be paid by April 15, 2021 to avoid any interest and penalties from accruing regardless of your filing deadline.

 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 2020 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 2020 1040 Income Tax Return, please feel free to contact your Lipton advisor.

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09
FEB
2021

Sending us your 2020 T1 Information

As you are likely aware, Federal, Provincial and Municipal mandates have significantly limited our ability to meet in-person to collect your 2020 personal income tax information. While we recognize this as a lost opportunity to catch up with all of our valued clients, please rest assured that over the past year, Lipton has implemented a system to ensure that all our obligations to our clients will be met without any delay.

Navigating this new world has it’s challenges, but has allowed us to reexamine our workflow and develop new strategies to serve our clients in the most efficient manner possible, without sacrificing from the quality of work our clients have come to expect from us!
In continuation with our practices from last year, 

Lipton will be requesting that all of our clients send us their 2020 T1 Income Tax information in digital form.

So…. Let’s Get Digital!

Delivering your tax information to us digitally is a three-step process:

1. Assembling your tax information First, assemble all of the relevant information you need to send to your Lipton advisor. The Lipton T1 Checklist is your best guide to determine the information required.

2. Scanning your information Many of the documents required may already be in digital form, but for those that are not, you will need to scan them. Your mobile phone or iPad camera, along with a downloadable app can easily do the job of a traditional scanner. There are many apps to choose from. Our preferred app (which happens to be free) is:

Microsoft Office Lens
For Apple Devices
For Android Devices

Install this app on your device and give it a try. You will be an expert in no time!

3. Uploading your tax Information To upload your documents, please use our Secure File Portal. Our portal is secure and easy to use. Simply follow the onscreen prompts and you will be on your way! Encountering an issue? We are here to help!  Send an email with any questions to our Senior Manager of IT & Operations – Bryan Walderman and he will be happy to assist.

Once uploaded, our IT department will direct the information to your Lipton advisor and we will send you an email confirming that we have successfully received your files.

If for some reason you are unable to use our digital process, please feel free to drop your package off at our front desk with your Lipton advisor’s name clearly indicated. We will still ensure that your returns are prepared before the filing deadline.

Please keep safe and healthy through these difficult times, and always be assured that the entire Lipton team is here to fully look after your needs.
If you have any questions, please contact your Lipton advisor.
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29
JAN
2021

Highly Affected Sectors Credit Availability Program (HASCAP) – COVID-19 Update

On Thursday, January 28, 2021, Minister of Small Business, Export Promotion and International Trade, Mary Ng, announced the launch of the Highly Affected Sectors Credit Availability Program, or HASCAP.

The program will provide financial support to businesses that have been hardest hit by the pandemic. The Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to offer government-guaranteed, low-interest loans of up to $1 million. HASCAP will help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in their longer-term prosperity. HASCAP is available to businesses across the country, in all sectors, that have been hit hard by the pandemic. This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.

To read more about this program please click here.

For more information, please contact your Lipton advisor.

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