www.liptonllp.com
10
MAY
2022

Tax Planning – Family Income Splitting Loans

On July 1, 2022, the CRA’s prescribed interest rate will increase from its current one percent rate to two percent. In some cases, planning for this increase now can provide an opportunity to split income with a spouse or common-law partner, children, grandchildren or other family members, thereby saving income taxes. 

Income splitting results when income from a higher-income earning family member is transferred to a lower-income earning family member. Due to Canada’s tax system of graduated tax rates, having the income tax paid by the lower income earner can reduce the overall tax to the family unit. 

The income attribution rules contained in the Income Tax Act (the Act) are intended to prevent certain types of income from being split by “attributing” income or gains earned on money transferred or gifted to a family member back to the original transferor. However, the Act does provide an exception to this rule if the funds are loaned at the prescribed rate in effect at the time the loan was made and the interest is paid annually by January 30th of the following year. 

For example, if the loan is made when the prescribed interest rate is one percent, any realized investment return above that rate will be taxed in the hands of the particular lower income family member. Although the prescribed rate can vary by quarter, it is the prescribed rate in effect at the time the loan is made that is used in the calculation. As a result of these rules, if a loan is made on or after July 1, 2022 (which is when the prescribed interest rate will increase to two percent), the benefits of this planning technique will be reduced. 

If an individual has already entered into a loan with a family member or family trust when the prescribed interest rate was one percent, the individual should consider the benefits of increasing the amount of the loan before July 1, 2022. If an individual has not yet done a prescribed rate loan, this should be considered and possibly implemented before July 1, 2022.  

For further information, please contact your Lipton advisor.

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08
APR
2022

2022 Federal Budget Highlights

On April 7, 2022, Deputy Prime Minister and Finance Minister Chrystia Freeland delivered the 2022 federal budget.

For budget highlights please click here.

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

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23
MAR
2022

Ontario Business Registry, Company Key & Ontario Annual Returns

All corporate entities that are subject to the Corporations Information Act (Ontario) must file an Annual Return with the government of Ontario not later than 6 months after their taxation year end. This Annual Return (which is not an income tax return) includes the corporation’s legal name, mailing address, taxation year end date, date of incorporation or amalgamation, corporation number, jurisdiction of incorporation and information about the directors and officers.

The new Ontario Business Registry is up and running!

This means that all corporations registered in Ontario now have access to their very own Company Key.

What is a Company Key?

It’s a unique identifier that will be used by the government when dealing with businesses in the province. Think of it as your business’s social insurance number.

What do you need to do now that you have a Company Key?

You will need to update your records with the government. This includes your Ontario Annual Return..

Don’t have a Company Key yet?

Complete the steps below:

Company Key

In order to obtain a Company Key, click here;

The following information will be needed;

  • Company name
  • Address
  • Contact Name
  • Contact Telephone Number
  • Contact Email

The Company Key is generally received within 3 business days.

In order to update the company’s records and file an Ontario Annual Return a few more steps are needed.

ONe-Key

In addition to obtaining a Company Key, a ONe-Key needs to be obtained. The ONe-Key is a unique electronic credential that allows you to communicate securely with the Government of Ontario.

In order to obtain a ONe-Key, click here.

Ontario Annual Return Filing

Once you have received your Company Key and have registered for a ONe-Key, it will be necessary to associate the Company Key with your ONe-Key so that you are able to file the Ontario Annual Returns for your companies.

Follow these steps;

  • Find your business in the Ontario Business Registry here.
  • Click on “if you want to maintain this corporation you need to be logged in and have authority over it”
  • Log in using your ONe-Key credentials
  • Confirm once again the company’s name you wish to associate with
  • Enter the Company Key and click “Submit”

Companies incorporated after October 19, 2021 will automatically be given a Company Key.

Ontario Annual Returns are due 6 months after year end, so it is recommended that you update your records as soon as possible.

In the event you require any assistance or have any questions, please feel free to contact your Lipton advisor.

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10
FEB
2022

Local Lockdown Program and Canada Worker Lockdown Benefit – Government extends support to March

On February 9, 2022, the Federal government announced it’s intention to expand the capacity limits and extend the Local Lockdown Program and Canada Worker Lockdown Benefit by one month, until March 12, 2022.

To read the government’s full release, click here.

For more information, please contact your Lipton advisor.

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07
FEB
2022

Your 2021 T1 Income Tax Guide

The May 2, 2022 deadline to file your 2021 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 2021 Personal Tax Checklist) and submit them to us no later than Monday April 4, 2022.

Provided below is a link to everything you will need to allow us to prepare your 2021 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 2021 T1 Income Tax Return, please feel free to contact your Lipton advisor.

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01
FEB
2022

Filing your 2021 Form 1040 – U.S. Individual Income Tax Return

The April 18, 2022 deadline to file your 2021 Form 1040 – U.S. Individual Income Tax Return is quickly approaching. However, if you reside outside the U.S. on April 18, 2022, the deadline to file this return is automatically extended to June 15, 2022.

Please note that all taxes owing must be paid by April 18, 2022 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 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 2021 Form 1040 – U.S. Individual 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 return, please feel free to contact your Lipton advisor.

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18
JAN
2022

Preparing your 2021 T4 Information Returns

In order to facilitate the accurate preparation of your 2021 T4 information returns, we are pleased to enclose a summary of certain taxable benefits that may apply to your employees, including new information for 2021 filings.

For further information, please click here

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 2021 T4 information returns whenever possible. If you have any questions concerning the preparation of 2021 T4 information returns and slips, please contact your Lipton advisor.

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14
JAN
2022

Canada Emergency Business Account (CEBA) – Government extends loan forgiveness repayment deadline

The federal government has announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022 to December 31, 2023, for all eligible borrowers in good standing.

This extension will support short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).

To read the government’s full release, click here.

For more information, please contact your Lipton advisor.

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13
JAN
2022

Tax Planning Update – RRSP/TFSA

In order to assist with your 2021 and 2022 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 2021 is $27,830.
  • The deadline for 2021 contributions is March 1, 2022.
  • Your contribution limit for 2021 is noted on your 2020 Notice of Assessment.
  • The maximum contribution limit for 2022 is $29,210.

TFSA

  • The contribution limit for 2022 is $6,000.
  • The cumulative contribution limit from 2009 to 2022 is $81,500.

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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13
DEC
2021

Lipton LLP Welcomes our Newest Partners

The Partners of Lipton LLP are excited to announce that Laura Cukier and Bram Nightingale will become Partners of the Firm on January 1, 2022.


Laura graduated from The Richard Ivey School of Business at the University of Western Ontario and earned her Chartered Professional Accountant (CPA) and Chartered Accountant (CA) designation in 2013.

She began her career with a national accounting firm before joining Lipton in 2018. Laura’s practice focuses on providing well-thought assurance, tax and business advisory services to various clients engaged in not-for-profit, manufacturing and distribution and professional services. She supports her clients by actively developing quality relationships and delivering customized solutions.

Laura serves the community by volunteering her time with various not-for-profit organizations.





Bram graduated from the University of Western Ontario and the University of Windsor before joining Lipton in 2010. He earned his Chartered Professional Accountant (CPA) and Chartered Accountant (CA) designation in 2013.

Bram has a thorough understanding of clients’ businesses and organizational needs, which allows him to deliver tailored accounting, tax and business advisory services. His practice areas include real estate, construction, commercial real estate, manufacturing and professional services.






Both Laura and Bram serve as mentors to various Lipton accounting staff, helping to shape the next generation of professional accountants.

We all wish Laura and Bram much success.

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