#Canada Archives - Law firm Finance Business Service: offshore registration, tax planning, legal services

The Canadian tax benefits are profitable for rich persons

Published: Sergey Panov | 12.12.2016 |

Tax expenditures on the income of physical persons of Canada bring benefit for more than 50 percent of persons which gain income, according to the new report of the Canadian center of political alternatives (CCPA). Using data of 2011, it was established that 59 of 64 tax expenses, provide more benefit to 50 percent of the persons gaining income. It shows that in 2011 39 percent of profitable tax expenses provided to more than 10 percent of persons which gain income, and less affluent taxpayers saw only 16 percent of the benefits. The report states that there are only five taxes: a tax on working income, a guaranteed income without tax, social security without taxation, reimbursement of medical costs and disability tax credit - they can be described as "relatively progressive" with maximum benefit CAD1,110 ($ 840 USA). The Canadian government is currently carrying out a comprehensive review of federal tax expenditures. The goal is to ensure that the tax costs are fair, effective and have financial responsibility. The Canadian center of political alternatives has recommended that the annual tax expenditure report from Finance Canada, included the distribution of tax expenses...

Canada has to improve tax competitiveness

Published: Sergey Panov | 30.11.2016 |

The tendency of the federal and local governments in Canada to raise taxes for companies, means that the country is losing its competitive advantage, according to a new report, School of Public Policy at the University of Calgary. The school Report of 2015 about Tax Competitiveness created by Filip Bezel and Jack Mintz explained that the effective rate of the corporate tax of Canada on new investments raised from 17.5 percent of 2012 to 20 percent of 2015. In the report speaks that this increase, first of all, at higher provincial rates of the corporate income tax, reversals of British Columbia the governments of the previous goods and services of tax reforms, and reducing tax benefits at the federal and regional levels. The reforms brought in the federal budget of 2016 will see effective increase in a rate to 20.1 percent. The school showed that now Canada takes the sixth place on the extreme height of an effective rate of a tax (METR) in the G7 and the highest 13th place in the G20 and OECD group of the countries. Among the provinces of Canada the report noted that Newfoundland and Labrador increased the rates of the corporate income tax to deal with their deficits while New...

EC – Canada: free trade agreement in question

Published: Sergey Panov | 25.10.2016 |

President of the European Council Donald Tusk warned that comprehensive economic and trade agreement (CETA) with Canada may be the last with the EU if the government "is not able to convince people that the trade agreements on their behalf." Pinned hopes that CETA will be formally signed on Thursday 27 October. However, despite approval by 27 of the 28 EU Member States, the Belgian region of Wallonia refused to give their support. The Federal Government of Belgium gave their support to end on 24 October. Andre Antoine, Walloon parliament speaker, said that it is impossible to adhere to this "ultimatum." It was to be a meeting last week after the European Council, where Tusk said "all member states, except one, approved the deal." Commenting on the event, Tusk said: "Firstly, our citizens are increasingly concerned at the expense of trade agreements, leading the negotiations to their advantage, and I'm afraid that we can not continue negotiations for free trade agreements (FTA), if we do not will prove in practice that we are very serious about the protection of European consumers, workers and businesses." "We have made some progress in this direction. Leaders have committed to...

IRS Canada helps small and medium-sized enterprises (SME)

Published: Sergey Panov | 20.10.2016 | news

Minister of Revenue of Canada, Diane Lebouthillier, assists the government, which is aimed at improving the interaction between the tax authority with SME. Diana Lebouthillier participated in a roundtable discussion with owners of small and medium-sized businesses in New Brunswick, where it drew attention to its mandate to modernize the Tax Office Canada (CRA). The Government's consultation is to gather information about how the CRA can make their programs and services more streamlined and focused on taxpayers. Diana Lebouthillier said: "Our government has made a commitment to make real changes. As for the Minister of National Revenue, one of my main priorities is to ensure that the Internal Revenue Canada became even more customer-oriented organization, so that Canadians and Canadian business owners feel more protected, respected and valued." Budgeted CAD 185.8 million (USD 141.98 million) for the period 2016-2021, and CAD 14.6 million currently. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Canada closes a loophole in the property tax

Published: Sergey Panov | 06.10.2016 |

Canadian Finance Minister Bill Morneau has announced that it will close loopholes surrounding the exemption from capital gains tax (CGT) on the sale of a principal residence. Canadian Finance Minister Bill Morneau has announced that it will close loopholes surrounding the exemption from capital gains tax (CGT) on the sale of a principal residence. According to the Department of Finance, the government "is committed to tax fairness, as well as to the fact that the tax exemption on capital gains from the sale of a principal residence will only be available in appropriate cases." Last month, the Canada Revenue Agency (CRA) announced that it will investigate the case when the real estate speculators manipulated loopholes in the ownership rules permit to evade taxes. According to the amendments, a person who was not resident in Canada, in the same year acquired a residence permit will not qualify for tax exemption in the current year. Trust will be required in each current year, after 2016, it will apply - a spousal or common-law trust, a trust qualifying disability or trust in favor of a minor child, whose parents have died. The beneficiary of a trust, or a family member who...

Canada held a first assessment of the tax gap

Published: Sergey Panov | 05.09.2016 |

Canadian IRS released its first study on the extent of the tax gap. In broad terms, the tax gap is the difference between the tax that would be paid if all obligations are fully met in all cases, and the tax actually paid and collected. "I am pleased to present to you the first study proceeds Agency of Canada estimated the tax gap. It is important to use this tool to make sure that Canadians are confident in the fairness of the tax system. It is equally important that we continue to look for innovative ways for Canadians to understand and comply Canada's tax system, "said Minister of Canadian national income, Diana Lebauthiler. This is the first study to have a glance to show how Canada will speak on the assessment of the tax break, after it was promised to do so in April 2016 as part of international efforts to combat tax evasion. Along with the report, Canada has published estimates GST / HST gaps suggest that the tax break for this tax is 6.2% in 2014, the whole pursuant to the previous years. Having released two reports, the Canadian tax authority reported that new estimates of the tax gap include Canada and 24 other OECD countries, which are evaluated at least one...

Canada attempts on free trade agreement with EU

Published: Sergey Panov | 26.08.2016 |

On the level of precipitation about free trade agreement between Canada and EU the government of Canada claimed about envoy infliction who will speed this talks. The government claimed that the infliction on envoy has a high preoritet for signing free trade agreement. In this year, it will be Pierre Pettigrew who will release this deal during one year. Pettigrew will meet with stakeholders in the provinces and territories of Canada, as well as with senior business and government leaders of the EU member states. Pettigrew said: "The agreement between Canada and the European Union sets a new world standard for commercial transactions and positions Canada as an innovative country and the new international norms of free agreement will create economic opportunities, and I am eager to help advance the deal." In July, the European Commission formally proposed the signature and conclusion of free agreement. The Commission should receive the support of the Council of Europe and the European Parliament. Once this process is completed, the agreement will be provisionally applied. The Commission hopes that an agreement will be signed during the next Canada-EU summit to be held in...

FTA between EU and Canada

Published: Sergey Panov | 07.07.2016 | news

European commission propose officially declaim and concluded Free Trade Agreement between EU and Canada. Commission need to get support from the European Council and European Parliament. After finishing this process this agreement can be provisionally applied. European commission propose officially declaim and concluded Free Trade Agreement between EU and Canada. Commission need to get support from the European Council and European Parliament. After finishing this process this agreement can be provisionally applied. The commission hope that agreement between EU and Canada will signed during next summit between them in October. Commission President Jean-Claude Juncker said: "FAT between EU and Canada is the best and progressive agreements and I want that it go into force as soon as possible. It provide new opportunities for European companies while promoting our standard as benefit for people. It's time to begin. At stake is the credibility of the European trade policy." EU Trade Commissioner Cecilia Malmström said: "I hope that now the deal with Canada will be signed and concluded quickly, to the benefit of consumers, workers, and entrepreneurs – this is an...

Canada will review preferential tax arrangements

Published: Sergey Panov | 17.06.2016 |

The Organisation for Economic Cooperation and Development (OECD) said that government of Canada need to include Preferential Tax of small business in planned review of tax expenditures. This recommendation was make in the last economical overview OECD of Canada and added that this capital taxable income is not sufficiently focused. "The main aim of this agreement to save small business in a big amount for investing and its make this program more effective. OECD said that depend of analysis result according to decision of federal budget in 2016 to defer a series of scheduled increases to the SBD and it will be seen as moving in a right direction. It added that the Government should also "review its targeted measures and adapt them as necessary to ensure that they correct clear market failures efficiently." The 2016 Budget deferred any further reductions in the small business income tax rate and committed the Government to undertaking a review of the tax system within the coming year, with a view to eliminating poorly targeted and inefficient tax measures. Author: Sergey Panovmanaging partner Finance Business...

New Zealand, signing the report sharing

Published: Sergey Panov | 19.05.2016 |

Revenue Minister of New Zealand, Michael Woodhouse, has said that recently signing agreement on the report exchange between countries will be increase country's tax collection capability. This agreement that provide country-by-country exchange of financial reports was recently signed by officials from New Zealand, Canada, China, Iceland, India, and Israel, totally 39 countries. Woodhouse also said that some large multinationals often use some difficult financial scheme, what helps them to escape of paying tax, called base erosion and profit shifting. This new country-by-country reporting agreement is on the centre of financial activity, allow to participants exchange information of multinationals activity. «Under that agreement, large multinationals will have to provide information relating to economic activity, including the global allocation of income and taxes paid," the Revenue Minister said. "Each revenue authority collecting this information to exchange with other countries. This also will show us a full picture of every multinational financial activity. According to this agreement it will be easier to control any tax wrongdoing». The agreement can ensure us that...

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