FCA Rules on Employee vs. Independent Contractor Status Arthur Drache, March 10, 2006 In a major decision which should have an impact on the general law, and most significantly, the income tax laws, dealing with employment status, the Federal Court of Appeal has held that dancers with the Royal Winnipeg Ballet (“RWB”) are independent contractors. […]
Principal Residence Exemption for Home Held in Personal Trust Arthur Drache, December 04, 2006 Most Canadians, even those who are not particularly tax oriented are aware of the fact that there is no capital gain payable when a principal residence is sold. This rule has become a source of huge tax free gains for a […]
Ten Percent Rules Offers Poor Protection for Political Activities Arthur Drache, October 19, 2006 A couple of months ago we were speaking with somebody who commented that in his view, the so-called “10%” rule pretty much ensures that few if any charities will be threatened because of political activity. We were surprised by this observation […]
Charities at the Appeals Level Adam Aptowitzer This article continues our series on a charity’s dispute with the Canada Revenue Agency (“CRA”). In our last article we dealt with the first formal stage of a dispute, the audit process, culminating when the charity receives a notice of assessment or reassessment for a fine or penalty […]
Audit Exemption for Ontario Charities Adam Aptowitzer, October 19, 2006 There seems to be much confusion around the requirements for the auditing of Ontario not-for-profit Corporations. By way of review, a charity can be either incorporated or unincorporated; an organization incorporated under the laws of Ontario would be required by the Corporations Act to arrange […]
Changes to Charity Rules Adam Aptowitzer, January 30, 2006 The advent of 2006 will bring with it the fulfillment of several proposed changes that affect charities and which have been promised or in the planning stages for some time. Considering that the Charities Directorate is more determined and more capable than ever to be an […]
Prescribed Interest Rate on Monies Owing to the Tax Man Adam Aptowitzer, March 08, 2006 On March 3 the Canada Revenue Agency announced that the prescribed interest rates for amounts owing to the CRA in respect of income tax and penalties would rise to 8%, its highest rate since the third quarter of 2003. Interest […]
The Employer Health Tax and Charities Adam Aptowitzer, August 03, 2006 It should not astonish any reader that the imposition of the Employer Health Tax (the “EHT”) in Ontario is fraught with complexities. However, it may come as somewhat of a surprise that the Ontario Ministry of Finance has taken a liberal position in applying […]
Canadian Charities Operating Overseas Adam Aptowitzer, May 31, 2006 Overseas operation is fundamental to the operation of many charities, especially religious charities, and so it is important for these charities to have a good understanding of the law regarding carrying out charitable activities overseas. Given that the government subsidizes registered charities to the extent that […]
The Giving Spirit Meets the Tax Advisor Adam Aptowitzer, December 04, 2006 This is the time of year where parents spend time with their children, co-workers revel in collegiality, retailers rejoice with their profits, and taxpayers look to generate tax deductions and credits. This year may be particularly beneficial for individuals in the latter category […]