Tips, Tricks and Taxes
Federal Government Updates - 09/18/2023
The Federal government has recently announced a few proposed tax changes that may be relevant to you. While the related draft legislation has not been released and there could be significant changes before the new rules become law, we wanted to provide you with an update on the information that is presently available.
Federal and Ontario Budget Update
The Federal and Ontario governments recently had their 2023 budgets tabled.
All of the items below are proposed and subject to change if/when enacted into law.
On March 23, 2023 the Ontario government tabled their 2023 budget.
The most notable tax related item was the introduction of the Ontario Made Manufacturing Investment Tax Credit. This tax credit:
- Would provide a 10 per cent refundable Corporate...
Underused Housing Tax (UHT)
Beginning for 2022, the government has introduced the Underused Housing Tax (“UHT”).
The UHT imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. The government indicated that the tax would target property owned by non-Canadians; however, the scope of filing requirements extends to many Canadian entities and individuals, inclu...
First Home Savings Account (FHSA)
Beginning in April of 2023, the government is introducing the First Home Savings Account (FHSA) for individuals who are the age of 18 and older and are resident of Canada.
The FHSA offers prospective first-time home buyers the ability to save $40,000 tax-free. Like registered retirement savings plans (RRSP), contributions to a FHSA would be tax deductible. Like tax-free savings accounts (TFSA), income and gains inside a FHSA as well as withdrawal...
Ontario Regional Opportunities Investment Tax Credit
The Ontario Regional Opportunities Investment Tax Credit (OROITC) was introduced on March 25, 2020 providing a refundable tax credit for corporations that invest more than $50,000 to construct, renovate or acquire eligible commercial and industrial buildings in designated regions of Ontario, including Windsor-Essex.
Fall Economic Statement
In connection with the Fall Economic Statement announced on December 14th, we wanted to provide you with some highlights:
- No changes to personal or corporate tax rates, including the capital gains inclusion rate.
- Small Business Air Quality Improvement Tax Credit - Proposed refundable tax credit for certain Canadian Controlled Private Corporations and sole proprietors of 25% of qualified air qual...