Tax, Tips, and Traps – 2nd Quarter
In this edition of Tax, Tips and Traps for the 2nd quarter, the 2024 Federal Budget proposes increasing the capital gains inclusion rate from 50% to 2/3 for gains realized after June 25, 2024, affecting corporations and trusts. Individuals retain the 50% rate for gains up to $250,000 annually.
Starting in 2024, most GST/HST registrants must file returns electronically to avoid penalties. From January 1, 2024, non-compliant short-term rental operators can’t deduct expenses, resulting in higher taxes. Selling non-compliant short-term rental properties can attract GST/HST.
Directors can be personally liable for unpaid payroll and GST/HST, even after resignation. Vehicle allowances not solely based on work-related kilometers are taxable. CRA uses unnamed persons requirements to ensure tax compliance across various industries.
Employees must disclose their connection to their employer or competitors in online reviews under the Competition Act. NPOs must maintain non-profit purposes to keep their tax-exempt status.
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