Taxing Times November 2010

ESTATE PLANNING

There are a number of essentials to consider when putting an estate plan into place. These include a will, powers of attorney for both property and care and beneficiary designations.

In addition, consideration should be given to estate freezes, shareholder agreements and

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Taxing Times October 2010

PRESCRIBED INTEREST RATES

CRA has announced the prescribed rates for the fourth quarter, October 1 to December 31, 2010. The following rates apply:

• Interest charged on overdue taxes – 5% • Interest paid on overpaid corporate tax – 1% • Interest paid on overpaid personal tax – 3% •

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Federal Budget 2010

FEDERAL BUDGET 2010

On March 4, 2010 Finance Minister Jim Flaherty introduced the Federal Budget for 2010 with an expected deficit for coming year of $53.8 billion. Generally speaking the budget does not call for any tax increases or tax cuts. The government will go ahead with the planned second half

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Taxing Times September 2010

PRESCRIBED INTEREST RATES

CRA has announced the prescribed rates for the third quarter, July 1 to September 30, 2010. The following rates apply:

• Interest charged on overdue taxes – 5% • Interest paid on overpaid corporate tax – 1% • Interest paid on overpaid personal tax – 3% •

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Taxing Times July 2010

SCHOLARSHIPS

The Income Tax Act allows for employers to pay scholarships to the children and grandchildren of employees for attendance at a post-secondary institution that has been designated by CRA or to an elementary or secondary school. The scholarship amount will be deductible by the corporation

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Taxing Times June 2010

LIFE INSURANCE PLANNING

Many times, when life insurance is purchased, not enough thought is put into the tax planning for the payment of the proceeds on death. For Canadian tax purposes the proceeds are usually tax-free (US citizens note that life insurance proceeds are included for

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Taxing Times May 2010

US TRANSFER PRICING

The IRS has announced new rules for transfer-pricing issues that will have a major effect on all cross-border transactions between non-arm’s length parties. The new requirements will include a form called a Schedule UTP. Basically this form will describe to the

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Taxing Times March 2010

EMPLOYER ISSUES – GST/HST FOR PENSION PLANS

Effective for years beginning after September 23, 2009 employers will be required to treat all GST/HST paid that is related to pension expenses as a re-supply to employees. Simply put this means that employers will claim the GST/HST

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