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Tax Alerts
January 26, 2021

Two quarterly newsletters have been added—one dealing with personal issues, and one dealing with corporate issues.


The Employment Insurance premium rate for 2021 is unchanged at 1.58%.


The Quebec Pension Plan contribution rate for 2021 is set at 5.9% of pensionable earnings for the year.


The Canada Pension Plan contribution rate for 2021 is set at 5.45% of pensionable earnings for the year.


Dollar amounts on which individual non-refundable federal tax credits for 2021 are based, and the actual tax credit claimable, will be as follows:


The indexing factor for federal tax credits and brackets for 2021 is 1.0%. The following federal tax rates and brackets will be in effect for individuals for the 2021 tax year.


Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2021 are listed below.


Planning for – or even thinking about – next year’s taxes when it’s not yet even mid-December may seem more than a little premature. However, most Canadians will start paying their taxes for 2021 with the first paycheque they receive in January, and it’s worth taking a bit of time to make sure that things start off – and stay – on the right foot.


During the month of December, it’s customary for employers to provide something “extra” for their employees, by way of a holiday gift, a year-end bonus or an employer-sponsored social event. And while the annual office holiday party definitely won’t be happening in 2020, employees may still be able to look forward to something additional in the way of compensation during the last month of the year.


While Canadians benefit from a publicly funded health care system, there are nonetheless a significant (and increasing) number of medical and para-medical expenses which are not covered by provincial health care plans. As well, an increasing number of Canadians – who may work on contract or who hold several part-time jobs - do not have private insurance coverage for such costs through their employer.


Canadian Emergency Response Benefit

In March of this year, in response to the pandemic, the federal government announced and rolled out a number of benefit programs to assist individuals who had experienced a pandemic-related interruption in earnings.


  • Third Party Disclosure of Income - CRA reassessed a taxpayer to include income based on the results of the audit of a company which listed the taxpayer as a Subcontractor.             
  • Rental Property: Receipt Retention - A taxpayer had disposed of a rental property and CRA reduced the Adjusted Cost Base claimed by the taxpayer.
  • U.S. Snowbird: New U.S. Visa!- Proposing to allow Canadians aged 55 and older to spend 240 days in the country without a Visa is on track to become law.
  • Dropbox.com - Dropbox.com is a popular serivce which enables users to synchronize, share and back-up files via computer, tablet or iphone.

Virtually all Canadian snowbirds know they must keep track of how many days they are in the US and outside of Canada. Given the importance of “day count,” why do so few travellers (relatively speaking) trigger an examination based on the amount of time they have spent in either country? prior to 2014 neither the US nor Canada knew how many days someone had been within its borders. That will change in 2014 as new rules go into effect. All snowbirds need to know how this change will affect them.

ROY A BERG JD, LLM
Moody gartner tax law
Published: Monday, November 25, 2013


Most retirees who make the annual pilgrimage to the sunshine states already know how long they're allowed to stay in the United States without making immigration officials testy: fewer than 183 days.  But that limit could change - maybe just not this year.

KIRA VERMOND
The Globe and Mail
Published: Friday, November 22, 2013


Could your corporation be classified as a Personal Service Business?  Read about the tax implications.

Automobile audits by the Canada Revenue Agency ("CRA") are very common. Accordingly, these cases should be of particular interest to business owners who use motor vehicles for work and to their tax advisors.


If you are a Canadian citizen who spends a considerable amount of time in the United States, you need to be understand the US tax rules applicable to non-US citizens.