The government is proposing a review of tax planning strategies in three areas:
- Income sprinkling using private corporations
- Converting a private corporation's income into capital gains
- Holding a passive investment portfolio inside a private corporation
Since 1971, Canadians have been taxed on the gain realized when capital assets - real estate, stocks and mutual funds and other investments - are sold. There are a few exceptions, and the one we are most familiar with is the sale of a residence.
The sale of a "principal residence" is specifically exempted from tax in the Income Tax Act. Here are a few things to keep in mind when selling your home or vacation property:
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With more than 190,000 members, Canada's accounting professional network is now represented by the Chartered Professional Accountants of Canada (CPA Canada).
The Canadian Institute of Chartered Accountants (CICA) and the Society of Management Accountants of Canada (CMA Canada) established CPA Canada, which in October 2013, signed an agreement to merge with Certified General Accountants of Canada (CGA-Canada). This merge took place on October 1, 2014, integrating the country's national accounting bodies.