Canadian Income Tax

On March 17, 2016, TEI submitted a letter to the Canada Revenue Agency recommending certain changes to paperwork requirements surrounding Regulation 102, specifically to Form RC473. The letter discusses concerns that taxpayers might have with completing that form, as well as other requirements that might be counterproductive toward encouraging taxpayer compliance with Regulation 102.

TEI's Canadian Income Tax Committee prepared this letter. Grant Lee chairs the Committee, and TEI Tax Counsel John Schoenecker coordinated the preparation of TEI's comments

On February 9, 2016, TEI submitted a letter to the Canadian Revenue Agency recommending that certain employer-provided gift cards be included in the CRA's policy of not including small employer-provided gifts as income to employees. The letter discusses why including gift cards into this policy increases choices for recipient employees and maintains the policy’s purpose of reducing the administrative burdens on employers who would otherwise have to track the value of such gift cards for tax purposes.

On November 17-18, 2015, representatives from Tax Executives Institute, led by 2015-2016 Vice President for Canadian Affairs Lynn Moen, met with officials from Canada Revenue Agency and the Canadian Department of Finance to discuss tax policy and administrative matters.

The agendas for the meetings on income tax matters were prepared by the Institute's Canadian Income Tax Committee, whose 2015-2016 chair is Grant L. Lee of HSBC Bank Canada. John Schoenecker of the Institute's legal staff coordinated the preparation of its agendas.

On October 12, 2015, TEI submitted a letter to the Canadian Department of Finance suggesting further legislative changes surrounding Regulation 102 in the form of (1) allowing self-certification as to “qualifying non-resident employer” status and (2) eliminating the $10,000 threshold for T4 reporting requirements. The proposed legislation would require employers to obtain advance certification from the CRA before being considered a “qualifying non-resident employer” as well as reporting on form T4 of all “qualifying non-resident employees” who make more than $10,000.

On October 12, 2015, TEI submitted a letter to the Canadian Department of Finance stating that a proposed expansion of the Income Tax Act's subsection 55(2), which is an anti-avoidance provision, would unduly apply to routine transactions that have no anti-avoidance purpose. The proposed legislation would expand the “purpose test” to capture instances in which dividends are paid on a share, not to reduce a capital gain, but instead to (i) significantly decrease the fair-market value of any share, or (ii) significantly increase the total property costs to the dividend recipient.

On August 28, 2015, TEI submitted a letter to the Canadian Department of Finance urging exception for stock-based compensation programs from potential representation requirements at issue in proposed legislation regarding synthetic equity arrangements. The legislation would require participants in synthetic equity arrangements to affirmatively represent that they are Canadian taxpayers in order to claim a dividends-received deduction in certain transactions involving stock hedging.

On June 12, 2015, TEI submitted comments on the Canadian Government's proposals to provide targeted relief from the withholding and remittance requirements that otherwise apply to non-resident employers of non-resident employees who perform work in Canada. TEI expressed appreciation for the Government's interest in reducing red tape and excessive administrative and tax compliance burdens for businesses, but noted several areas where the proposals fall short.

On November 18-19, 2014, representatives from Tax Executives Institute, led by 2014-2015 President Mark C. Silbiger and 2014-2015 Vice President for Canadian Affairs Paul T. Magrath, met with officials from Canada Revenue Agency and the Canadian Department of Finance to discuss tax policy and administrative matters.

On September 26, 2014, TEI submitted a letter to the Canadian Department of Finance setting forth the Institute’s recommended revisions to August 29, 2014, draft legislation that will restrict back-to-back loans made through intermediaries.

On August 6, 2014, Tax Executives Institute submitted a written statement to the House of Commons Standing Committee on Finance in connection with the 2014 pre-budget consultations in Canada.