Rotfleisch & Samulovitch P.C.

Congratulations to the WINNERS for Immigration in Mondaq's Spring 2024 Thought Leadership Awards. Each of our winners have demonstrated exceptional knowledge and insight, providing valuable legal insights and advice to our global audience. View here ➡️https://lnkd.in/dsjQWft5 Congratulations to each of our award winners! Canada - David J. Rotfleisch, Rotfleisch & Samulovitch P.C. Cyprus - Savvas Shiatis, Oneworld Ltd Malta - Ramona Cassar Azzopardi, WH Partners Nigeria - Maureen Izibevie Esegi, THE TRUSTED ADVISORS Switzerland - Urs Haegi, VISCHER Turkey - Begüm Soydan Sayılkan, Gün + Partners UK - Annie Ee, Richmond Chambers Immigration Barristers US - Thais Saad, KI Legal Mondaq Newsletters: sign up for the latest legal & regulatory news and insights 💡https://lnkd.in/etFEW_8W #Immigration #thoughtleadership #thoughtleaders #legalinsights #legalawards #legalmarketing #contentmarketing #lawfirmmarketing #law #mondaq

How to Navigate Tax Incentives for First-Time Home Buyers Canada is dealing with a severe housing crisis, which has sent the prices of new houses into the stratosphere, resulting in a lower number of first-time home buyers. However, with the emergence of some government policies like the gradual lowering of interest rates, an uptick in house sales may be on the horizon. Here are 5 tax incentives first-time home buyers can take advantage of: 1. Opening a First Home Savings Account (FHSA): An FHSA allows qualified individuals to save for their home with some tax advantages. Contributions made into this account are generally tax-deductible, and withdrawals for the purpose of buying or building a qualifying home are tax-free. 2. Enrolling in the Home Buyers’ Plan (HBP) Program: The Home Buyers’ Plan allows a taxpayer to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a home for themselves or a related person with a disability. The withdrawal is tax-free if it is paid back within the required timeframe. 3. First-Time Home Buyer’s Tax Credit (HBTC): The Home Buyers' Tax Credit allows first-time home buyers who acquire a home to claim a non-refundable tax credit of up to $1,500, which can help offset some of the costs associated with purchasing a home. 4. GST/HST New Housing Rebate: First-time home buyers can access a rebate that equals 36% of the GST paid when buying a new home in Canada, up to a maximum of $6,300 for homes with a fair market value of $350,000 or less. For HST, in participating provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island), the rebate is 36% of the federal component (the GST) of the tax. 5. Other Programs for First-Time Home Buyers: The Government of Canada offers additional incentives, such as the First-Time Home Buyer Incentive and new construction funding for Indigenous housing for on- and off-reserve communities in Canada. Tax Tips: > To be eligible for any tax incentive as a first-time home buyer, you must file your tax returns. > Taxpayers can make withdrawals from their FHSA and RRSP under the Home Buyers’ Plan for the same house, as long as they meet all of the conditions at the time of each withdrawal. To learn more about the tax incentives available for first-time home buyers in Canada, read this article: https://lnkd.in/dcDuNpRJ by an experienced Canadian tax lawyer. Are you a prospective Canadian first-time home buyer looking for a reliable tax planning strategy? Our team of experienced Canadian tax lawyers is here to help. Follow us on all our social media channels to stay up-to-date on tax developments in Canada. Call 416-367-4222 for a free 10-minute consultation on income tax. Email: [email protected]. Taxpage.com All the tax help you need. Disclaimer: Posts on this page are for educational purposes only. #Taxpage

How Not to Trigger the Reversionary Trust Rule in Canadian Trusts A trust is a relationship where a person, called the settlor, provides cash or other property in trust for the benefit of others, known as the beneficiaries. The reversionary trust rule, detailed in subsection 75(2) of the Canadian Income Tax Act, is an anti-avoidance provision that disregards the existence of a trust when the person who contributed property to the trust can reclaim it or determine who receives it. Here are 5 ways to avoid triggering the rule: 1) Avoid Provisions for Property Reversion: Do not include provisions that allow the property to revert to the transferor (the person who transfers property into the trust). 2) Restrict Future Determination by Transferor: Ensure that the property cannot be passed to individuals determined at a future time by the transferor. 3) Eliminate Transferor Consent Requirements: Remove any provisions requiring the consent or direction of the transferor before disposing of properties during their lifetime. 4) Engaging in Tax Avoidance strategies: Engaging in complex strategies to hide the transferor or the properties to avoid triggering this rule will not work. The rule applies to any property substituted for the original property and when the original transferor is listed as a beneficiary, even after passing through other beneficiaries. 5) Understand the Exceptions: Some exceptions to the rule include: >When the transferor lends cash or other property to the trust at the prescribed interest rate. >If the transferor ceases to be a resident of Canada. >If the transferor is no longer alive. >Most deferred income plans that are trusts, such as registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), registered education savings plans (RESPs), and employee benefits plans. >If the transferor is only an income beneficiary and cannot receive the property or capital from the trust. >If the settlor (transferor) is also a trustee, there must be at least two other trustees, and decisions are made based on the majority vote. To learn more about the reversionary trust rule with context, insight, and expert analysis, read this article:https://lnkd.in/gzwavkZ7 by an experienced Canadian tax lawyer. Are you a Canadian taxpayer looking to set up a trust and avoid the pitfalls of the reversionary trust rule? Our experienced team of Canadian tax lawyers is here to help. Stay up-to-date on major tax developments in Canada. Follow us on all our social media channels. Call 416-367-4222 for a free 10-minute consultation on income tax. Send us an email at [email protected]. Taxpage.com All the tax help you need. Disclaimer: Posts on this page are for educational purposes only and shouldn't be taken as tax or legal advice. For legal advice, please consult your lawyer. #Taxpage #CanadianTrusts #Taxlaw #ReversionaryTrustRule #Canada

Canadians Beware: The Canada Revenue Agency Unveils New Measures to Catch Tax Evaders The Canadian Prime Minister, Justin Trudeau, recently remarked: “The CRA (Canada Revenue Agency) is very, very good at getting money owed.” To prove their mettle, the CRA is set to go after the CA$5.3 billion to CA$7.3 billion that is lost yearly to tax evaders and avoiders in Canada. Here are the 5 ways they plan to go about it: 1. Direct Assessment of Tax Debts: A new proposal by the Government of Canada will authorize the CRA to directly assess tax debts against individuals who receive property from a tax debtor. In simpler terms, if someone transfers their property to another person to avoid paying their tax debt, the CRA could hold the recipient of the property responsible for the original tax debtor's debt. 2. Penalties for Tax Professionals: To deter tax professionals from engaging in tax debt avoidance planning, penalties are proposed to be in the amount of 50% of the tax related to the avoidance transaction, and $100,000 plus the amount of consideration the planner is entitled to receive for planning the abusive arrangement. 3. Notice of Non-Compliance: To close the loophole exploited by some taxpayers in withholding vital information from the CRA and compel the cooperation of the taxpayer, the CRA will be empowered to issue a “Notice of Non-Compliance” to taxpayers who fail to provide information it requested. Those who ignore that notice could face a penalty of $50 for each day of non-compliance, up to a maximum of $25,000. 4. Similar Penalties for Other Tax Legislation: A series of similar penalties will apply to other tax legislation, including the Underused Housing Tax Act, Select Luxury Items Tax Act, and Excise Tax Act. 5. Crypto-Asset Reporting Framework (CARF): To stop the anonymity that characterizes most cryptocurrency transactions and ensure tax compliance, the CRA will be implementing the CARF ahead of schedule. This framework aims to promote the sharing of crypto-related transactions between some countries and also compel crypto centralized exchanges to submit vital customer information for tax purposes. Tax Tip: Always keep detailed and accurate records of your cryptocurrency transactions and be careful about aggressive tax debt avoidance planning. To learn more about the new tools and measures the CRA plans to use to quell tax avoidance and tax evasion, here’s an article link:https://lnkd.in/gbsCV2ZK written by an experienced Canadian tax lawyer. Looking for an efficient tax planning strategy? Our team of experienced Canadian tax lawyers will be happy to help. Follow us on all of our social media channels. Call 416-367-4222 for a free 10-minute consultation on income tax. Email: [email protected]. Taxpage.com All the tax help you need. Disclaimer: Posts on this page are for educational purposes only. #Taxpage

Tax Law 101: Canada Revenue Agency's (CRA) Discretionary Decisions, Demystified (Part 1) The Canadian Income Tax Act empowers the Canada Revenue Agency (CRA), through the Minister of National Revenue, to make certain discretionary decisions to fulfill its constitutional mandate. As many taxpayers have seen first-hand, the CRA has huge discretionary, but not unlimited, powers. In this two-part series, we will explore when these decisions apply, how to appeal them, and more. 5 Facts About CRA’s Discretionary Decisions: 1) Interpretation of “Shall” and “May” in the Income Tax Act: Shall: This term is akin to "must," indicating that the action is mandatory. May: This term allows for discretionary interpretation by the Minister, meaning the decision is at the CRA's discretion. 2) Appeals: Discretionary decisions by the CRA can only be appealed to the Federal Courts, not the Tax Court of Canada. 3) Tax Court Limitations: The Tax Court of Canada cannot instruct the CRA on actions within the Minister’s discretion; it can only apply the law as interpreted by higher courts. 4) Judicial Review Standards: The Supreme Court of Canada (SCC) in Vavilov, 2019 SCC 65, eliminated the standard of patent unreasonableness, now using two standards: Correctness and Reasonableness. 5) “Reasonableness” and “correctness”: Reasonableness is presumptively the standard of review according to the SCC in Vavilov, while Correctness applies in five specific, exceptional circumstances. To learn more about the standards of review for CRA’s discretionary decisions, with contexts, and expert insights, read this article: https://lnkd.in/dFdUMKZA by an experienced Canadian tax lawyer. Are you a Canadian taxpayer or business owner who feels the CRA has wrongly assessed them? Our team of experienced Canadian tax litigation lawyers is here to help. Don’t Miss Part 2: Follow us on social media, repost, and share. For a free 10-minute consultation on income tax issues, call 416-367-4222 or email us at [email protected]. Taxpage.com All the tax help you need. Disclaimer: Posts on this page are for educational purposes only and should not be taken as tax or legal advice. For legal advice, please consult your lawyer. #Taxpage #Taxlaw #IncomeTaxAct #Canada

7 ways to navigate Canada’s departure Tax According to Statistics Canada, 118,760 Canadians emigrated from Canada between Q1 of 2023 and Q1 of 2024, with more expected to leave. When leaving Canada and becoming a non-tax resident, there are various taxes owing, including the “deemed disposition” on qualified properties. The Canada Revenue Agency (CRA) assumes you’ve disposed of your property at a fair market value (even if you didn’t) and will tax the resulting gain before you become a non-tax resident. Here are 7 ways to mitigate this situation: 1. Forms T1161 and T1243: Any property that exceeds $25,000 in its fair market value (subject to limited exceptions) should be listed in Form T1161 with that year’s tax return. In addition to this, all the property subject to the departure tax should be detailed in Form T1243 and submitted. 2. Exempted Properties: Specific properties are exempted from a deemed disposition on becoming a non-resident of Canada. They are: a) Real or immovable property b) Business property c) “Excluded rights or interests” broadly including: Pension plans, annuities, RRSP, TFSA, etc. d) Property owned or inherited exempt if resident for 60 months or less in the past 10 years. 3. Proper Tax Planning: a)  Taxpayers can elect for the deemed disposition of exempted real or immovable, and business property, using Form T2061A. This election may crystallize accrued losses to offset gains from property subject to the departure tax regime. b)   For a principal residence: an election will allow a taxpayer claim its exemption before it’s sold which may result in some advantages. 4. Posting Security: Taxpayers may elect with the CRA to post adequate security in lieu of paying the departure tax. This only applies to qualified properties, and excludes personal income tax. Form T1244 is required for this. 5. What’s an “Adequate Security?”: It's an amount that is at least equal to the federal and provincial taxes owing as a result of the departure tax. Generally, the CRA accepts: a)  a letter of guarantee/credit issued by a financial institution; b)  shares in a Canadian private company, &; c)  a mortgage on Canadian real property. 6. Deemed Residence Rule: Taxpayers should be aware that “sojourning” in Canada for 183 days or more in a year will make them to be deemed a resident for tax purposes in Canada. 7. Tax Tip: Due to the complex tax rules and potential tax burden, seek the counsel of an experienced Canadian tax lawyer before emigrating.   To learn more about this important subject; here’s an article link: https://lnkd.in/gu-QB75W Looking for a comprehensive tax planning strategy before emigrating? Our team of experienced tax lawyers will be happy to help. Call 416-367-4222 for a free 10-minute consultation or email [email protected]. Taxpage.com All the tax help you need. #Taxpage