Latest news with #CapitalGains
Time of India
a day ago
- Time of India
Months after Maha Kumbh, 2 elderly men reunited with kin
Prayagraj: After a gap of more than three months following the culmination of Maha Kumbh volunteers of the Lost & Found camp, popularly known as 'Bhoole Bhatke Shivir', managed to reunite two elderly men with their families. On Sunday, Nar Singh Murti, aged 68, who went missing from mela campus on Feb 28, was reunited with his family in the village of Nagli in Chikmagalur district of Karnataka on Sunday. Family members of Murti said that some volunteers spotted him while roaming in Mumbai and talked to him in Kanaada language. When Murti revealed his village name, the volunteers took him to his native town and handed over to the family. Similarly, 54-year-old Madhav Prasad Shukla, who also went missing on Feb 7 on mela campus, was reunited with his family on May 15 in Kanpur district. Shukla was a resident of Pandit Ka Pura village (Lalganj) in Pratapgarh district. "We were in constant touch with family members of missing persons post-Maha Kumbh and volunteers acted upon minute information," said Tiwari, adding, "Volunteers, along with family members of missing Madhav Prasad Shukla, received information that he was in a village about 80 km from Kanpur district and rushed to reunite him with the family on May 15," added Tiwari. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ask a Pro: "What Expenses Can Be Deducted From Capital Gains Tax?" SmartAsset Undo Organiser of Bhoole Bhatke Shivir, Umesh Tiwari, told TOI, "Two elderly devotees, who were lost during the Maha Kumbh were reunited with their families in the past month. The organisation had a list of five missing persons after the culmination of the Maha Kumbh, whose whereabouts were untraceable. However, despite the end of Kumbh, the volunteers remained active and managed to reunite two of them in the past month." Tiwari, however, said that volunteers are still making efforts to trace whereabouts of three others.
Cision Canada
29-04-2025
- Business
- Cision Canada
Tariff relief, tax cuts and budget restraint are small business priorities for new government Français
TORONTO, April 29, 2025 /CNW/ - The Canadian Federation of Independent Business (CFIB) congratulates Prime Minister Mark Carney and all elected MPs and looks forward to working with government and opposition parties on key small business priorities as we continue to navigate the tariff battle with the United States and China. "It was good to hear both Prime Minister Carney and Opposition Leader Poilievre pledging to work together to address the threat of U.S. tariffs in a minority Parliament. Now that we have a degree of political clarity, government needs to turn its attention to reducing taxes, cutting red tape and providing much-needed economic certainty. Small business confidence is near record lows, and CFIB is forecasting an extremely difficult second quarter for Canada's economy. We urgently need measures that would incentivize investment and help small businesses diversify their markets and suppliers," said Dan Kelly, CFIB president. With Parliament expected to resume in the weeks ahead, CFIB is asking the new government to introduce legislation and changes that will help small businesses meet today's challenges. This includes: Ensuring that the money collected through Canadian counter tariffs is returned quickly to affected Canadian small businesses. Passing legislation to formally eliminate the carbon tax, ensuring the small business carbon tax rebates are delivered tax free as promised, and returning the remaining $500 million in 2024-25 carbon tax rebates to small businesses. Delivering on the promised increase to the Lifetime Capital Gains Exemption to $1.25 million and implementing the promised Canadian Entrepreneurs' Incentive which lowers capital gains taxes on up to $2 million following a business sale. Lowering the federal small business tax rate from 9% to 0% for the foreseeable future. Working with provinces to capitalize on the current momentum towards the elimination of internal trade barriers by adopting mutual recognition. Making immediate expensing available to all businesses in all sectors. Lowering Employment Insurance premiums for smaller employers to the same rate paid by employees. "Small businesses are looking to the new government to follow through on its campaign promises, particularly around dropping the increase in the capital gains inclusion rate, removing the consumer carbon tax and knocking down interprovincial trade barriers. CFIB stands ready to work with all elected representatives to make those promises a reality," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. About CFIB The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at
Yahoo
19-03-2025
- Business
- Yahoo
Taxes 2025: As business owners face more reporting complexity, here are some changes to be aware of
Filing taxes is complicated enough for the average Canadian. For business owners, it's getting even more complex. 'One theme we're seeing in changes to business taxation is towards more reporting complexity, which makes the compliance more costly for business owners,' Luigi De Rose, national private business tax leader at PwC Canada, said in an interview with Yahoo Finance Canada. 'We're seeing that with a lot of changes happening in our tax system.' Navigating the changes, as well as hundreds of deductions and credits that business owners may be able to take advantage of, is critical for business owners. 'There are more than 400 credits and deductions available. It's hard to know them if you're not working in taxes on a daily basis,' H&R Block tax expert Yannick Lemay said in an interview. 'And these don't include the expenses you can claim as a business owner. There are many expenses specific to your business that will reduce your taxable income on your tax return.' The most important thing for business owners – which also applies to individuals – is to start early, says Lemay. 'Do not wait until the last minute,' he said. 'There's a lot of information you will need for your taxes, especially as a business owner, so you want to get on it early … it will definitely make things easier when it comes to filing your taxes.' While the deadline for most individual taxpayers is on April 30, self-employed tax returns are due on June 15. However, taxes owed by those who are self-employed must still be paid by April 30. For corporations, taxes must be filed within six months of the end of their tax year, which corresponds to its fiscal period. One change that many business owners are likely grateful not to have to worry about this year is the increase to the capital gains inclusion rate. The Liberal government proposed hiking the tax rate for capital gains for corporations, trusts and individuals from one-half to two-thirds. For individuals, the tax would have applied on gains of more than $250,000. Although the capital gains legislation never passed, the Canada Revenue Agency (CRA) had planned to enforce the change until it reversed course in January, delaying the move until next Carney's victory in the Liberal leadership race has put the final nail in the coffin for Ottawa's controversial plan to hike the inclusion rate on capital gains. The proposed change has nonetheless caused confusion among business owners, says Lemay, as many still received tax slips that mentioned June 25, the date when the change was supposed to go into effect. And while the change to the inclusion rate is no longer happening, the proposed increase to the Lifetime Capital Gains Exemption limit is still slated to take place – from $1 million to $1.25 million. Another change may also impact gig workers who earn income through companies such as Uber, Lyft, and Skip the Dishes. This year, these platforms are required to submit to the CRA the total income an individual has made through the app. This is the first year that the CRA has implemented this requirement, and while it doesn't change how gig workers should file their taxes, it's important that they know that income needs to be reported. 'Some people believe that they don't have to report all their business income if they are not meeting the threshold of $30,000 where you need to register for GST and HST,' Lemay said. 'That's not true. All income is reportable in your tax return, so this may make a difference for people who were not aware that they should declare their gig income.' When it comes to those additional tax complexities, De Rose points to new rules around how corporations calculate the amount of interest and financing expenses that can be deducted from taxable income, known as excessive interest and financing expense limitations. "There are a whole bunch of rules and exceptions that need to be met, and calculations that need to be done," De Rose said. "That's just one example of the additional complications that taxpayers need to administer when doing their tax filings." Given the many complexities business owners face at tax time, De Rose recommends they hire a professional firm to assist with tax compliance. 'It's not something you should do lightly, or by engaging someone who does tax on a part-time basis,' De Rose said. 'The rules are complicated and the potential penalties are significant, so it's worth the investment to hire a professional to help you manage your tax burden.' Correction: A previous version of this story stated the capital gains hike would be applied only to gains of more than $250,000 for corporations and trusts. That exemption applies only to individuals. The story has been updated. Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on X @alicjawithaj. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Investors ask whether Trump's eye-for-eye tariffs means he won't go universal
Donald Trump often focused on universal tariffs last year but that campaign trail idea has been de-emphasized, at least in the early stages of his new administration, in favor of this week's newly announced plan for a reciprocal-first approach to tariffs. Reciprocal is "the only fair way to do it," Trump said recently. The new presidential memorandum signed Thursday will launch studies of unfair trade situations as well as kick of negotiations with nations that could be impacted in a process that is set to come to a head in April. That leaves a question — for investors, economists, and inflation-weary consumers — about whether this week's move represents a temporary pause on the president's push for a universal 10-20% "ring around the country" or whether that blanket tariff idea can now more fairly be considered off the table. The administration says universal duties remain very much on the table with a White House official telling Yahoo Finance Friday "I don't think they are mutually exclusive by any means." The current effort, the official added, is about reciprocity and establishing trade fairness while universal tariffs could eventually be more focused on issues like bringing back manufacturing and raising revenue. But even the president recently observed that reciprocal tariffs are much more of the focus for now saying "I seem to be going in that line" while outsiders have gone further and described this week as a "potential pivot." How the strategy shakes out could be key in shaping how Trump 2.0 tariffs are actually felt across the US economy — everywhere from grocery stores to boardrooms. Garrett Watson, the director of policy analysis at the Tax Foundation, said in a recent episode of Yahoo Finance's Capital Gains podcast that this week's discussion of reciprocal tariffs could be seen as a move toward a more selective — albeit a more politically fraught — tariff strategy instead of something simpler and more sweeping. A clear upside for that selective approach, he added, is that it could "limit some of the impacts for American consumers" but with a downside in "the risk of creating a political makes the situation complicated and uncertain and can create political winners and losers." Indeed, the presidential memorandum signed by Trump on Thursday included a wide-range of non-tariff measures that his team will now weigh. A value-added tax in Europe has come under close scrutiny but the memo also calls out an array of other factors from subsidies to regulation to "any other practice that, in the judgment of the United any unfair limitation on market access." Thursday's action also came after the president announced new 25% tariffs on steel and aluminum earlier in the week after he imposed 10% duties on China last week over issues of illegal drugs and migration. The early tariff approach from Trump has also been focused on using tariffs to extract changes from foreign countries — seen from Colombia to Canada to new concessions announced by India just this week during talks around those reciprocal tariffs. Some other economic observers say what happened this week could represent a course change. "The reciprocal tariff is a potential pivot in strategy for Trump's universal tariff plans," wrote Ed Mills, Washington policy analyst for Raymond James, in a note even as he was quick to note that a pivot back is possible and "we would not rule out the imposition of across-the-board, flat tariffs at this stage." Last Friday Trump himself told reporters "we're going to have tariffs, mostly reciprocal I think that's the only fair way to do it." He then observed "and I seem to be going in that line, as opposed to a flat-fee tariff." Capitol Economics pointed out in a recent analysis that a reciprocal-only approach could "could result in a lower hike in the effective tariff rate than under a universal 10% import tariff." The effect on consumer price could be less in total but more unpredictable — with different duties coming for different nations and their signature goods. Another question is whether Trump's more ad-hoc approach will at least delay his oft-stated goal of on-shoring manufacturing. Elaine Buckberg, the former chief economist of General Motors, raised questions on that front in a recent Harvard panel. "If you had tariffs that are truly universal and mount over time, companies might make plans to bring into the U.S. more of their production," she said. She suggested the effects could be less predictable in the auto industry with varied duties as it would mean vehicles coming from Korea, Japan, and Europe likely would continue to be slapped with tariffs at a wide array of rates. It's more than a bit of a puzzle for investors. The big unanswered question remains "how serious and how far does the president go on tariff policy," Watson said on this week's Capitol Gains podcast. Ben Werschkul is Washington correspondent for Yahoo Finance. Every Friday, Yahoo Finance's Rick Newman and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
Yahoo
30-01-2025
- Business
- Yahoo
CRA challenged in court cases on capital gains tax increase
Two salvos have been fired across the Canada Revenue Agency's (CRA) bow this week in the way of court challenges questioning the taxman's authority to administer the increase to the capital gains tax, retroactive to June 25, 2024, even though it's not yet – or may never even become – law. Before reviewing the details of each of the two court challenges, let's review the background of how we got here. The April 2024 federal budget proposed an increase to the capital gains inclusion rate for gains realized on or after June 25, 2024, whereby the inclusion rate was increased to 66.67 per cent, up from 50 per cent. Individuals and certain trusts would still be entitled to the former 50 per cent inclusion rate on the first $250,000 of capital gains annually. Corporations and most family trusts would not. On June 10, a notice of ways and means motion (NWMM) containing draft legislation to implement the tax change was introduced in Parliament. The next day, the House of Commons voted and agreed upon it, yet no bill to implement the draft legislation was then tabled. On August 12 the Department of Finance released updated legislative proposals relating to capital gains inclusion rate changes. In September, a second NWMM was tabled in the house, containing revised draft legislation. The house never voted to adopt it. Despite this, in November the CRA announced that while the capital gains tax increase had yet to be formally adopted by Parliament, it would begin administering the capital gains tax as of June 25, 2024. Fast-forward to January 6, when the Governor General, on the advice of Prime Minister Justin Trudeau, prorogued Parliament until March 24, such that all unfinished business, including the NWMM, died on the order paper. Shortly after, the CRA published a statement on its website saying that 'notwithstanding that Parliament is prorogued, the CRA will continue to administer the proposed capital gains legislation.' It advised that new forms will be available by end of this month, and that arrears interest and penalty relief, if applicable, will be provided for corporations and trusts impacted by these changes that have a filing due date on or before March 3, 2025. In mid-January, Conservative leader Pierre Poilievre promised to eliminate the increase to the capital gains inclusion rate if elected. This was followed a week later by an announcement from Liberal leadership hopeful and former finance minister Chrystia Freeland who also vowed to scrap the capital gains tax hike if she is elected. In a C.D. Howe Institute study published last week entitled A Kafkaesque Tax Quagmire: Why We Need to Defer or Abandon the Failed Capital Gains Changes, co-authors Carl Irvine, a tax lawyer and a member of the institute's fiscal and tax policy council, and John Tobin, a tax partner at Torys LLP, said the federal government's proposed increase to the capital gains inclusion rate has created 'a nightmarish scenario' for Canadians. They argue that taxpayers face a difficult choice: pay at the higher rate now and struggle to recoup overpayments if the measure dies, or follow existing law and risk interest and penalties should it eventually pass. The authors called on the government to abandon the proposed increase, or failing that, delay the effective date to at least Jan. 1, 2025, 'to spare taxpayers the gamble of filing 2024 returns under a measure that may never pass.' At least two taxpayers, however, are unsatisfied taking a wait-and-see approach, and are directly challenging the CRA's authority to administer the tax hike, absent formal parliamentary approval. In separate lawsuits, they are each taking the CRA to federal court. With all the pressure on the government and the CRA, it's conceivable that the agency may change its position after this publication deadline. Check for the latest developments. The first case involves Debbie Vorsteveld, a resident of Mapleton, Ont. She is being represented by the Canadian Taxpayers Federation (CTF) in a test case. Last year, she and her husband sold a property that included a secondary home. They had rented the secondary home to their adult children, but had to sell it when their kids were ready to move on. The CRA says the Vorstevelds must pay higher capital gains taxes under the proposed capital gains increase or face financial penalties. The taxpayer is seeking urgent relief from the federal court to block the CRA's enforcement of the proposed tax increase. In its application, the taxpayer argues the tax increase 'violates the rule of law and is unconstitutional.' As Devin Drover, CTF general counsel, said in a press release, 'The government has no legal right to enforce this tax hike because it has not received legislative approval by Parliament. This tax grab violates the fundamental principle of no taxation without representation. That's why we are asking the courts to put an immediate stop to this bureaucratic overreach.' The second challenge involved a corporate taxpayer, Pelco Holdings Inc., which is a private B.C. corporation. The corporation is a shareholder of an engineering firm that has dozens of employees, and operates throughout Western Canada. On Oct. 30, 2024, the corporation realized a capital gain from the sale of certain assets. That gain must be included in the corporation's income for its taxation year ending Oct. 31, 2024, so the corporation must decide which inclusion rate to use when it files its 2024 return. The corporation is being represented by Thorsteinssons LLP, Canada's largest tax law firm. The federal court application seeks to prevent the CRA from 'inappropriately administering the federal Income Tax Act as if the capital gain inclusion rate increase (from one-half to two-thirds) is law.' The application alleges that by seeking to collect more than what is allowed by the Act, the CRA is 'contravening the rule of law — a fundamental Canadian constitutional principle that all are subject to the same laws, and, as here, cannot be taxed except in accordance with those laws.' Taxpayers get clarity on charitable donation extension How the capital gains increase could affect taxpayers How to handle the uncertainty about capital gains The taxpayer's application also states that the CRA's decision to administer the capital gains hike 'places taxpayers in an untenable position. They will be faced with either complying with the law, or complying with the CRA. Either course could lead to significant financial repercussions.' The taxpayer has appealed to court asking the judge to order the CRA to administer the law as currently written, which taxes capital gains at a 50 per cent inclusion rate, and prevent the CRA from taking any steps to enforce the proposed 66.67 per cent rate. As the application notes, 'failure to do so could cause countless Canadians to pay amounts to the CRA which they may never recover.' Jamie Golombek, FCPA, FCA, CFP, CLU, TEP, is the managing director, Tax & Estate Planning with CIBC Private Wealth in Toronto. If you liked this story, in the FP Investor newsletter. Sign in to access your portfolio
