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Gifts Directed to Other Donees: Loss of Charitable Status

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A registered charity may face serious implications when collecting donations on behalf of others. For instance, a charity’s status could be revoked if the collected funds, issued receipts, and disbursed money are not qualifying disbursements. A qualifying disbursement is a gift received by a qualified donee like municipalities in Canada. However, if the donee acts merely as a conduit, the charity’s gift doesn’t qualify. A charity’s status can also be revoked if it receives a gift conditional on granting another gift to a non-qualified recipient.

Paying Rent to Non-Residents: Withholdings Required

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Ensure to take proactive steps to understand a landlord’s residency status. Renters can be liable for unremitted withholdings even if they do not know the landlord’s residency status.

CPP Enhancements: Higher Contributions and Higher Benefits

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In 2019, the government commenced a two-part enhancement to the Canada Pension Plan (CPP), with full implementation to be completed in 2025. Phase 1 occurred from 2019-2023; phase 2 will occur from 2024-2025. Overall, the changes will require larger contributions but also will provide larger benefits.

TFSA: Carrying on a Business Within It

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Earnings in a TFSA are typically not taxable. However, earnings in a TFSA become taxable when they are earned from carrying on a securities trading business. A recent court case may set precedence on what’s allowed and what’s not allowed in a TFSA.