Don't let it sneak up on you!

Don't let the tax season sneak up on you

McIntyre & Associates Professional Corporation
200 – 900 Morrison Drive
Ottawa, ON
K2H 8K7

General Enquiries: 613-726-7788

Federal Budget Commentary for 2016

New info you may be interested in for the 2016 year.

Take a look at our latest publication for related information on:

1. Theme: Economic Growth, Job Creation, Strong Middle Class
2. Building and Spending for Growth
3. Key Budget Measures for Business
4. Key Personal Measures & Measures That Were NOT Introduced
5. Business Income Tax Measures
6. International
7. Personal Tax Measures
8. Sales and Excise Tax Measures 

Plus more
Please follow this link to get the scoop: McIntyre_Associates_2016_Federal_Budget_Commentary
Please note that you will need a PDF viewer. You can get one free here. Adobe PDF Reader
Office Location
McIntyre and Associates Professional Corporation
200 - 900 Morrison Drive
Ottawa, ON.
K2H 8K7
General Enquiries: 613-726-7788
Fax: 613-729-4477
Or visit our contact page here.

Alter Ego Trusts

An alter ego trust is an inter vivos created after 1999 by a settlor who was 65 years of age or older at the time the trust was created. A key property of this type of trust is that the settlor is the only one entitled to receive any income or capital distributions from the trust during his or her lifetime. It is only upon death of the settlor that the property passes to a beneficiary. This type of trust is typically used to avoid probate fees (which are charged at 1.5% on assets over $50,000 in Ontario) since the trust assets do not formally pass into the estate.

However there are some drawbacks to using this type of trust. The alter ego trust cannot use the capital gains exemption available in respect of qualifying property such as small business company shares. In addition, any losses within the trust can only be used to offset the gains of the trust and do not attribute back to the individual. In the year of death, capital losses can be used to offset non-capital gains in the year of death or the preceding year. Depending on the makeup of the investments, this could be a substantial benefit which may be unavailable. The alter ego trust does not form part of the Estate and therefore the assets cannot be used to form a testamentary trust. This is a type of trust that forms on death of a taxpayer and unlike an inter vivos trust, has the benefit of the marginal tax rates that apply to individuals. The potential savings are up to $17,000 per year however recently CRA has been discussing limiting the access to the marginal tax rates for a period of 36 months from the date of death.

Provided that the most common use of the alter ego trust is to avoid probate fees, the trust will typically have more than $500 of income and therefore would be subject to the annual filings requirement. Ensure that review both the benefits and the drawbacks to this type of arrangement to ensure that it meets your needs.

Questions?

General Enquiries: 613-726-7788

Fax: 613-729-4477

general@mcintyreca.com

McIntyre & Associates Professional Corporation

200 – 900 Morrison Drive

Ottawa, ON

K2H 8K7 

Our Fall 2015 Publication is Now Available

What you will find in our new publication:

• Common U.S. - Canadian Tax Issues "What is the substantial presence test? and does it involve me?"
• CRA's Prescribed Interest Rates "What will I owe if I am late on my income tax payments?"
• What' s New at McIntyre & Associates
• New and Improved McIntyreca.com just for you!

If you would like to receive these updates please register at general@mcintyreca.com
Please Note: Publications are in PDF file format.

We are proud to announce our new website: Coming Soon!

Taxes are upon us again!

McIntyre & Associates’ client-centric services extend to a wide range of accounting, auditing, tax and consulting areas. Our team of professionals has the knowledge and experience to assist clients with every stage of the business cycle - from starting to sell to succession planning.

But it does not stop there.

We are working very hard to bring a cleaner, simpler new look to our website.

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CRA’s Prescribed Interest Rates

The prescribed interest rates for the fourth quarter of 2013 are as follows:

- 2% to calculate a deemed interest benefit on subsidized employee and shareholder loans;

- 2% on refunds of income tax overpayments;

- 4% on refunds of non- corporate income tax overpayments; and

- 6% on payments of overdue income taxes, insufficient income tax instalments, unremitted employee source deductions, CPP contributions or EI premiums, and unpaid penalties.

These rates are in effect from: October 1, 2013 to December 31, 2013.