TFSA: Carrying on a Business Within It 

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.  In a February 6, 2023 Tax Court of Canada case, CRA had assessed the TFSA on the basis that it was carrying on a business and was therefore taxableYour Read More Link Text

Poker Winnings: Taxable or Not?

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A November 25, 2022, French Tax Court of Canada case considered whether a taxpayer’s poker activity constituted a source of business income and therefore the winnings were taxable, as argued by CRA. The taxpayer argued that his winnings were non-taxable as they were derived from his hobby rather than a business. The taxpayer generated pokerYour Read More Link Text

One-Time Top-Up to The Canada Housing Benefit: Additional Support  

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A one-time tax-free payment of $500, announced in September 2022, is now available to low-income renters. The payment does not reduce other federal income-tested benefits.  Eligible individuals must:  Applicants must provide the address of the rental property, the total rent they paid in 2022, and the landlord’s contact information. Applications can be submitted until Friday,Your Read More Link Text

Unreported Real Estate Dispositions: Multiple Issues 

Unreported Real Estate Dispositions

A September 12, 2022, Tax Court of Canada case reviewed the gain on a residential property purchased in 2007 and disposed of in 2011. The property was substantially rebuilt during the ownership period. The proceeds, cost and gain were all determined by CRA as the sale was unreported. These amounts were largely unchallenged by theYour Read More Link Text

COVID Benefits: Review/Audit Activity

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On December 6, 2022, the Auditor General of Canada released its report on COVID benefit compliance enforcement. The report reviewed a total of $210.7 billion in payments with the following breakdown among programs: The report indicated that $4.6 billion in overpayments were made to ineligible individuals, and an additional $27.4 billion of payments to individuals and businesses should be investigated further. ThisYour Read More Link Text