On December 14, 2021 the federal government released its Fall Economic Statement which slot gacor outlined the expected path to economic recovery, and also billions of dollars more in spending. Some of the measures proposed may impact your personal or corporate tax filings next year.
Key Personal Tax Highlights:
- Enhanced Home Office Expense Deduction
- To continue to support those working from home due to the pandemic, the Government will extend the simplified rules for deducting home office expenses and increase the annual temporary flat rate to $500 (from $400). These rules will apply to the 2021 and 2022 tax years.
- Stonehenge Insight: We welcome the news of this increase as we found that many people were eligible to claim more using the detailed expense deduction method in 2020.
- Enhanced Tax Credit for Teachers:
- The government has proposed to increase its refundable tax credit for teachers from 15 per cent to 25 per cent, up to $1,000.
- The change would also make sure that teachers can claim the supplies, which now includes electronic devices like graphing calculators, digital timers, and remote learning tools, whether they are used in the classroom or for remote learning.
Key Corporate Highlights:
- Fund for the Live Performance Sector
- A temporary $60 million fund would roll out in the 2022 fiscal year to slot dana fund sector-led proposals that would improve the economic, career and personal circumstances of workers in the performance sector.
- Carbon-Price Rebates for Small and Medium Businesses
- The government announced a new program to return a portion of the proceeds from the carbon price to small- and medium-sized businesses to backstop provinces without its own carbon price program (which includes Ontario, Alberta, Manitoba and Saskatchewan).
- Currently rebates are sent to individual families in the provinces that pay the federal carbon price, while small businesses can apply to get some funding to help reduce their emissions.
- Return of Proceeds from the Price on Pollution Directly to Farmers
- The Government proposes to return fuel charge proceeds directly to farming businesses in Ontario, Manitoba, Saskatchewan, and Alberta via a refundable tax credit, starting for the 2021-22 fuel charge year.
- Businesses can claim these refundable tax credits through their tax returns that include the 2021 and 2022 calendar years.
- Small Businesses Air Quality Improvement Tax Credit
- The Government proposes a temporary Small Business Air Quality Improvement Tax Credit to slot sport encourage small businesses to invest in better ventilation and air filtration systems.
- This refundable tax credit would apply to qualifying expenses incurred between September 1, 2021 and December 31, 2022.
- The refundable tax credit rate of 25 percent will apply to qualifying expenditures up to a maximum of $10,000 per qualifying location and a maximum of $50,000 across all qualifying locations.
Other Tax Measures
- Underused Housing Tax
- In Budget 2021, the Government announced its intention to implement a national, annual one-percent tax on the value of non-resident, non-Canadian owned residential real estate in Canada that is considered to be vacant or underused.
- The Underused Housing Tax is proposed to be effective for the 2022 calendar year.
- Digital Services Tax
- As an interim measure, Budget 2021 proposed to implement a Digital Services Tax, which would apply at a rate of three percent on revenue earned by large businesses from digital services that rely on data and content contributions from Canadian users.
- Earlier this Fall the government indicated it would move ahead with legislation to enact the Digital Services Tax, which would take effect as of January 1, 2024 (in respect of revenues earned as of January 1, 2022) if there is no tax treaty in force to implement a new multilateral tax regime by that time.
- Luxury Tax
- You may also recall that Budget 2021 proposed to introduce a tax on the sales of luxury cars, personal aircraft and luxury boats for personal use. The tax would be calculated at the lesser of (i) 20 percent of the value above the retail sales price thresholds or (ii) 10 percent of the full value of the luxury car, boat or personal aircraft.
- The Government will release draft legislation in early 2022.
Extension of various benefits
- The Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit proposed to be extended until May 7, 2022.
- The Government also proposes to provide a one-time payment to guaranteed income supplement (GIS) recipients who received Canada Emergency Response Benefit or the Canada Recovery Benefit in 2020.
We recognize there are many proposed changes here so if you have any questions about how this impacts your own specific situation, please feel free to connect with us.