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Recent tax updates

  • The interest rate on overdue taxes for the fourth quarter of 2022 (October 1 – December 31, 2022) has increased by 1% to 7%. Make sure to get those payments in to CRA on time!
  • The luxury tax affecting new vehicles and aircraft retailing for more than $100,000 and new boats over $250,000 has been rescheduled to commence on September 1, 2022.
  • On June 19, 2022, individuals suffering from Type 1 diabetes became automatically entitled to the disability tax credit. This change is retroactive to 2021.
  • On June 23, 2022, legislation was passed which would allow the full and immediate expensing of many capital assets purchased on or after April 19, 2021.
  • The program that has offered purchase incentives of up to $5,000 for zero-emission vehicles since 2019 is proposed to be extended until March 2025, and eligibility would be broadened to include other vehicle models, including more vans, trucks and SUVs.
  • The federal climate action incentive (Alberta, Manitoba, Ontario and Saskatchewan) converted from a tax credit claimed on personal tax returns to quarterly payments in 2022. The first payment was made in July 2022 and it was a double payment for the first two quarters of 2022. Subsequent payments will be made each January, April, July and October.
  • CRA is currently reviewing how and when crypto asset holdings need to be disclosed on form T1135.
  • The annual TFSA limit for 2022 remains at $6,000. As such, if an individual has never contributed and has built room since the program’s inception in 2009, up to $81,500 can be contributed.

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