Government plans to tighten program for tax filing errors

The Canada Revenue Agency is planning to make changes to the voluntary disclosures program. Under the current VDP, taxpayers have a second chance to change a tax return previously filed or to file a return that should have been filed. The taxpayer can request that the CRA provide relief from prosecution and penalties. If the […] Read more

Interpreting tax changes

The government’s proposed changes to the taxation of small business has heated up considerably. Opposition by those small businesses most affected, including farmers, has forced the government into sober second thought. Part of the opposition has been stimulated by a belief that the government was making unfair reversals of past tax policies designed to recognize […] Read more

Unfair to describe tax proposal as ‘closing loophole’

The debate is certainly heating up over the federal government’s proposed tax changes with several observers jumping in on various sides of the argument. There is a fair amount of misinformation and misunderstanding surrounding the issue. To be fair, every year the government routinely issues numerous motions and budget items to alter tax legislation. Why […] Read more

Proposed tax changes limit capital gains exemption claims

The federal government’s controversial proposals to change the tax laws for private corporations would have a big impact on farmers. The government says there are inequities in the taxation benefits available to a wage earner versus those available to the owner of a private corporation who has funded the capital risk. The proposed changes would […] Read more

Small business corporations may lose tax advantages

This is the first of two articles about tax planning using income from private corporations. The Canadian Revenue Agency has proposed legislation and is seeking consultation on tax related issues. This generally means it’s going to happen. Most of the changes affect all Canadian corporation owners, but farmers who have small business corporations will also […] Read more

Making sense of the mechanics of intergenerational land transfers

Farmers preparing their wills and succession plans should be aware of the details of the capital gains exemption and the capital gains deduction. Of course, before you get into the various strategies available to complete a succession transition, it is vital to discuss the interests and views of all parties involved as soon as possible […] Read more

Honest discussions with children vital to farm transition

Older farmers should not assume that their children are interested in taking over the enterprise, even when they are engaged in its operation. The topic of who will carry on the farm is complicated and full of family dynamics, and for that reason family members often do not make their true wishes clear. The sooner […] Read more

What has the latest budget season done for you?

The season for provincial and federal budgets is over and the good news is that most jurisdictions did not raise taxes. The bad news is that most governments, aside from a few provinces, are financing increased deficits that will not disappear soon. A deficit will add to the interest expense line, removing dollars from new […] Read more

Ratios can help determine where you stand financially

Intense competition has made the process of financial and strategic planning on the farm much more complicated. There are basic indicators that might help you better understand how well you are performing compared to local and national levels. Statistics Canada’s most recent farm financial data shows that in 2015 record net farm income and strong […] Read more

Good recordkeeping key to worry-free tax preparation

Every farm business should resolve to maintain and improve its recordkeeping disciplines. Virtually every transaction the farmer makes can have a significant tax consequence. In our business, we regularly see income and deductions that are overlooked. Misreporting income that was previously filed can land you in an unpleasant auditing process. Overlooking valid deductible expenses will […] Read more