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Interest Deductibility Limitation

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Implications of Budget 2021 – next CFAA events: May 4, 5, 6 & 13

2021-12-17T11:56:28-05:00

Benjamin Tal opens CFAA Conference Recently, Benjamin Tal, Deputy Chief Economist for CIBC World Markets, gave an insightful presentation to kick off the 2021 CFAA Virtual Rental Housing Conference. (A recording of that talk is available for purchase here) Benjamin eased some of the concern that the federal government may raise taxes to pay off its debt. He pointed out that governments do not pay off their debt. They roll it over, until it becomes minimized by inflation. On-going deficits need to be reined in, but one-time deficits can be carried in the debt without much harm. Raising taxes would tend [...]

Implications of Budget 2021 – next CFAA events: May 4, 5, 6 & 132021-12-17T11:56:28-05:00

CFAA Tax Retreat Postponed from April 6

2020-07-09T14:00:25-04:00

CFAA Tax Retreat Postponed from April 6 Due to the concerns about the impact of travel and group gatherings on the spread of COVID-19, CFAA has decided to postpone the tax retreat scheduled for April 6 to an indefinite time in the future. CFAA will be in touch with those registered to make arrangements to refund or credit the fee to attend the retreat. Along with the black cloud that is COVID-19, there is a small silver lining in that it appears highly unlikely that the government would introduce tax increases either in the capital gains tax or by [...]

CFAA Tax Retreat Postponed from April 62020-07-09T14:00:25-04:00

Proposed interest limitation rules could devastate rental housing

2021-12-17T11:58:40-05:00

Proposed interest limitation rules could devastate rental housing By John Dickie, CFAA President In the two most recent issues of National Outlook, CFAA warned readers of the risk of an increase in the capital gains inclusion rate, based in part on the potential influence of the NDP. Now rental housing providers face a new, even more serious risk, from a different source. The Liberal Party election platform proposed to expand the application of the limit on the interest that corporations can claim on borrowings to finance their operations. According to well-known economist Jack Mintz, Finance Department officials have been eyeing [...]

Proposed interest limitation rules could devastate rental housing2021-12-17T11:58:40-05:00

The interest deductibility limitation proposal – a critical tax issue that may arise this fall

2021-12-17T11:58:53-05:00

The interest deductibility limitation proposal – a new, critical tax issue Besides the promise to review the capital gains inclusion rate, the Liberals made another tax promise in the October campaign that could have serious unintended consequences, detrimental to rental housing providers and renters. It now appears that a decision on any change to capital gains taxes is not imminent. However, unless the federal government reverses course, it is our understanding that a change to the interest deductibility rules will be announced in Budget 2020, which is likely to be tabled in March or early April. Explanation of the issue [...]

The interest deductibility limitation proposal – a critical tax issue that may arise this fall2021-12-17T11:58:53-05:00

The interest deductibility limitation proposal – What you can do

2020-02-07T13:28:04-05:00

What you can do The federal government proposes to set a limit on the amount of interest that any business can claim as an expense against gross income for tax purposes. The proposed limit is 30% of the corporation’s “earnings before the deduction of interest, taxes, depreciation and amortization” (EBITDA). EBITDA is similar to net operating income less applicable administrative expenses. You are welcome to work out if that limit would affect you. Rental providers and others can make comments in the pre-budget consultation. You can access the pre-budget consultation at https://budget.gc.ca/2020/prebudget-prebudgetaire/index-en.html. The survey asks for input on current government [...]

The interest deductibility limitation proposal – What you can do2020-02-07T13:28:04-05:00

The interest deductibility limitation proposal – What CFAA is doing to protect rental housing

2020-02-07T13:28:30-05:00

What CFAA is doing to protect rental housing The federal government proposes to set a limit on the amount of interest that any business can claim as an expense against gross income for tax purposes. The proposed limit is 30% of the corporation’s “earnings before the deduction of interest, taxes, depreciation and amortization” (EBITDA). EBITDA is similar to net operating income less applicable administrative expenses. The measure has been recommended for all countries by the Organization for Economic Cooperation and Development (the OECD), as a step to avoid income shifting, whereby multinational corporations shift expenses, and thus income, between countries [...]

The interest deductibility limitation proposal – What CFAA is doing to protect rental housing2020-02-07T13:28:30-05:00
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