From government and Parliament

Source: Health Canada Federal Health Minister Patty Hajdu announced the Governments of Canada and Prince Edward Island have signed the first agreement towards a universal pharmacare program in Canada. Under this agreement, PEI will receive $35 million in federal funding over four years to add new drugs to the list of covered drugs and lower out-of-pocket costs for drugs covered under existing public plans for PEI residents. Hajdu said this will ensure vulnerable, uninsured and senior residents with a high burden of medication costs will benefit from improved access to drugs and a reduction or removal of co-pays. Hajdu also ...

The Canada Revenue Agency (CRA) is warning Canadians about participating in tax schemes where promoters are claiming that individuals can transfer funds out of their registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) into a tax-free savings account (TFSA) without paying taxes and without regard to the annual TFSA contribution limit.

The House of Commons Standing Committee on Finance (FINA) has now released its report and recommendations arising from its 2017 Pre-budget Consultation Report. View the submission

On December 14, 2015 the CRA responded to the CALU submission of August 2014. In summary, it would appear that the CRA accepts that the advantage tax may not apply to life insurance within an RCA where it can be demonstrated that the insurance benefits provided on death are necessary to fund promised survivor benefits. However, if the purpose of the insurance does not relate to funding RCA benefits, but is for another purpose (for example, key person insurance coverage), an RCA advantage tax may arise, equal to 100% tax on the amount of the advantage. In the CRA ...

The Canada Revenue Agency (CRA) has issued several interpretations indicating that the ownership and funding of life insurance within a spousal or alter ego/joint partner trust will “taint” the trust, resulting in certain negative tax consequences. In April 2014 CALU made a request to the CRA for a technical interpretation relating to a specific fact pattern where insurance was acquired within a spousal or joint spousal trust. We asked the CRA to confirm that in the fact situation outlined in the letter, that the deferral of gain on capital property transferred to such trusts would be available pursuant to ...