From government and Parliament

Government of Canada and Prince Edward Island accelerate work to implement pharmacare

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 ...

August 11, 2021|Categories: From government and Parliament|

CRA cautions against TFSA maximizer schemes

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.

May 20, 2021|Categories: From government and Parliament|

CRA responds to CALU submission of August 2014

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 ...

December 14, 2015|Categories: From government and Parliament|

CRA responds to April 2014 technical interpretation request

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 ...

November 16, 2015|Categories: From government and Parliament|



Go to Top