Alberta professional corporations – If you are a professional in Alberta, be aware that changes that are effective March 1, 2010, essentially remove certain restrictions on ownership of non-voting shares in a professional corporation, providing opportunities to split income and capital gains with spouses and children.
Provincial capital tax – If your corporation is subject to provincial general capital tax (in 2010, applies only in Manitoba, Nova Scotia, Ontario and Quebec), discuss with your PwC adviser ways to reduce provincial taxable capital. In 2011, general capital tax applies only in Nova Scotia and will be phased out by July 1, 2012 (see Table 5 on page 18).
Ontario Corporate Minimum Tax (CMT) – For taxation years ending after June 30, 2010, revisions to the Ontario CMT thresholds may result in fewer companies being subject to CMT. If you have CMT credit carryovers, consider strategies to use these credits before they expire.
Quebec aggressive tax planning schemes – Be aware that Quebec draft legislation requires disclosure of certain aggressive tax planning transactions, generally carried out after October 14, 2009. See our:
Tax Memos “Revised Quebec Aggressive Tax Planning Proposals” and “Quebec’s Regime for Aggressive Tax Planning: Prescribed Form Released”; and
podcast, “Quebec Proposals on Aggressive Tax Planning.” GST/HST –
Ensure that GST/HST has been correctly paid on taxable supplies and that input tax credits have been claimed on eligible expenses throughout the year.
GST/HST electronic filing requirement – For reporting periods ending after June 30, 2010, file your company’s GST/HST returns electronically if certain criteria (e.g., annual taxable supplies on an associated basis exceed $1.5 million) are met. See our Tax Memo “New GST/HST Electronic Filing Requirement (Updated September 20, 2010).”
Place of supply rules –For supplies made in Canada, generally on or after May 1, 2010, ensure that your business has correctly implemented the new place of supply rules regime. These rules determine the province in which a supply is deemed to be made for purposes of determining the tax rate GST/HST registrants should charge on taxable supplies made in Canada. See our Tax Memo "HST Place of Supply Rules Overhauled (Updated
October 20, 2010).”
Recapture of input tax credits – Determine if your business is required to report recaptured input tax credits (RITCs), which generally applies to large businesses and financial institutions. See our Tax Memos "British Columbia Harmonized Sales Tax—Recapture of Input Tax Credits (RITC) (Updated September 3, 2010)”
and "Ontario Harmonized Sales Tax—Recapture of Input Tax Credits (Updated September 2, 2010).”
British Columbia, Ontario – Perform a post-HST implementation review to ensure that: the correct HST rate is collected and remitted; and changes to your accounting systems and compliance and reporting procedures yield the correct collection of tax, claim for input tax credits and tax adjustments.
Be aware that transitional rules no longer apply. See our harmonization tax publications and podcast on pages 20 and 21 and at www.pwc.com/ca/harmonization.
Quebec sales tax (QST) – Be aware that the QST rate will increase from 7.5% to 8.5% on January 1, 2011, and to 9.5% on January 1, 2012. Consider accelerating large purchases for which input tax refunds might not be recoverable.
Property tax –
To challenge the company’s property tax bill, appeal the property value assessment, which generally is mailed early in the year. Filing deadlines vary by province, are compulsory and usually fall before the property tax bill is mailed.
Ontario – Be aware that all property owners received a property assessment notice in 2008 based on the property’s value as of January 1, 2008. A property owner will not receive a new assessment notice unless the assessment has changed. This notice is used to calculate property taxes for the 2009 to 2012 tax years. A company can appeal its 2008 property assessment (used for the 2011 tax bill) by March 31, 2011. On appeal, the onus is on the assessment agency to prove that the assessed value is correct. A company that has a vacancy in a commercial or industrial facility in 2010 may be able to claim a tax refund by filing a request to the municipality by February 28, 2011. Filing for this rebate is the owner’s responsibility. Verify your company’s property tax rate classification (i.e., industrial, commercial). Use of the correct tax rate may result in reduced property taxes.
Discuss with your PwC adviser ways to reduce municipal property tax.
Financial statement reporting – Be aware that effective for interim and annual financial statements for fiscal years beginning after December 31, 2010:
"publicly accountable enterprises" must adopt International Financial Reporting Standards (IFRS); and
private enterprises must adopt either IFRS or Accounting Standards for Private Enterprises (ASPE).