On February 27th Finance Minister Bill Moreneau presented the 2018 Federal Budget titled “Equality and Growth”. The budget includes a focus on growing government revenues by increasing economic participation among women, visible minority Canadians and persons with disabilities, as well as substantial long-term investments in science and technology. The government suggests that increasing equality for women and enhancing women’s participation in the workplace (especially in technology and trades) could add $150 billion to the Canadian economy over the next decade.

Read more: 2018 Canadian Federal Budget Commentary by D&H Group

As you may be aware, the US Government passed significant tax reforms in late 2017, and one of the major reforms was the wholesale conversion of its system of taxing corporate business income from a worldwide taxation system to a territorial taxation system. Under the old worldwide taxation system, business profits earned in a foreign subsidiary and repatriated to a US parent corporation were taxable in the US, with credit being provided for the foreign taxes paid by the foreign subsidiary. This meant that business profits earned in a lower tax jurisdiction would be subject to a “top-up” tax on repatriation to the US. Under the new territorial taxation system, business profits earned in a foreign subsidiary may be repatriated to the US without additional US income tax being applied.

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Contact: Gary Sigman, CPA, M.Tax, PFS, AEP

The recent enactment of the Tax Cuts and Jobs Act (TCJA) brought many changes to how individuals and businesses are affected by our tax system.

Among the deductions affected was the deduction for meals and entertainment incurred in the course of operating a business. Prior to the enactment of the TCJA, which took effect for many provisions on January 1, the allowable deduction for meals and entertainment expenses was capped at 50% of the allowable amount of such costs that were incurred. Under the old law, no deduction was allowable unless the cost was either directly related to or associated with the conduct of business.

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The Indian Union Budget 2018 has been presented recently in the Indian Parliament. 

In the guide linked below, Ashok Maheshwary & Associates LLP presents the highlights of the tax proposals of the Indian Union Budget 2018 introduced by the Honourable Finance Minister. This is the last full budget by the current government before the elections. On the tax front, one of the biggest changes in the budget is the reintroduction of Long Term Capital Gains tax @ 10% on sale of listed Indian shares and mutual funds. India has also clearly stated that it would come down heavily on cryptocurrencies.

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Contact: Jay Laurila

The Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, makes several changes to existing tax laws that affect Regulated Investment Companies (RICs). The big headline items of TCJA include the reduction of the maximum corporate tax rate from 35% to 21%, the repeal of the corporate alternative minimum tax (AMT), and U.S. corporate taxation’s shift from a worldwide tax system to a territorial tax system. While these wholesale changes to the corporate tax system should not have a significant direct impact RICs, as they will continue to have a 100% deduction for dividends paid to shareholders, all of the mentioned changes will indirectly impact RICs due to their investment in the companies that stand to benefit. In addition, it’s just as important to note the many significant provisions that did not make their way into the new law.

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