DFK Tax Digest – 2022 Issue Two
- Electric Vehicle Rebates for Consumers & Businesses – With the high price of gasoline, the COP26 UN Climate Change Conference, and the recent natural disasters in BC fresh in everyone’s mind, many consumers may be considering purchasing an electric vehicle (EV). Buyers may be eligible for an incentive rebate off the Manufacturer’s Suggested Retail Price (MSRP) on many new EVs and plug-in hybrids through the federal government’s Incentives for Zero-Emission Vehicles (iZEV) program. The iZEV program launched May 1, 2019 and has garnered interest across the country. It is set to end by March 31, 2025, or earlier, if available funding runs out.
- Disposition of Capital Property – Failure to Report at Fair Market Value – The Tax Court of Canada’s recent ruling in Lauria v. The Queen (2021 TCC 66) serves as a reminder about the potential for broad applications under subsection 152(4), permitting the reassessment of otherwise statute-barred taxation years where a tax filing includes a misrepresentation attributable to carelessness or neglect, regardless of the absence of intentional misstatements at the time of filing. The ruling has broad implications for transactions involving the disposition of capital property, including estate freeze transactions. If taxpayers fail to seek independent valuation advice, then they may be exposed to reassessment with no time limit, because CRA seeks to adjust the proceeds.
- Making Housing More Affordable – In its April 7, 2022 Budget, the Government of Canada announced a number of measures intended to make housing more affordable for Canadians. These measures include personal income tax changes, and funding for a variety of housing programs. For many Canadians, the creation of the new Tax-Free First Home Savings Account is the highlight of the personal tax changes. Other personal income tax measures include the introduction of the Multigenerational Home Renovation Tax Credit, an increase to the Home Accessibility Tax Credit, and an increase to the First-Time Home Buyers’ Tax Credit.