DFK Tax Digest – 2023 Issue Two

  • Budget 2023 and changes to the Alternate Minimum Tax – The AMT is a separate tax system which is designed to ensure that wealthy individuals (including certain trusts) with high gross income that is taxed at preferential tax rates (such as dividends, and capital gains) who might otherwise use various deductions and credits to significantly reduce their tax liability still pay a minimum amount of tax.
  • Tax Implications of Employer-Provided Health Insurance – Attracting and retaining employees has never been more challenging, and a good benefits plan, including health insurance coverage, is often the most important element of an employee’s compensation. It is becoming increasingly difficult to navigate the various types of insurances that employers can provide employees (including shareholder-employees) while minimizing the taxable benefit element for the insured employee and ensuring the deductibility of premiums by the business.
  • Preparer Penalty Under Income Tax Act – Preparer – Penalty Subsection 163.2(4) of the Income Tax Act (ITA), the “preparer penalty,” provides for a penalty on a person who makes, or participates in, assents to, or acquiesces in the making of a statement to, by or on behalf of another person that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct, is a false statement that could be used by or on behalf of the other person for a purpose of the ITA. Note, a false statement includes a statement that is misleading because of an omission from the statement.