On December 7–8, 2021, delegations of Canadian Income Tax Committee and Canadian Commodity Tax Committee members virtually participated in TEI's annual liaison meetings with representatives of the Canada Revenue Agency (“CRA”) and Department of Finance. The 2021 meetings featured robust agendas covering a range of tax law, policy, and administration issues of importance to many TEI members.
This year’s income tax agendas focused on a number of issues related to the ongoing COVID-19 pandemic. The CRA meeting, in particular, addressed the pandemic-accelerated use of electronic communications, data storage, and remote work, and many of the pressing tax policy and administration issues associated therewith. The Department of Finance meeting agenda included questions on the treatment of underwater employee stock options, accelerated tax depreciation for investments in clean technologies, board approval for transfers of Part VI.1 tax, unapplied forgiven amounts, and SR&ED expenditures, and the upcoming phaseout of LIBORs.
This year’s commodity tax agendas addressed interest relief due to the COVID-19 pandemic, problems with Canadian taxpayers “My Business” accounts, audit matters including the application of penalties, as well as the continued use of electronic signatures for certain forms, among many others.
Official written responses to many of TEI’s questions are expected from government officials in the coming months. Those responses will be posted to TEI’s website for public consumption upon their receipt.