DID YOU KNOW...
| ENERGY COSTS
On October 6, 2005 - 2005-066 - The Department
of Finance introduced Federal
measures to offset higher energy costs
including payment of $250 to families
entitled to receive the National Child
Benefit in January, 2006; $250 to senior
couples where both spouses are entitled to
receive the Guaranteed Income Supplement
(GIS) in January, 2006; and $125 to
single seniors entitled to receive the GIS
in January, 2006.
A person must have filed a 2004 income
tax return before they qualify for the Energy
Cost Benefit. Also, if you have never
applied for the Canada Child Tax Benefit
(CCTB), you must complete the CCTB
application (RC66) to register your children.
For more information call 1-800-
| Editorís Comment
The Alberta Resource Rebate of $400 will
be paid to every Albertan 18 years of age
or over at December 31, 2005.
Children under age 18 get the rebate via
the primary caregiver listed for the Canada
Child Tax Benefit.
The 2004 Personal Tax Return must be
filed by December 31, 2006.
| NATURAL RESOURCES CANADA
Canada Mortgage and Housing Corporation
(CMHC) will provide assistance
through the Residential Rehabilitation
Assistance Program (RRAP). Single, row
and semi-detached housing may be eligible
for financial assistance of between
$3,500 and $5,000 for energy retrofits
such as draft-proofing, heating system
upgrades and window replacements if the
house was built prior to 1980.
To qualify, the household must meet certain
household income requirements. For
example, a four-person household with
two children residing in Hamilton with a
household income of $44,500 or less
would be eligible for assistance. The same
household would have to earn $34,000 or
less if they resided in Kamloops because
of the lower cost of housing in that market.
Funding will also be provided for multiple-
unit buildings and rooming houses of
between $1,000 and $1,500 per unit.
The program will be available in January,
For details contact Grace Thrasher, CMHC, 1-613-748-2375 or see
Energy Efficiency Incentives for Homes and Buildings
| SALE TO U.S. PURCHASER
Where a Canadian individual is about to sell
shares of a Canadian corporation to a U.S.
person, if the corporation is converted to an
Unlimited Liability Corporation (ULC)
before the sale, the sale may be viewed as
an asset acquisition for U.S. purposes
even though it is a share sale for Canadian
purposes. Therefore, the U.S. purchaser
would receive flow-through advantages
while the Canadian vendor would
still be eligible for capital gains treatment.
Alberta and Nova Scotia Corporation Acts
currently provide for ULCs. We understand
that other provinces (including British
Columbia and Ontario) are considering
Caution: Specialized expertise is needed.
| GUARANTEED INCOME SUPPLEMENTS
In the past, over 200,000 elderly taxpayers
missed out on claiming approximately
$300 million in Supplemental Old Age
Security benefits because they have not
applied for them. This information comes
from Statistics Canada.
Since 2002, Social Development Canada
has been using tax returns to identify and
contact persons who may have not claimed
the low-income supplement, even though
First-time applicants and those wishing to
be reconsidered after losing eligibility and
those not filing a tax return must submit
an application directly to Social Development
The Federal Government mentioned that it
will be announcing the expansion of the
Employment Insurance (EI) program for
caregivers of dying persons.
Currently, persons caring for dying persons
must be a direct kin, such as a
spouse, child or parent to qualify for EI
| CHILD SUPPORT - THE 40% RULE
In a November 10, 2005 Supreme Court
case, the Court ruled that a divorced father
cannot automatically reduce his child
support if he spends greater than 40% of
the time with his child.
In this case, the Supreme Court noted that
increased time spent with the child does
not necessarily mean that there has to be
lower child support payments.
In a November 1, 2005 Tax Court of Canada
case, the taxpayer was in arrears on
spousal and child support and made a
lump-sum payment of $25,000 which released
him from any past and future obligations
arising from the arrears.
| Taxpayer Loses
The Court found that this was a capital
payment in settlement of all amounts payable.
It is not deductible to the payor.
Doug Nicholson* & Co.,CGA *Professional Corporation
100-1780 Wellington Ave, Winnipeg, Manitoba R3H 1B3.