Tax Tips: First Quarter 2023

We provide tax tips on available benefits, CRA policies, and more.

1st QUARTER 2023 TAX TIPS

Overview

Covid Benefits: Review/Audit Activity

• The Auditor General of Canada released its report on COVID benefit compliance enforcement.
• The report indicated that $4.6 billion in overpayments were made to ineligible individuals, and $27.4 billion of payments to individuals and businesses should be investigated further.

Unreported Real Estate Dispositions: Multiple Issues

• A Tax Court of Canada case reviewed the gain on residential property sale that was unreported.

Employee Gifts and Parking: Updated CRA Policies

• CRA updated several administrative policies of employment benefits, effective January 1st, 2022.

Canada Dental Benefit: Support for those with Young Children

• The Canada dental benefit provides up-front tax free payments to cover dental expenses for children under twelve without dental coverage.

One-Time Top-Up to The Canada Housing Benefit: Additional Support

• A one-time, tax-free payment of $500 is now available to low-income renters.
• Applications are accepted until March 31, 2023.

Poker Winnings: Taxable or Not?

• A Tax Court of Canada case considered whether a taxpayer’s poker activity constituted a source of business income and the winnings were taxable.