Section 1 - Tax System

The ARQ has generally harmonized its voluntary disclosure program with the federal program and provides for relief based on the seriousness of the faults.

Section 2 – Individuals and Families
  • Since 2020, the HBP eligibility criteria are  eased in the event of a breakdown of a marriage or common-law partnership.
  • Since 2020, individuals who pay for a qualifying digital news subscription to a qualified Canadian journalism organization can benefit from a non-refundable tax benefit of up to $75.
  • Since 2020, the basic personal amount, the amount for a spouse and the amount for an eligible dependent will be gradually increased to $15,000 by 2023. The increase is reduced for individuals whose income is greater than the limit for the fourth tax bracket ($150,473 in 2020) and is eliminated for individuals whose income is equal to or greater than the top tax bracket ($214,368 in 2020).
  • Since 2020, the Family Allowance is increased such that the amounts granted are the same for all children, regardless of the sibling rank.
  • The additional contribution for subsidized childcare services was abolished retroactively to January 1, 2019.

Section 3 - Education
  • For federal purposes, since 2020, individuals can benefit from the Canada training credit that allows individuals between the ages of 25 and 64 to recover up to 50% of training costs in a year from a notional account where they will accumulated $250 per year, up to a lifetime maximum of $5,000.

Section 4 - Health, Seniors and Caregivers
  • Since 2020, the refundable tax credit for informal caregivers is replaced by the tax credit for caregivers.
  • The tax credit for respite for caregivers and the tax credit for volunteer respite services are abolished as of 2021. These credits can be claimed in 2020, but cannot be combined with the new caregiver tax credit.

Section 5 - Employees
  • For 2020 only, an employer may reimburse an employee up to $500 for the acquisition of computer equipment allowing the employee to work from home, with no taxable benefit for the employee. In Quebec, this also includes the purchase of office equipment required to work from home.
  • For 2020, the tax authorities have confirmed that they would be flexible in their interpretation of the criteria for allowing an employee to deduct home office expenses.
  • Since January 1, 2020, the non-taxable amount of an overtime meal allowance, or meals provided during overtime and the “meals” portion of a travel allowance, has been increased from $ 17 to $ 23 $ per meal.

Section 6 - Businesses
  • For 2020, the tax authorities have confirmed that they would be flexible in their interpretation of the criteria for allowing to deduct home office expenses. 
  • In Quebec, since 2020, the value of the benefit for the stand-by charge in respect of an automobile made available to a shareholder (or related person) whose main activities are the sale or leasing of automobiles, cannot be calculated using the reduced rate of 1.5%.

Section 7 - Investments
  • Since January 1, 2020, the tax rate on ordinary dividends (non eligible) is higher in Quebec and Ontario. In Quebec, the rate applicable to eligible dividends has also been increased. 
  • Since 2020, an individual must be resident of Quebec on the last day of a taxation year to benefit from the dividend tax credit in the province.

Section 11 - Deceased Persons
  • In Quebec, in the case of a death occurring since July 1, 2020, the surviving spouse no longer has to file a new application to continue receiving the solidarity tax credit payments that the deceased was receiving.
  • Since January 1, 2020, Ontario eliminated the Estate Administration Tax for the first $50,000 of an estate and the period for filing an information return was extended from 90 days to 180 days following receipt of the Certificate of Appointment of Estate Trustee.

Section 12 - Social Programs and Benefits
  • Since 2020, guaranteed income supplement exemption and reduction thresholds are increased.
  • In response to the COVID-19 crisis, the health insurance exemption threshold for Ontario employers will be $1,000,000 for 2020. The threshold will be reduced to $490,000 as of January 1, 2021.
  • Since November 20, 2019, seniors aged 65 and over in Ontario can register for the Ontario Seniors Dental Care Program, which covers routine dental care.
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