In the Provincial Income Allocation Newsletter No. 4
(March 2013), the Canada Revenue Agency notes
that the Allocation Review Committee ("ARC") has
changed its position on amounts previously excluded in calculating
"salary and wages paid in the year" for provincial income
Effective for the 2013 tax year, the amount of salaries and
wages paid in the year for the purpose of provincial income
allocation calculations will include all taxable benefits that are
to be included in the employees' income in the year. This
includes deemed amounts such as stock option benefits under section
7 of the Income Tax Act (Canada), regardless of whether
these benefits are deductible in calculating the employer's
Corporations having a permanent establishment in more than one
province will need to consider the ARC's change in position
when preparing their next income tax return. Applying the
previous year's method of calculation salaries and wages may
fail to include all of the amounts now required to be included in
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The CRA provides new housing rebates for individuals who have purchased or built a new house or have substantially renovated a house or made a major addition to a house who plan on living in it personally or letting a relative live there.
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