Tax

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01-Jun-2018

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CRA MOBILE PHONE APPS: Tools for Individuals and Businesses

CRA provides a number of mobile phone apps that taxpayers (individuals, corporations, etc.) can use to assist with their tax obligations...

31-May-2018

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CONSTRUCTION ACTIVITIES: Reporting Obligations for Subcontractors

T5018 should be filed for any subcontractor payment or credit made relating to goods or services received in the course of construction activities...

31-May-2018

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REASONABLE AUTOMOBILE ALLOWANCES: GST/HST Claim

A travel allowance paid to an employee for the use of their personal vehicle for business purposes will be non-taxable if it is reasonable...

31-May-2018

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U.S. CITIZENS: Risks of Tax Non-Compliance

U.S. State Department was able to deny or revoke passports to U.S. citizens having a “seriously delinquent tax debt”...

29-May-2018

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CORPORATE PASSIVE INVESTMENT INCOME: Proposed Changes

Two significant changes are proposed. First, a limit to the small business deduction for CCPCs generating significant income from passive assets, and second, a new regime to stream the recovery of refundable tax to the payment of specific types of dividends

28-May-2018

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DIGITAL CURRENCY: Basics And Tax Implications

Gains or losses from selling or buying DCs must be reported on one’s tax return... DC received in exchange for goods or services must be included in the seller’s income for tax purposes. GST/HST would also apply on the fair market value (FMV) of goods or services

28-May-2018

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FAMILY MEMBERS: Can I Pay Them a Salary?

CRA states that T4s are required for all employees, including family members, and subject to payroll deductions, as appropriate.

28-May-2018

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TAX TICKLERS… some quick points to consider…

CRA require PayPal to disclose sales records of Business Account Holders...

19-Feb-2018

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INCOME SPRINKLING: Where Are We Now?

Individuals that receive certain types of income derived from a “related business” will be subject to Tax on Split Income (TOSI) unless an exclusion applies. TOSI is subject to the highest personal tax rate with no benefit of personal credits.

19-Feb-2018

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INPUT TAX CREDITS: Checking Up On Suppliers

Do I have to check up on a supplier when paying them GST/HST? Yes.
Implement a system for checking GST/HST numbers, especially for major purchases, in CRA’s GST/HST registry...

19-Feb-2018

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MARIJUANA: A Growing Industry

The legislation to legalize marijuana for non-medical purposes works its way through parliament (Bill C-45 entered the Senate phase on November 27, 2017). Producers, vendors, regulators, enforcement, and potential customers are seriously considering the implications.

18-Feb-2018

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BUSINESS FAILURE: Personal Liability for Corporate Tax Debt

There are special laws which hold a director personally liable for certain amounts that their corporation fails to deduct, withhold, remit, or pay. Most commonly, these amounts include federal sales tax (GST/HST) and payroll withholdings (income tax, EI and CPP). It does not generally include normal corporate income tax liabilities.

18-Feb-2018

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COMMISSION PAID TO A CORPORATION: Any Issues?

CRA noted that “if insurance agents, realtors, mutual fund salespersons, or other professionals are legally… precluded from assigning their commissions to a corporation, then the commission income must be reported by the individuals, and cannot be reported through a corporation, regardless of the documentation provided”.

18-Feb-2018

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LOANS TO A RELATIVE’S BUSINESS: What Happens When It Goes Bad?

If the loan was made to earn income and other conditions are met, you may be able to write-off half against your regular income as an allowable business investment loss (ABIL). A recent tax court case shed some light on defining whether the loan was made to earn income...

24-Oct-2017

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CHARITY FILING AND COMPLIANCE OBLIGATIONS: The CRA Has Checklists to Help

The CRA Charity Directorate provides a number of fairly comprehensive and easy to read checklists relating to various responsibilities associated with operating a registered charity.

24-Oct-2017

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GUARANTEED INCOME SUPPLEMENT: Change in an Individual’s Circumstance

Where an individual is married or in a common-law relationship, GIS entitlements are based on the combined income of a couple.

24-Oct-2017

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NON-COMPLIANT GST/HST REGISTRANTS: Impact on Tax Refunds or Credits

In a recent release (Excise and GST/HST News No. 102), CRA reminded taxpayers that they may place a non-compliance hold on a taxpayer’s account if they are a non-compliant GST/HST registrant.

24-Oct-2017

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OPERATING A BUSINESS IN THE U.S.: The IRS is Targeting Smaller Foreign Entities

If operating as a mid-market business in the U.S., be prepared for the possibility of more scrutiny from the IRS.

24-Oct-2017

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SUPPORT OF REFUGEES: Tax and Filing Requirements

Two Technical Interpretations (May 26 and March 3, 2017) considered whether support provided to a refugee would be required to be reported on a Form T5007, Statement of Benefits.

24-Oct-2017

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TAX TICKLERS… some quick points to consider…

CRA assisted in collecting a six figure U.S. tax penalty for unfiled disclosures from a U.S. citizen resident in Canada.

24-Oct-2017

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BUSINESS LOSS OR PERSONAL VENTURE: Can I Deduct Losses Against Other Income?

An April 28, 2017 Tax Court of Canada case considered whether a practicing lawyer had a source of business income in respect of her law practice for the 2011-2014 years.

24-Oct-2017

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DYING WITHOUT A WILL: Who Can Manage the Deceased’s Tax Affairs?

where a family member of a deceased individual would like to be recognized by CRA as the person or persons who will manage the tax affairs of the person who died without a last will and testament, they can now do so by completing a CRA Form (Affidavit for intestate situation, Forms RC549 to RC561, with no form for Quebec, and no RC554).

24-Oct-2017

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UNDERGROUND ECONOMY: Contractors, Online Sales, Farmers Markets…

In recent years, CRA has particularly focused on tracking underground economy activities. One way they are doing this is by obtaining information from key 3rd parties.

14-Sep-2017

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DEATH BENEFITS: Tax-Free Employment Benefit

A death benefit is a payment received subsequent to the death of an employee, in recognition of the deceased employees services.

14-Sep-2017

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ELECTRONIC T4 SLIPS: Now More Widely Available

CRA has provided commentary on its website to discuss recent changes to allow the electronic distribution of T4 slips. In the past, an employer could provide a T4 electronically only with the employees consent. For 2017 and subsequent tax years, employers may also satisfy their obligations by providing electronic versions without specific consent, provided other criteria are met.

14-Sep-2017

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EMPLOYEE DISCOUNTS ON MERCHANDISE: Change in CRA Policy

Historically, CRA has stated that an employee enjoying a discount on the purchase of merchandise from their employer is only taxable if a limited number of specified situations exist, such as where the employer makes a special arrangement

14-Sep-2017

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PROFESSIONALS WORK IN PROGRESS EXCLUSION: Changes are Coming

In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.

14-Sep-2017

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RETIREMENT INCOME CALCULATOR: Ensure you are Financially Ready

When using this tool, individuals should have their CPP Statement of Contributions, financial information about their employers pension, most recent RRSP statement, and any other information related to savings that will provide for ongoing monthly retirement income.

14-Sep-2017

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RETURN OF A GIFTED PROPERTY: Charitable Organizations Beware!

In a March 31, 2017 Technical Interpretation, CRA commented on the tax consequences of a charity returning a donated property to the donor. This could occur, for example, when a donation was made specifically for a project that had been halted.

14-Sep-2017

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TAX FOR PRIVATE CORPORATIONS: Major Changes Proposed

On July 18, 2017, Minister of Finance, Bill Morneau announced the release of a Consultation Paper which focused on three tax practices that the Government considers to provide an unfair tax advantage to private corporations and their owners. These include:

14-Sep-2017

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TAX TICKLERS

Some quick points to consider

14-Sep-2017

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VOLUNTARY DISCLOSURE PROGRAM: Proposed Tightening

The Voluntary Disclosure Program (VDP) provides taxpayers (individuals, corporations, partnerships, trusts, etc.) the opportunity to fix incorrect or incomplete previously filed tax returns (or returns that should have been filed) with a reduction to penalties and possibly interest. CRA recently released fairly substantial proposed changes to the current program, effective January 1, 2018. The proposals are expected to be finalized in the fall of 2017.

The proposals will create two tracks for income tax disclosures.

14-Sep-2017

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WITHHOLDINGS ON REMUNERATION TO NON-RESIDENT: Get your CRA Filings Correct

In a March 9, 2017 Technical Interpretation, CRA commented on the tax filing and withholding requirements related to a non-resident individual providing services to a Canadian company.

29-Aug-2017 Float

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How Cloud Technology Has Transformed the Role of Accountants

The role of a tax accountant has been continuously changing over the course of the last 50 years, and it is currently undergoing yet another transition period with the growing popularity of cloud accounting.

10-Jun-2017

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CHARITIES AND FOR-PROFITS WORKING TOGETHER

10-Jun-2017

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DONATION OF PUBLICLY TRADED SECURITIES

10-Jun-2017

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EMPLOYMENT INSURANCE

10-Jun-2017

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INVESTMENT MANAGEMENT FEES FOR RRSPs, RRIFs, AND TFSAs

10-Jun-2017

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LEAVE OF ABSENCE

10-Jun-2017

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PERSONAL USE ASSET IN A CORPORATION

10-Jun-2017

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SHARING ECONOMY

10-Jun-2017

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TAX TICKLERS

10-Jun-2017

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UBER DRIVERS

10-Jun-2017

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WEBSITE HISTORY

20-Apr-2017

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Let me tell you how it will be”: What the taxman can teach you about getting paid on time

I recently overlooked a GST bill.

The taxman is not okay with that. He wants his money. And fair enough; I want free healthcare and the other benefits of being a taxpayer.

21-Feb-2017

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CRA STRATEGIES ON OFFSHORE TAX EVASION: The World is Shrinking

21-Feb-2017

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EMPLOYMENT EXPENSES: Requirements for Deduction

21-Feb-2017

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MEAL REIMBURSEMENTS: A Taxable Benefit?

21-Feb-2017

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OBJECTIONS: Not so Fast

21-Feb-2017

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PAYROLL ADVANCES: Tax Consequence

21-Feb-2017

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PRINCIPAL RESIDENCE EXEMPTION (PRE): Changes to Reporting

21-Feb-2017

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TAX TICKLERS- some quick points to consider

21-Feb-2017

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TAXPAYER RELIEF: Financial Hardship

28-Dec-2016

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2016 YEAR-END TAX PLANNING TIPS

December 31, 2016 is fast approaching. See below for a list of tax planning considerations.

26-Oct-2016

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BENEFITS PAID TO SHAREHOLDER EMPLOYEES: Taxable?

26-Oct-2016

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CANADIAN INDUSTRY STATISTICS: How Do I Compare?

26-Oct-2016

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CHARITIES: Ineligible Individuals Can Get Your Organization De-Registered

26-Oct-2016

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DOCUMENTS REQUIRED TO CLAIM A U.S. FOREIGN TAX CREDIT

26-Oct-2016

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MUTUAL FUNDS: Corporate Class and Switch Funds

26-Oct-2016

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REGISTERED EDUCATION SAVINGS PLAN (RESP): Distribution of Funds

26-Oct-2016

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TAX TICKLERS: Some quick points to consider

26-Oct-2016

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TEACHERS: This Credit Is for You!

26-Oct-2016

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TRANSFERRING PROPERTY TO A FAMILY MEMBER: Taxable Transaction?

22-Aug-2016

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CANADA CHILD BENEFIT

22-Aug-2016

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CRA INSTALMENT NOTICES

22-Aug-2016

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DIRECTOR LIABILITY

22-Aug-2016

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LOOMING LIFE INSURANCE CHANGES

22-Aug-2016

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LOSING THE SMALL BUSINESS DEDUCTION (SBD)

22-Aug-2016

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LOSING THE SMALL BUSINESS DEDUCTION (SBD)-Intercompany Payments

22-Aug-2016

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SELLING YOUR BUSINESS

31-May-2016

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TIPS AND GRATUITIES

31-May-2016

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CANADA HELPS.ORG

31-May-2016

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COMBINED AUDITS OF OWNER

31-May-2016

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CRA ONLINE SERVICES

31-May-2016

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CRA SCAMMERS

31-May-2016

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CREDIT CARD COMPARISON

31-May-2016

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INSURABLE EARNINGS

31-May-2016

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MULTIPLICATION OF THE SMALL BUSINESS DEDUCTION (SBD)

31-May-2016

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TAX TICKLERS

31-May-2016

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WORKING BUT NOT PAYING YOURSELF

20-Feb-2016

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Impact on tax rules?

20-Feb-2016

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HOME ACCESSIBILITY TAX CREDIT

20-Feb-2016

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2016 Some quick points to consider

20-Feb-2016

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STATUTE-BARRED ASSESSMENTS

20-Feb-2016

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CAREGIVERS FROM OVERSEAS

20-Feb-2016

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CRA PROJECT

20-Feb-2016

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CRA SELECTION FOR AUDIT

20-Feb-2016

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FILING SLIPS WITH CRA

20-Sep-2015

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Donating Items Rather Than Cash

20-Sep-2015

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Leasehold Improvements on Building Owned by Shareholder

20-Sep-2015

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The Underground Economy

20-Sep-2015

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Personal tax returns

20-Sep-2015

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Benefits Finder Service Canada

20-Sep-2015

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Employee Benefits

20-Sep-2015

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Executors for Americans

20-Sep-2015

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Farms - Sales of Land and Related Rights

06-May-2015

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Tax Tip 2

05-May-2015

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Loans for Value

05-May-2015

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Owner Managed Business Transactions