Tax

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14-Oct-2019

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WORKERS COMPENSATION: Replacement Payouts by Employer

If receiving full salary even after being injured, consider whether some of it could be classified as Worker Compensation and therefore tax-free.

07-Oct-2019

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2019q3 ANXIETY DEPRESSION AND PHOBIAS Disability Tax Credit

A taxpayer may be eligible for the Disability tax credit (DTC) if the impairment(s) represents a marked restriction in the ability to perform a basic activity of daily living

30-Sep-2019

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ZERO-EMISSION VEHICLES: Personal and Corporate Incentives

Transport Canada released details on the purchase incentive of up to $5,000 for zero-emission vehicles as originally proposed in the 2019 Budget...

23-Sep-2019

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REIMBURSEMENT FOR WORK CLOTHING: Taxable

Clothing reimbursements - consider including distinctive visual markings such that it would be considered a uniform and therefore not subject to tax for the employee.

16-Sep-2019

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SPECIAL WORK SITE ALLOWANCE: Home Base Needed

SPECIAL WORK SITE ALLOWANCE planning to sell your residence because most of your time is spent at a special work site, note that your allowance may become taxable.

06-Sep-2019

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TAX TICKLERS… some quick points to consider… Sep 2019

In May and June of 2019, the provincial courts of appeal in Ontario and Saskatchewan ruled that the Greenhouse Gas Pollution Pricing Act (the Carbon Tax) was constitutional.

13-Jun-2019

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FIRST TIME HOME BUYER INCENTIVE- New Possibility

Watch out for details of this new incentive to be released in the fall...

13-Jun-2019

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HOME BUYERS’ PLAN (HBP)- Enhanced Possibilities

Consider whether an RRSP contribution should be made now in order to benefit from the tax deduction, while making equity available for a later home purchase. Funds withdrawn under the plan must be in the RRSP at least 90 days prior to the withdrawal...

13-Jun-2019

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Medical Expense Tax Credit- SAUNA AND HYDROTHERAPY POOL

CRA was asked whether the costs of installing a steam shower (sauna) and hydrotherapy pool could be eligible for the medical expense tax credit (METC)?

13-Jun-2019

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May 2019 TAX TICKLERS some quick points to consider

Interest rates on Canada Student Loans and Canada Apprentice Loans will be lowered starting in 2019-2020...

12-Jun-2019

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VIDEO LEGACY- What Message Am I Leaving?

Consider revisiting your estate plan, will, and any other communications you would like to leave for your family.

11-Jun-2019

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GST/HST NEW HOUSING REBATE Meeting the Conditions

To qualify for the rebate, the purchaser, or a person related to the purchaser, must, at the time they become liable for the purchase, intend to use the property as their primary place of residence...

11-Jun-2019

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OLD AGE SECURITY (OAS) DEFERRAL- Opting Out Retroactively

Determine whether it is best to defer receiving OAS prior to applying...

11-Jun-2019

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SHARED CUSTODY OF A CHILD- The Equal or Near Equal Issue

Each parent is entitled to half of the credits/benefits which would be available if the child resided primarily with them

14-Feb-2019

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CHILDCARE COSTS: Art, Sport and Educational Camps

If incurring child care costs with a recreational or educational component, consideration may be given to claiming these amounts as a child care expense, up to the maximum allowed amount. That is, an annual amount of $8,000/child under 7, $5,000/child aged 7 to 16 and $11,000 for a disabled child.

14-Feb-2019

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TAX TICKLERS some quick points to consider…

The annual TFSA contribution limit for 2019 will be increased to $6,000 (from $5,500) due to indexation...

12-Feb-2019

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ACCELERATED DEPRECIATION: Federal Fall Economic Update Changes

Review whether capital purchases should be accelerated, and whether the accelerated deduction should be claimed given your particular situation

12-Feb-2019

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HACKED CUSTOMER DATA: Federal Reporting Requirements

Be prepared by reviewing protocol and obligations in respect of client information hacks and losses. Quick response can assist in rectifying the integrity of the data and the relationship with the client.

12-Feb-2019

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TRAVEL EXPENSES: Home to Work Site

Although it may be possible deduct travel amounts against employment income, such amounts are often challenged by CRA.

04-Feb-2019

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CANADA PENSION PLAN (CPP) CHANGES: Costs and Benefits are Increasing

Employers should budget for higher CPP costs on continual increases over the coming seven years.

04-Feb-2019

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FEDERAL CARBON TAX: Costs and Rebates

The direct proceeds from the federal carbon tax will be returned to the territory or province of origin.

22-Oct-2018

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TAX TICKLERS… some quick points to consider…

U.S. Supreme Court decision found that a business with no physical presence in a state may still be required to collect and remit state sales taxes.

19-Oct-2018

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ACTIVE BUSINESS VS. PROPERTY INCOME: Music Royalties

A private corporation’s income from a specified investment business (SIB) is not eligible for the active business tax rates (varying from 10% to 31%, depending on a number of factors

19-Oct-2018

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DIRECTOR’S LIABILITY: Helping Out Family

Be cautious when acting as a director or taking responsibility for loans when not directly involved in a corporation’s activities. Failing to take certain actions may result in personal liability for certain corporate tax debts.

19-Oct-2018

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RETAINING EMPLOYMENT INSURANCE (EI) BENEFITS: Starting Part-Time Work

A person who earns income while receiving EI benefits can keep $0.50 of their EI benefits for every dollar earned, up to 90% of their previous weekly earnings.

19-Oct-2018

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TAX ON SPLIT INCOME (TOSI): Can I Take a Salary Instead of a Dividend?

The facts of each situation must be considered to determine whether an exception from TOSI is available, and whether remuneration in the form of dividend, salary or both is most appropriate.

18-Oct-2018

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DIVORCE SETTLEMENT: Family Business

Whenever a settlement is being negotiated, ensure there is mutual understanding on the tax treatment to prevent potential nullification.

03-Oct-2018

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Tax deductions for small business owners

Tax time is fast approaching—it’s important to do your homework and know exactly what tax deductions you can claim.

23-Aug-2018

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DIRECTORS: Can They Be Liable for Corporate Income Taxes?

If you are a director and legal representative of a corporation, ensure that you are properly protected if distributing assets.

23-Aug-2018

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EMPLOYER-SPONSORED SOCIAL EVENTS: After the Party

On taxable benefits arising from employer-sponsored, if the cost exceeds $150/person, the entire amount, including the additional cost, is a taxable benefit to the employee.

23-Aug-2018

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INTEREST ON DELINQUENT ACCOUNTS: Proper Disclosure on Legal Documents

If stating interest rates in legal contracts, ensure to also state them in per annum terms

23-Aug-2018

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PERSONAL USE OF BUSINESS AIRCRAFT: How Big of a Taxable Benefit Is It?

If employees are using a business aircraft for personal use, attention should be paid to whether employment benefits are being properly calculated and reported.

23-Aug-2018

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SUBSIDIZED MEALS: Are They a Taxable Benefit?

CRA stated that they do not consider meals subsidized by the employer to be a taxable benefit provided the employee pays a reasonable charge.

23-Aug-2018

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TAX TICKLERS… some quick points to consider…

CRA may request taxpayer information from third-parties...

22-Aug-2018

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DONATION RECEIPTS: How Complete Is Complete?

Effective March 31, 2019, charities and qualified donees must include the new website address of CRA, www.canada.ca/charities-giving on all donation receipts.

22-Aug-2018

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INTEREST DEDUCTIBILITY: Returns of Capital

One may need to track any return of capital which is not reinvested to determine interest deductibility.

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...

22-Feb-2018

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2018Q1 TAX TICKLERS… some quick points to consider…

Of the approximately 28 million personal tax returns filed for the 2016 year, 58% got refunds. 68% received them by direct deposit. The average refund was $1,735.

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...

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........
The tuition tax credit has been extended to include courses at a post-secondary educational institution that are not at a post-secondary school level. This may include, for example, courses on basic literacy or numeracy, or learning a second language.

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 REMUNERATION

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