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Filing Taxes Insights

August 6, 2022
Automobile reimbursements in Canada

Automobile Reimbursements Allowed by CRA

Besides the possibility of a tax-free allowance, another possibility exists to reimburse employees or shareholders for business use of personally owned or leased vehicles. If the employer is flexible and it appears that the CRA prescribed automobile tax-free allowance rate is not adequate to cover actual operating costs incurred by the individual, taxpayers can argue that the business can reimburse actual operating costs which can be tax-free to the recipient and tax-deductible to the business. Reimbursements can be argued to not be allowances and therefore are non-taxable receipts. At issue is how to measure the reimbursement and the reasonableness of […]
August 6, 2022
Tax free capital divideneds

How does Tax-Free Capital Dividends work in Canada?

Capital dividends are a special type of dividend that Canadian-controlled private corporations ( CCPC ) can pay to their shareholders on a tax-free basis. The Canada Revenue Agency ( CRA ) uses the capital dividend account ( CDA ) to keep track of the capital dividends that are available to shareholders on a tax-free basis. Capital dividends were created to improve the integration in the Canadian tax system, specifically, capital gains incurred within a corporation will have a similar impact on shareholders as if the shareholders earned the capital gains at a personal level. The tax law relating to capital […]
August 4, 2022
GST/HST Tax Filing

GST HST Filing – Common Errors That Can Cost You

When running a small business in Canada, most entrepreneurs are savvy enough to know that when revenues (for taxable supplies) exceed $30,000 in any four consecutive quarters, it is time to register for and collect GST/HST. This also means that you’ll need to file GST/HST returns annually, quarterly or monthly, depending on your specific scenario and selection. These are some common areas that we find small business owners who try to prepare or file their sales tax returns on their own make mistakes that can be costly:  Meals and Entertainment A very common error that can occur is related to […]
August 4, 2022
Busines License

How to Get a Master Business License in Ontario

Do you want to launch your own company in Canada? Do you have a wild business idea? In that case, you should apply for a master’s business license. Do you want to launch your own company but want it to be launched as practically and efficiently as possible? You keep hearing that to start a business, you must get a Master’s Business License. Only residents of Ontario who desire to launch a business can get this licence, which is also known as an Ontario Business Registration. Any company you see on television, billboards, online, or in newspaper advertising must first […]
August 4, 2022
Personal Bankruptcy

Things to Know Before Declaring Personal Bankruptcy in Canada

If your business is facing financial losses and your expenses are more than your revenue, and you have no idea how to handle your company’s finances anymore, then you need to stop, take a deep breath, and understand the critical situation you are stuck in. However, if you find no way out and the only solution you see is bankruptcy, then here are some things you need to know before declaring bankruptcy. There are a couple of strategies to take to petition for financial protection, which offer insurance from leasers and a clean monetary record. You will require the entirety […]
August 4, 2022

Everything You Need to Know About – Canada Digital Adoption Program (CDAP)

Small start-up businesses are pretty common in Canada. According to the official Canadian government, the statistics from the labour force survey show that around 68.8% of the labour force is employed in small business start-ups.  Furthermore, author Szabolcs Szecsei published an article on the review moose website which stated that every year around 95,000 small businesses are opened in Canada. To assist these small businesses in utilizing advanced technology and digitalization, the Canadian government has launched a program called the Canada Digital Adoption Program (CDAP).   What is the Canadian digital adoption plan? The Canada Digital Adoption Program has been made public by the Canadian government […]
August 4, 2022
Solidarity Tax Credit

SOLIDARITY TAX CREDIT: Everything You Need to Know

Do you ever think that after taxes and fees, your paycheck is almost half? And you’re only taking care of the essentials. Do you know that the government helps low – and middle-income employees by levying solidarity taxes. If you don’t know what solidarity tax credits are, then you are missing out on this great initiative the government has taken for Canadians. In this blog, you will learn what the solidarity tax credit is, what the eligibility criteria for the solidarity tax credit are, how you claim your tax credit, and ways to pay for the solidarity tax credit. What […]
August 4, 2022
Everything You Need to Know About Netfile

Everything You Need to Know About NETFILE in Canada

What is NETFILE? NETFILE is an electronic tax filing online service, launched by the Canada Revenue Agency (CRA). This service allows you to send your tax returns directly to the Canada Revenue Agency (CRA). The tax returns are submitted through protected software like H&R Block, which safeguards against any cyber security issues.  Moreover, the Canadian revenue agency (CRA) implemented this program in 2001. The purpose of this program was to give an alternative new method of tax filing to Canadians. Citizens working in offices or who don’t have time to file their tax returns in person can easily use this […]
July 30, 2022
Selling Your Business

How to Sell Your Business in Canada

Selling your business is a complex subject. A layman might face difficulty in understanding and comprehending this topic. Let me simply say this to you: selling your business might be one of the hardest decisions of your life. The emotional attachment and all the blood, sweat and tears you might have put into your business to make it flourish. However, you have decided to sell your business but have no idea how to do that.  In this blog, you will learn some tips and tricks for selling your business, what possible key points you should keep in mind before selling […]