Application for a Taxpayer Registration Number (TRN)
A Tax Identification Number, commonly referred to as a Business Number by the CRA, is a 15-character code assigned to your business by the CRA. This number can be divided into three parts: Your company’s nine-digit business identification number (BIN) An identifier for the program typically consists of two letters. The four-digit number assigned to […]
What Is The Guaranteed Income Supplement (GIS) & How to claim it?
Those receiving Old Age Security (OAS) and residing in Canada who have a low income may be eligible for a monthly non-taxable benefit from the Guaranteed Income Supplement (GIS). To be eligible for the GIS benefit, you must be a legal Canadian resident and receive an old-age security pension. It is an income-tested benefit, which […]
T4RIF – Income from a Registered Retirement Income Fund (RRIF)
You’ll receive a T4RIF slip if you receive payments from your Registered Retirement Income Fund (RRIF). You have to fill out boxes 16 to 37 as they apply. The amount you enter in each of the boxes from 16 to 37 is the gross amount of the payment before any other deductions or tax is […]
Canada Child Benefit Payment Dates 2024
The Canada Child Benefit (CCB) is one of the key government benefit programs available for families with children in Canada. It’s no secret that raising a family is expensive. For some parents, the costs that accompany the care and upbringing of children can strain their finances, causing hardship and emotional stress as they struggle to pay […]
Obtaining New Access Code to NETFILE GST/HST Return
Currently, when looking at your Notice of Assessment, you will see an 8-character, alphanumeric code previously referred to as your Internet Access Code (IAC). Starting in 2020, this code is now being referred to as the NETFILE Access Code (NAC). If you have lost or never received an access code to NETFILE GST/HST return, you […]
Ontario Works Benefits Payment Dates in 2022
If you’re under the low-income bracket and are looking for a job or struggling to meet the basic costs of living in Ontario, you should prepare for the Ontario Works payment dates. Ontario Works is one of the main pillars of social assistance and welfare payments in the province of Ontario. Ontario Works is a […]
What is Canada’s FED Deposit in 2024?
When the government deposits money into your bank account, it’s filed under a series of different codes. One of them is “Canada Fed”, a deposit you may notice when you review your bank statement. As with any deposit, it’s important to know where it came from to determine if the money belongs to you and […]
What is a Notice of Assessment (NOA) and T1 General?
As the tax season approaches, it is critical to recognize the key files you will get from the Canada Revenue Agency (CRA) following the filing of your tax return. The Notice of Assessment (NOA) and the T1 General are two of the maximum important documents. The NOA gives the quantity of tax which you owe […]
Can RRSP Be Used to Pay Off Debts?
When facing debt, many Canadians think that cashing out their investments to pay out their debt is a good idea. Unfortunately, the truth is that cashing out the funds in your RRSP to cover your debts is not ideal. Here’s why: If you use your Registered Retirement Savings Plan (RRSP) funds to cover a debt, you will […]
Consequences of Not Filing Taxes in Canada
Normally, if you do not file a tax return and are required to, or if you make false statements in completing your tax return, or if you leave out important information so that you under-report your income, the Income Tax Act imposes penalties. In circumstances of willful fraud or tax evasion, you may be criminally prosecuted. Filing […]
How To Access Employment Insurance (EI) If You’re Self Employed?
When an employee gets paid, deductions are taken at the source and remitted to the government. This includes CPP contributions that entitle them to the Canada Pension Plan in their senior years, income tax, and Employment Insurance (EI). But self-employed workers don’t automatically pay into Employment Insurance the way that employees do. This means that […]
Tax Issues to Consider When Moving to Canada from the US?
Americans moving out of the U.S. to countries like Canada are still required to file U.S. tax returns in addition to various other disclosures, forms, and treaty elections each year. Whether it’s Canadians returning to Canada after residing in the U.S. for a number of years, or simply Americans retiring to Canada, there is a […]
How do I register for My Account with Canada Revenue Agency and Why Should I?
My Account with Canada Revenue Agency (CRA) is the best way to make sure you are taking advantage of all the government benefits available to you and your family. What is the CRA My Account? The Canada Revenue Agency (CRA)’s My Account is a secure portal that lets you view and manage your tax-related and benefits information […]
Ontario Works Benefits Payment Dates In 2024
Ontario Works is one of the province’s key pillars of social assistance and welfare payments. If you require financial assistance to meet basic requirements, this benefit, which the Ministry of Children administers, Community, and Social Services, may be of help. Social aid may be offered through the Ontario Disability Support Program, depending on your circumstances […]
What Are The Required Payroll Deductions In Ontario?
You pay your staff wages, bonuses, commissions, vacation money, and tips. You provide taxable benefits to them, such as personal use of a vehicle or allowances. You must also withhold and remit payroll deductions. Employers are responsible for withholding the four sums listed below: the Canada Pension Plan contribution the Employment Insurance premium federal income […]
Tax Planning for Families and Individuals in Canada
The main objective of income tax planning for individuals as well as families is to plan one’s finances in the most tax-optimized manner. Many Canadians do not give much thought to how they can reduce their taxes until it’s time to file their tax returns each spring. By then, many tax-saving opportunities for the year […]
US-Canadian Dual Citizenship Tax Issues
Dual citizenship provides many benefits, including job mobility and voting rights. It provides a platform for individuals to travel for long periods between countries for personal and professional reasons, without restrictions and without being required to apply for a visa. Canada and the United States have different tax filing requirements and regulations depending on the […]
Blogging/Vlogging Income in Canada: Taxation & Tax Tips
As we now live in a social media-driven world, blogging and vlogging (video blogs) activities have been on the rise. These activities have become so profitable that many individuals have been pursuing them on a full-time basis and earning significant income to support their lifestyles. Since blogging is sometimes treated like a paid hobby that […]
Tax on Income Splitting (TOSI) in Canada – 2020
No one wants to pay more taxes than they have to, that is why many Canadian taxpayers might choose to alleviate some of the tax burdens through a practice called “Income Splitting”. Canada Revenue Agency’s (CRA) definition of Income Splitting Income sprinkling – sometimes referred to as “income splitting” – is a strategy that can […]
Capital Gain On Sale Of Business Assets
It is important to contact the tax office whenever the owner changes into a single owner, a partner in a partnership, or a member of the company’s board of directors. Depending on the structure of your business, changing the owner will have a different impact on your business. Depending on your partnership agreement and if […]
Part IV Tax
The purpose of Part IV is to prevent the deferral of dividend income tax from the portfolio through private companies or other closely controlled companies. Since companies are generally allowed to deduct dividend income when calculating their taxable income, Part IV imposes a tax on dividends received from private companies or closely controlled companies in […]
Why Are Bonuses Taxed So High In Ontario?
The tax system in Ontario, like elsewhere in Canada, is a vital tool for raising government revenue. It operates on both provincial and federal levels and covers various income categories, including salaries, capital gains, and yes, bonuses. In Ontario, we encounter various types of taxes, from property tax to sales tax (HST), and the one […]
SRED: A Complete Guide & How to Claim it?
Introduced in the 1980s, the Scientific Research & Experimental Development (SRED) is a federal tax incentive program administered by the Canada Revenue Agency (CRA), which issues over $6 billion in tax credits annually for qualified research and development work. The government of Canada supports innovation and entrepreneurship through this program. What is SRED in Canada? […]
Home Office Expenses – Comparing Employees and Self-Employed
Due to the pandemic, home office expenses have become the hot topic in taxation. Many people were required to work from home, and others started side gigs to make ends meet. Read on to find out what you can claim as home office expenses if you’re an employee or self-employed. Eligibility to claim Home Office […]
Advantages and Drawbacks of Buying Property Under Company Name in Canada
Are you wondering whether you should buy an investment property through a corporation or your personal name? It’s actually more than a single-line answer. It’s a very popular question asked by real estate investors and it’s hard to have one answer to that question without analyzing the client’s circumstance individually. However, there are a few […]
Tax Deductions for Doctors in Canada: Save More
Every year, many doctors miss out on important tax savings simply because they do not know what they can claim. Two of the most common mistakes I see many doctors make are either not deducting enough business expenses on their tax returns or deducting too many expenses and thus exposing themselves to the risks of a CRA audit. […]
Important Questions a Small Business Owner Should Ask Before Hiring an Accountant
Accountants bring order to one of the trickiest, most stressful parts of your business: finances. With a professional accountant, you can save your company money, stay compliant with governing agencies, and budget for the future. The financial performance of your company is primarily dependent on the informed decision-making of your external accountant. Therefore, you need to hire a reliable […]
Financing Equipment – Lease Tax Benefits in Canada
A question all businesses face when they are looking to purchase new business equipment – should we lease or buy in terms of taxation? What’s the best plan of action, when it’s time to upgrade equipment? Leasing your business equipment in Canada safeguards your capital, cuts red tape, allows for quick and easy upgrades — […]
Tax Brackets Canada 2022
Advantages of Hiring a Virtual Accountant
Virtual accounting can easily sort out the financial foundation of your business in a hassle-free manner. virtual accounting stands out as the best way to save time. Opting for virtual accounting services is an excellent way to have good control over your finances. You maintain your accounting books perfectly when you have virtual accounting beside you […]