This is actually a common question, and it’s really important that you do it right. How do you do this, depends on various factors with your pre-existing business, as well as your new holding company. You can surely transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a […]
If you are a member of a trade union or professional organization, you can deduct certain types of union contributions or professional membership dues from your income tax applications. The amount of union fees you can claim is listed in box 44 of your T4 tickets or receipts and includes any GST/HST you have paid. […]
How to Deal with Unpaid Back Taxes? Well, the first thing is don’t panic. There could be various reasons why a person wouldn’t have paid their taxes. You could owe a significant amount of money and not be able to afford to repay, business hardship, life threatening illness, paying taxes might have slipped out of […]
Whether you are preparing your first tax return or you are a seasoned tax preparation professional, a checklist of what is required to prepare a tax return is essential to make sure you are not leaving any money on the table. Whether you hire a tax accountant or do it yourself, you need certain information […]
Why did you start your business? To keep your business books or to do what you love to do? Your answer to this determines the need for a small business owner in Canada to hire a bookkeeper. Bookkeeping tasks are time-sucker! It isn’t what you are good at, rather it takes you away from your […]
Whether you are a real estate baron with multiple properties, or just recently started to rent out a property, we know taxes can be a bit of a tricky subject to tackle for landlords submitting a tax return. And that’s where the Filing Taxes come to play. This article covers how to complete and file […]
Tax Audit– a dreaded word for any taxpayer. There is one thing we do not want to see in our mailbox, it’s a letter from the Canada Revenue Agency. Even worse, if it is a letter from CRA informing us that we are being subject to a tax audit. Should that happen, professional support from […]
If your small business is collecting Goods and Services Tax (GST)/ Harmonized Sales Tax (HST) from its customers for the goods and services you have provided them as a business, it is important to understand how to remit those taxes back to the government. Filing GST/HST return also refers to claiming the Input Tax Credits […]
Have you recently incorporated your business? Wondering about how to pay yourself? Stuck between the options salary or management fees? Then read on to get your answer. If you own a business through a corporation you can choose to pay yourself a salary or management fee. Let’s discuss the benefits and risks associated with management […]
Whether it’s a company restructuring for tax planning objectives or a successful sole-proprietor aiming to incorporate– the Section 85 rollover is a valuable tax deferral tool, used extensively in the Canadian business landscape. If you have decided to transform your existing business into another Canadian entity without having to pay taxes then this blog contains […]
Tax situation of a self-employed Canadian business owner is a bit more complex than that of an employee. So, what is the major difference between being an employee earning a paycheck compared to being self-employed? Well, when you are self-employed there are two areas where you differ from regular employees’ contributions to the Canada Pension […]
Terminal Loss Definition by Canada Revenue Agency (CRA) Line 9948 – Terminal loss states that you have a terminal loss when you have no more property in class at the end of a year, but you still have an amount you have not deducted as capital cost allowance (CCA). CCA is the deduction you can […]
Disclaimer: Before you consider which amount is tax-deductible in Canada and which is not, you need to consider whether the amount under consideration is a business donating some amount to a charity that is registered or if it is a corporate that is entering into a sponsorship agreement with any other entity. In addition to […]
Sole proprietors, including store owners, tend to do all the work themselves. However, following the right steps can help you reduce your tax burden. Paying tax on time and filing your reports correctly can help you save money on taxes. Below are some tips to help you file your taxes for a sole proprietorship in […]
Small business owners are always looking for ways to save money, and there’s no better time than the present. In order to do this, you need to find loopholes in the tax code that can help you reduce your tax burden. Here are 5 of them so that you can make a plan for next […]
Hypo-tax is the amount actually deducted by the employer. Although most of the taxable benefits associated with a transfer are not included in the calculations for the initial tax settlement, hypothetical taxation often applies to the following types of payments: Basic salary Bonuses + commissions (if applicable) Housing allowance Travel allowance Stock options equity compensation […]
Made a mistake on your tax return or forgot to claim a tax credit or deduction – Don’t worry you can fix it! It is not as difficult as you might think. CRA acknowledges that the tax code is complex, and that people make mistakes or miss out on some important information. Hence CRA makes […]
As a business owner, you do it all. Do-it-yourself bookkeeping and accounting can help you through the early days of getting your business off the ground. But it takes away your time you could have spent on other revenue-focused duties. Canadian business market has quite a diversity when it comes to small and medium entities. […]
Every turn of the century is opening doors for rapid technological advancement, increasing dependency on technology to accomplish targets of our life. This drastic technological development is compelling everyone, from individuals to large entities, to look for technological evolution in every aspect. The tax world is no exception to it, where there has been an […]
Whenever a tax season rushes towards its end, taxpayers make the country a bustling town. Taxpayers are busy screening, organizing, and shredding thousands of tax documents. Everyone juggling around with documents is banged with common questions likes – for how long should I keep my tax records? When is it safe to scrap old tax […]
So your business has fallen a little behind on bookkeeping, don’t panic. It happens to small business owners everywhere for many different reasons. Bookkeeping often falls low on the priority list for business owners. Organizing the documentation of business transactions piled up in the shoebox over time can be a nightmare. If your business has […]
Purpose of Financial Statements The objective of financial statements is to provide information about the financial position, performance, and changes in the financial position of an enterprise that is useful to a wide range of users in making economic decisions (IASB Framework). Following are the main users and their respective use of financial statements: Managers: […]
Why would a Company want to change its Fiscal Period? Fiscal year-end remains the same year after year unless there is a dire need for it to be changed. A company changes its fiscal period for various strategic reasons. Reasons may include operational convenience, liquidity reasons, industry benchmarking, seasonal fluctuations of the business, financial reporting […]
Definition of Capital Gains Capital gain is the profit earned on the sale of a ‘capital asset’. Canadian Revenue Agency (CRA) defines securities in the form of shares, investment properties, bonds, and stocks as well as real estate as “capital assets''. Capital gain results when the selling price of an asset exceeds its purchase price. […]
Tracking your Meals and Entertainment CRA Corporate may appear to be something only certain types of dieters may do. But did you know that spending on these activities can actually save you tax money? There is no definite or precise rule to determine the deduction of your meal and entertainment expenses. It is a subjective […]
There are two basic options when it comes to filing taxes in Canada i. Handle it yourself. ii. Hire a tax accountant. Let’s resolve this basic dilemma of every taxpayer together by reading through the article. When is it appropriate to file taxes yourself in Canada? The foremost factor to consider is whether you have […]
Considered as a non-refundable tax credit to help the people with disabilities in Canada, the Disability Tax Credit in Canada aims to support such people by reducing their tax liability. Once eligible for Disability Tax Credit (DTC), the person is eligible to claim the specified amount. With the lump sum of $25,000 and $ 2500 […]
With the outbreak of the COVID-19 pandemic, many lives have been affected in some or another way. The federal government has introduced several measures to support the people in need. With these measures comes a big relief for the taxpayers during these difficult times. It was imperative for the government to come up with this […]
Canada Disability Tax Credit (DTC) is a non-refundable credit that can be used to reduce your taxes owed. The Disabled Tax Credit is available to people with severe or persistent physical or mental impairment. Therefore, depending on the situation, you can claim this credit for yourself or on behalf of your loved one. How to […]
