Monthly Archives: March 2018

Risks of Tax Non-Compliance for U.S. Citizens

Commencing January 1, 2016, the U.S. State Department was able to deny or revoke passports to U.S. citizens having a “seriously delinquent tax debt” or no Social Security Number associated with their passport. A “seriously delinquent tax debt” is one where the taxpayer owed more than $51,000, after January 1, 2018 (indexed going forward), in… Read more »

Reporting Obligations for Construction Subcontractors

A July 17, 2017 Technical Interpretation examined the conditions which would require the filing of a T5018, Statement of Contract Payments.  Where a person or partnership primarily derives their business income from construction activities for a reporting period, a T5018 should be filed for any subcontractor payment or credit made relating to goods or services… Read more »

CRA 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.  CRA BizApp – An app for small businesses owners to view and pay outstanding balances, view account transactions, view expected GST/HST returns, and view the status of filed GST/HST and corporate income tax returns…. Read more »

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.   Where such reasonable allowances are paid, an input tax credit (ITC) may be claimed by the employer.  The ITC is computed as the imputed GST/HST in the allowance, without adjustment for… Read more »

Paying Salaries to Family Members

Two Chefs

For a small business, whether operated as a corporation, proprietorship or partnership, it is quite possible that relatives of the owners or partners may be engaged as employees. Due to the closer familial relationship between employer and employee, CRA pays particular attention to ensure that the salary is truly an eligible deduction to the business. … Read more »

All About Digital Currency

Bitcoin

What is Digital Currency (DC)? DC is essentially electronic money. It’s not available as bills or coins. To create cryptocurrency, a type of DC, computer algorithms are used. The most popular cryptocurrency is Bitcoin. Unlike other currencies, no single organization (such as a central bank) creates digital currency. DC is based on a decentralized, peer-to-peer… Read more »

Proposed Changes to Corporate Passive Investment Income

A new passive investment tax regime for Canadian Controlled Private Corporations (CCPCs) is proposed to apply to taxation years commencing after 2018.  Passive income may include interest, rental, royalties, dividends from portfolio investments and taxable capital gains.  Two significant changes are proposed. First, a limit to the small business deduction for CCPCs generating significant income… Read more »