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

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

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 »

Tax Tricks and Traps

Below is a list of tax planning considerations. Please see us for further details or to discuss whether these may apply to your tax situation. Carefully Review your Expenses Certain expenditures made by individuals on or before December 31, 2017 will be eligible for 2017 tax deductions or credits. These expenditures include moving expenses, child… Read more »

Employment Standards Act Update

Bill 148, the Fair Workplaces, Better Jobs Act, 2017 is now in effect. The bill included substantial changes from the previous act. We have summarized these changes below. For more detailed information on how the these changes may affect you or your employees click here. Classification of Students and Interns There is an addition to… Read more »

Tax Updates 2017

Here’s a summary of tax changes for the year. Please contact us if you have any questions or to book an appointment to discuss your taxes. Tax Rates There are no changes to tax rates or brackets for 2017. Income tax rates for individuals can be found here. Public Transit Tax Credit This credit has been eliminated… Read more »