Posts Categorized: Taxes

CRA’s Abilities to Demand Client Informations

Reviewing Papers

CRA uses third parties to get information about other taxpayers to ensure they are complying with their tax responsibilities. This could include obtaining information from a business about its employees, customers or suppliers, without needing to list their specific names. CRA has recently announced that they intend to continue and increase the use of these… Read more »

Incentives for Zero-Emission Vehicles

zero emission vehicle

On April 17, 2019, Transport Canada released details on the purchase incentive of up to $5,000 for zero-emission vehicles as originally proposed in the 2019 Budget. The incentive will apply to new purchases or leases on or after May 1, 2019. To receive the incentive, the manufacturer’s suggested retail price must be less than $45,000… Read more »

Employee Uniform Taxation

Man wearing safety equipment

In an April 17, 2019 Technical Interpretation, CRA was asked whether clothing reimbursements paid to maintenance employees were taxable benefits. Employees were not required to wear specific uniforms and were reimbursed based on receipts, to an annual maximum. CRA referred to Guide T4130 Taxable Benefits and Allowances, which states that clothing is generally a personal… Read more »

2018 Year-End Tax Planning Tips

December 31, 2018 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2018 YEAR-END TAX PLANNING TIPS INCLUDE:  1) Certain expenditures made by individuals by December 31, 2018 will be eligible for 2018 tax… Read more »

Subsidized Meals

Do you have an employee dining room or cafeteria? In a March 21, 2018 Technical Interpretation, CRA stated that they do not consider meals subsidized by the employer to be a taxable benefit provided the employee pays a reasonable charge. This charge should be sufficient to cover the cost of the food, its preparation and… Read more »

Employer-Sponsored Social Event Taxable Benefits

In an April 9, 2018 French Technical Interpretation, CRA clarified their position on taxable benefits arising from employer-sponsored social events, such as a holiday party or other event.  Where the cost of the social event does not exceed $150/person (previously the limit was $100), excluding incidentals such as transportation, taxi fares and accommodations, there would… Read more »

Directors’ Liability for Corporate Income Taxes

A December 11, 2017 Tax Court of Canada case examined whether a taxpayer was liable for unpaid income taxes of the corporation of which he was a director. CRA’s assessment was based on the assertion that the taxpayer was a legal representative of the corporation and had distributed assets of the corporation without having first… Read more »

Tax Tricks and Traps

Tax

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 »

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 »

Tax Changes for Small Business

On December 13, 2017, the Department of Finance released a number of updates relating to the proposed changes to private corporation taxation, in particular, the income sprinkling proposals, which were originally announced on July 18, 2017. Below is an update of the changes to the proposals. Individuals that receive certain types of income derived from… Read more »