Be aware of the changes that affect your 2016 income tax filing and beyond.
As you gather your 2016 tax data together for your CPA, take a few moments to read about the following changes and assess the impact they may have on you and your family’s filing for 2016 and after. Continue reading
The new Liberal government has proposed a few minor changes to personal income taxes for 2016 and beyond.
The election of a new government in Ottawa is often accompanied by changes to the way income is taxed. The last federal election was no exception. The changes announced in the March 2016 budget that will impact many taxpayers are as follows: Continue reading
Complete, accurate and readable records will make a CRA audit less onerous.
Regardless of whether your business is a proprietorship, a partnership or an incorporated company, the Canada Revenue Agency (CRA) requires the business to maintain financial books and records. Here are a few of the CRA’s record-keeping requirements you should know. Continue reading
The Federal Liberal government made some significant promises during the election. The budget released on March 22, 2016 was their chance to put some of those promises into place.
CPA Canada has provided the following comments on this 2016 Federal Budget:
Check with your tax advisor to make sure your charitable donation meets the requirements for your maximum tax deduction. Continue reading
Beware of telephone calls or emails from persons pretending to be CRA agents and asking for personal information or promising you a tax refund.
According to the Canada Revenue Agency (CRA), an increasing number of Canadians are receiving telephone calls from persons falsely presenting themselves as CRA agents and aggressively asking for personal information such as credit card, bank account, passport numbers and even social insurance (SIN) numbers. (Keep in mind that CRA already knows your SIN.) This type of telephone scam, as well as other similar kinds of scam perpetrated through email, could result in identity theft and significant financial loss for unsuspecting taxpayers. Continue reading
There are many tax advantages for self-employed Canadians who work from home and hire family members in their business.
The December holiday season is a time for home and family. This year, if you are self-employed, you may want to consider incorporating home and family into your business to create tax benefits for both the business and the family. Consider the following opportunities to reduce your taxable income and thus increase the amount of money left over to support your family. Continue reading
Make sure you collect and keep all your receipts for tax-deductible medical and moving costs.
Now is a good time to take a look at two tax deductions that taxpayers often think little about until the approaching income tax deadline sends them scurrying to find all those illusive receipts they might need for the end-of-the-tax-year meeting with their CPA. Continue reading
The way a bonus is paid has a significant effect on corporate and personal after-tax income.
You are an owner-manager and you’ve just had a really good year. Profits are up significantly and you want to reward your employee shareholders with a bonus. But how? Salary or dividends? The answer to this age-old question is not as simple as it seems. It is even possible to receive remuneration that is a combination of salary and dividends. However, because every company and its shareholders have different needs, a “one size fits all” approach to remuneration is not prudent. Continue reading
Make sure you hire the right person or company to prepare your income tax return.
According to the Canada Revenue Agency (CRA), 28 million people file income tax returns each year and of that number, 50% use tax preparers. Tax preparers can register with the CRA to use EFILE to transmit the completed return through an encryption technology that instantly acknowledges the tax return has been received.
So, what could possibly go wrong for the taxpayer? Unfortunately, not all tax preparers are honest. And, these less-than-honest ones take advantage of the fact that prospective clients believe the tax preparer:
- is an expert and will prepare the return better than they are able to do it themselves
- will find ways to get the maximum refund
- has the taxpayer’s best interest at heart
- is registered to EFILE tax returns and thus the CRA vouches for their integrity