The Federal Government released their budget for 2019 on March 20, 2019 and after a couple years of changes to the tax system for businesses with the expansion of the Tax on Split Income (“TOSI”) rules, there are a some improvements for small businesses in a few select areas. Continue reading
Manage cash flow better by projecting future tax liabilities.
Unforeseen circumstances often leave owner-managers short of the cash needed to pay federal and provincial taxes. Unfortunately, many owner-managers consider unpaid tax bills to be the same as unpaid trade credit. They are not. Unpaid taxes can cause a lot of problems. Ensuring funds are available to pay obligations to the Canada Revenue Agency (CRA) should be a top priority for any business, whether incorporated or a sole proprietorship. Continue reading
Owner-managers should discuss Canada Revenue Agency (CRA) changes to employee vehicle allowances with their CPAs before announcing any changes to company policy.
To keep up with the rising costs of operating vehicles, Revenue Canada has increased the maximum tax-exempt car allowance deductible for employees to 55 cents per kilometre for the first 5,000 kilometres, and to 49 cents per kilometre for distances travelled in excess of 5,000 kilometres. Continue reading
Ensure your books are always in order for the CRA.
Owner-managers work hard in their businesses but are often overwhelmed by the reporting requirements for the Canada Revenue Agency. Few owner-managers enjoy the time spent and cost required to meet the CRA requirements, let alone the actual taxes that have to be paid; nevertheless, owner-managers must establish good business habits to ensure they stay on the right side of the tax authorities.
So, here are a few suggestions on how to make your relationship with the CRA much easier for yourself over the long run. Continue reading
Be aware of changes to the income tax rules that will affect your 2017 filing.
For those thinking about their 2017 income taxes, the following summarizes some of the changes from 2016. Continue reading
Good record keeping today can prevent CRA penalties tomorrow.
We live in a digital world where everything is captured electronically in real time. Paper financial statements have become relics from the past; unfortunately, the requirement to produce evidence for the Canada Revenue Agency (CRA) for HST or income tax has not. Continue reading
A “tax refund” is really just the CRA giving you back your own money.
“The government gave me money back” is a common phrase often heard after the April 30 or June 15 filing deadline. The truth is that the government is not being charitable; it is only refunding the tax that you or your employer had overpaid throughout the year. Continue reading
The Federal Government released their budget for 2018 on February 27, 2017 and as a result, we have some clarity on a number of outstanding questions from the announcements released in July 2017 and December 2017 regarding Tax on Split Income (“TOSI”) and on passive investments within corporations. Continue reading
The Federal Liberal government released their budget on March 22, 2017. The government will be spending an additional $523.9 million over 5 years on tax evasion and compliance improvements, with a hope of $2.5 billion in additional taxes recovered.
CPA Canada has highlighted a number of items in the 2017 Federal Budget. Continue reading
Develop a strategy for distributing earnings and reducing corporate income taxes.
For most owner-managers, their goal is to create personal wealth through the operation of a successful business. Unfortunately, corporate and personal tax liabilities (among other things) stand in the way. Continue reading