Successful entrepreneurs are often on the hunt to acquire other businesses for strategic reasons. Acquiring a competitor to increase market share or buying out a supplier to add synergy to an existing business are just a few of the reason entrepreneurs seek acquisitions. When a business is up for sale negotiation, the seller of the business has a huge advantage over the buyer. The seller, being the current operator of the business, has intimate knowledge of the environment he operates ... Read More
Tax Structure When Buying an Incorporated Business
A very quiet and painful spring 2020 comes to an end in BC. As the BC economy reopens pieces at a time, the impact of the Vancouver covid-19 pandemic lockdown on different sectors of the economy will become more evident. For young or mature business owners, this past spring was a time of inner reflection. There was plenty time for planning, whether to acquire existing business to bolster one’s market share or exit an existing business and spend more time pursuing activities that are ... Read More
When Are My 2019 Income Taxes Really Due?
The week of March 16, 2020 will be forever remembered by all Canadians. For many of us, whatever Spring Break trip planned along with everything else entertainment was cancelled that week.
2019 Incomes Taxes Due Date Extended
For accountants who file taxes for a living, we were provided specific deadlines by Ottawa. All personal and information returns were extended to June 1. There was no extension for the self-employed who are due on June 15. And Ottawa ... Read MoreThe Evolution of CEBA the Past 10 Weeks For Canadian Small Businesses
CEBA is short for the Canada Emergency Bank Account or is better known as the interest free $40,000 bank loan provided by Ottawa for small businesses due to the Covid lockdown.
CEBA Funds To Help Small Businesses During Covid-19
CEBA was one of many measures Ottawa provided early on during the Covid lockdown to help Canadian small businesses with operating expenses survive the lockdown. At the early stage of introduction, a small business needed to have payroll expenses of ... Read MoreVancouver Tax Planning Post Covid-19 Lockdown for Canadians
With the curve flattening in BC, I am going to practice optimism and leap back to the future to discuss tax planning for BC individuals and small businesses for the 2020 year end.
Operating loss utilization
There will be businesses with operating losses for this fiscal year. Losses can be carried back three years whether you are proprietor or an incorporated business. Note that many of the financial assistance received under the Canada Emergency Response Plan for ... Read MoreManaging Cash Holdings During the Covid-19 Lockdown
Canada is now into its 4th week of lockdown due to the Covid-19 pandemic and Vancouver small businesses are suffering as a result. Even businesses that are marginally impacted are suffering as well due to lack of staffing, delayed delivery, having to adapt to working remotely, etc. Right now, the uncertainty is high. We are not sure at all how many more weeks if not months the lockdown will continue. Even if the government ease on the lockdown, how long will it take for the ... Read More
What Small Businesses Need to Learn from the Corona Virus (Covid-19) Financial Crisis
BC is now three weeks into the social distancing protocol. It is becoming more obvious that the distancing will go on for another month if not longer. With this acknowledgement, the financial cost of this pandemic will reach financial crisis level when said and done. I am already reading about long existing local brands closing their doors just three weeks into the social distancing. Some businesses are likely closing down strategically. After all, if we are ... Read More
Federal and BC Government Response to the COVID-19 Crisis – For Canadian Small Businesses
It is March 28, 2020 today. At the end of this week, BC government and Ottawa came up with some huge assistance for small businesses which I will cover here. I expect their response to only grow as time goes on and I will keep you abreast on new matters. First, Ottawa response and the official link is below. https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#wage_subsidies
Parts of the Federal Response that impact small ... Read More
A Busy Summer for the CRA Auditors
Vancouver enjoyed excellent weather during the 2019 summer months without smoke to block the sunrays.
CRA Audits Vancouver Businesses
While the taxpayers were busy vacationing, the CRA was very busy sending out tax review letters to many businesses. Based on my own experience and conversations with colleagues, a massive fishing expedition was underway this spring and summer. Many businesses are being reviewed for auto expenses, payroll remittances, GST ITC claimed, ... Read MoreHolding Real Estate Investments in the CCPC – Part 2
In a recent blog, I explained why a CCPC shareholder is better off holding real estate investment or any passive investment in a CCPC versus personally. Those who are familiar with recent changes to CCPC tax laws will note that there is a $ 50,000 investment income ceiling, after which for every $ 1 additional investment income dollar will claw back the SBD by $ 5. Hence, once investment income reaches $ 150,000, the entire SBD will be eliminated. In other words, there is no income that ... Read More
