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.
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 utilizationThere 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 More
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 few weeks ago, I wrote a blog under a similar title. At the time of my writing, our Finance Minister in Ottawa, Mr. Bill Morneau, had yet to surprise us incorporated small-business owners with his plan to eliminate tax planning tools commonly used by the incorporated self-employed. I will not go into all the proposed tax-rule changes, but I will discuss the one proposal that may impact the Capital Dividend Account tax planning I wrote about just before the announcement. One of the ... Read More
Small business corporate tax rates in BC heading downwardsSeveral changes to tax legislation announced in the 2015 Canadian federal budget were recently granted Royal Assent. A measure that is highly relevant for small businesses in BC going forward is the gradual decrease in the combined federal and provincial corporate tax rates over the next 4 years, which are as follows: 13.5 % - present rate 13.0 % - effective January 1, 2016 12.5 % - effective January 1, 2017 12.0 % - ... Read More
How U.S. Executives Working in Canada Are Required To File Their Tax Returns Many U.S. executives move to Canada, for both brief and prolonged periods, to manage Canadian head offices for multinational or parent companies. During their time in Canada, these executives become full time residents and are therefore required to file a Canadian tax return. Unlike Canada, the U.S. tax system is based on U.S. citizenship, and therefore the U.S. executive is burdened with the requirement to file both a ... Read More
What Canadians Need To Know About the U.S. Foreign Account Tax Compliance Act In March 2010, the U.S. enacted the Foreign Account Tax Compliance Act (FATCA). FATCA requires non-U.S. financial institutions to report to the U.S. Internal Revenue Service (IRS) accounts held by U.S. taxpayers. Failure to comply with FATCA could subject a financial institution or its account holders to certain sanctions including special U.S. withholding taxes on payments from the U.S. The U.S. ... Read More
Foreign Asset Reporting Pitfalls for Canadian Holding Corporations and IndividualsCanadian taxpayers, individuals, and corporations who hold foreign property exceeding $100,000 in cost at any time during the year, have significant foreign asset reporting obligations. Not only is the reporting obligation an annual requirement, but the penalties for non-compliance can be very steep.
Foreign Asset Reporting ObligationsYour foreign asset reporting obligations are indicated on the ... Read More
This law comes into effect July 1 – less than three weeks away!
What is “Spam”?Essentially, it’s unsolicited electronic mail and/or communications. That “junk” folder in your inbox, you know, the one you never open? It’s likely full of spam. At the core, “spam” is about electronic commerce regulation, which means that it should be important to virtually every small business in Canada. The latest Canadian Anti-Spam Legislation (CASL) makes three significant changes to the way you ... Read More
Which Canadian Personal Income Tax Deductions are Worth the Hassle? As spring draws near, Canadians can look forward to cherry blossoms and spring skiing. Another event is the filing of their personal income tax returns. With all the tax deductions and credits rules in the Income Tax Act, compiling all the information for your tax accountant to complete your personal tax return accurately, timely, and economically can be a challenge. Accounting professionals want the same things for our ... Read More