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
GST is a tax charged on most goods and services purchased in British Columbia. GST is charged on the gross sale price of the item or service before PST. A Business also gets to claim as input tax credit (“ITC”), the GST it pays out in operating its business. For example, GST paid on rent, computers, business cards, accounting fees, etc. are all refunded back to the business when it calculates its net GST owing to CRA every reporting period.
GST affects almost every business owner in ... Read More
As all Canadians settle back into work after the holiday season, we're all looking forward to fulfilling the new intentions and resolutions we have set forth for the 2014 year. However, it is important to note that although 2013 calendar year has closed, along with it the financial results of your business, many tax planning opportunities for 2013 remain open. 2013 tax filing requirements still remain to be completed for business owners and their tax advisors.
Here are some important tax ... Read More
The past year, I have noticed quite a few more requests from CRA to review medical expenses, donation receipts, and HST returns filed. The best thing for a business owner being audited is that they have been honest with their tax affairs. The second best thing is for the business owner to have a competent professional Vancouver accountant to assist them through the process. If the records are complete and accurate and the professional accountant has experience dealing with CRA, then the audit ... Read More