The Big Tax Deductions vs The Deductions that Are More Fuss than Their Worth
Right now, Canadians are rushing to file their personal income tax returns on time. At Mew and Company, we are gearing up to process all of the documentation needed to file complete and accurate returns by April 30, 2015. Although we have been preparing personal tax returns for many years, it feels like every year, there are more documents to request and process than the previous year. A significant reason for this is perhaps that my clients’ lives have become more complicated from a tax ... Read More
Professional Partnerships and the Incorporated Partners
The 13.5% Corporate Tax Rate I have discussed or referenced in many corporate tax planning blogs that the biggest benefit to being an incorporated Canadian business is that the first $500,000 in corporate profits is taxed at a low 13.5% corporate tax rate. Professionals and their net profits from an incorporate practice also benefit from this corporate tax rate.
Tax Planning Problem for Professional Partnerships
However, many professionals work in a partnership business structure where ... Read MoreEffective Income Splitting Needs Professional Pre Planning
Income Splitting Pre Planning We are now firmly into the 2015 calendar year and with the New Year come new tax laws aimed at reducing your family’s tax burden (eg. recently announced family tax cuts) and changes to existing tax laws that reduce old benefits (eg. higher personal taxes on ineligible dividends).
Ineligible Dividends
Ineligible dividends are essentially the type of dividends that most profitable Canadian small business owners get from their corporations. They represent the ... Read MoreLack of Sophistication May Not Get You Off the Hook With CRA
Vancouver Tax Audit Services: the CRA's Negligence Penalty The CTV news show W5 aired an episode on February 9, 2014 called Punitive Penalties about a program named the Fiscal Arbitrators where 1804 Canadian taxpayers paid thousands of dollars to be part of what they thought was a legal tax scheme. The scheme did not end well as the participating taxpayers were later reassessed by CRA. The “news” part of this story is that CRA also slapped the taxpayers involved with gross negligence ... Read More
Which Canadian Personal Income Tax Deductions are Worth The Fuss?
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
Important Tax Filing Dates 2014 For Vancouver Businesses
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
Getting the Most Out of Your Professional Tax Advisor
One of the first questions I ask a new prospective client is “Why do you wish to switch tax advisors?” The most common complaint is that there is a lack of proactive tax planning from the current advisor. The second common complaint is late filing penalties and interest fees. More specifically, the taxpayer often complains that the current tax advisor has been unresponsive to a tax planning request or has been too busy to make the client a priority. After being in practice for many years now, I ... Read More
Incorporate Your Medical Practice in Vancouver
In my previous articles, the benefits of incorporating a business have been discussed at length. The tax advantages for corporations are substantial enough that some taxpayers structure the financial relationship with their “vendors” so that they are deemed self-employed, thus qualifying to operate as a corporation earning active business income. This allows the corporation to deduct expenses otherwise not deductible and qualify its corporate profit to the low corporate tax rate (currently 13.5% ... Read More
Vancouver Hair Salons: Business and Tax Tips – Part 1
I am noticing the proliferation of hair salons in the Downtown Vancouver area and I can’t help but think that they are in for a challenging time. Retail commercial rent is sky high, escalating real estate price and cost of living in general has reduced the city's discretionary income pool, and as a consequence Vancouverites are relocating to the more affordable surrounding suburbs. To add to these challenges, the industry has little barriers to entry – it doesn't take a long time or a lot of ... Read More
