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
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
Maybe your business has been struggling since the 2008-2009 financial crisis, or better yet, maybe the business has become more profitable every year since due to better management practices and branding. Despite progress or track record, maybe your finding that the relationships between the two or more shareholders involved in your business are strained, and this could be for various reasons. For example, one shareholder may not be pulling their weight because of personal issues while another ... Read More
Bad Business Breakup Around the Corner?Business partnerships are never easy and can fail in both times of prosperity and times of strife. There are many reasons for breakup: bad financial results, good financial results, personality differences, lack of trust, conflicting visions, etc. Often, the knowledge of an impending breakup precedes the actual breakup by months, if not years. In the meantime, if lack of trust develops, the emotional ... Read More
Reality Hits on the First Day of Business PossessionThe first few months after the successful acquisition of an existing business can be daunting. The opportunity and the excitement of steering the new “purchase” into your vision can be overshadowed quickly by the reality of running a business. Marketing, human resources, and of course, financial decisions will have to be made as soon as the first day of the business' operations begin. For many ... 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
Selecting the right accounting software for your small business seems like a daunting task but it really isn't. This is because there is one software that is far superior even to the second best-in-its-class competitor. Also, 99 percent of all Vancouver professional accountants servicing small businesses use and recommend this software - Quickbooks (“QB”) or Cloud-based Quickbooks (“QBO”).
Why is Quickbooks so great? The list can go on and on but here are the top ten reasons:1) ... Read More
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
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
The following blog post is a continuation on my previous blog post Vancouver Hair Salons: Business and Tax Tips - Part 1. If you'd like to catch up, please take a moment to review it. Hair Salon Industry Analysis In the hair salon industry, image and trends matter. Talented Vancouver hair stylists are a must, but the industry is too competitive. From my experience as a Vancouver Chartered Accountant serving different hair salons, I have found that in order for Vancouver hair salons to ... Read More