As 2018 comes to an end, tax advisors across Canada are busy restructuring and planning many corporations to respond to the new tax rules that came into existence this year.
BC's New Tax Law Called Tax on Split Income (TOSI)The biggest new tax law introduced this year is Tax on Split Income or TOSI for short. TOSI is so complicated that many tax advisors use a flowchart to visually follow the rules to assist in determining where the taxpayer stands with this rule this year. As ... Read More
Death of a family member is one of the most stressful events in life. To compound the grief, there are final tax matters to deal with either by April 30th of the following year or 6 months after the date of death.
What To Do Upon The Death of a Taxpayer?Upon the death of a taxpayer, at a minimum, there is a final return (“terminal return”) to be filed with the CRA and three optional returns to be filed if desired. In addition, a trust return to report income received after death is ... Read More
While at dinner recently, a friend of mine, Carla, informed me that she sold her rental property and was curious about the amount of tax that she would owe on the gain. Upon further questioning, I uncovered that, in the past, my friend had lived in this rental property (a condo) for many years. She purchased a second condo a few years back and moved into it. She had then rented out the first condo—the one she just sold. From her line of questioning, I realized that, other than the tax ... Read More
If I Ignore CRA’s Request to File Outstanding Returns – Tales of Two Taxpayers - submitted by Lilly Woo, CA, CFE, CFP It has been a strange summer for me. As the 2014 tax season came to an end on April 30, 2015, I was relieved as always and mentally plan for the lazy summer I wanted to enjoy. Then a strange thing happened. I received a phone call from a friend (“Paul”) whom I have lost touch with six years ago. He sounded stressed right away. As soon as we were through the initial ... Read More
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
Penalties and interest charges are the most common tools the CRA uses to enforce compliance with the Canadian Income Tax Act. ‘Compliance’ refers to filing the tax and information returns in their entirety and on time. When a taxpayer (a person or a corporation) files late, there are late filing penalties on unpaid balances. There is another serious penalty in the Income Tax Act that is catching some taxpayers by surprise. This penalty arises when a taxpayer fails to report an income amount ... 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
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
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.