Director & Personal Liability

In a recent Tax Alert titled “Abuse of Source Deductions and GST/HST Amounts Held in Trust” CRA warned that businesses must hold source deductions and GST/HST amounts in trust for the government. Penalties and interest and possibly personal liability for the directors will be the result if this is not done.
Federal legislation allows CRA to Read More

By |September 9th, 2018|Tax Tips|

Disability Income Insurance

CRA recently noted that where a proprietor purchased a Disability Income Policy, the premium is a non-deductible personal expense. But the receipt of the disability benefits is tax-free.
If a corporation acquires a Policy for the employees, the premiums are generally deductible. If the employee receives the disability benefits they are included in the employee’s income. Read More

By |September 6th, 2018|Tax Tips|

Filing Taxes after Death of Spouse

Dear Uncle Bean,

About two years ago, my husband of 28 years suddenly passed away.  Since then, I’ve been having problems managing a lot of things that my husband used to do.  Unfortunately, filing my taxes is one of those items.

What should I do?

Worried
 
Dear Worried:
We are sorry to hear about your loss.  It is a very Read More

By |September 5th, 2018|Uncle Bean Tax Corner|

Per Diem Meal Allowance

In a recent Technical Interpretation, CRA noted that an employer-provided meal allowance will not be taxable where the following conditions are met:

It must be a reasonable amount;
The allowance is received to cover expenses while travelling away from the metropolitan area or the municipality where the employer’s establishment is located, at which the employee Read More

By |September 3rd, 2018|SmallBiz Builder|

4 Financial Options for Starting a New Business

If you are considering starting a new business, there are a number of factors to figure in to the equation.  Besides choosing a location, applying for proper permits, and obtaining required licensing, prospective new business owners need to analyze both short-term and long-term goals to determine what financial options will be best for the business.  Read More

By |August 15th, 2018|Small Business Tips|

Non-Refundable Tax Credits for Students

 

The most common post-secondary non-refundable tax credits that apply to students are interest paid on student loans, the tuition, education and textbook amounts (prior to 2017), the public transit amount (prior to July 1, 2017), and the Canada employment amount.

Interest on Student Loans

To be eligible for the credit, interest must, in fact, have been paid. The Read More

By |August 9th, 2018|Tax Tips|

Common Deductions and Tax Credits for Students

The most common deductions that apply to students are moving expenses and child care expenses.
Moving Expenses
You can deduct moving expenses if you move to attend courses as a full-time student or if you moved to start a new job, including summer employment, or to start a business. Your new home must be at least 40 Read More

By |August 6th, 2018|SmallBiz Builder, Tax Tips|

Four Tips to Reduce Supply Costs

One of the most significant expenses on invoices is the cost of supplies. It follows that any opportunity to save on supplies can have a dramatic effect on the final cost of a project. While labor and time charges can be altered by increased efficiency or at the contractor’s discretion, supply costs are not as Read More

By |July 15th, 2018|Small Business Tips|

Owner-Managed Business – Creditor Proofing

Every business owner should be concerned about creditor proofing his assets. Consider these suggestions:

1. Transfer assets out of the company 

Place capital assets in a separate holding corporation so that subsequent legal claims that arise in the operating company do not affect these assets.
Lease the assets in the holding corporation back to the operating Read More

By |July 9th, 2018|Small Business Tips, SmallBiz Builder|

Corporate Directors Liability

If a corporation (including a for profit or non-profit corporation) fails to deduct, withhold, remit or pay amounts held in trust for the Receiver General for Canada (CPP, EI and GST/HST), the directors of the corporation at the time may be held personally liable along with the corporation to pay the amount due. This amount Read More

By |July 4th, 2018|SmallBiz Builder|