Contribute to your RRSP

The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP).

Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18% of 2017 earned income to a maximum of $26,230. Earned income is Read More

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By |December 3rd, 2018|SmallBiz Builder, Tax Tips|

5 Reasons Why Your Retirement Plan Will Fail

No matter how much you love your work, the fact is that one day, you will retire. Whatever the reason, you will eventually choose to hang up the work gloves and start devoting your hours enjoying the fruits of your labor. However, chances are that your retirement plan won’t actually work out. Here are 5 Read More

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By |October 15th, 2018|Tax Tips|

Offshore Tax Informant Program

To combat unreported foreign income, the Federal Government introduced the concept that Canada Revenue Agency (CRA) will pay financial rewards to individuals who provide information on major international tax evasion. CRA could pay up to 15% of federal tax collected if the reassessments are in excess of $100,000. Penalties, interest and provincial taxes will be Read More

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By |October 3rd, 2018|Tax Tips|

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

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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

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By |September 6th, 2018|Tax 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

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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

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

Employment Insurance Benefits for Self-Employed People

Self-employed Canadians are able to voluntarily access Employment Insurance (EI) special benefits. There are four types of EI special benefits:

Maternity benefits (15 weeks maximum) available to parents of a new born or newly adopted child. It covers the periods surrounding birth. A claim can be submitted up to 8 weeks before the expected date of birth, and Read More

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By |June 9th, 2018|SmallBiz Builder, Tax Tips|

Salaries Paid to Family Members

When deciding as to whether a salary should be paid to a family member, or more specifically to one’s spouse, numerous questions arise. On one side, there is the question of the risk involved that the salary may be unreasonable and having the expense being disallowed. On the other side, there is the benefit of Read More

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By |May 8th, 2018|SmallBiz Builder, Tax Tips|

Withholding Information from Canada Revenue Agency

If you run your own business or you are self-employed, you may be tempted to report only part of your income to the tax authorities. Or you might consider suppressing information about your activities.
If you are audited by the Canada Revenue Agency (CRA) you should consider this. The CRA auditor has access to the Internet. Read More

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By |May 3rd, 2018|Tax Tips|