Estate Planning

Estate planners often suggest that the RRSP/RRIF holder designate a beneficiary of the plan. There are many advantages:

Probate fees can be avoided because the funds transfer direct to the beneficiary.
The funds are not exposed to the liabilities of the deceased’s estate.
No elections are required for the “refund of premiums” status.
Premium refunds allow a tax-deferred transfer Read More

By |October 8th, 2013|SmallBiz Builder|

Door Prizes at Company Functions

In a 2013 Technical Interpretation, CRA was questioned about door prizes received by all attendees at a company social function.
CRA commented that their tax-free $500 gifts and awards policy would apply to all attendees including the employee, the employee’s spouse, and all other non-arm’s length individuals that received a gift.
It was suggested that gift cards Read More

By |October 7th, 2013|SmallBiz Builder, Tax Tips|

Stop International Tax Evasion Program

The 2013 Federal Budget 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 excluded.
Persons requesting rewards will Read More

By |October 1st, 2013|Tax Tips|

Should You Incorporate Your Business?

If you own a business, you may have wondered if you should incorporate. Historically the income tax system in Canada has benefited incorporated Canadian small businesses. Although the income and deduction calculations are almost identical to an unincorporated business, the major differences are in the corporate taxation structure and tax planning opportunities. When developing the Read More

By |September 4th, 2013|SmallBiz Builder, Tax Tips|

Do You Have to File a Tax Return?

A tax return must be filed if:

You have to pay income taxes;
You have not repaid all amounts withdrawn from your RRSP under the Home Buyers Plan or the Life Long Learning Plan;
You have to pay CCP because your pensionable income exceeds $3,500;
You received working income tax benefit advance payments;

Other reasons to Read More

By |August 1st, 2013|Tax Tips|

CRA’s Priority

In a recent Federal Court of Appeal case, the Court found that the Crown has priority over secured creditors regarding deductions at source that were withheld but not remitted to the Canada Revenue Agency (CRA)
The property is deemed to be held in Trust. The secured creditor is obligated to remit to the Receiver General the Read More

By |July 7th, 2013|SmallBiz Builder|

2013 Minimum Wage Changes

Several Provinces have increased or will increase their minimum wage rates in 2013. The list below details the wage rate changes taking effect in 2013.

Jurisdiction
Rate New/Current
Previous Rate
Effective Date

Alberta
$9.75
$9.40
Sept. 1, 2012

Manitoba
$10.25
$10.00
Oct. 1, 2012

New Brunswick
$10.00
$9.50
01-Apr-12

Newfoundland and Labrador
$10.00
___
01-Jul-10

Nova Scotia
$10.30
$10.15
01-Apr-13

Nova Scotia (inexperienced workers)
$9.80
$9.65
01-Apr-13

Ontario
$10.25

31-Mar-10

Ontario (students under 18 who work 28 hours or less/week)
$9.60

31-Mar-10

Ontario (serving alcohol on licensed property)
$8.90

31-Mar-10

Quebec
$9.90
$9.65
May 1 2012

Saskatchewan
$9.50
$9.25
Sept. Read More

By |April 4th, 2013|Tax Tips|

2013 Tax System Indexation

On January 1, 2013, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 2.0%. The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2013.

For 2013 the federal tax bracket thresholds are:

22% for taxable income above Read More

By |February 13th, 2013|Tax Tips|