The success of a liquidity event involving a privately-held business requires considerable preparation. Even in circumstances where a sale is not imminent, much can be done to improve the operational and financial performance of a business in order to ensure owners can capitalize on favorable market conditions and execute their liquidity option when the […]
IFRS 15 – Revenue from Contracts with Customers
Also known as “Revenue from Contracts with Customers,” this was issued in May 2014 and became effective for annual reporting periods beginning on or after 1 January 2018. IFRS 15 specifies how and when an IFRS reporter will recognize revenue, and the requirements to provide users of financial statements with more informative, relevant disclosures. […]
Tax Implications of Charitable Donations-In-Kind
While cash gifts are the most common form of charitable donation, it’s also possible to make a “donation in-kind,” which is the transferring of assets. When you make a donation in-kind, you are considered to have disposed of the donated property at its current fair market value. If the current value of the donated […]
Cloud Accounting
The Internet Age has revolutionized every industry and accounting is no exception. Introducing, cloud accounting; a faster and more efficient method of tracking your business’ expenses and financial reporting. Cloud accounting is the process of migrating financial accounting systems into a cloud-based platform, away from a server. In terms of the accessibility and benefits to […]
Changes To Employee Stock Options
An employee stock option (ESO) grants employees the right to acquire shares of the employer at a fixed price and provides a long-term incentive in which employees benefit from the success of their employer, and likewise, employers benefit from long-term, loyal employees. On March 19, 2019, the Federal Government proposed to implement an annual cap […]
It’s Never Too Early to Organize Your Music Business
Once you’ve started directing effort and funds toward earning income as a musician, congratulations, you’re in the music business! Many musicians put off organizing the business side of their career until they have to, only to realize how many opportunities they missed to save money along the way. So, no matter how overwhelmed you may […]
Executors and Income Tax
Executors and Income Tax In this article we’ll look at an executor’s responsibilities under the Income Tax Act. If you’re being considered as an executor of a will, we recommend getting legal advice before assuming the role, as it carries specific obligations under common and tax law. You should understand the nature of the […]
Changes To The Taxation of Testamentary Trusts?
A testamentary trust (a trust established by will after death) is subject to tax at graduated income tax rates. Conversely, an inter vivos trust (a trust created during a settlor’s lifetime) is taxed at the highest marginal tax rate applicable to individuals (currently 43.7% in BC). Consequently, for access to graduated rates of tax for […]
Payments to Non-Residents
If you make payments to non-residents of Canada, you may be required to withhold an amount from the payment and remit it to the CRA. Additionally, you may be required to file an annual information return and distribute tax slips to the recipients of the payments. Failing to do any one of these things could […]
Tax Consequences of Loans to Friends or Family
If you loan money to a friend or family member to help them buy a car or a house, or start a business, the expectation is that they’ll pay you back. But what if they don’t? Capital Loss Election Unless you’re in the money-lending business, your right as a creditor to receive repayment […]
