If you plan on leaving Canada, whether for the U.S. or another country, here are some things to know: Each country has its own rules for taxing individuals. Canada will tax you on your worldwide income if you are considered a “Canadian resident” whether you live in Canada or temporarily somewhere else or are a […]
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 […]
Late Filing Your Corporate Return is Never a Good Idea
Under the Income Tax Act, a corporation is required to file its tax return within six months of the end of a taxation year. The penalty for late filing is generally calculated as a percentage of the unpaid tax for the fiscal year. If no tax was payable for the year due to a […]
Death and Taxes
As Mark Twain pointed out, the only two certainties in life are death and taxes. And even in death you can’t escape taxation. In this article we’ll look at some of the tax issues that will arise after your death. Final Tax Return Your final tax return will include all income received in […]
2019 Federal Budget Highlights
Overview On March 19th 2019, Finance Minister Bill Morneau delivered his 4th Federal Budget since the Trudeau Liberal Government took office in 2015. After significant corporate and personal tax changes made over the past three years, Budget 2019 was light on tax changes but big on spending. Budget 2019 projects a deficit of $14.9 […]
Five Reasons to Always File a Personal Tax Return
As a Canadian resident, you’re only required to file a personal tax return if: You owe taxes (i.e., before applying credits for source deductions and installments). You’ve earned taxable capital gain or disposes of capital property in the year. You have a balance in your Home Buyer’s Plan or Lifelong Learning Plan at the end […]
Resigning as a Company Director? Get it in Writing.
If you’re planning on resigning as a director of a company, a signed and dated letter attesting to your resignation is key. This is because of two obligations from the Income Tax Act and one from the Excise Tax Act that can become personal liabilities for up to TWO YEARS after you’ve resigned. These obligations […]
Manage Your Risks to Ensure Your Company’s Long-Term Success
The risks you’ll face as a business will change constantly based on the market (new competitor, new product), the organization (international expansion strategy, acquisition of another company, initial public offering), products (product obsolescence, major recall of a defective product), etc. As such, risk evaluation should be built into your structure, and ideally have a person […]
