11 Sep
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[...]
11 Sep
Improper input tax credit (ITC) documentation is one of the main reasons for GST/HST reassessments. Proper invoices to support ITCs are required by Canada Revenue Agency auditors.For example, the input tax credit may be disallowed if only the credit card slip is provided rather than the actual invoice. The supplier’s[...]
11 Sep
One of the more common expenses claimed by taxpayers are automobile expenses (applies to any motor vehicle such as van, bus, pickup truck, station wagon, SUV or other truck). Many individuals use their automobile for work or business and incur personal expenses in doing so. It is important to note[...]
11 Sep
It’s crucial to know whether your workers are employees or independent contractors. Big dollars may be at stake in the form of Federal and provincial assessed penalties resulting from misclassification. The validity of your company’s pension plan may also be at stake. A periodic review of the status of your[...]
11 Sep
Settle outstanding shareholder loans and interest on employee loans.If you have a shareholder loan that was made in the corporation’s previous taxation year, repay it before the end of the company’s current taxation year to avoid having the full amount of the loan included in your income. If you borrowed[...]