Tax Planning

Please note the following important dates are estimates only.  Please confirm your deadlines directly with your professional advisor. May 15, 2022           – April payroll remittances due May 31, 2022           – Fiscal year end February 28th tax payments due May 31, 2022           – Fiscal Year end November 30th tax filings due May is a…

There are many advantages and disadvantages of incorporating a business owned and operated by a sole proprietor – however a corporation may provide that added layer of protection and tax planning that a successfully run business would be ready for. The question most entrepreneurs ponder is not whether to incorporate, but when is it optimal…

Cash flow statement is a financial statement that records how cash flows in and out of a business during a specified period. This statement gives a well-rounded picture of a business’s financial health by determining where a business is earning and spending its cash. Performing a cash flow analysis is essential in success of any…

Goodwill is an intangible asset associated with a business combination. Goodwill is usually recorded when a corporation acquires another corporation and calculated as follows: Goodwill = a – b – c The purchase price of the corporation Fair value of the identifiable tangible and intangible assets acquired Liabilities that were assumed. Goodwill is usually reported…

Any Canadian Controlled Private Corporation (“CCPC”) in Canada which earns investment income (also referred to as passive income e.g., capital gains, dividends etc.) is subject to certain tax regulations that will be discussed below: Refundable portion of Part I tax: In addition to regular corporate income tax levied on all corporations resident in Canada, any…

Canada revenue agency provides certain small businesses with an option to use Quick Method to calculate GST/HST remittances (instead of regular GST/HST reporting method). This method requires a reduced amount of documentation and allows an easier calculation of the GST remittances. For applicable registrants of the GST quick method, they continue to charge their clients…

There are certain other factors that should be considered when one is deciding to incorporate. Advantages of Incorporation: Limited Liability: Liability protection is the main non-tax fundamental reason that a business usually incorporates. Even though sole proprietor and partners of a partnership have unlimited liability to creditors of the business, Shareholders of a corporation do…

As a taxpayer in Canada, you have rights that extend the right to pay tax.  The Taxpayer Bill of Rights was introduced in 2007 to increase accountability and transparency by the CRA.  The document outlines sixteen rights and provides a pledge by the CRA to small business with five additional commitments. Understanding your rights will…

What is a QuickBooks ProAdvisor? A QuickBooks ProAdvisor is a person, typically a CPA or an accounting technician, who completed the course, took the test, and became certified in QuickBooks. There are different types of certifications one can apply for, including QuickBooks Online (QBO).  Someone who holds an Advanced certification in QBO is well-informed in…

Dividends from a subsidiary corporation to its parent corporation are often thought to be tax-free – however this is not a safe assumption.  The simple movement of dividends from a subsidiary to its parent corporation using the tax exemptions available under subsection 112(1)[1] or 84(3)[2] of the Income Tax Act[3] (the Act) can be contentious…