Prepaid Expenses
Prepaid expenses are a type of asset that represent payment made by a business for goods or services that will be received in the future. Essentially, it is an expense that is paid for in advance of the benefit being…
Effective Tax Strategies Minimize the Amount of Tax You Pay
Acquire tax smarts Contrary to popular belief, the Canada Revenue Agency, or the CRA, does not create tax law, nor are they the final and absolute word when it comes to the interpretation of any given tax statute. Rather the…
Taxable vs. Non-Taxable Benefits
In Canada, employees receive various types of benefits as part of their compensation package. These benefits can be taxable or non-taxable, depending on the type of benefit and the circumstances of the employee. Taxable benefits are those that are subject…
Analysis of Section 84(2), MacDonald Case, McNichol and the Pipeline
The MacDonald case has left its mark on the risks associated with a pipeline transaction and the interpretation of the text of section 84(2) of the Act. Section 84(2) S 84(2) of the Act discusses the dividend treatment of funds…
Personal Care and Health Care Decisions
A personal directive is a legal document that allows individuals to plan ahead and make decisions about their healthcare, personal care, and financial affairs in the event they become unable to make these decisions for themselves due to illness or…
Automate Your Bookkeeping
Bookkeeping is an important but time-consuming task that businesses must do to keep their financial records up-to-date. Having up-to-date financial statements can help business owners make the right financial decisions. However, with advancements in technology, businesses how have options to…
Section 86 Share Exchange
Section 86 of the Canadian Income Tax Act deals with the tax consequences of certain types of corporate reorganizations, specifically, when a shareholder exchanges shares of one corporation for shares of another corporation, or when a corporation transfers its assts…
Business Valuations
A business valuation is often required to determine the value of individual assets or an entire business. The approach used to value a business will depend on what is being valued. The most common reasons for business valuation are to…
Caregiver Credit
Caring for someone with a physical or mental impairment who is dependent on you is challenging. The caregiver credit provides some support if you find yourself in this situation. Who Can Make the Claim? This claim is for individuals who…
Spousal and Child Support
Separation and divorce are a challenging process and can be convoluted when it involves costs for child and spousal support. Understanding the tax treatment of how funds are distributed may have an impact on your decisions. Qualified Support Payments A…