Tax Planning Archives - Shajani CPA - Chartered Professional Accountants & Advisors

What the CRA Said

February 28, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

Confirm a representative using My Account or My Business Account This tax season, there’s a new way to confirm authorized representatives using My Account or My Business Account. Whether you’re an individual or a business, this easy, two-step digital process will help you protect your tax information and make authorizing new representatives more efficient and secure. Who is…

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Important Dates

February 28, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

Please note the following important dates are estimates only. Please confirm your deadlines directly with your professional advisor. March 15, 2022 – February payroll remittances due March 30, 2022 – Trust filings due March 31, 2022 – Fiscal year end December 31st tax payments due March 31, 2022 – Fiscal Year end September 30th tax…

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Voluntary Disclosure

February 27, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

The Voluntary Disclosure program (VDP) is a program offered by the Canada Revenue Agency (CRA) that allows taxpayer to come forward and correct errors or omissions on their tax return or to disclose any previously unreported income without facing penalties or prosecution. The program is designed to encourage taxpayers to come forward voluntarily and correct…

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Prepaid Expenses

February 26, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 received. Pre-paid expenses are a type of assets on the balance sheet that results from…

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Effective Tax Strategies Help You Minimize the Amount of Tax You Need to Pay

February 26, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 Income Tax Act is the primary source of income tax law. These laws are created…

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Taxable vs. Non-Taxable Benefits

February 25, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 to income tax and must be reported on an employee’s T4 slip at the end…

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Analysis of Section 84(2), MacDonald Case, McNichol and the Pipeline

February 24, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 or property of a corporation resident in Canada that have been distributed on the winding-up,…

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Personal Care and Health Care Decisions

February 23, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 incapacity. It is a type of advance care planning that can give individuals peace of…

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Section 86 Share Exchange

February 22, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 to another corporation in exchange for shares of that corporation. The section provides rules that…

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Business Valuations

February 22, 2023
Nizam Shajani, LL.M, CPA, CA, TEP, MBA Tax & Assurance Partner

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 sell the business or reorganize the corporation. There are three main valuation approaches used: asset-based,…