The use of Trusts for income splitting are requiring more sophisticated tax planning since the introduction of recent legislation such as the TOSI (tax on split income), also known as the “kiddie tax” rules. However, a Trust can still be…
Although income splitting with your children has become difficult, there is still some opportunities currently available that include using marketable securities, a Trust and a tax professional. Historically, income spitting was addressed through attribution rules. These rules were circumvented through…
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…
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…
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…
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:…
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…
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…
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…