Do I have to file a personal tax return?

The answer to this question depends on a number of things. Please contact one of our staff members who can answer this question for you.

Should I contribute to an R.R.S.P. or pay down my mortgage?

In the long run, you come out pretty much the same by paying down your mortgage compared with making an R.R.S.P. contribution assuming two things: your mortgage rate is the same as the return in your R.R.S.P.; and your tax bracket doesn't change between the time you deduct your R.R.S.P. contribution and the time you pay tax on your retirement income from the R.R.S.P. However, if you expect your tax bracket to drop when you retire, it may be in your favour to use the R.R.S.P. contribution strategy.

What is the six-year requirement?

You must retain books and records (other than certain documents for which there are special rules) for six years after the goods are imported or exported, for six years from the end of the last taxation year to which they relate for income tax, or for six years from the end of the year to which they elate for GST purposes. If you filed your income tax return late, keep your records and supporting documents for six years from the date you filed the late return. The minimum period for keeping books and records is usually measured from the last year you used the records, not the year the transaction occurred or the record was created. For example, let's say you bought some restaurant equipment in 1995 and sold it in 1997. In this case, even though the records relating to the purchase of the equipment were created in 1995, you need them to calculate the gain or loss on the sale in 1997. Therefore, you must keep the records until 2003. You have to keep every book and supporting record necessary for dealing with an objection or appeal until it is resolved and the time for filing any further appeal has expired, or until the six - year period mentioned above has expired, whichever is later.

Is my investment income earned outside the country taxable?

In many instances, you can save tax dollars by incorporating. Each situation is different. You should make an appointment so that we may evaluate your particular situation to determine what is best for you.

How do employee deduct car expense for employer use?

If, as an employee, your vehicle use meets the requirements to be eligible to deduct motor vehicle expenses, you do not receive a reasonable car allowance, and your employer is willing to complete a T2200 form, there may be tax advantages to claiming vehicle expenses. You need to have all of your automobile receipts and a record of all business-related kilometers traveled. If you use these deductions, you must include any vehicle allowance received in your taxable income. These same rules apply if you are self-employed.

How does a sole proprietor pay taxes?

A sole proprietor pays taxes by reporting income (or loss) on a personal income tax return (T1). The income (or loss) forms part of the sole proprietor's overall income for the year. If you're a sole proprietor, you must file a personal income tax return.

How does a partnership pay taxes?

A partnership by itself does not pay income tax on its operating results and does not file an annual income tax return. Instead, each partner includes a share of the partnership income or loss on a personal, corporate, or trust income tax return. Each partner also has to file either financial statements or one of the forms referred to in the section on sole proprietorship (or a computer - generated version of one of these forms). You do this whether or not you actually received your share in money or in credit to your partnership's capital account. A partnership has to file a partnership information return if, throughout the fiscal period, it has six or more members or if one of its members is a member of another partnership. For GST purposes, a partnership is considered to be a separate person and must file a GST return and remit tax where applicable.

Should I incorporate my business?

In many instances, you can save tax dollars by incorporating. Each situation is different. You should make an appointment so that we may evaluate your particular situation to determine what is best for you.

What is a "corporation" in Canada?

A corporation is a separate legal entity. It can enter into contracts and own property in its own name, separately and distinctly from its owners. Since a corporation has a separate legal existence, it has to pay tax on its income, and therefore must file its own income tax return. It must also register for the GST if its taxable worldwide annual revenues (including those of associates) are more than $30,000. You set up a corporation by filling out an article of incorporation, and filing it with the appropriate provincial, territorial, or federal authorities.

What is meant by "transition to the new act"

All companies that were created before the Business Corporations Act comes into force will have two years from that date to file a Transition Application on Corporate Online. This will be a mandatory electronic filing. Companies will still be able to file most forms without having to transition. However, other filings, such as Notice of Alteration, will not be allowed until the Transition Application is filed.

How does a corporation pay taxes?

A corporation must file a corporation income tax return (T2) within six months of the end of every taxation year, even if it doesn't owe taxes. It also has to attach complete financial statements and the necessary schedules to the T2 return. A corporation may pay its taxes in monthly installments.

Does my business have to register for the GST?

A business with annual taxable revenues of $30,000 or more is required to register and collect G.S.T. Businesses can also claim input tax credits for G.S.T. paid or payable on the purchase of goods or services used in their commercial activities.

What do I deduct from my employees' pay cheques?

You're responsible for deducting income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) premiums from your employees' pay cheques. You are also responsible for remitting this money to Revenue Canada at regular intervals, usually on or before the 15th day of the month following the month in which you deducted it. It's a good idea to remit payroll deductions on time. If your payment is late, you will have to pay a penalty.

Are gifts to employees taxable?

A gift, either in cash or in kind, which you give an employee, is considered a taxable benefit from employment. When the value of the gift is more than $100, or if the gift is not for Christmas (or an occasion like Christmas) or a wedding, the value of the gift is a taxable benefit.

How do we get started?

Send us an email or phone us stating the size of your business in (1) number of employees, (2) approximate sales volume, (3) location, and (4) what you are interested in having us do for you. (5) Provide us with your business name, your name and phone number, email, and address so that we can be prepared to provide you with a quote.