There are a few questions that chartered accountants get asked all the time. They include (but are in no way limited to): What’s the key to growing a successful business? What’s the most tax-efficient way to draw profits from a corporation? Should I lease or buy my company car? What’s the minimum amount of time […]
If there’s one letter that entrepreneurs dread receiving in the mail, it’s the one from the Canada Revenue Agency informing them that their business or personal returns are the subject of a tax audit. Audits can take weeks, months, even years to complete in extreme cases, and can be emotionally and financially draining for business […]
Shortly after the release of the report by the Standing Senate Committee on National Finance, which is highly critical of the Department of Finance’s proposals on the taxation of private corporations, Finance Minister Bill Morneau released what he referred to as clarified rules around income sprinkling. Unfortunately, the release came with the same rhetoric used […]
If you’ve had reason to phone the Canada Revenue Agency of late, you may have experienced a long wait to speak to an agent—if anyone bothered to take your call. The anecdotal experiences of our accountants and clients has been confirmed in a new Auditor General’s report that sheds light on communication shortcomings at the […]
In more than 30 years of practice as a Chartered Accountant, one of the most common two questions I’ve been asked by clients is whether they should buy or lease a car, and whether they should buy personally or under their company name. Inevitably my answer has been, “It all depends.” How long do you […]
When the Department of Finance released its proposed changes to the taxation of private corporations in Canada on July 18, 2017, entrepreneurs across the country immediately took issue with measures they felt would cause undue financial harm to their businesses. And for good reason. If passed, these proposals will have extensive implications for all private […]
Small business owners in Ontario are getting a break on their taxes. This week Minister of Finance Charles Sousa delivered a fall economic statement that will lower the corporate small business income tax rate on the first $500,000 of business income to 3.5 per cent from 4.5 per cent, by January 1, 2018. The change […]
After several weeks of insistent rhetoric from Ottawa, entrepreneurs across Canada finally received some good news when the federal government began rolling back proposed tax changes for corporations. Although there is still a lack of detail, at least on the surface, there appears to be some compromise. However, there are still some troubling proposals on […]
A new Canada Revenue Agency (CRA) directive is about to make it much harder for entrepreneurs to correct legitimate tax errors without significant repercussions. The CRA recently proposed changes to the Voluntary Disclosure Program (VDP), an initiative that allows taxpayers to correct mistakes or oversights on their Canadian tax returns, or make new submissions, for […]
As Finance Minister Bill Morneau wrapped up his cross-country ‘listening tour’ to gauge Canadians’ reaction to proposed federal tax changes this week, it would have been easy to confuse the minister’s message. He has made it clear the federal government is determined to promote greater fairness across the tax system, levelling the playing field for […]
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