Management fees are paid to the managers of a business for management services performed. Only reasonable management fees paid can be deducted as an expense. However, the Canada Revenue Agency has not explicitly stated what a reasonable amount is to charge for a management fee. Generally speaking, a reasonable management fee should be equal to … Continue reading What is a reasonable management fee?
A T1-OVP is a form where you report the contributions you made to your RRSP account, and disclose the deduction limit that you had. You are required to complete the T1-OVP when you contribute more than your deduction limit. The T1-OVP shows you how much you will have to pay in tax. The penalty for … Continue reading What is a T1-OVP?
If you’re an independent contractor, IT consultant, or small business owner, then Wave Accounting is sufficient for your needs. It’s able to generate all of the financial reports required by your accountant and has the necessary tax codes such as HST. If you have multiple employees, a large customer base, or a lot of vendors, … Continue reading Should I use Wave Accounting for my bookkeeping needs?
In order to be eligible to make quarterly corporate tax instalments, you must meet several criteria including being in perfect compliance history and having taxable income of $500,000 or less in current or previous years. For exact eligibility criteria, please click here.
If you receive a grant from a federal, provincial or other government body that is assistance for a SR & ED expense, the grant will reduce the claimable SR & ED expense amounts on the tax return. This can, in effect, increase your tax payable.
The tax instalments can be calculated in 3 ways. Please see below for the different methods as indicated by the CRA. No Calculation Option: Instalments payments are based on taxes owing in last year and 2nd last year. This alternative is best if taxes owing are fairly consistent from year to year. Prior-year option: Tax … Continue reading What are the different methods of calculating tax installments?
The CRA will consider the date that the return is sent as the date of receipt. That means, as long as you send your personal tax return by April 30, the CRA will not impose late filing penalty. You should keep the mailing receipt as proof of the filing date.
If you fail to file tax slips by the due date you will be subject to late filing penalty based on the number of slips you file late. For 1-50 slips, the penalty is $10 per day up to a maximum of $1,000. For more information check out this section on the CRA website. However, … Continue reading What are the consequences of issuing tax slips late?
You can check by giving the CRA a call a few days after the payment is made. The CRA’s contact numbers are listed here. The other option is to log in to your “My Account” on the CRA website and access your information. The registration generally takes around 10 business days.