Answers Archive

c corporation for canadian resident

Doing business in the US through a US C-corporation is very tax efficient. I recommend that you make your existing Canadian corporation the owner of your newly created C-corporation. Consider the following points: > The US federal income tax rate is 21% on the business profits generated by a US C-corporation. > Consider forming a … Continue reading

If a tax consultant made major errors on my corporate tax return, do I legally need them to redo the taxes, or can i have someone else redo the taxes?

You are allowed to have a different accountant resubmit/amend your corporate tax return. Hiring a different accountant will not create a red flag for the CRA. However, if you amend a corporate tax return, the CRA will likely ask you/your accountant for additional information to support the changes made to the corporate tax filings.

Transfering own funds from Dubai to Canada

Thank you for your questions. For the 2016 tax year, neither you nor your husband have to file a Canadian tax return. This is because you were not factual residents of Canada in 2016. As of March 2019, you and your husband became tax residents of Canada because you both permanently moved to Canada at … Continue reading

Non resident

Yes, it could become an issue. I recommend that you file a departure return for the year that you left with the CRA as soon as possible.

Child Care Benefits

You can apply for the Canada child benefit (CCB). To apply, submit form RC66 (Canada Child Benefits Application) to the CRA or apply online using My Account.

Non-resident Family would like so send children to school in Canada

If you are a Canadian citizen or a Canadian permanent resident and you have a dependent child who lives in Canada, then you will be classified as a factual resident of Canada. This will still be the case even if your child is attending a private school in Canada which you pay for. As a … Continue reading

T5 issued instead of NR4

You should write a letter to the Non-Resident Withholding Tax Department of the CRA explaining the situation. With the letter, enclose a copy of the T5 slips received and a cheque payable to the Receiver General of Canada for 15% of the amount of the Canadian dividends received. This is the applicable withholding tax rate … Continue reading

HST NORMAL METHOD OF FILING

Line 103 is equal to the total HST (13%) collected from customers. If you have charged HST on all sales made in the year, then Line 103 will be equal to result of 13% multiplied by line 101 (sales).

Is it possible for a U.S. S-Corp to avoid paying Canadian and provincial taxes on income from a Canadian client (consulting) and instead opt to pay U.S. corporate taxes?

It depends on several factors: – Where are the services performed? Canada or the US? – If the services are performed in Canada, how many days are you or your employees physically present in Canada? – What are the total revenues of your company for the year? – If the revenue from the Canadian contract … Continue reading

Reporting Claimed Gst and Hst on expenses

Record the following transactions in this order: 1) Debit Cash $100 and Credit GST/HST Payable for $100 (to record HST collected on sales) 2) Debit GST/HST Payable for $150 and Credit Cash for $150 (to record HST paid on business purchases) 3) Debit Cash for $50 and Credit GST/HST Payable for $50 (to record GST/HST … Continue reading

GST/ QST/ HST Paid on Purchases Account

When GST/HST is collected, the GST/HST liability account is credited. Likewise, when input tax credits are claimed (for GST/HST paid on business expenditures), the GST/HST account is debited. The same applies to QST collected and paid.

When to pay gST/PST/HST on services provided extra Provincially by a BC Corporation?

Charge Newfoundland HST because that’s where your customer’s billing address is. File a single GST/HST return and report the sales for the period, GST/HST collected, and GST/HST paid on business purchases.

45(2) election confirmation

The CRA will send a Notice of Assessment for the tax return for which the 45(2) election relates. However, I have not received a letter from the CRA unless the election is denied.

Business Tax Benefits of Providing Housing to Key Employees

Thank you for your question. Employer-provided housing is a taxable benefit to employees. Payroll taxes will need to be deducted from the benefit in the same manner as salary paid to an employee. The taxable benefit is tax deductible for the employer. So I don’t see a tax advantage.

india rental income

Report the income and expenses (in Canadian dollars) in respect of your Indian rental property on form T776. Claim a foreign tax credit for the Indian taxes paid on form T2209.

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