FAQs Archive

What happens to my assets upon divorce?

All assets acquired before marriage or “gifted” at marriage for marriage need not be split as they’re considered assets belonging only to the person that holds legal entitlement. Assets acquired during marriage or by virtue of marriage must be split among spouses (50% each). Assets that are to be split are valued at FMV (Fair … Continue reading

How do I pay personal income tax balance owing to the Canada Revenue Agency (CRA)?

There are 3 options in terms of payment for a balance owing to the CRA: Set-up your account through “My Payment” and pay online OR Go to your local bank branch and pay there OR Mail a cheque with the following information: Amount of Balance Owing Name of recipient: Receiver General Mailing address: 1050 Notre Dame … Continue reading

Can we reduce our revenues by the dividends we paid?

No, dividends are not an expense.

Does the strategy of high dividends and low salaries limit our ability to contribute to RRSPs?

Yes, for two reasons. First, you will have to pay personal income tax on money withdrawn from your corporation to fund the RRSP contributions. Second, I expect your personal income tax to be very low, so the RRSP deduction will not be helpful to you.

As an individual, how can I minimize my overall tax burden this year?

We have completed an excellent and in depth guide called “20 tax tips to beat the tax man for 2011”. This amazing book can show you great ways to minimize your tax burden and help you maximize your tax refund. You can get it through this website here.

I am currently a small business owner and I have been classified as an accelerated payroll remitter. What does this mean and what can I do to change the classification?

An accelerated payroll remitter is required to make bi-weekly payroll remittances the CRA. The government determines this classification based on financial information based on 2 years prior to current year. Contact us and we can assist you with the reclassification process.

I paid interest on my student loans this year, can I claim these as an expense?

Yes, you can deduct the interest paid on student loans for the year off of your taxable income. You may be eligible to claim an amount for the interest paid on your loan in 2011 for post-secondary education if you received it under: the Canada Student Loans Act; the Canada Student Financial Assistance Act; or … Continue reading

If I pay taxes in another country, is there any relief on my tax burden in Canada?

Depending on the tax treaty between Canada and the country you paid taxes to, you can claim certain Foreign Tax Credits (FTC’s) to help minimize your tax burden.

Is there any way that I can avoid paying taxes on my RRSP withdrawals if I am a non-resident?

We can help you file a non-resident tax return by making an election under section 217. By filing this return you will be eligible to be refunded all or a portion of taxes withheld on your RRSP withdrawal.

If I am currently living outside of Canada and have a RRSP, can I withdraw my funds from the RRSP tax free?

Unfortunately, if you are a non-resident of Canada and have an RRSP, any withdrawal from the RRSP while you a non-resident will be subject to a withholding tax of 25% on the withdrawal. You can receive a refund for all or a portion of the withholding tax paid, by filing a Section 217 tax return … Continue reading

What Happens To Your Child’s RESP When You Leave Canada?

You have to be a Canadian resident to receive the government grant related to RESPs. The tax-sheltered status of the RESP only applies to Canadian residents. If the subscriber or account owner is a non-resident, they might have to pay taxes on any income earned in the RESP account as well as capital gains, according … Continue reading

I’m in trouble with the Canada Revenue Agency. As an Accountant in Toronto, can you help me, or do I need a lawyer?

You don’t always need to pay expensive legal fees, if you’re in trouble with the Canada Revenue Agency (CRA). As Accountants in Toronto, we have assisted our clients in many different situations, including filing objections to unfavourable tax assessments and in reaching tax settlements with the Canada Revenue Agency. If you have a problem with … Continue reading

I live in Mississauga, but my business is in Toronto. Is it better to find a chartered accountant in Mississauga or Toronto?

The most important factors in selecting a Chartered Accountant in Mississauga or Toronto, is their experience, knowledge and service. At Madan Chartered Accountant in Mississauga, we exemplify all of these qualities to a high degree. Ask for References You should also ask for references when choosing between a Chartered Accountant in Mississauga or Toronto. If … Continue reading

What are business accounting services?

Business accounting services can be defined as “tools that enable you to make effective management decisions for a business”. To elaborate, business accounting services include (but are not limited to): Financial Statement Preparation Bookkeeping Tax return preparation Tax planning You Need Business Accounting Services in Mississauga Every business in Mississauga, whether large or small, … Continue reading

Is there such a thing as a Chartered Accountant – Expert in Taxes?

Yes, there are Chartered Accountants in Toronto who are also Experts in Taxes. Allan Madan of Madan Chartered Accountant in Toronto is a Tax Expert: He has completed Parts 1 and 2 of the Canadian In Depth Tax Course, which is the most comprehensive tax training in Canada He has held several tax seminars, including … Continue reading

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