Tag: business and corporate tax

If I perform a service in one province for a client located in another province, how do I determine which GST/HST rate to charge?

The sales tax rate to charge on a service provided depends on the place of supply for that service. For a service, the place of supply is the usually the location of the recipient. The location of the recipient is usually determined by their address. The general rules are subject to change based on specific … Continue reading If I perform a service in one province for a client located in another province, how do I determine which GST/HST rate to charge?

I often take clients to a sports or entertainment event and provide gifts to maintain client relationships. Will these costs be considered fully deductible or 50% deductible?

The expenses mentioned above will be considered entertainment expenses, so that only half of the amount spent can be deducted. This includes gift cards for food and drinks, restaurants and entertainment venues. Gifts that are food (e.g. box of chocolates) or drinks (e.g. wine) are also considered to be “meals”.

How to Prepare GIFI – Tax Financial Statements for T2 Watch Video

Are you a do-it-yourself kind of person, and want to prepare the T2 Corporate Tax Return on your own?

How do I determine which GST/HST rate to charge when I sell to multiple provinces in Canada?

Generally speaking, the rate of GST/HST to charge depends on the place of supply for the good that is being provided. The place of supply is generally where the legal place of delivery takes place. So, if goods are being delivered to a ‘participating province’ HST of 13% will be charged. If, for example, the … Continue reading How do I determine which GST/HST rate to charge when I sell to multiple provinces in Canada?

I didn’t register for WSIB even though it was compulsory. What should I do?

You can make a voluntary disclosure on the WSIB website.  By registering voluntarily, you will only have to make payment for WSIB premiums for the current year and the prior year. Interest and penalties will not be levied.  If you get caught for non-registration, then you could end up paying huge amounts in penalties, interest, … Continue reading I didn’t register for WSIB even though it was compulsory. What should I do?

What are the tax implications of my corporation paying critical illness premiums for me? What if I pay them personally?

Critical illness (CI) does not have specific mention in the Income Tax Act. It depends on the exact circumstances whether a CI policy resembles more to a life insurance or a sickness/accident insurance.  CI premiums paid by the corporation are not deductible. When the policy value is paid to the corporation on diagnosis of a … Continue reading What are the tax implications of my corporation paying critical illness premiums for me? What if I pay them personally?

What is the benefit of registering for GST/HST voluntarily?

The main benefit is that you can claim input tax credits (ITC) for the amount of GST/HST you paid on business expenses. For example, if you purchase materials from a vendor in the course of business, the government will provide you with credit for the amount of GST/HST you paid on the purchase. Therefore, any … Continue reading What is the benefit of registering for GST/HST voluntarily?

What is the role of an Ontario agent appointed by a Foreign corporation?

If you are a foreign corporation (i.e US LLC or US C-Corp.) carrying on business in Ontario, then you’ll need to appoint an agent in Ontario of your foreign corporation. This will allow you to apply for the extra provincial license required to carry on business in Ontario. The main role of the agent is … Continue reading What is the role of an Ontario agent appointed by a Foreign corporation?

Why IT Consultants and Independent Contractors Should Incorporate

Many IT consultants and independent contractors are operating as sole-proprietors without considering the benefits of incorporation, according to an informal survey by Accountants for IT Consultants. Not only are they paying higher taxes, they are also exposing their personal assets to potential legal liabilities. This article will cover the key reasons why it is beneficial … Continue reading Why IT Consultants and Independent Contractors Should Incorporate

5 Great tax saving tips for I.T Contractors & independent consultants!

An excellent tax saving strategy for independent contractors is to learn of and apply all tax deductions that are available for reducing taxable income. This article indicates numerous deductible expenses that can result in substantial tax savings for self-employed individuals.

Legal Ways to Reduce Business Taxes in Canada Watch Video

This short article will take you through the best legitimate methods to save business taxes in Canada.

Small Business Deductions – BNN Interview with Allan Madan Watch Video

Watch this short interview with Allan Madan on small business deductions.

Top Changes Small Business Should Be Aware of from the Federal Budget Watch Video

What are the top changes in the 2013 Federal Budget that business owners should know about?

Can I deduct research expenses relating to starting a new business?

Where a taxpayer is carrying on a business and incurs expenditures on research to determine whether to expand his/her business, to determine the desirability of developing a new product or line of products, to develop a more efficient manufacturing process, to improve administrative procedures These expenses would be considered current operating expenditures and are deductible … Continue reading Can I deduct research expenses relating to starting a new business?

What are the federal budget tax consequences? Watch Video

Are you wondering about the federal budget tax consequences?
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