How to Save Money with Salaries and Dividends in 2014

Deciding on the right compensation strategy between salary and dividends can be quite tricky. There are advantages and disadvantages with each approach and this also varies depending on one’s situation. So the best strategy in order to save money involves a combination of both tailored to the individual’s situation.

INCOME TAX TIPS FOR SOLE PROPRIETORS

Do you own your own company? Are you interested in how you can save taxes on a one-person business? In this article, I will show you several real-world management tips. I will explain how using these sole proprietorship hints can help save you money and reach your goals. Before we do that, however, let us … Continue reading INCOME TAX TIPS FOR SOLE PROPRIETORS

Zappers

TAXATION New federal legislation is now in place to punish users of electronic sales suppression software. The federal government is getting tough with businesses that use electronic sales suppression (ESS) software (commonly called “zappers”) to delete or modify point-of-sale (POS) transactions for the purpose of evading taxes. E?ective January 1, 2014, zapper users will, of … Continue reading Zappers

Tax Credits for Hamilton Industrial Manufacturing and Processing Corporations

SR&ED Tax Credit Program Manufacturing and processing companies that have qualified expenditures  related to research and development activities may be eligible for the very lucrative scientific  research & experimental development tax credit.  Incorporated Canadian-controlled private corporation (CCPC) can generally claim an investment tax credit (ITC) of 35%, a 100% refund on qualified SR&ED current expenditures … Continue reading Tax Credits for Hamilton Industrial Manufacturing and Processing Corporations

SR&ED Tax Credits for Technology Companies in Waterloo, Ontario

Many technology companies in Waterloo do not realize that they may be eligible for the SR&ED tax credit. This tax program provides them with an enormous credit for expenditures related to research and development.

How do I amend my HST return?

If you’ve made an error in your HST filing, you will need to correct your HST return. You can do so by writing a letter to the CRA stating the corrections and the line numbers that needs to be corrected. Please note that you should not refile an HST return.  

Tax Saving Strategies for Small Business Owners and Households

Small business owners with families can utilize a number of different tax savings strategies to maximize their financial well-being. This consists of incorporating their business, claiming business related costs, allowing the lower income spouse to pay for household expenses, and using the employee home purchase loan to purchase a house.

Does HST have to be collected/paid on acupuncture treatment?

HST does not have to be charged/paid if the acupuncture treatment is performed by a qualified medical practitioner.  

I incurred meals expense that were reimbursed by my client. Is this expense 50% deductible to me or 100%?

If you received reimbursement for meals expense that you incurred, the meals expense will be fully deductible to you. However, you will also have to report the reimbursement that you received as income. In effective, the income will cancel out the expense.  

Shareholder Loans – How to Get Cash out of Your Corporation Tax-Free

Shareholder Loans As a shareholder, there are a number of ways to withdraw funds from your corporation, i.e.: you can declare dividends, receive salary, or take bonuses. However, each of these remuneration strategies has personal income tax implications. An alternative method of withdrawing corporate funds is to have the corporation issue a loan to the … Continue reading Shareholder Loans – How to Get Cash out of Your Corporation Tax-Free

If a company is willing to pay money per month for an annual membership (fitness club, golf) again, is there a way to structure it not as just an expense of the company?

If a company is willing to pay money per month for an annual membership, both golf dues and sports clubs dues paid by your employer will be considered as a taxable benefit to you, unless you can establish that the dues paid were primarily for the advantage of the employer. This is a sticky area … Continue reading If a company is willing to pay money per month for an annual membership (fitness club, golf) again, is there a way to structure it not as just an expense of the company?

If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

Yes, there is a taxable benefit to you should your employer lease a car for you. These benefits are knows as the stand-by-charge and the operating cost benefit. The stand-by-charge means that you derive a benefit simply because the leased car is available for your use. The operating benefit is calculated based on the personal … Continue reading If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

I collected HST but didn’t register for an HST number on time, what should I do?

The CRA can only back-date your HST registration by 30 days. In order to request a registration date that is past 30 days, you should write a letter to the CRA detailing your reason for requesting such an old registration date. In addition, the CRA requires that you provide 5-6 invoices around the back dated … Continue reading I collected HST but didn’t register for an HST number on time, what should I do?

What is a reasonable management fee?

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?

Sales Tax Guide for Canadian Businesses

As a small business owner you may be responsible for filing a Canadian sales tax return in addition to your business income tax return. To help you better understand your GST/HST filing responsibilities, I have created this concise Sales Tax Guide for Canadian Businesses. This guide is broken down into 5 parts: 1. Who needs … Continue reading Sales Tax Guide for Canadian Businesses
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