business and corporate tax Archives

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

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

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

Christmas Savings Tips Watch Video

Christmas and the winter holidays are both fun and expensive at the same time.

My current employer asked me to become an independent contractor. What’s the benefit for them?

The employer won’t have to deduct CPP and EI because those are employment withholding requirements. They also will not have to pay for employment benefits and vacation pay. The cost of CPP and EI per employee could be higher than $3,000, so you can imagine the savings.

Can my corporation pay for my for my cell-phone bill if I use it for business purposes?

A corporation can only deduct expenses that it incurs. If your cell-phone is registered to you (and not your corporation) and you use your cell phone partially for business purposes, then you can ‘charge-back’ the business use portion of your cell phone bill to your corporation. It’s a best practice to first pay for the bill yourself. … Continue reading

Can you make quarterly instalments to CRA instead of monthly?

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.

Why Should Corporations Consider Amalgamation or Merger?

An amalgamation, or merger, involves combining two or more corporations into one entity. Amalgamations are sometimes performed during purchase of a business and also often as part of reorganization. This article discusses the many advantages of amalgamation. Advantage #1: Synergy Amalgamation of multiples companies into one entity can result in greater success due to increase … Continue reading

What happens if I did not file form T2057 when converting my sole proprietorship to a corporation?

When changing from a sole proprietorship to a corporation, you must file form T2057. Otherwise, capital gains tax will apply on the assets transferred by you (i.e. sole proprietor) to your newly created corporation. Also, a penalty is levied by the Canada Revenue Agency for filing form T2057 late. The penalty is calculated as $100 … Continue reading

What is the difference between a GST/HST rulings and interpretations?

An interpretation is an anonymous rulings request to the GST/HST rulings department. You will supply the case facts to the CRA who will then provide a ruling of whether you have GST/HST responsibilities based on these facts. If it is determined that you have HST responsibilities, you have the choice to ignore the interpretation as … Continue reading

Can I pay a dividend to myself from my company in excess of the company’s retained earnings?

Generally, a company cannot declare a dividend above and beyond the retained earnings of the company on the dividend declaration date. You must wait until the company generates additional earnings before declaring additional dividends.

What You Need to Do For Personal Service Business

The Final Nail in the Coffin for Personal Service Business? What You Can Do to Fight Back Tax advantages and deferrals amongst corporations is nothing new, so it is no surprise that Bill C-48 which received royal assent on June 26, 2013 would have looming implications for many businesses including personal service businesses (PSB). This … Continue reading

Unique Tax Ideas for Small Businesses

Every serious entrepreneur understands that cash is the bloodline of their business. While they look at all areas of operation for ways to cut costs and protect their cash flow, they should be aware that smart tax planning can greatly assist their business. Below, I have explained unique tax ideas that you, as a small … Continue reading

Toronto Small Business Accountant – Reducing Taxes and Saving $$$

Has your small business accountant Mississauga actively helped in the reduction of your taxes? Have you been able to save your small business any money? If not, then according to the advice of Allan (expert and small business accountant Mississauga) you should have a candid conversation with your business accountant and ask the following mandatory … Continue reading

Tax Deductions for Small Business Owners

What are the tax write-offs available to small business owners in Canada? If you are a small business owner in Canada, it’s important to be aware of all possible tax writes offs for your business. Tax write offs will significantly reduce your business’ taxable income and taxes payable.

Tag: business and corporate tax