‘Will provide a lot of relief:’ Ottawa’s passive investment tweaks to ease
Amid the controversial proposed tax on passive investment income, the Finance Minister has recently made a decision to soften the changes by not subjecting the first $50,000 of passive investment income earned by private corporations to the new tax. Given that just 3 percent of Canadian businesses earned above the threshold in 2015, this means […]
Read MoreTax Changes to Reporting WIP for Dentists, Lawyers, Doctors, & Other Professions
In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without […]
Read MoreFeds say employee discounts won’t be taxed after CRA document suggests they will
The Trudeau government recently said that employee discounts will not be taxed despite a CRA document, which stated that they would indeed be taxed. The Retail Council of Canada, political rivals and business lobby groups have voiced a very strong concern that the new wording found in a government document could impact retail workers in […]
Read MoreEmployee Discounts on Merchandise is Now a Taxable Benefit
Historically, CRA has stated that an employee enjoying a discount on the purchase of merchandise from their employer is only taxable if a limited number of specified situations exist, such as where the employer makes a special arrangement with the employee or group of employees to buy the merchandise at a discount; the employee buys […]
Read MoreProposed Tightening to Voluntary Disclosure Program for Businesses
The Voluntary Disclosure Program (VDP) provides taxpayers (individuals, corporations, partnerships, trusts, etc.) the opportunity to fix incorrect or incomplete previously filed tax returns (or returns that should have been filed) with a reduction to penalties and possibly interest. CRA recently released fairly substantial proposed changes to the current program, effective January 1, 2018. The proposals […]
Read MoreOttawa’s new tax proposals: Slow down and get them right
There has been unprecedented opposition to the tax changes that were proposed on July 18, 2017. Despite the criticism and concerns, the Liberal government is still trying to sell the proposals as tweaks to the existing tax system that will only target the rich. The media and business owners of all sizes are concerned that […]
Read MoreA plan for handover of your business can pay for itself many times over
When entrepreneurs are building their businesses, they do not usually think about their end game. Especially at the beginning, you’re usually in a good place with your business partner. Nevertheless, over time disputes and disagreements can happen, and that’s when an agreement for the planned transfer of ownership for a business is necessary. While you […]
Read MoreLook At The Numbers: There’s No Justifying A Tax Hike On Employers
Canadian Finance Minister Bill Morneau proposes changes to taxing small businesses that can cause businesses to close or force owners to spend their savings. This will cause business to raise their costs, ultimately forcing Canadian citizens to pay more money for goods and services. The proposed changes don’t accurately represent the facts of how they […]
Read MoreMorneau’s tax changes will hurt those Liberals claim to help
Finance Minster Bill Morneau has released his plans to crack down on what the government calls “tax loopholes.” The victims in this are millions of Canadian small-business owners. The government views the lesser taxation on small business as unfair, and they wish to eliminate legislation that previous governments put in place to help small businesses […]
Read MorePrivate corporation tax proposals unquestionably harm “middle-class” business owners
While the stated intention of recent tax cuts proposed by the Government is to close loopholes that benefit high-income earners, these proposals are actually an attack on all entrepreneurs. In the example of a small business owned by a family and wife, the new tax proposals would not only force them to enact expensive tracking […]
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