For taxation years beginning after December 31, 2018, all Canadian controlled private corporations (CCPCs) earning investment income must consider a new set of complex rules relating to their refundable dividend tax on hand (RDTOH) balances. These rules could increase the tax costs to individuals when distributing corporate funds from their private corporations. Taxpayers will need [...]

Consider the successful real estate or insurance agent, the financial product vendor, the area sales representative, or any other person earning commission income. One day they are asked, if they ever considered running their activities through a corporation as opposed to providing the services personally. There are definitely some valuable possibilities, but there are dangers [...]

Before you can get a cheque cut from a bank or other financial institution for your business, the lending institution is going to want some information. Often businesses assume that all they need is to fill-out a simple loan application and can find themselves caught off guard by what is required. While every financial institution [...]

CRA has provided commentary on its website to discuss recent changes to allow the electronic distribution of T4 slips. In the past, an employer could provide a T4 electronically only with the employee’s consent. For 2017 and subsequent tax years, employers may also satisfy their obligations by providing electronic versions without specific consent, provided other [...]

The Liberal government released the new proposals on income sprinkling and passive investments held inside a private corporation. Based on our analysis, income splitting with your spouse is going to be seriously impacted by these changes. With these new changes, we are now recommending that if you were planning on paying dividends to a non-active [...]

Whether you are a business owner looking to sell a percentage (or all) of your business or an investor wishing to purchase a company, the first step is to arrive at a fair market value for the business. For every scenario, buyers and sellers need to quantify the worth of all, or part, of a [...]

In recent years, Canada Revenue Agency (CRA) has particularly focused on tracking underground economy activities. One way they are doing this is by obtaining information from key 3rd parties. For example, recently CRA obtained details from contractor credit applications submitted to Rona. Consider the type of information that Rona would have: name, address, and other specifics [...]

Up until a certain point, small businesses can often operate and file their taxes on their own before there is a need to bring in an expert. Today, with the abundance of accounting software available you may even be able to manage it for longer on your own, even if you don’t have a lot [...]

In a March 31, 2017 Technical Interpretation, CRA commented on the tax consequences of a charity returning a donated property to the donor. This could occur, for example, when a donation was made specifically for a project that had been halted. Donor – Where the property is returned to the donor, the taxpayer is deemed [...]

The IRS has recently noted that they are rolling out campaigns to focus on entities below the “big fish” that have historically been targeted. Such campaigns include: Related party transaction campaign – a redefined focus on mid-market entities to determine compliance with U.S. transfer pricing requirements. Inbound distributor campaign – reviewing whether S. affiliates distributing [...]