Canadian tax brackets are portions of Taxpayer’s income in Canada which get taxed at different rates. The following is a breakdown of the Canadian Federal tax rates for 2019: 15% on the first $47,630 of taxable income Income earned between…
A Revenue Canada dispute is any disagreement that you have with the Canada Revenue Agency. These disputes can be about anything on your tax returns, such as credits, deductions, and income. Additionally, disputes can be about how to classify income…
A Tax-free savings account (TFSA) is a registered investment account that allows Canadian residents to earn tax-free money on certain types of investments. TFSAs are a great way for Canadians to save towards their financial goals, as they provide a great…
Uber drivers are considered self-employed in Canada, otherwise known as an independent contractor. As such, Uber drivers must keep records of the money they receive from Uber, and all of their expenses so that they may prepare and file proper…
The Canada Pension Plan (“CPP”) are government payments representing a replacement of income where disability, retirement, or death are involved. It is also one of the three levels of Canada’s retirement income system. CPP is responsible for paying retirement funds and…
What is a Taxable Benefit? A taxable benefit is a benefit that a taxpayer receives, typically paid for by a corporation, that is more related to personal choices than business expenses. If this is the case, then the taxable benefit…
What is Director’s Liability? In Canada, corporations are considered to be separate legal entities with their own assets and liabilities. It is a basic principle that employees, officers, and directors are not personally responsible for the debts incurred by their…
In the recently announced changes to the Income Tax Act, “reasonableness” takes centre stage. Taxpayers running businesses who pay money out to their family members in the form of dividends or salary, can currently “spread” that money around, distributing it to…
Realtors in Ontario have traditionally been left out in the cold when it comes to taking advantage of the tax benefits of professional corporations. Under the definition section of the Real Estate Brokers Act, real estate brokers and salespersons are required…
Professional Corporations Legislation in Ontario specifically permits certain professionals to practice their profession in a corporate form even though the professional is the sole employee of the professional corporation (PC). The Ontario Business Corporations Act (OBCA) permits a professional to practice…
When a taxpayer decides to start their own business, he or she must consider the type of business structure best suited to their individual needs. The most common forms of business arrangements are either a sole proprietorship, or a corporation….
If you have an incorporated business you are able to pay yourself in any way you would like. There are various methods of getting money out of your corporation. Some examples include: Salary; Dividends; Loans; Director Fees; Management Fees; and…