Davidow & Nelson Blog

Impact on Tax Refunds or Credits:NON-COMPLIANT GST/HST REGISTRANTS

In a recent release (Excise and GST/HST News No. 102), CRA reminded taxpayers that they may place a non-compliance hold on a taxpayer’s account if they are a non-compliant GST/HST registrant. That is, for example, if income tax or GST/HST returns are outstanding. This would prevent the provision of any refund or credit to the… Read more »

The IRS is Targeting Smaller Foreign Entities: OPERATING A BUSINESS IN THE U.S.

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… Read more »

Who Can Manage the Deceased’s Tax Affairs?: DYING WITHOUT A WILL

Where a family member of a deceased individual would like to be recognized by CRA as the person or persons who will manage the tax affairs of the person who died without a last will and testament, they can now do so by completing a CRA Form (Affidavit for intestate situation, Forms RC549 to RC561,… Read more »

2017 PERSONAL INCOME TAX RETURN CHECKLIST

A. Information – All Clients Must Provide 1. All information slips, such as: T3, T4, T4A, T4A(OAS), T4A(P), T4E, T4PS, T4RIF, T4RSP, T5, T10, T2200, T2202, T101, T1163, T1164, TL11A, B, C and D, T5003, T5007, T5008, T5013, T5018 (Subcontractors), and corresponding provincial slips. 2. Details of income for which no T-slips have been received,… Read more »

2017 YEAR-END TAX PLANNING

December 31, 2017 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2017 YEAR-END TAX PLANNING TIPS INCLUDE: 1) Certain expenditures made by individuals by December 31, 2017 will be eligible for 2017 tax… Read more »

The CRA Has Checklists to Help: CHARITY FILING AND COMPLIANCE OBLIGATIONS

The CRA Charity Directorate provides a number of fairly comprehensive and easy to read checklists relating to various responsibilities associated with operating a registered charity. These can be particularly helpful as a reminder for individuals who are involved (employee, volunteer, or even Board Member) with a charitable organization. For example, clear guidance is provided on… Read more »

Change in an Individual’s Circumstance: GUARANTEED INCOME SUPPLEMENT

The guaranteed income supplement (GIS) provides a monthly benefit payment to lower income individuals resident in Canada. Payments from July of one year to June of the next, are based on income of the previous calendar year (i.e. 2016 income is used to determine July 2017 to June 2018 payments).Where an individual is married or… Read more »

Can I Deduct Losses Against Other Income?: BUSINESS LOSS OR PERSONAL VENTURE

In order for an individual to apply their business loss (where reasonable expenses exceed revenues) to another source of income such as employment earnings (thereby reducing the overall tax liability), the taxpayer must be able to prove that they are truly running a business. That is, they have to show that the undertaking was in… Read more »

TAX TICKLERS… some quick points to consider…

An individual’s online CRA account (My Account) is now linked to their online Service Canada Account (EI, CPP, OAS, etc.) to provide both departments’ information in a single log-in session. Over the past two years, CRA has completed over 21,000 files related to real estate, assessing over $329 million in previously unreported income, and applying… Read more »