Davidow & Nelson Blog

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 »

The World is Shrinking: CRA STRATEGIES ON OFFSHORE TAX EVASION

A recent article reported that CRA is reviewing every electronic fund transfer over $10,000 from Canada to four foreign jurisdictions per year. The first two targets were the Isle of Man and the Island of Guernsey, with two more undisclosed jurisdictions to be reviewed by March 31, 2017. CRA has started audits of 166 high-risk… Read more »

Not so Fast: OBJECTIONS

When filing an objection to a CRA reassessment, one of the most frequently-posed questions is “How long will it take?”. The answer, according to the Auditor General, is “too long”.On November 29, 2016, the Auditor General released a report to Parliament focusing on the effectiveness and timeliness of the objection process.Length of Process For the… Read more »

Tax Consequence: PAYROLL ADVANCES

In an April 26, 2016 Technical Interpretation, CRA opined that where an employer provides a payroll advance to an employee, the amount is not generally considered to be a loan. A salary advance is a payment for salary, wages or commissions that an employee is expected to earn in the performance of future services. These amounts are generally included in… Read more »

Financial Hardship: TAXPAYER RELIEF

CRA may grant relief from penalties and interest in cases where the timely satisfaction of a tax obligation was not completed due to: extraordinary circumstances; actions of the CRA; or inability to pay or financial hardship. In a March 31, 2016 Federal Court Judicial Review, the taxpayer appealed a decision by CRA to refuse relief on penalties… Read more »