Davidow & Nelson Blog

Know Your Tax Obligations: SHARING ECONOMY

On March 17, 2017, CRA released a Tax Tip reminding those involved in the sharing economy to ensure that they comply with relevant income tax and GST/HST obligations. All income earned through sharing economy activities should be reported.CRA identified five key sectors, being accommodation sharing, ride sharing, music and video streaming, online staffing, and peer/crowdfunding.CRA… Read more »

Some Improvements: EMPLOYMENT INSURANCE

The 2017 Federal Budget proposed a number of changes to Employment Insurance (EI). Some of the proposals include the following:A New Caregiving Benefit This benefit will provide eligible caregivers up to 15 weeks of EI benefits while they are temporarily away from work to support or care for a critically ill or injured family member…. Read more »

TAX TICKLERS… some quick points to consider…

CRA’s My Account for Individuals and My Service Canada Account are now linked such that users can easily switch between online personal tax information and other benefits (ex. EI, CPP, and OAS). Employers will soon be able to distribute T4s electronically (provided certain conditions are met). In September 2016, the CRA transmitted 315,160 banking records… 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… 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 »

A Taxable Benefit? MEAL REIMBURSEMENTS

In a June 10, 2016 French Technical Interpretation, CRA commented on whether an employer had conferred a benefit to an employee where the employee was reimbursed for their meal expenses.Generally, an employee must include the value of any benefits received or enjoyed in their taxable income. CRA normally considers a taxable benefit to be conferred when: the benefit provides an economic advantage to the… Read more »

Requirements for Deduction: EMPLOYMENT EXPENSES

In a May 26, 2016 Technical Interpretation, CRA summarized the conditions that must be met in order for an individual that earns employment income to deduct employment expenses. Deductible expenses are limited to only a select group described in the Income Tax Act.Generally, an employee may deduct costs of employment related expenses if: under the contract of employment, the employee… Read more »

some quick points to consider… TAX TICKLERS

A review of the Income Tax Act is to be completed by June 30, 2017. The Federal Government has noted it plans to implement initiatives aimed at simplifying the system. Does your corporation make sales to other corporations in which you or another relative has an interest? If so, your access to small business tax rate… Read more »