Davidow & Nelson Blog

Shareholders’ Personal Information: COMBINED AUDITS OF OWNER-MANAGED COMPANIES

In a June 18, 2015 Technical Interpretation, CRA was asked about the perceived increase in requests of personal financial information of the shareholders of Canadian corporations selected for audit. Further, questions were asked with respect to information that is requested in relation to the shareholder’s spouse, children or other related parties. In some situations, the… Read more »

Significant Changes Ahead: MULTIPLICATION OF THE SMALL BUSINESS DEDUCTION (SBD)

Measures were proposed in the 2016 Federal Budget to prevent certain corporations from multiplying access to the $500,000 SBD. Some proposals include: Eliminating multiplication of the SBD in “complex partnership structures” where payments are sent from a partnership to non-partner corporations owned by partners, or those related to partners. Broadly speaking, this planning structure enabled each partner to benefit from… Read more »

Who is Really Calling?: CRA SCAMMERS

Over the past while there have been numerous reports of individuals (scammers) impersonating CRA collections agents over the phone and demanding payments for alleged tax debts. The calls can be aggressive, intimidating, and may even threaten arrest by the RCMP or other officials. The scammers may also request payment via various means such as regular… Read more »

Renovations that Pay Off!: HOME ACCESSIBILITY TAX CREDIT

This new non-refundable credit will provide federal tax relief of 15% on up to $10,000 of eligible expenditures per calendar year, per qualifying individual (a person 65 years of age or older at the end of the particular taxation year or a person eligible for the Disability Tax Credit).  If there is more than one… Read more »

Credit cards: Is yours best for you?

Rate Hub provides an array of calculators and tools at www.ratehub.ca/credit-cards  to help individuals and businesses select the most appropriate credit card for their needs. In particular, the tools quantify the dollar value of benefits (such as sign-up bonuses and annual spend rewards) and costs (such as annual fees). These tools can also factor in an individual or business’ different types of spending (such as groceries,… Read more »

Gratuities, CPP and EI

Gratuities or tips received by employees are income earned from employment. However, it must be determined whether these tips are pensionable and/or insurable, that is, whether the employer should be withholding CPP and/or EI. This depends on whether the tips are considered to have been paid by the employer. Administratively, CRA looks at whether the… Read more »

EI Issue: Working but not paying yourself

After leaving a job, an individual may incorporate a business, or invest more time in one that they already operate. The individual may then decide to leave all the money in the corporation, taking no wages. Or, perhaps, the business is unable to pay a salary as it is not making sufficient revenues. Since the… Read more »