Davidow & Nelson Blog

2016 REMUNERATION

Higher levels of personal income are taxed at higher personal rates, while lower levels are taxed at lower rates. Therefore, individuals may want to, where possible, adjust income out of high income years and into low income years. This is particularly useful if the taxpayer is expecting a large fluctuation in income, due to, for… Read more »

Year End Tax Planning

December 31, 2016 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 2016 YEAR-END TAX PLANNING TIPS INCLUDE: 1) Certain expenditures made by individuals by December 31, 2016 will be eligible for 2016 tax… Read more »

My Account Update: CRA ONLINE SERVICES

In early 2016, CRA updated the “My Account” online service (intended for the individual taxpayer’s exclusive use). This service allows individuals to: • view CRA correspondence, assessments, and balances; • view some income slips for the current and previous years (T4, T5, T3, etc.); • view certain personal limits like RRSP and TFSA contribution room… Read more »

Do You Have the Best Card for Your Needs?: CREDIT CARD COMPARISON

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… Read more »

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… 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 »

Employment Insurance Issues: 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 »

Employer’s Responsibilities to Withhold CPP and EI: TIPS AND GRATUITIES

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 »

TAX TICKLERS… some quick points to consider…

Canada Pension Plan (CPP) – The Federal Government has been consulting on, and intends to continue examining possibilities to enhance the CPP. Principal Residence Exemption (PRE) – A vacation property, even if situated outside of Canada, may be eligible for the PRE. U.S. Real Estate – Sales of U.S. real estate by non-residents are now… Read more »