Insights

Almost a month ago, in May, the government announced expanded eligibility for Canada Emergency Business Account (CEBA). Previously, only the businesses with a minimum of $20,000 in payroll were eligible. After facing a lot of criticism and feedback, the government decided to expand the eligibility program to include...

The Government had rolled out its  Canada Emergency Business Account (CEBA) to support small businesses due to pandemic. Since the start of the program there has been a much criticism over the “exclusion” of certain small businesses. One of the key requirements for CEBA is that a business should have T4 of...

Wondering how to incorporate your business in Canada? Let’s find out the general steps involved to set up a corporation in Canada. 1. Decide if you need to incorporate your business? A lot of times people just go and incorporate their business without carefully considering multiple factors. Incorporating the business is...

Canada is the second-largest trading partner of the United States. Both economies are interconnected and businesses on both sides of borders are subject to two-income tax rules of both countries. There is a Canada-US tax treaty that provides relief from double taxation. Caution: US Income tax, both for individuals and...

U.S. Income tax is one of the most complex tax systems in the world. Being a global leader, many times international businesses get their income connected to the U.S. and they even don’t know it. The first pain-point, especially for small businesses, is an inability to determine if they are subject to U.S. tax or...

Is your bank requesting financial statements? You provided the financial statements, but now they are asking for a notice-to-reader attached to them! In this post, we shall look into what are financial statements, what does notice-to-reader means? Who can issue Notice to Reader in Canada? Effective December 14, 2021,...

Principal residence exemption allows a taxpayer to eliminate capital gains on the disposition (or deemed disposition)  of his/her principal residence in Canada. This post is meant for general information purposes. You can find below a summarised version of different tax rules applicable to you if you have sold your...

Investor Pitch & Business Plans: Have you done TAM, SAM and SOM? Need Capital but having a hard time convincing the investors? Did you do the TAM, SAM, and SOM right? Taking a new business off the ground is a unique experience for everyone. Some of them have it seamless and others stride through various...

Canada Emergency Business Account (CEBA) is a loan program announced by the government of Canada to support small businesses in meeting their operational needs. You can find more information about this program from your bank. Your bank is the only source of information for you. Canada Emergency Business Account and...

Lenders and investors need to see the potential in a business and the credibility of those presenting before they invest in an idea, just like you would do thorough research before buying a house or a car. This is what makes business plans extremely useful and critical to raise loans and investments.  Even a small...

How can I lower my taxes if I am an actor or a person employed in the entertainment industry? This post outlines income tax returns for actors in Canada who are also residents of Canada. Rules are different for a non-resident actor in Canada and can be found here. Actors with Employment Income If you are an actor...

During recent times there is an uptick in E-commerce sales, especially due to COVID-19 Pandemic. With closures of more and more retail stores, customers are ordering online. Amazon is one of the biggest online retailers in the world. Many Canadian businesses have a presence on Amazon, both Amazon Canadian Store and US...

Effective July 05, 2020, there are new rules applicable to non-arm’s length employees and Canada Emergency Wage Subsidy, please read here. In response to COVID-19, the government of Canada has announced a series of relief measures. Canada Emergency Wage Subsidy (CEWS) is one of such measures to provide relief to...

  COVID-19 Crisis has posed an existential threat to small and medium-sized businesses in particular. Small businesses are seeing significantly lower revenues if not completely zero. The government has announced a series of benefits for small and medium businesses to help them through this crisis. There is a lot...

COVID-19 Economic Crisis is a historical event in making! In the future, this economic event of 2020 is going to be referred to alongside the great recession of 1932 and 2008. This will be always a case-study for how diseases and epidemics affect globally connected economies. COVID-19 crisis has certain unique...

How Small Businesses and Entrepreneurs can take advantage of COVID-19 situation – a Positive Perspective There is no doubt about the economic damage inflicted by COVID-19. It has wiped out the savings and growths in investment portfolios, bashed the seniors by wiping lifetime savings and gains in their RRSPs on...

The federal government of Canada has announced a 75% wage subsidy for employers. The purpose of this is to support businesses of all sizes to either re-hire laid-off workers or to not lay-off workers due to decreased demand. Previously the federal government had announced a 10% subsidy for small businesses, that...

Did you forget to include income in your tax return or did not report it at all? You may have underreported your income or missed to report foreign assets, you are liable for the interest and penalties. If there is an intent to deliberately misreport your income and assets, there are additional penalties and even...

COVID-19 is spreading its grasp all over the world. Like other governments, the Canadian government has also stepped in to check the adverse impact of the disease. The government came up with the Canada Emergency Response Benefit (CERB) to help business owners, employees, and self-employed get much-needed financial...