Income Tax

As we are in the final quarter of 2020, many wonder if they are subject to U.S. Income taxes due to the travel restrictions earlier in the year! Good News: Yes, there is an exception available! Generally, if you meet the substantial presence test (SPT), you are subject to U.S. income tax filing requirements. May Canadians spend a significant portion of the year in the U.S. especially in...

Canada Emergency Wage Subsidy (CEWS) has been providing significant support to Canadian jobs by covering 75% of employee’s wages (sometimes up to 85%, see new CEWS rules).A total of $35.31 billion has been paid under CEWS to unique applicants of 312,750 against 1,094,330 applications made by them (see updated...

The Canada Revenue Agency (CRA) has introduced additional reporting requirements for T4 Information returns of 2020. The purpose of these additional requirements is to validate the benefit payments to Canada Emergency Response Benefit (CERB), Canada Emergency Students Benefits (CESB) and Canada Emergency Wage Subsidy (CEWS). All of these programs provide much-needed relief and support to...

It is not unusual for Canadian businesses to expand into the United States. U.S. and Canada have two different tax systems and such a decision needs careful planning and consideration. In this post, we are going to have a quick overview of different structures that can be adopted by Canadian businesses to operate in the United States. This post is meant to be a simplified version for readers...

In Canada, there are different types of corporations for tax purposes. Canadian Controlled Private Corporations (CCPC) enjoy lower income tax rates on corporate profits because of small business deduction. In order to qualify for the CCPC status, certain requirements need to be met. For example, the control of the corporation should not be with a non-resident or public corporation. Word of...

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 businesses, is one of the most complex tax systems in the world. The below...

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 not! So, if you are looking for the answers to the questions like below,...

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 principal residence, converted your principal residence to income-generating...

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 Other Loan Programs for Small Businesses during COVID-19… New Update: T4 might...

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 employed in the entertainment industry, you will generally get a T4 from your...