Corporate Tax

This article focuses on the limited emigration issues specific to shareholders of CCPCs related to their shares. Due to the complex nature of residency issues and tax implications, readers must exercise extreme caution while relying on limited resources on the internet. Every taxpayer has its unique circumstances and should consult a professional tax accountant specializing in tax residency...

Many businesses in Canada have taken advantage of Canada Emergency Business Account (CEBA). The initial program offered $40,000 with 1/4 i.e. $10,000 is forgivable if certain conditions are met. Later on, the program expanded and offered an additional $60,000 with an additional $10,000 forgivable. The forgivable portion of the CEBA loans must be included in the income during the year funds...

Have you recently received a contract offer from a business that has asked you to incorporate yourself? By the way, this is very trendy in the IT and transportation industry! We receive a couple of requests every day for such incorporations. Most of the time, because the “employer” (yes, the word used by these people) requires them to incorporate! Incorporating a business in...

There are many ways small business owners can optimize their corporate income taxes for 2020. This post is for the small to medium-sized businesses operating in the corporate form. Further, we do not recommend relying solely on this post for corporate tax planning purposes. It is always better to consult your corporate tax accountant to get wholesome tax advice.  Government Support to...

Property flipping is an increasingly common practice to buy a property and then reselling it for a quick profit. Property flipping also includes assignment sales a.k.a. shadow flipping. Shadow flipping is the sale of a property before taking possession, mostly in cases of new constructions with builders. Property flipping is a key area of interest for the Canada Revenue Agency (CRA)...

For a while, Silicon Valley in the United States has been a Research and Development hub in the world. Well, that may change soon. According to the 2019 global technology innovation report, the US and China grab the topmost place in the list of emerging research and development hubs. 58% of respondents to the survey conducted by the KPMG thought that silicon will not be the innovation centre...

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...

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...