Corporate Tax Tag

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...

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 possible legal action including criminal prosecution. What is CRA Voluntary...

Rental income earned by a corporation is considered as property income – investment income. Active business income of Canadian controlled private corporations (CCPC) is subject to preferential tax treatment due to the small business deduction. Earning investment income in a CCPC has tax effects since it affects small business deduction. Property income which is an investment income in...

What is the investment income of CCPC? Investment income includes income from property such as rental income, interest income, dividends, and royalties. Rental income can be either business income or investment income depending on the situation. Corporation tax rates are lower in Canada as compared to personal income tax rates. Corporate tax rates are further lowered for Canadian Controlled...

Canada Tax Filing and Payment Extensions amidst Covid-19 This post is not being updated anymore. Please visit our page income tax services during Covid-19.  Updated on July 27, 2020 Updated on March 18, 2020 (11:45 EST) As announced by Prime Minister Trudeau: Tax filing deadlines are extended until June 01, 2020 Tax Payments are deferred until August 31, 2020 for the amounts due after...

Dividends are paid from the after-tax income of the corporations to shareholders. Whether you want to withdraw the salary from your corporation or pay dividends to yourself, it depends on a specific tax situation. Whether you are opting to withdraw salaries or dividends from a Canadian Controlled Private Corporation (CCPC), because of the integration principle of Canadian tax system taxes...

Businesses and their managers can optimize their corporate business taxes using below simple and effective planning strategies in Canada: Caution: Below post explores tax planning strategies for businesses in Canada without getting into depth. You must consult your corporate tax accountant or Personal income tax adviser before acting on any of them since there might be other factors affecting...

Information Returns for Employers If you are an employer in Canada, you may have the requirement to file different information returns at the end of year. Missing filing of information returns can cost businesses dearly. These information returns include both summaries and slips. Each slip is an information return. Please note that this is different from the filing of information along with...

In Canada, there are a number of income tax changes taking effect from January 01, 2020. You should stay informed of these tax changes to better plan your personal taxes and business taxes in Canada. If you are looking for tax changes available in the 2020 tax season for your 2019 taxes, please navigate to Canada tax changes for 2019. Basic Personal Amount is Changed Starting January 01,...