Corporate Tax Tag

Lifetime Capital Gain Exemption (LCGE), interestingly, as the name indicates, is not an exemption but a deduction!In this post:What is lifetime capital gain exemption (LCGE)?Who is eligible for LCGE and how much is deduction? LCGE Anti-avoidance rulesLCGE Planning StrategiesPurification...

There is integration in the Canadian tax system which does not put a corporate taxpayer at an advantage as compared to an individual taxpayer. This integration is not perfect but still, it works. Whenever an individual shareholder receives dividends from...

Lifetime Capital Gains Exemption in CanadaThe Lifetime Capital Gain Exemption (LTCG) is a very lucrative deduction available to Canadian taxpayers. In 2021, you can deduct up to $892,218 from capital gains when you dispose of Qualified Small Business...

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...

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...

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...